January 29, 2008

Monsanto to shift focus from corn to biotech soy

After years of focusing on corn, Monsanto is developing new biotech soy, to cater to China's growing middle class and health-conscious Americans' demand while still keen about feeding biofuel facilities.

Hugh Grant, Monsanto's president, said that there is a tremendous opportunity behind biofuels, like the demand curve coming out of Asia.

Scott Rozelle, an agriculture economist and China expert said that biofuels will eventually be outweighed by demand from China.

Farmers need new technology to help them squeeze greater yield out of every acre, Rozelle said. They must supply the world while facing shortages of prime cropland and water.

Monsanto, the world leader in developing genetically modified crops and using molecular technology in breeding, gears for a faster pace to meet biofuel needs and burgeoning demand from Asia.

The first to hit the market will be Roundup RReady2Yield soy, which will give farmers a yield increase of between 7 percent and 11 percent beginning in 2009, the company said.

On its heels will be the launch of SmartStax corn, which combines eight traits to boost yield and make it easier for farmers to deal with weeds and pests.

Monsanto sees these as platform technologies to produce soy enriched with heart-healthy Omega 3 fatty acids or modified to produce inexpensive oil that can match the product of olives in dietary benefits.