December 1, 2006

Early order activity for Monsanto's triple-stack traits in US

Early order patterns in the US for Monsanto's corn seeds and traits have been  reinforcing the company's goals of growing market share and increasing trait penetration, particularly in a triple-stack combination.

In the 2007 growing season, the company's DEKALB and Asgrow national corn brands could have more than 35 percent of all of their seed sold in a triple stack. They would also sell more acres of triple-stacked corn hybrids than hybrids with just one trait. The company's American Seeds Inc. (ASI) subsidiary of regional seed brands could have more than 30 percent of its seed sold as a triple stack. Last year, the mix of triple stacks was 21 percent for DEKALB and Asgrow and 14 percent for ASI.

Monsanto's triple-stack product in corn combines Roundup Ready herbicide tolerance, YieldGard Corn Borer insect protection and YieldGard Rootworm insect protection. In 2006, Monsanto's triple-trait corn technology was planted on 5.8 million acres in the US.

The company expects to grow market share for its national brands as also increase the overall penetration of its corn traits in the US in the next season.

Currents orders suggest that Roundup Ready corn could be planted on more than 40 million acres, compared with more than 32 last year while YieldGard Rootworm insect-protected corn could be planted on more than 15 million acres, compared with 10. Monsanto's triple trait corn technology could be planted on more than 10 million acres, compared with 6 million acres in the 2006-growing season.

During the 2006 growing season, DEKALB and Asgrow brands, registered an increase of 16 percent in customers from the previous year. The on-farm penetration by those farmers rose as well, with more than 60 percent of the total farm acreage planted to a DEKALB and Asgrow hybrid, up from just under 50 percent in the 2005 growing season.