Monsanto's Biotech Seed Projects Positioned for Growth

Monsanto, the world's largest seed company, said on Thursday that a line-up of new biotech seed products have the company well positioned for future growth.

St. Louis, Mo.-based Monsanto said it has 19 projects advancing through its research and development pipeline, including nine added in the last two years. Notable advancements are being made in higher-yielding soybeans; yield and stress-tolerant wheat; and a corn that more efficiently uses nitrogen, the company said.

The work comes as crop prices are surging and global demand for food is pressing amid population growth and income growth in key markets, including Asia.

"Our R&D pipeline remains strong, leaving the company well-positioned for long-term growth," Monsanto Chairman Hugh Grant said on Thursday in a statement.

Ten biotech projects in the advanced phases of development should create near- to mid-term returns, Monsanto said.Corn remains the focus for research and development, with 43% of the company R&D spending focused on that key food, feed and energy crop.

Monsanto said it projects that its nitrogen-utilization corn "family" of products could have a gross sales value of $250 million to $500 million in 2020.

The company is also pushing forward with a drought-tolerant corn and said it expects to have U.S. regulatory approval by 2012. It expects a launch on 10 million western U.S. corn acres, with 2020 value of $250 million to $500 million.

Similarly, Monsanto expects its genetically altered higher-yielding soybeans will have a gross sales opportunity of $250 million to $500 million in 2020.

The company noted that it has also opened a new cotton research "megasite" in Texas and has started using its "seed chipping" technology, which improves the speed and efficacy of breeding, to its vegetable portfolio.