Monsanto, Agriculture and
SUSTAINABILITY
Monsanto Company“Agriculture is our only business”
Focused on the farmer
and the future of agriculture.
“We succeed when farmers succeed.”-Hugh Grant, Monsanto CEO
Monsanto is 100% focused on agriculture.
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Monsanto at a Glance
• A leader in seeds, crop protection, biotechnology
• Headquartered in St. Louis, MO
• More than 320 locations worldwide in 4 primary regions — Europe/Africa, Asia Pacific, Latin America and North America
• Employs more than 22,000 people worldwide
Monsanto Company’s Vital Statistics Crop Research Focus Areas
CottonCorn Soybeans
Fruits & Vegetables
Breeding and Biotech Provide Parallel R&D Paths to Commercial Products
PHASE II PHASE III PHASE IVPHASE IDISCOVERY
BREEDING
BIOTECHNOLOGY
MARKERS
ELITE GERMPLASM
IT PLATFORM
ANALYTICS
COMMERCIAL
GENOMICS
Monsanto Commitment to Diversity
• 33% of US employees are women
• Women networks, recruitment programs, youth education
• Recognized for innovative programs– Working Mother 100 Best Companies 2008
– DiversityInc Top 50 Companies 2008
• Team-based approach to stimulate innovation also leverages participation of women.
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Agriculture is at the Center of Many of Society’s Most Important Debates
Technology Is Addressing These Challenges
• Global food security•
• Water availability
•
• Biofuels
•• Global warming
•
Mill
ion
Met
ric
Tons
Source: IHS Global Insights, Agriculture Division
Global demand for crops increasing as population and income continues to rise
2008 Global Food Crisis
Copyright: 2008 WFP/Peter Smerdon
52% increase in Global Food Prices in June 2008
Of the 550 million working poor in the world, an estimated 60% are women
Greatest Challenge is in sub-Saharan Africa (SSA)
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• Half of SSA lives on less than $1 a day.
• The average life expectancy is 49 years vs. 78 years in US.
• The only continent where the per capita food production is getting worse, not better.
• Agriculture is the basis for most African economies
• 30% GDP vs. 7% in US
• 75% employment vs.1.9% in US
Yields in sub-Saharan Africa are Lowest in the World
Average maize yields (Mt/ha)
The Smallholder Farmer Poverty Trap
Lack of economic
development
Not enough to invest
Lack of health and education
Not enoughto eat
Not enoughto sell
Cycle of Poverty
Africa’s Woman Farmer – Our Customer
• African Women:
• Produce 80% of the crops in Africa.
• Transport 80% of food, often on their heads.
• Process 90% of the food, including threshing and cooking.
• Fetch 90% of the firewood and water to prepare the food.
Women are the last to eat and the first to go hungry.
A Day in Her Life
4:45 a.m. Wakes up first and kindles the fire5:30 a.m. Walks over a mile to fetch water 6:00 a.m. Makes breakfast6:30 a.m. Dresses and feeds the children7:15 a.m. Walks another mile to fetch water7:45 a.m. Washes utensils and clothing8:45 a.m. Begins working in the field 11:00 a.m. Brings food to her husband12:15 p.m. Returns to the field3:15 p.m. Walks home and gathers firewood4:30 p.m. Pounds and Grinds grain into flour5:30 p.m. Fetches more water6:15 p.m. Kindles the fire6:30 p.m. Prepares the evening meal7:30 p.m. Feeds her family8:30 p.m. Washes children, dishes and herself9:30 p.m. Cleans the house 10:30 p.m. Goes to bed, last in the family
Agriculture as a Wealth-Creating Investment
Current system• ½ ha yields ~ ½ T maize• Hunger and poverty• Destroys ag infrastructure
Improved system• ½ ha yields ~ 2 T maize • Enables ag infrastructure• Alleviates hunger but not poverty
Diversified system• ¼ ha yields ~ 1 T maize• Income to purchase school uniforms, supplement diet, etc.• Alleviates hunger AND poverty
Lower quality seed, few inputs
High quality hybrid seed, some inputs
Hybrid maize
Cash crop
Biotechnology offers Unique Benefits
• Scale neutral• Technology in the seed• Address old problems in a new and better way• Address problems that have never had a solution• Leapfrog over major constraints, e.g. lack of water, fertilizer
Monsanto’s Commitment to Sustainable Yield
Conserve More
Improve Farmers’Lives
Produce More
Goal:Help farmers double yields of corn, soybeans and cotton from 2000-2030
Combination of Breeding, Agronomics and Biotech Can Maximize Yield Gains
