Maize Roundup Ready Broad spectrum weed control Flexible, simple, cost-effective
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1 Overview of Monsanto Agricultural Technologies: locally relevant around the world Robert Horsch, PhD International Development Partnerships Monsanto Company Sept 17th 2004 Leading provider of agricultural products for growers 13,200 employees worldwide $4.9B in 2003 sales Agricultural Productivity Segment (66% of Sales) Roundup Animal Agriculture Lawn and Garden Other select herbicide businesses 2003 Geographic Sales Breakdown Latin America 12% Europe/ Africa 13% Asia Pacific Canada 7% 4% U.S. 64% Seeds and Genomics Segment (34% of Sales) Global seeds and related trait business Genetic technology platforms Monsanto s Leading Global Brands Herbicides Seeds Monsanto s Biotechnology Products Soybeans Canola Allows for weed control through tolerance to Roundup Herbicide Industrial, Turf & Ornamental Biotechnology Provides protection against yield-robbing insect damage and reduces need for spray applications Provides root protection against corn rootworm damage Stacked Traits + Combines benefits of multiple biotech traits + Maize Broad spectrum weed control Flexible, simple, cost-effective Broad spectrum weed control Flexible, simple, cost-effective No witholding issues (non-persistant) Bollgard Yield increases 5-35% Reduced pesticide use ( 80%) YieldGard Yield increases 5-15% Quality increase Reduced pesticide use Ease of management 1
2 Soya Countries where we do business Unsurpassed broadspectrum weed control Ease of management Crop rotation tool Monsanto offices + staff nr. Senegal 2 Chemical sales only Chemical/seed sales Uganda 1 Kenya 8 Tanzania 8 Malawi 19 Zimbabwe 10 South Africa 242 Product Overview Commercial products in South Africa (South Africa) Awaiting commercial approval Ha X 1000 Transgenic hectares in Africa Soya Maize White Maize Yellow (est) Biotech Trails in Africa Burkina faso 2003 Bt trials nd year Bt trials Kenya 2004 Bt maize (Greenhouse) Egypt 2002 Bt trials Bt trials Bt trials Why Bt Maize is needed in Africa Today Stalk borer leads to broken stalks and damaged cobs. Yield losses average 23% of maize in Africa Yield losses of 11-26% per hectare in Kenya. Between 175 to 370 kg/ha. High cost of insecticides prohibitive to many farmers. Status: August
3 Bt delivers benefits to Philippine farmers Field trials over 2 years: Yield advantage: ~30% Production cost reduction: ~20% Profit advantage: ~18% Yield comparison from field trials 27% 6.3 T/Ha Hybrid 1 Hybrid T/Ha 35% 5.7 T/Ha 7.7 T/Ha Control Bt Shifting from land, water, labor extensive & energy, resource & impact intensive --- to info-tensive innovation... & conservation Productivity Improvement Opportunities 100 % 80% Breeding & Biotechnology 50% Farm practices (0-5%) Land gain 20% Reduced losses 250% Control Bt Control Bt Source: Monsanto data Today s crop Source: Monsanto Data Potential crop Four Classifications 1. Food-insecure farm households (~50%) 2. Food-insecure rural landless (~20%) 3. Food-insecure urban households (~20%) 4. Food-insecure herders, fishers and forest-dependent households. (~10%) Typology of Hunger Four cross-cutting categories: 1. Vulnerable individuals, including pregnant and nursing women and 170 million infants and pre-school children 2. The 42 million individuals living with HIV/AIDS, adversely affecting the food security of 150 million people 3. Victims of extreme events: 60 million people each year typically face famine due to natural disasters or civil conflict 4. Approximately 2 billion people who suffer from micronutrient deficiencies. Low Productivity Smallholder Farming SSA Indonesia USA & Europe 1.2 MT/Ha 3.8 MT/ha 8 MT/ha - 15MT/Ha not enough to invest No capital to invest for high quality inputs Poverty & unemployment Low Crop Yields Vicious Cycle of Poverty Low/no farm cash income Food insecurity Low/no marketable surplus not enough to eat not enough to sell Diverse Farmers in Africa 100% SUBSISTENCE Primarily food crops Smaller-scale farmers Primarily local consumption Transitional All farmers can benefit from improved technology! 100% COMMERCIAL Cash crops and food crops Larger-scale farmers Local consumption and global trade 3 Complementary Strategies for bringing new technology to all farmers Commercial Business Development (for-profit): driven by highest value opportunities requires infrastructure & market opportunity in country self funding, self-growing & self-sustaining Transitional 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 & education requires public-private partnership & funding segmentation that protects for-profit markets 3
