Whistle Stop V - Monsanto

Whistle Stop V 

AUGUST 11-12, 2010 

INVESTOR EVENT 

Water Utilization Learning Center 

®

Forward-Looking Statements 

Certain statements contained in this presentation are "forward-looking 

statements," such as statements concerning the company's anticipated 

financial results, current and future product performance, regulatory 

approvals, business and financial plans and other non-historical facts. 

These statements are based on current expectations and currently 

available information. However, since these statements are based on 

factors that involve risks and uncertainties, the company's actual 

performance and results may differ materially from those described or 

implied by such forward-looking statements. Factors that could cause or 

contribute to such differences include, among others: continued 

competition in seeds, traits and agricultural chemicals; the company's 

exposure to various contingencies, including those related to intellectual 

property protection, regulatory compliance and the speed with which 

approvals are received, and public acceptance of biotechnology products; 

the success of the company's research and development activities; the 

outcomes of major lawsuits; developments related to foreign currencies 

and economies; successful operation of recent acquisitions; fluctuations 

in commodity prices; compliance with regulations affecting our 

manufacturing; the accuracy of the company's estimates related to 

distribution inventory levels; the company's ability to fund its short-term 

financing needs and to obtain payment for the products that it sells; the 

effect of weather conditions, natural disasters and accidents on the 

agriculture business or the company's facilities; and other risks and 

factors detailed in the company's most recent periodic report to the SEC. 

Undue reliance should not be placed on these forward-looking 

statements, which are current only as of the date of this presentation. The 

company disclaims any current intention or obligation to update any 

forward-looking statements or any of the factors that may affect actual 

results. 

Trademarks 

Trademarks owned by Monsanto Company and its wholly-owned 

subsidiaries are italicized in this presentation. All other trademarks are 

the property of their respective owners. 

© 2010 Monsanto Company 

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Pipeline Resources 

Understanding the Pipeline 

Valuing the Pipeline 

Pipeline Overview 

Gothenburg Water Utilization Learning Center 

Welcome 

Contents 

Commercial Field Tours 

Genuity SmartStax, Genuity VT Triple PRO and Genuity VT Double PRO 

Genuity SmartStax and Genuity VT Double PRO Refuge in a Bag 

Genuity Roundup Ready 2 Yield 

Corn Pipeline Field Tours 

Drought-Tolerant Corn Family¹ 

Nitrogen-Utilization Corn¹ 

Higher-Yielding Corn¹ 

YieldGard Rootworm III 

YieldGard Corn Borer III 

Dicamba-, Glufosinate-, and Glyphosate-Tolerant Corn 

Soy Pipeline Field Tours 

Dicamba-Tolerant Soybeans 

Insect-Protected Genuity Roundup Ready 2 Yield Soybean Family 

Higher-Yielding Soybean Family¹ 

Soymega SDA Omega-3 Soybeans² 

Vistive Gold Soybeans 

Additional Pipeline Projects 

Roundup Hybridization System for Corn 

FOPs-Tolerant Corn 

Soybean Nemotode Resistance³ 

Dicamba- and Glufosinate-Tolerant Cotton 

Genuity Bollgard III Cotton 

Drought-Tolerant Cotton Family¹ 

Cotton Lygus Control 

Genuity Roundup Ready 2 Canola 

Higher-Yielding Canola¹ 

Background: The Tools of Our Innovation 

Germplasm 

Genomics 

Breeding 

Biotechnology 

1 Part of the Monsanto-BASF Yield and Stress R&D Collaboration; ²Part of the Monsanto-Solae Collaboration; 

³Part of the Monsanto-BASF R&D Collaboration 

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WHISTLE STOP V 

This is the fifth of Monsanto’s 

summer field events for investors 

and analysts. Hosted by 

Monsanto’s executive team, this is 

an opportunity to experience 

Monsanto’s rich pipeline and 

commercial diversity in the field, 

guided by our top agricultural 

experts. 

WEDNESDAY, AUGUST 11, 2010 

9:30 AM Buses arrive at Lincoln Airport 

Event Schedule 

11:00 AM Buses depart to Gothenburg Water Utilization Learning Center 

Lunch provided 

1:30 PM Arrive at Gothenburg Water Utilization Learning Center 

2:00 PM Welcome and Opening Remarks 

Hugh Grant Chairman, President and 

Chief Executive Officer 

Commercial Mid-Season Update 

Robb Fraley Executive Vice President, 

Chief Technology Officer 

Brett Begemann Executive Vice President, 

Seeds & Traits 

Ted Crosbie Vice President, 

Global Plant Breeding 

Learning Center Welcome and Safety Overview 

Chan Mazour Water Utilization Learning 

Center Manager 

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WEDNESDAY, AUGUST 11, 2010 – (CONT.) 

COMMERCIAL FIELD TOURS 

2:45 PM Genuity VT Triple PRO, Genuity VT Double PRO & 

Genuity SmartStax 

5:15 PM Q&A Session 




Chism Craig Technology Development Manager 

Site A 

Refuge in a Bag Site B 



Hobart Beeghly Vice President, U.S. Seeds & Traits 

Product Management 

Tom Eickhoff Monmouth Learning Center 

Manager 

Genuity Roundup Ready 2 Yield Site C 

Mike Stern Vice President, U.S. Commercial 


Dan Zinck Regional Agronomy Lead – 

Asgrow/DEKALB 

Breeding and Germplasm Site D 

Ted Crosbie Vice President, 

Global Plant Breeding 

Sam Eathington North America Corn Line 

Development Breeding Director 

Calvin Treat Global Soybean Breeding Lead 

WATER UTILIZATION LEARNING CENTER 



Carl Casale Executive Vice President, 

Chief Financial Officer 

Ted Crosbie Vice President, Global Plant Breeding 



Hugh Grant Chairman, President, and 

Chief Executive Officer 

Consuelo Madere President, Monsanto 

Vegetable Seeds 

Steve Padgette Vice President, Biotechnology 

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WEDNESDAY, AUGUST 11, 2010– (CONT.) 

DINNER 

6:00 PM Depart for Feather River Winery 

6:30 PM Cocktails and dinner hosted by the Executive Team, 

Technology Leadership Team, and Local Growers 

8:00 PM Depart for Holiday Inn and Hampton Inn Hotels 

8:20 PM Arrive at Holiday Inn and Hampton Inn Hotels 

8:30 PM Informal Cocktails at Holiday Inn and Hampton Inn 


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THURSDAY, AUGUST 12, 2010 


6:00 AM To-Go Coffee and Tea Service Holiday Inn 

Hampton Inn 

6:45 AM Buses Depart for Water Utilization Learning Center 

7:25 AM Arrive at Water Utilization Learning Center 

7:30 AM Breakfast 

BREAKFAST 

7:45 AM Technology Leadership Q&A 

David Fischhoff Vice President, Technology, Strategy & 

Development 

Bob Reiter Vice President, Breeding Technology 

Phil Miller Vice President, Regulatory 

FIELD TOURS: Pipeline and Technology 

8:15 AM Drought-Tolerant Corn Site 1 

Steve Padgette Vice President, Biotechnology 

John Goette Trait Licensing Lead, Global 

Agreements 

Chandler Mazour Gothenburg Learning Center 

Manager 

Corn Pipeline: 

Nitrogen Use Efficiency 

Higher-Yielding 

Dicamba-, Glufosinate- and Glyphosate- 

Tolerance 

Insect-Control Traits 

Dusty Post Global Corn Technology Lead 

Tom Eickhoff Monmouth Learning Center Manager 

Mark Reiman Gothenburg Learning Center 

Agronomist 

Soy Pipeline: 

Dicamba-Tolerance 


Insect-Protected 

Value Traits 

Roy Fuchs Global Oilseeds Technology Lead 

Bob Reiter Vice President, Breeding Technology 

Troy Coziahr Monmouth Learning Center 

Agronomist 

Site 2 

Site 3 

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10:15 AM Closing Remarks 

THURSDAY, AUGUST 12, 2010 (CONT.) 

