May 18, 2013
Monsanto Company (NYSE: MON) is the world's largest provider of patented genetically modified seeds for crops such as corn, soybeans, and cotton, bringing in $10.5 billion this past year.[1] Monsanto is also the inventor of Round-Up, the first commercial glyphosate herbicide (weed-killer), and SmartStax, a seed that will require 70% less pesticide and increase whole-farm yields by 5-10%.[2] The Round-Up patent has expired, so now Monsanto faces increasing competition in its chemical business. Due to heightening competition in its pesticide business, Monsanto has shifted its strategy towards seed development.
Anything that makes food more expensive benefits Monsanto, because it encourages genetically engineered crops. Crops become more expensive due to droughts, developing economies eating more meat, and demand for bio-fuels increasing because of high oil prices. Though Monsanto took a hit with the economic downturn, analysts say that it is primed for a come back, noting the strength of the market and the need for such seeds.[3]
(Read more at Wikinvest
) - Business Overview
- Business Financials
- Chemicals (33.4% of Gross Profit)
- Seeds and Traits (66.6% of Gross Profit)
- Quarterly and Annual Earnings
- Q2 FY 2011 Quarterly Earnings
- Q1 FY 2011 Quarterly Earnings
- FY 2010 Annual Earnings
- Trends and Forces
- Increasing Gas Prices Positively Impacts Monsanto's Earnings
- World Food Crisis Positively Impact Monsanto's Sales
- Reduction in Arable Land Increases Demand for Fertilizer
- Competition
- References