CORN YIELD POTENTIAL TO 2030 IN THE UNITED STATES
Goal:
Help farmers reduce use of key resources used in agriculture by 1/3 per unit of output
DROUGHT TOLERANT CORN FAMILY: LEAD PROJECT
2008 Dryland Field Tests Showed Lead Drought Event Increased Yield in Stressed Conditions
Discovery Phase 1Proof of Concept
Phase 2Early Development
Phase 3Adv. Development
Phase 4Pre-Launch
Launch
Targeted to minimize uncertainty in farming by buffering against effects of water limitation
In U.S., this historically has been dryland farms of Western Great Plains
Yiel
d D
iffer
ence
(bu/
acre
)
13.4% 6.7% 10.5% 11.3%
Percentage yield difference vs. control
7.7%
COLLABORATION WITH
With Gene Control Corn with Drought GeneFarm Progress Show, 2008
Goal:Farmers of all sizes become more productive, including >5M people in resource-poor families
Three complementary approaches to reach all farmers
• Commercial Business Development (for-profit):– maximizes farmer choice– requires infrastructure & market opportunity in country– self funding, self-growing & self-sustaining
• Cooperative Market Dev. (facilitated until profitable):– subsidized learning and infrastructure– requires public-private partnerships & funding– becomes self-supporting when successful
• Humanitarian Partnerships & Public Goods (non-profit): – subsistence applications & stewardship– requires public-private partnership & funding
Scale Neutral Benefit of GM Crops
Economic & Environmental Impacts
$33.8 billion added net
income>100 MMT of additional crop
production (higher yields)286 million kg in pesticide
applications14.76 billion kg of GHG
emissions (CO2-eq)
Source: GM Crops: global socio-economic and environmental impacts 1996-06; Brookes & Barfoot; PG Economics UK Ltd
Benefits of Bt Cotton in India 2002 - 2008
• Bt cotton adopted by nearly 4M smallholder farmers.
• Acreage grew from 72K to 17M -76% of India’s cotton acres.
• India doubled its cotton production, making it the second largest producer and exporter in the world.
• Socioeconomic analysis found major benefits for women and children:– Increased maternal services– Increased school enrollment– Increased immunization
Source: Trust in the Seed. ISAAA.
Lesson from 2005:Cost of inputs for local production = $40/t maize
vs.Cost of transported food aid = $400/t maize
Quality Hybrid Maize Seed in Malawi
Impact since 2005:
Year 2005 2007Average yield (t/ha) 0.81 2.04% Maize requirement -44% +57%
Hunger Project Micro-Finance System
Virus resistant Cassava (Africa)
Bt Cowpea (Africa)
“Golden Rice” (Global)
Rice genome sequence data (Global)
Delayed ripening papaya (SE Asia)
Virus resistant papaya (SE Asia)
Virus resistant potato (Mexico)
Insect resistant potato (Russia)
Virus resistant sweet potato (Kenya)
Mustard oil pro-Vitamin A (India)
Examples of Technology Sharing Projects
Potato
TransgenicControl
TransgenicControl
Papaya
Cassava Cowpea
Water Efficient Maize for Africa (WEMA)
• Drought is a primary cause of food aid need in sub-Saharan Africa (SSA)
• Meeting global food production will require more “crop per drop”
• Over 95% of cropland in SSA is rain-fed and will remain so in the near future
• The risk of drought prevents investment in improved agricultural products Yield stability is key to unlock the value of basic inputs
Recorded droughts between 1971 and 2000, and the number of people affected
Water Efficient Maize for Africa (WEMA)
THE PARTNERS• African Agricultural Technology Foundation (AATF) is leading
the project• CIMMYT and Monsanto will bring best in global maize
germplasm, testing and breeding methods, and biotechnology• National Ag. Research System (NARS) participation is a crucial
part of testing products and bringing WEMA to Sub-Saharan African farmers
THE TECHNOLOGY• Best global germplasm to combine new sources of
drought tolerance and African adaptation• More rapid gains in conventional drought tolerance
through molecular breeding• Additional drought tolerance obtained through
state-of-the-art biotechnology
WEMA Objective
• Increase yields 24 to 35% in ten years
• Enable use of hybrids and fertilizer
• Enable crop diversification
To increase yield stability and reduce risk under drought conditions
WEMA Team
“A single bracelet does not jingle.” - Congo proverb
Thank You!
For More Information
www.ProduceMoreConserveMore.com