CLOSING 

Hugh Grant Chairman, President and Chief 

Executive Officer 

10:45 AM Buses Depart for Lincoln Airport 

1:45 PM Buses Arrive at Lincoln Airport 


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Pipeline Process and Phases 

Understanding the Pipeline 

The product pipeline tracks through five phases. The early phases abound with 

investigative activity as our researchers systematically test concepts, models and 

leads for products whose commercial introduction may still be a decade away. Tens 

of thousands of candidates are screened and tested for every project that makes its 

way through all five phases, eventually reaching the market. 

It is generally reasonable to think about each phase as a two-year stage, although 

that can vary depending on technical milestones and external factors like regulatory 

approvals. Whenever we discuss projects, we’ll do so in terms of the phase it is in, 

rather than a specific launch date. This approach provides a better indicator of a 

project’s actual status in the development process, and it acknowledges the 

variability inherent in the specific timing of any commercial launch. 

Phase Description 

Discovery Conduct high-throughput screening of genetic 

database to identify valuable plant traits that 

can be used in our breeding program and 

valuable genes that can be used to improve 

plants. Apply screens to broad categories of 

interest, identifying multiple leads that can be 

investigated. Within each project category, 

there are specific research platforms that guide 

discovery work. The ongoing research within 

each discovery platform will generate new 

project leads, which are designated with a 

description and added in Phase 1. 

1 Test gene configurations in plants to screen for 

desired performance. Determine which product 

leads show the most promise for application to 

core crops. 

2 Conduct lab and field testing of genes in plants 

to select commercial product candidates and to 

meet regulatory requirements. 

3 Demonstrate efficacy of traits in elite 

germplasm. Develop regulatory data as 

appropriate. 

4 Produce bulk seed for potential sale, develop 

plans for commercialization/launch, and 

respond to regulatory processes as 

appropriate. 

Average 

Duration 1 

24 to 48 

months 

12 to 24 

months 

12 to 24 

months 

12 to 24 

months 

12 to 36 

months 

1 Time estimates are based on our experience; they can overlap. Total development time for any 

particular product may be shorter or longer than the time estimated here. 

2 This is the estimated average probability that the traits will ultimately become commercial products, 

based on our experience. These probabilities may change over time. Commercialization is dependent 

on many factors, including successful conclusion of the regulatory process. 

Average 

Probability 

of Success 2 

5 percent 

25 percent 

50 percent 

75 percent 

90 percent 

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Valuing the Pipeline 

• Valuation estimates are specific to the traits, regardless of the stacked 

combination in which it is sold. These estimates do not reflect value attributed 

to other traits or germplasm, nor do they include the replacement value of a 

previous generation. (Example: The Genuity SmartStax value in 2020 

represents the incremental gross sales created by the trait and excludes the 

value of the current commercial triple-stack corn product that it replaces). 

• Assumed launch dates coordinate with phase placement in the R&D pipeline 

and normal progression timelines. 

• 2020 value reflects gross sales opportunity in launch country in year 2020 

• Launch country acres reflect areas where technology fits at Monsanto’s 2009 

share in corn and soybeans, for products launching in the United States. For 

cotton and for products launching outside of the United States, launch country 

acres represent the total acre opportunity. 

YIELD AND STRESS VALUATION METRICS 

In 2010, Monsanto and BASF agreed to extend the collaboration established in 2007 

by committing up to an additional $1 billion in research and development and 

adding wheat as the fifth crop. For projects in this segment of the pipeline, there 

are additional key criteria that factor into valuation: 

• Projects are valued as families because individual projects never reach peak 

penetration before successive generation projects are commercialized. (For 

example, the gross revenues in 2020 for the Drought-Tolerant Corn family 

include revenues from the first-generation product that is targeted for the 

drylands, plus the estimated 2020 revenue from the second-generation broad 

acre product.) 

• The profit in Yield and Stress will be shared with BASF, as the collaboration 

structure was established with a commercial-value ratio of 60 percent 

Monsanto – 40 percent BASF. 

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SOYBEAN PIPELINE 

Project Phase 

SUMMARY VALUATION TABLE 

2020 

Value 

Pipeline Overview 

Country of 

Launch 

Acreage 

Potential – 

Country of 

Launch 

Additional 

Geographic 

Opportunity 

Soymega SDA Omega-3¹ 4

Water Utilization Learning Center 

The Gothenburg Water Utilization 

Learning Center was developed to 

provide answers and solutions to current 

questions and issues raised in production 

agriculture. The Learning Center at 

Gothenburg opened in June 2009 and is 

located on a 324 acre research farm in 

conjunction with Technology 

Development, Line Development 

Breeding and Testing groups. The soil 

type at the site is a silt loam and the 

average annual rainfall is 23 inches. 

Farmers in the shadow of the Rocky 

Mountains are challenged with subadequate 

annual precipitation. We help 

farmers achieve their yield and 

productivity goals with an emphasis on 

water utilization. 

From our classroom training and plot 

tours, discovery is the driving force 

behind everything we do. At the 

Gothenburg Water Utilization Learning 

Center we take a three-pronged systemsbased 

approach in helping farmers 

manage drought; native genes selected 

through traditional plant breeding, the 

additive impact of biotech traits and 

finally the additive impact of agronomic 

components of the system. 

Our mission at the learning center is to 

apply innovation and technology to help 

America’s farmers and stakeholders grow 

yield sustainably. Our goal is for famers to 

be successful by producing more 

abundant, healthier quality food, feed, 

and fiber while reducing the impact on 

the environment. 

On behalf of our team and everyone at 

Monsanto, welcome to Gothenburg. 

Chan Mazour 

Water Utilization Learning 

Center Manager 

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PRODUCT CONCEPT 

SmartStax combines eight different 

herbicide-tolerance and insectprotection 

genes – resulting in multiple 

modes of action – to create topperforming 

hybrids for the most 

complete insect and weed control ever 

available to growers. The product 

includes above- and below-ground insect 

protection systems, including Dow 

AgroSciences’ HERCULEX ® I and 

HERCULEX ® RW technologies; 

Monsanto’s YieldGard VT Rootworm/RR2 

and YieldGard VT PRO technologies; and 

two established weed control systems, 

Roundup Ready and Bayer’s Libertylink ® . 

