ST. LOUIS, Dec. 2, 2009 /PRNewswire-FirstCall/ -- It's all about the mix, Monsanto Company's (NYSE: MON) Brett Begemann, executive vice president of Seeds & Traits, plans to tell investors at Citi's Basic Materials Symposium in New York today. Key to the company's success will be the mix shift that will be created as farmers choose to upgrade to next-generation technologies, Begemann will say. He'll also discuss Monsanto's 2010 orders to date, which preview this shift and continue to track with the company's expectations for the U.S. business.
In covering the company's operational path through 2012, Begemann will highlight the three key drivers for Monsanto's growth: the launches for its Genuity(TM) SmartStax(TM) corn and Genuity(TM) Roundup Ready 2 Yield® soybean products and trait penetration in Latin America. Successful implementation of these drivers will provide farmers step-changing products to enhance on-farm production and in turn enable Monsanto to reach its commitment of doubling its 2007 gross profit in 2012.
"We've set out ambitious goals, but we can achieve them," Begemann will tell investors. "These products are true game-changers. The benefits they provide - simplicity, protection, higher yields and increased profitability - give our customers a reason to choose to upgrade the products they select for their farms. As we earn farmers' business, we achieve the mix lift that will propel us to our 2012 targets."
Covering the three growth drivers, Begemann will say the company expects an initial commercial opportunity of more than 4 million acres in 2010 for Genuity SmartStax corn. Monsanto expects an unconstrained supply by 2012, which will enable the company to meet market demand a year earlier than originally anticipated. Monsanto also expects a more rapid conversion to the Genuity Roundup Ready 2 Yield soybean platform and recently increased its launch-year expectation for 2010 to 8 million to 10 million acres.
Begemann also will discuss the ascension of the Latin American corn market as Argentina and Brazil gain momentum in the adoption of biotech traits. Both countries have granted breakthrough approvals for core corn traits and are on the front-edge of adoption curves for these traits.
Outlining Monsanto's go-to-market approach for corn, Begemann will explain the variety of means Monsanto employs to reach farmers with its wide-ranging toolkit of corn products. Monsanto offers the industry's most comprehensive package of corn products with reduced refuge double- and triple-stack products in addition to Genuity SmartStax.
"We understand the business of farming and we know each farmer makes decisions differently," Begemann will say. "That's why we have so many choices in our portfolio, to offer products that are right for every farm."
Begemann will highlight the company's cotton and vegetable businesses as well, discussing the penetration of second generation traits and new germplasm classes for cotton in the United States and the potential for breakthroughs in the vegetable business.
A live webcast of Begemann's presentation is available through Monsanto's web site at: http://www.monsanto.com/investors. Following today's live broadcast set for 10:45 a.m. C.T., a replay of the webcast will be available on the Monsanto web site for three weeks. To access presentation slides and the simultaneous audio webcast of the presentation, visitors may need to download Windows Media Player(TM) prior to listening to the webcast.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. To learn more about our business and our commitments, please visit: www.monsanto.com . Follow our business on Twitter at www.twitter.com/MonsantoCo on Facebook at www.facebook.com/MonsantoCo, or subscribe to our News Release RSS Feed .
Cautionary Statements Regarding Forward-Looking Information:
Certain statements contained in this release 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 reports on Forms 10-Q and 10-K. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.
Notes to editors: Monsanto and the Vine design, Genuity, SmartStax, and Roundup Ready 2 Yield are trademarks owned by Monsanto Technology LLC. All other trademarks are the property of their respective owners.
Contact Media - Kelli Powers (314-694-4003)
SOURCE Monsanto Company
