Solving Current Disease Issues in Maize Public/Private Collaborations

Transcription

1 Solving Current Disease Issues in Maize Public/Private Collaborations February 23, 2011 Genetics of Maize Disease Workshop 2011 NCSU, Raleigh, NC

2 Notes Certain statements contained in this presentation 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 forwardlooking 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 presentation. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results. Monsanto and the Vine Design, Channel, Channel Bio, D&PL, Deltapine, DEKALB, DEKALB and Winged Ear Design, When Performance Counts, Asgrow, Asgrow and Design, Acceleron, Acceleron and Design, Apex, Biotech Yield Endorsement, BYE, Bollgard, Bollgard II, Bollgard and Design, Bollgard II and Design, Corn States Triangle Design, Cotton States, Cotton States and Design, Discovering, Delivering, Yielding., EarthMap Solutions and Design, Growing Yield Sustainably, Our Science Your Success and Design, Processor Preferred, Produce More, Conserve More, Roundup, Roundup PowerMax, Roundup Pro, Roundup ProMax, Roundup Ready, Roundup Ready 2 Yield, Roundup Powerful Performance and Design, Roundup Ready Rate and Design, Roundup Rewards, Roundup Technology, Roundup WeatherMax, SmartStax, SmartStax and Design, Vistive, Vistive and Design, YieldGard, YieldGard Rootworm and Design, YieldGard Corn Borer and Design, YieldGard Plus and Design, YieldGard VT, YieldGard VT and Design, YieldGard VT Triple, YieldGard VT Rootworm/RR2, VT Double PRO, VT Triple PRO, Genuity, Genuity and Design and Genuity Icons, Seminis, Seminis Vegetable Seeds and Design and De Ruiter are trademarks and service marks owned by Monsanto Company and its wholly owned subsidiaries. All other trademarks are the property of their respective owners. RR = Roundup Ready; RR2 = Roundup Ready Monsanto Company. All Rights Reserved. 2/23/2011 Genetics of Maize Disease Workshop 2

3 Outline Why do we care about crop disease? Monsanto s commercial offering today. Ongoing research Public / Private Partnerships 2/23/2011 Genetics of Maize Disease Workshop 3

4 Monsanto Company at a Glance A LEADER IN THE FIELD OF AGRICULTURAL TECHNOLOGY MONSANTO S VITAL STATISTICS A leader in seeds, crop protection and biotechnology Headquartered in St. Louis Employs more than 20,000 people worldwide More than 500 locations worldwide in 4 primary regions Europe/Africa, Asia Pacific, Latin America and North America Business Segments Seeds and Genomics Agricultural Productivity Sales by Seeds and Traits Soybean Vegetable & Fruit Corn All other Crops Sales by Geography NA E-A LA A-P Cotton Dedicated to Bringing the Next Generation of Ag Products to the Market

5 Agriculture is at the Center of Many of Society s Most Important Debates Global food security Enhanced productivity Increased yield Sustainable production Water availability Drought-tolerant crops Biofuels Yield technologies to help meet demand for both food and fuel Global warming CO 2 footprint Fertilizer use 2/23/2011 Genetics of Maize Disease Workshop 5

6 Producing More. Conserving More. Improving Lives. That s sustainable agriculture. And that s what Monsanto is all about.

7 What Does it Mean to Double Yield in the U.S. by 2030? Corn 2000 Baseline: 137 bu/ac 2030 Goal: 300 bu/ac Soybean 2000 Baseline: 37 bu/ac 2030 Goal: 80 bu/ac Cotton 2000 Baseline: 632 lbs/ac 2030 Goal: 1,300 lbs/ac How Are We Going to Reach These Goals? Breeding Creates new, more robust varieties that perform better in the field. Biotech Adds special beneficial genes to the plant. Agronomics Agronomic practice improvements make acres more productive. 2/23/2011 Genetics of Maize Disease Workshop 7

8 BUSHELS PER ACRE Combination of Breeding, Agronomic Practice Improvements and Biotech Can Maximize Yield Gains CORN YIELD POTENTIAL TO 2030 IN THE UNITED STATES Additional gains from breeding, ag practice improvements and new biotechnology products bring yield potential to 300 bu/ac by USDA Yield Historical Trend Agronomic Advanced Breeding Biotech

9 Input Level Per Bushel Output (2000 = 100) Pesticide, Nitrogen, Rainfall Use Declining In Corn AS BUSHELS/ACRE INCREASE, INPUTS PER BUSHEL HAVE DECREASED 220 Corn Input Levels Relative to 2000 Levels (3 Year Running Averages) Pesticide (Herbicide & Insecticide) Rainfall (Midwest Growing Season) Nitrogen Data Sources: USDA, NASS Agricultural Chemical Usage Report ; dmrkynetec; NOAA; USDA ERS

10 U.S. Corn Production PLANTED ACRES 66.9 MILLION AVERAGE YIELD 72.4 BU/AC PRODUCTION 4.15 B BU PLANTING DENSITY 18,000 PLANTS/AC ROW SPACING 38 TO 40 NO BIOTECH TRAITS AVAILABLE