NEED FULLFILLED 

• This product maximizes farmer 

profitability through reduced refuge 

and broadest insect control. 

SmartStax multi modes of actions 

for above and below insect control 

enhances durability with the 

flexibility to move to one technology 

platform on farm; the flexibility to 

increase planting populations and 

access to superior seed. 

Genuity SmartStax Corn 

CURRENT STATUS 

• Launched on 3 million acres with 

broad participation of more than 20 

percent of branded customer base 

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Genuity VT Triple PRO improves upon 

the flagship YieldGard VT Triple stack 

product through the use of Monsanto’s 

second-generation, multiple-mode of 

action, above-ground insect control 

found in Genuity SmartStax. This 

differentiated product protects against 

European and Southwestern corn borer, 

corn earworm and fall armyworm and 

will be featured in the most advanced 

hybrids available from Monsanto. 


• This product provides incremental 

above-ground insect protection and 

a reduced refuge in the southern 

cotton growing regions from 50 

percent to 20 percent. 

Genuity VT Triple PRO 


• Farmers planted Genuity VT Triple 

PRO primarily in the South taking 

advantage of the better aboveground 

insect control and a lower 

structured refuge to 20 percent 

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Genuity VT Double PRO features 

Monsanto’s second-generation, 

multiple-mode of action, aboveground 

insect control found in Genuity 

SmartStax and a single gene for weed 

control. This differentiated product 

protects against European and 

Southwestern corn borer, corn 

earworm and fall armyworm and will 

be featured in the most advanced 

hybrids available from Monsanto. 


• Genuity VT Double PRO offers farmers 

a true choice for a non-rootworm 

control product. The technology 

delivers better insect control through 

multiple modes of action aboveground, 

plus farmers enjoy the 

benefit of a 5 percent structured 

refuge in the Corn Belt. 

Genuity VT Double PRO 


• Successfully placed limited 

quantities on farms this season. 

Strong interest from farmers led to 

the decision to formally launch this 

product in the 2011 growing season. 

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Genuity SmartStax and Genuity VT 

Double PRO Refuge in a Bag 

DISCOVERY PHASE I PHASE II PHASE III PHASE IV 


Monsanto expects to complete the 

investment in its proprietary 

manufacturing processes and deliver in 

2012, pending EPA approval, the 

industry’s first single-bag, 5 percent 

refuge-in-a-bag solution for farmers in 

the Corn Belt. 

NEED FULFILLED 

• Farmers eagerly await the 

opportunity to eliminate their 

structured refuge and simplify their 

planting with “fence-post-to-fencepost” 

farming. Our research shows 

the best way a RIB concept works for a 

farmer without hurting his yield is to 

deploy RIB at a 5-percent refuge level. 

In particular, in a high-pressure insect 

environment, the yield benefit of a 5percent 

refuge over a 10-percent 

option would be clear. Genuity 

SmartStax and Genuity VT Double PRO 

are the only products today that can 

meet that threshold. 


• Monsanto completed the regulatory 

submission to the EPA in separate 

packages for a 5 percent refuge-in-abag 

product for Genuity SmartStax 

and Genuity VT Double PRO. 

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Roundup Ready 2 Yield soybeans 

provide farmers with soybeans that 

are tolerant to the Roundup family of 

agricultural herbicides and have 

enhanced yields compared with firstgeneration 

Roundup Ready soybeans. 

Development data indicated a 7-to-11 

percent yield increase for this trait. 

This product will have the option to 

include Acceleron seed treatment 

products to provide additional yield 

protection. 


Roundup Ready 2 Yield offers farmers a 

true step-change in yield performance 

accomplishing in one year what would 

take seven or more years through 

conventional breeding. Coupled with 

our very best varieties, Roundup Ready 

2 Yield becomes the platform for future 

biotech enhancements to soybeans. 

Genuity Roundup Ready 2 

Yield Soybeans 


Monsanto successfully implemented 

the full commercial launch on 6 million 

acres with over 40 percent of its 

branded customers trying Roundup 

Ready 2 Yield. Nearly two-thirds of the 

U.S. industry has now committed to 

this new technology with Syngenta, 

Dow and several large seed companies 

making the choice to have Roundup 

Ready 2 Yield be their platform for the 

future. 

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Drought-Tolerant Corn 



First-generation drought 

tolerance is targeted to 

minimize uncertainty in 

farming by buffering against 

the effects of water limitation, 

primarily in areas of annual 

water stress. In the United 

States, this area has historically 

been the dryland farms of the 

Western Great Plains. 


Agriculture uses more than 70 percent 

of the world’s fresh water resources. 

Drought-tolerant corn could offer 

farmers one way to reduce agriculture’s 

effect on the environment. Water is also 

the biggest limiting factor in agriculture 

production. Every acre of corn faces 

some degree of water stress at some 

point in the growing season. This 

product could allow farmers to achieve 

more consistent yields even during 

times of water stress. 


The project is in Phase IV, the advanced 

development stage. This phase includes 

developing plans for commercialization/ 

launch, including production seed plans, 

and responding to regulatory processes 

as appropriate. Our goal is to insert the 

drought trait in elite hybrids for either 

Genuity SmartStax or Genuity VT Double 

PRO products or perhaps both. 

Regulatory submissions have been made 

in the U.S., Canada, and other key corn 

markets. 

Part of the Drought-Tolerant Corn Family 

Garden City, KS – July 2010 

Control With Gene 

VALUE CONSIDERATIONS 

2020 Family Value: $250M-$500M 

Launch Country: U.S. 

Family Launch 

Country Acres: 

Additional 

Geographic 

Opportunity: 

PART OF THE MONSANTO-BASF YIELD 

AND STRESS R&D COLLABORATION 

45M-55M 

Brazil, 

Argentina, 

EU27 

Targeted Yield: Reduce yield 

loss by up to 10 

bushels per 

acre in water 

stressed 

environments 

Drought I technology designed for the 10to-13 

million acres of non-irrigated 

western U.S. dryland addresses a critical 

need for farmers. Minimizing yield lost 

during drought stressed conditions 

requires a systems approach using 

biotechnology traits, advanced plant 

breeding for drought tolerance and 

agronomic practices. 

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Second-Generation 

Drought-Tolerant Corn 



The second-generation of 

drought-tolerant corn is 

aimed at boosting yield 

stability for broad-acre 

applications and reducing 

water input required in 

water-limited environments. 


Agriculture uses more than 70 

percent of the world’s fresh water 

resources. Drought-tolerant corn 

could offer farmers one way to 

reduce agriculture’s effect on the 

environment. Water is also the 

biggest limiting factor in agriculture 

production. Every acre of corn 

faces some degree of water stress 

at some point in the growing 

season. This product could allow 

farmers to achieve more consistent 

yields even during times of water 

stress. 


This project is in Phase II, early 

product development. This phase 

includes conducting lab and field 

testing of genes in plants to select 

commercial product candidates 

and for advancement of selected 

events into regulatory testing. 

Part of the Drought-Tolerant Corn Family 

Woodland, CA – July 2010 

Control With Gene 




Family Launch 


Additional 

Geographic 

Opportunity: 

45M-55M 

Brazil, 

Argentina, EU27 

Targeted Yield: 6%-10% yield 

improvement in water 

stress environments 

Drought II technology is designed for broad-acre 

application in the primary corn growing region 

of the U.S. as well as the dryland acres in the 

Western Great Plains. 

