Monsanto Company is expanding its strong seeds and traits portfolio to include wheat by acquiring the assets of WestBred, LLC, a Montana-based company that specialises in wheat germplasm, the crop's seed genetic material.

 

The investment will bolster the future growth of Monsanto's seeds and traits platform and allow farmers to benefit from the company's experience in drought-, disease- and pest-tolerance innovations.

 

WestBred, owned indirectly by Barkley Seed, Inc., is a premier private wheat germplasm company in the US, with germplasm assets in all classes of wheat. WestBred's existing breeding capabilities and commercial operations will become the centerpiece of Monsanto's wheat platform. In addition, Monsanto will seek public and private partnerships that can help deliver on the promise of technology improvements in wheat for farmers.

 

Because the US$45 million acquisition represents a long-term investment in research and development and breeding, the company does not expect the acquisition to be accretive to earnings until the middle to latter part of the next decade.

 

The transaction will give WestBred access to Monsanto's technology platforms to provide wheat farmers benefits through both breeding and biotechnology. Researchers will be able to apply Monsanto's expertise in conventional and marker-assisted breeding tools to develop better-yielding varieties for US farmers using WestBred's germplasm as a foundation. These seeds will serve as the foundation for the development of new biotechnology traits, which will initially focus on drought tolerance, nitrogen use and higher yield. Biotechnology will be a longer-term prospect, consistent with the company's 8-to-10 year development cycle.

 

Monsanto will also explore herbicide-tolerance and disease-resistance opportunities to meet wheat farmers' needs, but the company's plans do not include further development of the first-generation Roundup Ready trait in wheat.

 

Monsanto also announced that, as part of its investment in the wheat platform, it will form a Wheat Development Advisory Group to help the company as it works to develop and apply new technology for wheat. Initially, the group will be made up of representatives throughout the wheat value chain, who will provide the company feedback on proposed traits and attributes that are needed to improve the productivity and sustainability of wheat production.

 

WestBred, LLC is a premier research and development company for cereal grains in North America. WestBred, LLC combines a rich tradition of growing experience with leading-edge technologies to create and breed the finest cereal grain varieties available today. These licensed varieties are marketed through a network of associate seed companies located throughout North America.

 

Monsanto Company is a leading global provider of technology-based solutions and agricultural products.