11 U.S. Corn Production 2010 PLANTED ACRES 88.2 MILLION AVERAGE YIELD BU/AC PRODUCTION B BU PLANTING DENSITY 30,000 PLANTS/AC ROW SPACING 30 85%+ CORN ACRES WITH BIOTECH TRAITS

12 Projected U.S. Corn Production 2030 PLANTED ACRES 100 MILLION AVERAGE YIELD 300 BU/AC PRODUCTION 30 B BU PLANTING DENSITY 45,000 PLANTS/AC ROW SPACING 20 TO BIOTECH TRAITS IN A HYBRID

13 Planting Zone Shifts Already Seen in the US After USDA Plant Hardiness Zone Maps, USDA Miscellaneous Publication No. 1475, Issued Jan 1990 National Arbor Day Foundation Plant Hardiness Zone Map published in /23/2011 Genetics of Maize Disease Workshop 13

14 Potential Impacts of Climate Change on Crop Pests Clint Calhoun Chris Manley Weeds Range and reproductive increases Pathogen and insect host implications Insects Lepidopteran and Coleopteran range expands Insect-vectored mycotoxin increases Potential new pest targets (aphids, spider mites) Diseases/Nematodes Nematode populations increase under hot dry conditions Foliar and stalk diseases under hot and wet conditions General Increased pest resistance pressure 2/23/2011 Genetics of Maize Disease Workshop 14

15 Monsanto s Current Commercial Offering 2/23/2011 Genetics of Maize Disease Workshop 15

16 >100 corn hybrids offered in the US 2/23/2011 Genetics of Maize Disease Workshop 16

17 2011 Acceleron Corn Seed Treatment Products Proprietary fungicide combination Ipconazole Exclusive active ingredient Systemic activity Activity against Fusarium and Rhizoctonia Effective at low use rate Metalaxyl Global standard for Pythium Trifloxystrobin Elite class of strobilurin chemistries Highly systemic Broad spectrum Activity against Fusarium and Rhizoctonia Insecticide Clothianidin A best-in-class neonicotinoid Nematicide Clothianidin Bacillus firmus Contains naturally occurring bacteria protects roots First and only nematode biocontrol product Colorant and polymer system New polymer Reduced dust-off Better plantability

18 Acceleron Seed Treatment Products Early Season Performance Advantage Commercial Seed Treatment Standard* *2009 Monsanto Field Trials, Champaign, IL (includes insecticide and fungicide products)

19 Headline AMP Summary Headline AMP provided a consistent yield advantage over all competitive products Excellent activity on all major corn diseases Superior activity on Southern Corn Rust and Northern Corn Leaf Blight The Proven Plant Health benefits of Headline: Increased growth efficiency Improved tolerance to stress Improved standability and harvestability Unique, Best-in-Class triazole Delivers Maximum Protection Headline AMP is a trademark of BASF Corporation 2/23/2011 Genetics of Maize Disease Workshop 19

20 ONGOING RESEARCH 2/23/2011 Genetics of Maize Disease Workshop 20

21 New Opportunity and Market Space for Improving Plant Health ROUNDUP HERBICIDE IS AN IDEAL DELIVERY SYSTEM FOR FOLIAR PLANT HEALTH PRODUCTS Application of Roundup agricultural herbicide in Roundup Ready crops can have fungicidal benefits Argentina 2009 Combining Roundup with other fungicides or additives could offer growers additional protection of yield potential Use of Headline applications in corn have demonstrated that growers are recognizing plant health benefits Treated Untreated Control Headline is a registered trademark of BASF Corporation 2/23/2011 Genetics of Maize Disease Workshop 21

22 Plant Breeding is Experiencing a Technical Revolution That Will Drive Yield Improvements Corn SEED GERMPLASM LIBRARY Is Our Building Block for Better Breeding MOLECULAR BREEDING is Accelerating the Rate of Gain Over Conventional Breeding Corn Seed Chipper Automated Marker Analysis Annually, breeders exchange more than a million different packages of germplasm material Complete integration of intra-company germplasm throughout our entire breeding program Capability to analyze 10s of millions of samples each year Over 40 million marker-trait associations providing detailed genome understanding

23 Expansive Breeding and Testing Geography Enables Effective Product Identification and Placement ACROSS THE COUNTRY, WE TEST HYBRIDS AND VARIETIES AS WE STRIVE FOR SUCCESS IN FARMERS FIELDS Monsanto U.S. Corn Breeding Testing Locations Regional breeding teams: Focus on most elite germplasm Maintain important germplasm types Enhance product diversity Enhance breeder germplasm knowledge and info exchange MONSANTO TESTS FUTURE PRODUCTS IN HUNDREDS OF ENVIRONMENTS 2/23/2011 Genetics of Maize Disease Workshop 23