Farmers value water-use in “acre-inches of 

water” needed to support yield potential. 

Farmers need 18-to-20 inches of moisture from 

natural or irrigated sources during the growing 

season. Pumped irrigation has a variable cost of 

~$5 per acre inch. 



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Nitrogen-Utilization Corn 



Nitrogen utilization targets 

ways that corn plants can use 

nitrogen more efficiently, 

exploring the potential to 

boost yield under normal 

nitrogen conditions or to 

stabilize yield in reduced 

nitrogen environments. 


Nitrogen is one of the most important 

farm inputs and is the most price 

sensitive to petroleum-input costs. 

Nitrogen prices have been highly 

volatile in recent years and are one of 

the most significant crop inputs for 

farmers. 


The project is in Phase I, the proof of 

concept phase, which includes 

discovering new genes and evaluating 

these genes in our technology 

programs. 

Part of the Nitrogen-Utilization Corn Family 

Response to Applied Nitrogen 

Jerseyville, IL 2009 


2020 Family Value: $250M- 

$500M 


Family Launch 


Additional Geographic 

Opportunity: 

Targeted Yield 

Improvement: 

(At standard application levels 

of nitrogen) 



Sufficient 

nitrogen 

Limiting 

nitrogen 

45M-55M 

Brazil, 

Argentina, 

EU27 

6%-to-10% 

Fertilizer represents one of the largest 

input costs in agriculture (30 to 40 

percent of total variable input costs), with 

nitrogen accounting for approximately 60 

percent of the total fertilizer costs for a 

corn producer. Improving nitrogen-use 

efficiency in corn provides an opportunity 

for increased farmer profitability, while 

also offering a new way to reduce 

agriculture’s overall effect on the 

environment. 

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Higher-Yielding Corn 



Higher-yielding corn is 

aimed at boosting the 

intrinsic yield potential of 

corn hybrids. 


Higher-yielding corn creates additional 

yield for farmers, increasing their 

productivity. As population expands, 

protein demand increases, and 

renewable fuel becomes more 

important, higher yields offer farmers a 

way to better help meet these growing 

demands. Higher-yielding corn 

increases average yield per acre under 

typical growing conditions. 


This project is in Phase II, early product 

development. Phase II includes lab and 

field testing of traits to select 

commercial product candidates and to 

advance the best performing events to 

regulatory trials. 

Part of the Broad-Acre, Higher-Yielding Corn Family 

with Gene Control 


2020 Family Value: $1B-$1.25B 


Family Launch 



Opportunity: 


Improvement: 



45M-55M 

Brazil, 

Argentina, 

EU27 

6%-to-10% 

Increasing yield on existing acres helps to 

make farming more profitable. Producing 

more on the same acre also improves 

land stewardship by not bringing 

additional acres into production to meet 

demand. 

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YieldGard Rootworm III 



YieldGard Rootworm III is designed 

to offer increased control and 

durability against the corn 

rootworm. This next generation 

product aims to use two distinct 

modes of action providing two 

different approaches to insect 

control. Having two modes of 

action supports a lower structured 

refuge, thereby making every acre 

planted more productive. 


The two independent technologies 

would offer increased insect protection 

and durability for the farmer. The corn 

rootworm has been dubbed the 

“billion dollar bug” because of the 

extreme damage that it can do to corn 

crops and because of the input costs 

associated with it. The corn rootworm 

feeds on the roots of the corn plant 

under the soil, limiting the plant’s 

ability to take up nutrients and water, 

and increasing the potential for 

lodging. The first generation of in-plant 

corn rootworm technologies has 

provided significant yield benefits, 

reduced input cost from insecticides, 

and increased protection from 

environmental stress, such as drought. 



development. Lab and field testing of 

genes in plants are being conducted to 

select commercial product candidates 

and to advance the best performing 

events to regulatory trials. 

Jerseyville, IL. Jan 2010 Greenhouse Trial 

Conventional 

MON88017 

RNAi 

RNAi+ Bt 


2020 Value: $500M- 

$750M 


Launch 



Opportunity: 

RNAi+ Bt 

In collaboration with deVGen 

45M-55M 

Brazil, 

Argentina 

The technology incorporates cutting-edge 

RNA interference (RNAi) technology. RNAi 

is a mechanism used naturally by cells to 

regulate gene expression. By harnessing 

this natural machinery, RNAi technology 

can help plants protect themselves from 

corn rootworm feeding damage. 

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YieldGard Corn Borer III 



YieldGard Corn Borer III is designed to 

offer increased control and durability 

against key lepidopeteran pests. This 

next-generation product is designed 

to use two distinct modes of action 

providing two different approaches to 

insect control. Having two modes-ofaction 

supports a lower structured 

refuge, thereby making on farm 

productivity higher. 


Corn Borer III is designed to offer an 

unparalleled combination of insect 

control and resistance management 

with excellent control of target pests 

such as the corn borer complex, fall 

armyworm, corn earworm and 

cutworms. Lepidopteran insects feed 

on the leaves, ear, silk and stalk of the 

corn plant, limiting the plants ability to 

produce grain and causing additional 

losses in poor grain quality. This 

product would offer yield benefits and 

reduced input costs from insecticides. 






and to advance the best performing 


Western Bean Cutworm Control 

with Genes Control 


2020 Value: $500M- 

$750M 


Launch 



Opportunity: 

45M-55M 

Brazil, 

Argentina 

YieldGard Corn Borer III will be one of the 

primary components of our next 

generation of insect control platform 

along with YieldGard Corn Rootworm III. 

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Dicamba-, Glufosinate-, and 

Glyphosate-Tolerant Corn 



The dicamba- and 

glufosinate-tolerant corn 

product is designed to build 

on the Roundup Ready 

platform and provide 

farmers with additional 

herbicide-tolerance options. 


This product would provide additional 

options to growers to control difficult 

weeds. The use of a product 

containing multiple herbicide 

tolerances with different modes of 

action would provide flexible options 

for growers’ to protect their crop from 

yield-robbing noxious weed 

infestations 


The project is in Phase II, early product 




and to advance the best-performing 


¹Glyphosate 3lb/A plus dicamba 1lb/A at V4 

and Glufosinate 0.8 lb/A plus dicamba 1lb/A 

at V7. 

Jerseyville, Illinois – July 2010 

Lead Event Roundup Ready Wild-type 

Glyphosate + Dicamba + Glufosinate, at 2X rates. 

Photos were taken 10 days post the second spray.¹ 


2020 Family Value: $250M- 

$500M 


Family Launch 



Opportunity: 

45M-55M 

Brazil 

Argentina 

EU27 

These herbicide-tolerance options would 

give farmers the flexibility to utilize 

multiple chemistries to lessen the 

possibility of weed resistance or solve 

current weed resistance problems. 

According to the USDA, weeds compete 

with corn for light, nutrients, and water, 

especially during the first three to five 

weeks following emergence of the crop. 

