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HITs will double Monsanto's profits by 2012, officials say

Agriculture.com Staff 05/13/2009 @ 3:01pm

Officials with Monsanto Company expect U.S. and international seeds and traits gross profit to almost double by 2012 from the company's 2008 baseline, according to a company report. This, officials say, will be paced by an anticipated launch of a new "high impact technology" (HIT) project from its product pipeline every one to two years.

The HIT products, Monsanto officials say, will focus on contributing to improving farmers' yields and driving the long-term growth in the company's seeds and traits platform. Company requirements dictate these HIT projects must have the potential to be planted on more than 45 million acres and deliver more than $300 million gross revenue opportunities by 2020 in the country of initial launch.

"The world population is expected to top 8 billion people by 2030, with significant dietary shifts toward more meat consumption. To help meet the growing food demands, we're focused on growing more grain with fewer resources through the application of new HIT products," says Monsanto Chief Technology Officer Robb Fraley.

Fraley says seven HIT projects are expected to launch by the middle to the end of the next decade, positioning the company to launch a HIT project every one to two years. Two HIT projects, Genuity Roundup Ready 2 Yield soybeans and Genuity SmartStax corn, which is in its final stages of regulatory review, will serve as the foundation for the new HIT projects' family of traits.

The company's new corn HIT projects, officials say, will include traits from the drought-tolerant family; the broad-acre, higher-yielding family; and the nitrogen-utilization family, all of which are part of our yield and stress collaboration with BASF. The new soybean HIT projects will include the insect-protected technology for Brazilian farmers and the broad-acre, higher-yielding family of soybeans.

According to Monsanto Vice President Kerry Preete, the company expects its U.S. seeds and traits gross profit to double by 2012 from a 2008 baseline, with growth of nearly 85% from international seeds and traits forecasted for the same time frame.

"Our international segment is a key part of our growth expected from seeds and traits going forward," Preete says.

Officials with Monsanto Company expect U.S. and international seeds and traits gross profit to almost double by 2012 from the company's 2008 baseline, according to a company report. This, officials say, will be paced by an anticipated launch of a new "high impact technology" (HIT) project from its product pipeline every one to two years.

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