May 11, 2007

Monsanto says corn output may soar 10 percent in five years

Corn production from minor harvest areas could increase 10 percent within five years due to genetic crop engineering which can help meet global food and fuel needs, an executive from biotech crop Monsanto.

Brett D. Begemann, vice-president of the company's International Commercial division, said increased yields with help from Monsanto, particularly to drought-prone regions, should aid the US goals to achieve targeted ethanol production while keeping food and animal feed prices manageable.

The booming ethanol industry is seen to consume 30 percent of the US corn crop in the next decade which prompted farmers to increase its acreage of 90.5 million, according to the US Department of Agriculture.

High yields on marginal land would keep productivity from falling as acres rise, Begemann said, adding genetically-engineered seeds will enhance the capacity of farmers to increase its corn production and achieve its targeted production.

Developing countries have criticised Monsanto for selling expensive seeds that can't be replanted which force farmers to purchase seeds every year.

Y.S. Rajasekhara Reddy, chief minister of Andhra Pradesh, the fifth-most-populous state in India, said Monsanto's cost is very costly and all the research should not be at the poor farmers' expense.

Begemann said farmers in emerging markets can respond to market forces, choosing to buy or not buy seeds that give them the most profitable crops.

Monsanto shares fell 82 cents to US$58.82 per share in New York composite trading. The stock has gained 12 percent this year.