This product would give farmers the 

flexibility and confidence with more 

herbicide-tolerance options to protect 

their high yielding germplasm from 

yield-robbing noxious weed infestations. 

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Dicamba-Tolerant Soybeans 



The addition of dicambatolerance 

to the Genuity 

Roundup Ready 2 Yield 

soybean platform would 

enable the use of dicamba 

and glyphosate herbicide tank 

mixes for pre-plant burndown 

and in-season weed control 

resulting in the most effective 

and highest yielding weed 

management system 

available. 


Effective weed control is critical to 

protect crop yields to meet the 

growing global demand for food, feed 

and fuel. Dicamba-tolerant soybeans 

are expected to be Monsanto’s thirdgeneration 

of herbicide-tolerant 

soybean products. Combining a second 

mode of action for herbicide tolerance 

with the Genuity Roundup Ready 2 

Yield technology would offer growers 

an additional tool for weed control 

through the use of glyphosate, 

dicamba, or combinations of both 

herbicides, and increased yield from 

the Genuity Roundup Ready 2 Yield 

trait. 


The project is in the advanced 

development stage, Phase III. This 

phase involves demonstrated efficacy 

of traits in elite germplasm and trait 

integration activities. Monsanto 

recently completed regulatory 

submission to the U.S. Department of 

Agriculture and expects to make 

additional submissions for global 

import approvals in key export makers 

over the next several months. 


2020 Value:


Insect-protected soybeans 

use the same Bt technology 

widely adopted in corn and 

cotton to control the 

economically significant 

insect pests in Brazil, 

including the soybean looper 

and velvetbean caterpillar. 

The Bt trait is stacked with 

Roundup Ready 2 Yield for 

excellent weed control and 

yield enhancement. 

Insect-Protected Genuity Roundup 

Ready 2 Yield Soybeans 


Insect protection is an important tool to 

increase farmers’ yields and reduce 

insecticide applications, helping them 

meet the growing demands for food, feed, 

and fuel. Insect-protected soybeans with 

Roundup Ready 2 Yield have 

demonstrated higher yields and improved 

insect control compared with commonly 

applied insecticide treatments, providing 

potential cost savings and enhanced yield 

performance. Insect-protected soybeans 

are the first Monsanto trait product to be 

developed exclusively for a non-U.S. 

market, notably Brazil, where insect 

pressure is a significant challenge in 

soybean production. 


This project is in Phase IV, the advanced 

development stage. This phase includes 

developing plans for commercialization/ 

launch, including seed production plans 

and obtaining global regulatory 

approvals. 

Part of the Insect-Protected Soybean Family 


Morrinhos, Brazil – 2009/2010 Season 



Launch Country: Brazil 

Family Launch 


Additional 

Geographic 

Opportunity: 


Improvement: 

50M-60M 

Argentina 

10% over 

current 

Roundup 

Ready varieties 

This product would also offer insecticide 

substitution, based on two current 

sprays reducing input costs by $5-to-$6 

per acre. Additional yield benefits are 

expected from improved insect control 

and Roundup Ready 2 Yield 

technologies. 

26 

25

Second-Generation Insect-Protected 

Genuity Roundup Ready 2 Yield Soybeans 



This product is the second generation of 

insect-protected soybeans using the same 

Bt technology widely adopted in corn and 

cotton to control economically significant 

insect pests in Brazil. This product targets 

improved spectrum and durability 

compared to the first-generation product. 


Insect pressure is a significant 

challenge in soybean production in 

Latin America. This second-generation 

insect-protected soybean product will 

be combined with the first-generation 

Insect-Protected Roundup Ready 2 

Yield product to target enhanced insect 

control through broader spectrum and 

greater durability than the firstgeneration 

product which is currently 

in Phase IV development. 


This project is in Phase I, which 

includes testing genes and gene 

combinations in plants to screen for 

protection against economically 

important Lepidopteran and 

Spodopteran insect pests to determine 

which genes or combination of genes 

show the most promise for further 

advancement to commercial 

transformation. 

Part of the Insect-Protected Soybean Family 

Tucumán, Argentina – March 2010 

With Gene 


2020 Family Value: $250M-500M 

Launch Country: Brazil 

Family Launch 



Opportunity: 

Control 

50M-60M 

Argentina 

The second-generation insect-protected 

product will contain at least two distinct 

modes of action to enhance the spectrum 

of insects controlled and increase 

durability. 

27 

26


Higher-yielding 

soybeans are aimed at 

boosting the intrinsic 

yield potential of 

soybeans. 

Higher-Yielding Soybeans 

Part of the Broad-Acre, Higher-Yielding Soybean Family 




With Gene 

Higher-yielding soybeans create 

additional yield for farmers, increasing 

their productivity. Higher yields are 

increasingly important as the global 

population continues to expand and as 

soybean growers strive to meet the 

growing demand for biodiesel and 

cooking oils. Additionally, as protein 

demand increases in key importing 

markets such as China, higher yields 

offer farmers a way to better help 

meet this demand. 

This project is in Phase III where 

activities include work to test the 

efficacy of traits in elite germplasm as 

well as the preparation of data for 

regulatory submissions. Across six 

seasons of U.S. and Latin American 

testing, higher-yielding soybeans 

showed an average of 7.7 percent yield 

advantage compared with the control. 

New Richmond, IN – August 2009 




Family Launch 



Opportunity: 


Improvement: 

35M-45M 

Brazil 

Argentina 

6-to-10% 

This product would offer the potential to 

produce more yield per acre, thus 

increasing grower profitability. 



Without Gene 

28 

27


This is a second-generation product 

that would provide an upgrade to 

first-generation higher-yielding 

soybeans. This product is aimed at 

boosting the intrinsic yield 

potential of the soybean through 

insertion of genes designed to 

increase soybean yields. 

Second-Generation 

Higher-Yielding Soybeans 

Part of the Broad-Acre, Higher-Yielding Soybean Family 



Higher-yielding soybeans create 

additional harvestable yield for 

farmers, increasing their productivity. 

Higher yields are becoming 

increasingly important as global 

population continues to expand and as 

soybean growers strive to meet the 

growing demand for biodiesel and 

cooking oils. Additionally, as protein 

demand increases in key importing 

markets like China, higher yields offer 

farmers a way to better help meet this 

demand. 


This project is in Phase I, proof of 

concept, which includes testing gene 

configurations in plants to screen for 

desired performance and determining 

which product leads show the most 

promise for commercial 

transformation. 

Conventional 

Soybean 




Family Launch 



Opportunity: 




Soybean 

35M-45M 

Brazil 

Argentina 

When stacked with first-generation yield 

products and the superior weed control 

provided by Genuity Roundup Ready 2 

Yield, this product would deliver an 

incremental yield increase compared with 

first-generation higher-yielding soybean 

varieties. 

29 

28

Soymega SDA Omega-3 Soybeans 



Omega-3 enhanced soybeans 

represent a sustainable, land-based 

source of essential omega-3 fatty 

acids. This product is targeted to 

produce 20 percent stearidonic acid 

(SDA) omega-3 fatty acid in soybean 

oil while retaining the taste, shelf life 

and oil stability of soybean oil. Upon 

consumption SDA is readily converted 

to EPA, a heart-healthy omega-3. 