4 3 Complementary Strategies -- examples Serving Smallholder Farmers Directly Commercial Business Development (for-profit): Hybrid corn combi-packs in Africa Bt cotton in China No-till in Indonesia Transitional Market Dev. (facilitated until profitable): Winrock & SG2000 No-till African Projects Small Holders programs in Mexico, India & Africa Bt in South Africa (Makatini Flats) Humanitarian Partnerships & Public Goods (non-profit): Virus resistance in Sweetpotato, Cassava & Papaya Rice genome access Golden rice & mustard oil licenses & technology 5 Our Smallholder Program strives to reach farmers not served by Monsanto s commercial operations and strives with partners to deal with major constraints of subsistence farmers Access to technology and products Access to training/extension Access to credit Access to markets and to provide the current best products and practices to help improve food security, family income and protect the environment Philamon Jobe Makatini Flats, SA South Africa Bt cotton experience Small-scale farmers in the Makhathini Flats region of KwaZulu-Natal, South Africa have been growing Bollgard Bt cotton since Rapid adoption of Bt cotton in Makhatini flats 1998/99 75 farmers 1999/ farmers 2000/ farmers 2001/ farmers Reasons for adoption include: Yield gains c.26% Pesticide reduction c.6 fewer sprays Safety, human and environmental Increased income c. $10-50 ha Source: Ismael et al., 2002 PARTNERSHIP WITH SASAKAWA GLOBAL 2000 (SG2000) Joint venture between Sasakawa Africa Association (SAA) and Global 2000/ Carter Center. Dr. Norman Borlaug is President of SAA. Nippon Foundation of Japan is major funder of SG2000. SG2000 is an NGO that introduces improved agricultural technology packages to small holders in SSA. Integrated Combi-Pack CROPS Maize Rice ETHIOPIA Wheat Dry Beans TECHNOLOGIES TANZANIA Conservation Tillage Certified Seed GHANA Fertilization Crop Protection NIGERIA Post Harvest Demo Plots MALAWI QPM Program Average Maize Yield Increase of 3 tons / HA PROCESS Obtain Partner Commitment Training Extension Officers MOZAMBIQUE Demonstration Program Document Benefits Help Access Inputs and Markets PARTNERSHIP Private Sector Extension Service Ag Public Research Institutions Universities MONSANTO CONTRIBUTION $150K Budget CT Consultant (Dr. Jim Findlay) Training Programs Other Partner Support Impact Assessment Studies Support from Monsanto Field Personnel 4
5 Conservation Tillage (CT) in maize and cotton. PARTNERSHIP WITH WINROCK INTERNATIONAL Winrock works with people to build a better world, increasing agricultural productivity and rural employment, while protecting the environment. Support for Winrock On Farm program: From subsistence to market driven agriculture. Winrock to support project submission to GDA/USAID public private partnership program. CROPS Rice Maize MALI TECHNOLOGIES SENEGAL Conservation Tillage Weed Control Systems Improved Seeds Fertilization IVORY COAST PROCESS Baseline Survey of Needs Partner Commitment Training Program Demonstration Program Results Evaluations Workshops PARTNERSHIP Private Sector Extension Service Ag Coops Other NGOs MONSANTO CONTRIBUTION $75K Grant Support from Field Personnel CT Benefits/Winrock Mali Winrock International ONFARM Program Mali Estimation of average net benefits when using Roundup in rice grown under controlled submersion conditions in the Office Riz Segou With Roundup T1 No Roundup T0 Difference T1-T0 1. Production (kg/ha) 1, Unit price (Fcfa/kg) Gross benefits (Fcfa/ha) 155,800 92,800 63, Cost of Roundup (Fcfa/ha) 23,300-23, Costs of labor and other inputs (Fcfa/ha) 49,000 52,700-3, Total costs (Fcfa/ha) 72,300 52,700 19, Net benefits (Fcfa/ha) 83,500 40,100 43, Time of weeding (man days/ha) Note: The average is based on results from 14 farmers interviewed at Dioro and Konodimini; total costs = costs of inputs + costs of labor (wage and family labor); the cost of Roundup is based on the cost of 4 l/ha at an average price of Fcfa/l. 16 Agricultural Biotechnology for Developing Country Needs Public-Private Coop. Public Research VR and DR Papaya SE Asia; Five national institutions; Monsanto; Syngenta Insect-protected potato Egypt; AGERI, MSU, Syngenta VR Sweetpotato Kenya and S. Africa; KARI, ARC; Monsanto Insect protected Maize Kenya; KARI, CIMMYT, Syngenta Foundation Insect protected Maize Egypt; AGERI, Pioneer/DuPont Golden Mustard India: TERI; NIN, ICAR; IARI; DBT; Monsanto Golden Rice - ETH, U. Freiburg, IRRI, Syngenta Groundnut and Sorghum India and W. Africa; ICRISAT Insect protected rice China; Zheijang University and U. of Ottawa Virus resistant rice Costa Rica, Colombia, Philippines Nat l and Internat l Centers Insect res. Cowpea Africa; Purdue U., UC Davis, CSIRO, U. of Zimbabwe, IITA Nematode res. