September 27, 2007

 

Monsanto predicts triple biotech seeds acreage

 

 

Biotech giant Monsanto Co. predicted Wednesday (September 26) it could triple the farming acres of genetically engineered seeds planted worldwide.

 

The world's biggest seed maker said its overseas sales slowed down the last decade due to countries' resistance from biotech crops, which critics call "franken foods". 

 

However, Monsanto is increasing acres planted with its biotech seeds from 95 million today to 270 million, said Brett Begemann, Monsanto's executive vice president of global commercial business.

 

"Strong global adoption of our (seeds) coupled with recent approvals paves the way for expanded growth and sets the stage for new growth as we look to stack and upgrade these products in the coming years," Begemann told a group of stock analysts and investors at the Credit Suisse Chemicals Conference held in New York.

 

Monsanto's stock jumped US$2.91, or 3.6 percent, to close at a new 52-week high of US$83.75 Wednesday.

 

The overall number of acres planted in biotech seeds have increased in recent years, according to the Biotechnology Industry organisation trade group. The group says global biotech crop acreage increased 13 percent between 2005 and 2006, growing from 222 million acres to 252 million acres.

 

In outlining Monsanto's growth opportunities, Begemann highlighted the company's market share in 2007 in Europe, Argentina, India and South Africa. He said Monsanto continues to expect international corn seed sales to grow at a rate of 1 to 2 percent annually through the end of the decade.

 

Begemann said Brazil will be a hot spot for sales growth after it purchased Agroeste seed company. The acquisition boosts Monsanto's market share in Brazil to 40 percent, giving Monsanto outlets it needs to introduce new strains of crops like YieldGard Corn Borer, he said.

 

Monsanto has invested heavily in "advanced breeding" techniques to develop new crops without genetic engineering. Instead, the company uses gene markers and advanced computers to rapidly breed plants with desirable traits.

 

The new breeding program could make it easier to introduce crops in countries where resistance to genetic engineering remains strong.