Consumer demand for omega-3 fatty acids is 

growing as research continues to demonstrate 

that omega-3s play an important role in 

maintaining health, including heart health. This 

omega-3 containing product could be used in a 

broad range of food products since it has a 

similar taste, shelf-life and oil stability profile 

as soybean oil. SDA omega-3 enriched soybean 

oil has a superior nutritional and taste profile 

to fish oil and thereby could provide significant 

benefits to consumers and food processors. As 

land-based source of omega-3 oil, this product 

offers an alternative to fish-based omega-3 oil. 


The project is in pre-launch stage, Phase IV. 

The U.S. Food and Drug Administration has 

issued a positive response letter to Monsanto’s 

Generally Regarded as Safe notice, that SDA 

soybean oil can be used in foods and 

beverages. Regulatory submissions have been 

completed in the U.S. and in most key 

international markets. Through collaboration 

partner, Solae, food companies are currently 

evaluating oil appropriate products. 


2020 Value:

Vistive Gold Soybeans 



Vistive Gold was designed by 

combining breeding and 

biotechnology. This lowers linolenic 

and saturated fat content while 

boosting oleic content to produce 

oil with the monounsaturated fat 

content of olive oil and low 

saturated fat content of canola oil. 

Vistive Gold could improve 

consumer health by reducing trans 

fat and saturated fat, could also 

improve food product performance 

by increasing oxidative stability and 

fry life, and may provide a 

sustainable global supply of 

vegetable oil. 


Worldwide vegetable oil demand is 

projected to grow 70 percent by 2020; 

over 80 percent of the oil produced 

worldwide is used for food. 

Vistive Gold meets recommendations 

from the 2010 U.S. Dietary Guidelines 

Committee to further reduce saturated 

fat and eliminate industrial trans fat 

from the diet. 

The food industry is searching for costeffective, 

sustainable solutions. 


The project is in the pre-launch stage, 

Phase IV. The U.S. Food and Drug 

Administration has issued a positive 

response letter to Monsanto’s 

Generally Regarded as Safe notice, that 

Vistive Gold soybean oil can be used in 

foods. Regulatory submissions have 

been completed in the U.S. and key 

global regulatory submissions are 

underway. 

Grams Saturated and Trans Fat 

Enables “Clean Labels” 

(no trans-fat, low saturated fat) 

Vistive Gold reduced total saturated 

and trans fat 67% in French Fries 

10.5g 

“Trans 

and 

Saturated” 

Hydro Soy Oil 

Medium French Fry (114g serving size/27g total fat). Trans fat reduced from 

15.7% to 0.3%; Saturated fat reduced from 23.4% to 13.2% of total fat. 


2020 Value:

Additional Pipeline Projects 

Corn Pipeline 

PAGE 32 Roundup Hybridization System 

PAGE 33 FOPs-Tolerant Corn 

Soybean Pipeline 

PAGE 34 Soybean Nematode Resistance¹ 

Cotton Pipeline 

PAGE 35 Dicamba- and Glufosinate-Tolerant Cotton 

PAGE 36 Genuity Bollgard III 

PAGE 37 Drought-Tolerant Cotton Family² 

PAGE 38 Cotton Lygus Control 

Canola Pipeline 

PAGE 39 Genuity Roundup Ready 2 Canola 

PAGE 40 Higher-Yielding Canola² 

1 Part of the Monsanto-BASF R&D Collaboration. 

² Part of the Monsanto-BASF Yield and Stress R&D Collaboration. 

32 

31

Roundup Hybridization System 



This is a first-generation 

product to replace detasseling 

in hybrid seed corn production, 

reduce cost of goods, and 

enable Monsanto’s 

commitment to continuous 

improvement in regards to 

human rights. 


This technology would play an 

important role by significantly lowering 

the cost of hybrid seed corn production 

by reducing the need for temporary 

labor to perform manual detasseling. 

With 80-to-90 million acres of U.S. corn 

produced and over 32 million units of 

corn sold annually, more than 450,000 

acres of seed must be detasseled by 

more than 50,000 people each year in 

a two- to three-week window. 


The project is in Phase III. This phase 

involves demonstrated efficacy of traits 

in elite germplasm, trait integration 

activities and the generation of data to 

support regulatory submission. 

Untreated Treated 


2020 Value:

FOPs-Tolerant Corn 



The next-generation herbicide-tolerant 

corn product is designed to build on the 

Roundup agricultural herbicide platform 

and provide farmers with additional 

herbicide-tolerance options. 


This product is designed to provide 

alternative in-crop solutions to difficult 

weed management problems. A FOPstolerant 

trait would enable post 

emergence grass control choices for 

farmers. The use of a product 

containing multiple herbicide 

tolerances with different modes of 

action would provide flexible options 

for growers’ to protect their crop from 

yield-robbing noxious weed 

infestations. 



concept phase, which includes 

discovering new genes and evaluating 

these genes in our technology 

programs. 

20 Days After Treatment – July 2010 

+ Gene + Gene - Gene 

Unsprayed Sprayed Sprayed 


To be decided when project enters Phase II 

Farmer Value – According to the USDA, 

weeds compete with corn for light, 

nutrients and water, especially during the 

first 3-to-5 weeks following the 

emergence of the crop. This product 

would give farmers the flexibility and 

confidence with more herbicide-tolerance 

option to protect their high-yielding 

germplasm from yield-robbing noxious 

weed infestations. 

34 

33

Soybean Nematode Resistance 



Soybean nematode resistance is a 

biotechnology approach to provide 

superior control of Soybean Cyst 

Nematode (SCN) compared with 

current genetic sources of control 

that are available in commercial 

germplasm. 


Soybean cyst nematodes cause 

significant losses in soybeans in the 

United States each year. The 

prevention of yield losses caused by 

weeds, diseases and pests is required 

to maximize soybean yields. SCN 

resistance, when combined with 

Genuity Roundup Ready 2 Yield, would 

provide growers with improved control 

of the SCN pest, which causes millions 

of dollars in yield loss each year, and 

would lead to superior yields. 


This project is in Phase I, which 

includes testing genes and gene 

combinations in soybeans to screen for 

SCN control and determining which 

gene(s) show the most promise for 

commercial transformation. 

Jack Jones, Louisiana Ag Experiment 

Station – LSU, 2008 

Susceptible Tolerant 



This product would provide superior 

control of soybean cyst nematode when 

compared with current sources of control 

from breeding and increase soybean 

yields for growers. 

Soybean root infested by cyst 

nematode 

PART OF THE MONSANTO-BASF R&D COLLABORATION 

35 

34

Dicamba- and Glufosinate- 

Tolerant Cotton 



This product would represent 

Monsanto’s first stack of 

herbicide-tolerant technologies 

in cotton, containing Genuity 

Roundup Ready Flex stacked 

with dicamba- and glufosinatetolerance 

for three unique 

modes of action. This would 

provide cotton growers with the 

most effective weed 

management system available. 