24 Breeding for Resistance to Gray Leaf Spot Could Provide Yield Protection throughout the Corn Belt 2010 field trials conducted with lead gene throughout Midwest SUSCEPTIBLE RESISTANT Gray Leaf Spot can reduce yield up to 50% in severe years 1 Hybrids with resistance genes are showing improved tolerance Phase 2 Early Development 1 Source: Gray Leaf Spot of Corn, Rees and Jackson, Univ. of Nebraska Extension, 2007

25 PUBLIC / PRIVATE PARTNERSHIPS 2/23/2011 Genetics of Maize Disease Workshop 25

26 The Technology Organization s Role at Monsanto Drives Monsanto s Research and Development Pipeline Discovers and Delivers New Products that Benefit Farmers Drought Tolerance Disease Resistance Higher Yields New Products Insect Control Nitrogen Use Efficiency Weed Management Solutions Committing $1.2 Billion to R&D for FY11 2/23/2011 Genetics of Maize Disease Workshop 26

27 Monsanto R&D Pipeline Structure BREEDING and BIOTECHNOLOGY form two parallel R&D pathways to commercial products that are linked by shared tools and technology. DISCOVERY PHASE I PHASE II PHASE III PHASE IV BREEDING GENOMICS MARKERS ELITE GERMPLASM IT PLATFORM ANALYTICS COMMERCIAL BIOTECHNOLOGY

28 Monsanto Employs a Global Technology Organization Conducting R&D in Multiple Crops across ~180 Locations Canada 8 locations Europe 29 locations United States 72 locations India 7 locations China 3 locations Mexico 7 locations Brazil 18 locations Thailand 2 locations Costa Rica 1 location Vietnam 1 location 28 Argentina 3 locations South Africa 6 locations 2/23/2011 Genetics of Maize Disease Workshop Australia 2 locations

29 Decreasing Number of Plant Breeding Graduate Degrees Issue Fewer plant breeding graduate degrees in 1990s compared to 1980s Continued to see decrease through the 2000s Takes an average of ~6 months to identify/hire new PhD plant breeder High % of applicants don t meet basic requirements Major Drivers Shortage of public funding resources Focus away from Plant Breeding discipline 2/23/2011 Genetics of Maize Disease Workshop 29

30 Plant Breeders are Essential at Monsanto and Throughout the Industry The Art and Science of Breeding Contributes Greatly to Improving Plants Today's plant breeders require: Many specialized skills, significant knowledge, and a variety of abilities to function in diverse scientific teams. A passion for working closely with plants in field environments. Understanding complex interactions of genotypes with environment. A strong ability to apply the sciences toward the directed goal of marketable products PLANT BREEDERS CONNECT SCIENCE AND PRODUCT DEVELOPMENT PROCESS TO BUSINESS CHANNELS IN SERVICING THE NEEDS OF FARMERS, CONSUMERS, AND SOCIETY. 2/23/2011 Genetics of Maize Disease Workshop 30

31 Private Public Plant Breeding Systems and Capabilities Takes months for new PhD plant breeder to acclimate to Monsanto s Plant Breeding Program Adjustments Scale Global germplasm pools Technology Markers, sequencing, seed chipping, double haploids, biotech trait, combines, planters, seed processing, bar-coding, etc IT tools Breeding work-flows / timelines End-product Snapshot of high-oil corn breeding program Category Metric Number Summer program Nursery and Isolated Crossing rows 76,076 Total pollinations 305,013 New DH lines 23,395 Performance testing Yield plots 153,464 Winter program Nursery and Isolated Crossing rows 41,836 2/23/2011 Genetics of Maize Disease Workshop 31

32 First Steps Capacity Building Monsanto Beachell-Borlaug International Scholars Program fellowships - 5 yrs; Wheat & Rice Monsanto Fellows in Plant Breeding 50+ fellowships (since 07) Targeted Fellowships for specific students and Universities including Monsanto employees (M.S. and Ph.D.) In Kind support with genotyping, DH and phenotyping capacity Includes donation of molecular markers and whole genome sequence information Support germplasm programs (GEM, USDA collections) Equipment loans, placement of used equipment, or participation in purchase of specialized equipment. Funding for National FFA, 4-H and High School Ag Training / Exposure Professional Development Program with NCSU Experiential Learning Guest Scholar Completed 3, in 2010; 20 in 2011 ~30 Intern/Co-op positions in plant breeding every year Sponsorship of Golden Opportunity Scholars Program Support curriculum development Study Abroad Programs On-site training Host educational trips to breeding stations, headquarters, genotyping labs Lectures / seminars to plant breeding classes Making Monsanto proprietary data-sets available for research projects 2/23/2011 Genetics of Maize Disease Workshop 32

33 We All have the Responsibility of Training the Future Generation of Plant Breeders 2/23/2011 Genetics of Maize Disease Workshop 33

34 Summary Changing farming practices & climate keep breeding for disease resistance a key objective Monsanto values the education & training universities provide in new employees Monsanto actively seeks research collaborations with key academic partners 2/23/2011 Genetics of Maize Disease Workshop 34

35 We are All in This Together 2/23/2011 Genetics of Maize Disease Workshop 35