Effective weed control is an important 

tool to increase farmers’ yields and 

maintain fiber quality. Dicamba- and 

glufosinate-tolerant (DGT) cotton is the 

third-generation of herbicide tolerance 

in cotton. Combining dicamba 

tolerance and glufosinate tolerance 

with Genuity Roundup Ready Flex 

would expand weed control options for 

farmers to glyphosate, dicamba or 

glufosinate, or combinations of all 

three herbicides. 


This project is in Phase III, the 

advanced development stage. This 


of traits in elite germplasm and 

development of regulatory data and 

obtaining regulatory approvals. 

Macon County, Georgia – July 2010 

Roundup + Dicamba Pre 

Glufosinate delayed early post 


2020 Value:

Genuity Bollgard III Cotton 



The third-generation of 

insect control in Bollgard III 

is being developed to 

provide season-long 

protection from the widest 

range of caterpillar pests 

with multiple modes of 

action. 


Insect protection is an important tool 

for increasing farmers’ yields and 

maintaining fiber quality. This would 

be an upgrade for farmers, as the 

third-generation of Bollgard 

technology. The first-generation 

primarily targeted tobacco budworm, 

pink bollworm and cotton bollworm; 

the second-generation added a 

second Bt gene to include beet and 

fall armyworms and bolster 

protection against resistance. 

Bollgard III will ensure that all of the 

insects targeted by the first- and 

second-generation products are 

controlled by multiple proteins, 

ensuring maximum efficacy with a 

diversity of insecticidal proteins. 



development, which includes 

conducting lab and field testing of 

genes in plants to select commercial 

product candidates and meet 

regulatory requirements. 

Third Instar Fall Armyworm Assay 

Greenhouse – April 2010 

Control 


2020 Value:


Drought-tolerant cotton is 

designed to minimize risk in 

cotton farming by providing 

yield stability in environments 

experiencing occasional or 

consistent water stress and 

reduce water needs on 

irrigated acres. 


Drought-tolerant cotton would offer 

farmers a compelling way to produce 

more yield while maximizing valuable 

available water. Most cotton acres 

experience some degree of water 

stress during the growing season, and 

water is one of the major limiting 

factors in agriculture production. This 

product would enable farmers to 

achieve more consistent yields. 



concept phase. A number of gene 

leads are being evaluated in the field 

under stress and non-stress conditions. 

This product is considered to be the 

first generation in a family of stress 

tolerance traits. 

Drought-Tolerant Cotton 

Part of the Drought-Tolerant Cotton Family 


Shallowater, TX – September 2009 

With Gene Control 


2020 Value: To be decided when project 

enters Phase II 


Launch 


Additional 

Geographic 

Opportunity: 

8M-11M 

India, Australia, 

Brazil 

Drought-tolerant cotton is expected to 

reduce crop losses on dry-land acres, to 

increase yield under periodic drought 

conditions and to reduce water costs on 

irrigated acres. 



38 

37


This product would extend the 

spectrum of cotton insect control to 

lygus bugs, piercing, sucking insects 

that damage bolls and reduce 

overall plant health and yield. 


Insect protection is an important tool 

for increasing farmers’ yields and 

maintaining fiber quality. The Lygus 

genus consists of several species, all 

with a piercing and sucking feeding 

habit that causes damage to 

reproductive tissues in cotton, 

damaging boll development. 

Historically managed to some extent by 

the heavy insecticide sprays used to 

control worms, this pest has emerged 

as the next unmet need in cotton 

production in the wake of the great 

success of Bollgard and Genuity 

Bollgard II. 


The project is in Phase I of our pipeline, 

the proof of concept phase. Active 

proteins have been identified and gene 

leads are being advanced for testing in 

cotton. 

Cotton Lygus Control 


without Protein with Protein 

Artificial Diet Assay 



According to Mississippi State University 

researchers, lygus bugs infested half of 

the U.S. cotton crop in 2006. Lygus 

infestations reached historic highs in 2007 

in the mid-South with an average cost of 

approximately $30 per acre to control the 

pest. Lygus is now the most damaging 

insect to U.S. cotton. 

39 

38

Genuity Roundup Ready 2 Canola 



This second-generation weedcontrol 

trait aimed at providing 

farmers with greater flexibility 

and improved weed control. 

Farmers would have a wider 

window of application – up to 

first flower – at a higher 

application rate of Roundup 

herbicide enabling them to 

control tough-to-kill perennial 

weeds in their canola fields. 


Improved and more flexible weed 

control would give farmers the 

opportunity to help ensure yieldrobbing 

weeds are removed at the 

optimal time. 


This project is in Phase III, the 

advanced development stage. This 


of traits in elite germplasm and 

development of regulatory data and 

obtaining regulatory approvals. 

Leduc, Alberta – 2009 

Roundup Ready Roundup Ready 2 


2020 Value:

Higher-Yielding Canola 



This product would provide 

farmers with enhanced yields 

with a target of a 10 percent 

yield increase compared with 

second-generation Roundup 

Ready canola. 


Higher yields are important as 

population expands and as canola 

growers look to meet growing demand 

for biodiesel and cooking oils. Higheryielding 

canola would create additional 

harvestable yield for farmers, 

increasing their productivity. 


This project is in Phase II, early 

development. This includes conducting 

lab and field testing of genes in plants 

to select commercial product 

candidates and to identify the best 

performing events to advance to 

regulatory trials. 

Oriska, ND – 2008 


2020 Value:

Background: 

The Tools of Our Innovation 

At the heart of our business is our science. But translating science into 

innovation — elevating basic research into breakthrough discovery — 

does not come easily. Success in research is the product of 

commitment. It requires that many elements work in concert to do 

more and to do it faster. Monsanto’s leadership in research exists 

because we have the dedicated people, cutting-edge tools, and 

proven experience to make science work in new ways for agriculture. 

In this section, we break down the tools of innovation and show you 

the sophisticated interaction between these tools as they are applied 

to bring new products forward in a company that sells seeds and traits. 

42 

41

DEFINITION 

Germplasm 

Germplasm is the genetic raw material contained in all the plants of a species. Within 

the germplasm are the basic characteristics that make plants what they are. Breeding is 

based on using germplasm to find the best combinations of characteristics that can make 

plants perform better. 

GERMPLASM IS THE BUILDING BLOCK OF MONSANTO’S SEEDS-AND-TRAITS BUSINESS 

To many people, seed is seed. Not so for farmers. Every type of seed is different. The 

characteristics a corn farmer in Iowa needs in his seed may be vastly different than the 

characteristics a corn farmer needs in Colorado. In fact, the characteristics the Iowa 

farmer needs are less likely to come from corn in Iowa than from places like Asia or 

South America. 

GERMPLASM IS IMPORTANT TO MONSANTO 

Seed germplasm in crops is analogous to bloodstock in thoroughbred race horses. 

Thoroughbred breeders breed the fastest race horses to get the benefit of their genes 

into the next generation. In the same way, seed breeders tap into the best pool of genes 

to create even better seed combinations. We target characteristics such as disease 

tolerance, heat and cold tolerance, and high yield potential to create a seed package that 

gives farmers reliable yield and boosts their profitability. Our germplasm bank — 

assembled from six continents and across all our crop areas — has greater breadth and 

depth than any other germplasm bank in the industry. Every year, our breeders 

exchange more than a million different “packages” of germplasm material, creating a 

global network to breed seed for local farmers. The strength of our germplasm allows us 

to deploy the other tools in our arsenal to breed the highest-performing products, which 

are the commercial gems. 

43 

42

DEFINITION 

Genomics 

Genomics is one of the tools we use to mine germplasm. We find the best combinations 

of characteristics that can be bred or introduced into plants for better products. 

Genomics allows us to map the genes of a plant to understand their structure and the 

role they play in the plant’s function. 

GENOMICS PROBES GERMPLASM TO UNLOCK ITS VALUE 

Using automated, high-volume screening, we sequence literally hundreds of thousands 

of different genes. Everything else in the technology toolbox stems from the genomics 

blueprint of a plant. The map of a plant’s genome sets in motion two research pathways. 

First, gene sequencing can identify very specific genes and their potential function. 

Those genes become targets for new traits, fueling our biotechnology research. Second, 

these maps provide insight into the order and relationships of certain sequences of 

genes. Through testing, those relationships yield markers that provide virtual signposts 

for certain characteristics. Breeders can use those markers within the germplasm to 

identify the best commercial prospects. 

HOW GENOMICS APPLIES TO BIOTECHNOLOGY 

Fundamentally, we search for new product opportunities by working backwards from a 

problem. We first identify a need and then look for ways we can use our tools to address 

it. As we learn about the function of particular genes through many different 

components of genomics function — including sequence analysis, expression profiling, 

phenotypic data analysis, and systems biology — we uncover genes that can become 

targets to address a particular problem. Genomics provides us with the tools and 

methods to characterize genes from a variety of sources and assign the relevant function 

based on their sequence characteristics. Using our biotechnology tools, we can introduce 

these genes into the crops where they can make a difference. 

The automated systems central to genomics work have revolutionized almost every 

aspect of our research work. We’ve brought a new level of standardization to everything 

from the tools that make genes perform better to the quality testing we do to evaluate 

product candidates. 

HOW MARKERS WORK 

Markers are simply pieces of DNA that indicate where genes are located. Through 

sequencing, we generate tens of thousands of random markers. Through breeding 

experiments, we can start correlating those random markers with specific traits. We 

basically create an idealized map of a crop plant, identifying the markers for the key 

traits we want to breed for. Then we screen our germplasm against the idealized map, so 

our breeders can find the germplasm with the unique combinations of genes that will 

deliver the traits they need. 

44 

43

DEFINITION 

Breeding 

Breeding is the process of cross-pollinating plants with desirable qualities to develop 

improved plants in successive generations that combine all the desirable traits in a single 

individual. Molecular breeding is an enhanced tool that involves the use of DNA markers 

for genes in combination with physical measurement of traits to accelerate selection in 

plant breeding programs. Breeding, as we use the term, encompasses both conventional 

breeding and molecular breeding — or marker-assisted breeding. Breeding is one of the 

two core platforms of Monsanto’s technology pipeline. 

NEW APPROACHES HAVE REINVENTED BREEDING 

Breeding is a shorthand term that encompasses a variety of approaches that can be used to 

refine germplasm to select the best attributes that exist within a crop’s genetic stock. Our 

plant breeders select desirable traits from our unique germplasm library and combine 

them into a single crop plant with commercial potential. 

HOW BREEDING IS DIFFERENT TODAY 

For thousands of years, plant breeders have skillfully identified and selected plants with 

the best properties for cultivation. Traditional plant breeding methods have been effective, 

but they are slow. 

Today, the use of breakthrough new technology has reinvented plant breeding. In the 

same time it used to take for traditional breeding work, our plant breeders can more than 

double the rate of “genetic gain” – the improvement in important characteristics such as 

yield and tolerance to environmental stress. 

With the application of technology like computer databases, molecular markers, and the 

tools of analytics, breeders improve the predictability in the inheritance of traits from 

generation to generation. This predictability has made breeding more efficient than at any 

other point in history. For us, the tools of molecular breeding have entirely replaced the 

notion of “conventional” or traditional breeding. Our standard for breeding is molecular 

breeding. 

HOW BREEDING TRANSLATES INTO COMMERCIAL SUCCESS 

Breeding technology today allows our plant breeders to make more informed decisions 

earlier in the process. So, by the time they get into field trials, we’ve already pre-screened 

and eliminated the least powerful breeding stock. That allows us to focus on the 

germplasm that has the best potential for offering a commercially viable combination of 

desirable traits. 

The probability of finding the most effective combination of genes for a single trait 

controlled by just 20 genes is less than one in a trillion. With markers and other breeding 

technologies, however, we can get to that best combination faster, improving those onein-a-trillion 

odds to as good as one in five. 

The upshot is that we identify better products faster. Compared with conventional 

breeding, our breeding program today, is doubling the rate of improvement in key genetic 

characteristics such as yield and important agronomic traits. 

45 

44

DEFINITION 

Biotechnology 

Biotechnology is the application of scientific knowledge to transfer beneficial genetic 

traits to enhance plants’ growth or to provide nutritional or other benefits to farmers, 

food and feed processors, or consumers. Biotechnology is also one of Monsanto’s two 

core technology research platforms. 

TARGETING SPECIFIC OPPORTUNITIES WITH MODERN BIOTECHNOLOGY 

Biotechnology has become shorthand for an extensive process that begins with the 

discovery of a new gene, proceeds through the introduction of genes into plants and 

through the extensive testing and regulatory review, and culminates in the delivery of 

breakthrough products. Biotechnology has led to entirely new products, that have not 

been available in agriculture until the last decade. 

Monsanto pioneered the application of biotechnology to agriculture. For a decade now, 

biotechnology traits have been used commercially around the world, establishing a 

record of proven benefits for farmers, consumers and the environment. 

WHERE DOES BIOTECHNOLOGY OFFER THE MOST VALUE? 

With biotechnology, we’re able to identify a particular trait that accomplishes something 

that may not be as efficiently possible by breeding or other means. For instance, 

scientists can identify and target genes that occur in nature that work against a particular 

insect. While those genes may not exist in the crop of interest, we can use the tools of 

modern biotechnology to refine and introduce that gene into a crop so that crop can also 

reap the advantage of insect protection. 

That same targeted approach allows us to develop healthier oils for consumers, highervalue 

food and feed for processors, and even more traits that help make farmers more 

productive and profitable. 

WHAT MAKES BREEDING AND BIOTECHNOLOGY COMPLEMENTARY? 

The dual platforms of breeding and biotechnology offer us a choice as we approach a 

product concept. Breeding is largely oriented toward improving the overall package of 

genetic base of a crop. Biotechnology is uniquely focused on identifying a particular trait 

that produces a desired result more efficiently than would be possible just by combining 

the existing genetics in a crop type. 

Often we can investigate a potential target through both biotechnology and breeding. 

Then, depending on what we’re hoping to accomplish and which particular research 

pathway shows more promise, we may chose one platform to pursue. We may also 

choose to use both — combining specialized germplasm developed through breeding 

with a biotechnology trait. So, the advantage in having both platforms is that we’re 

perfectly positioned to match the right approach with the right opportunity. 

46 

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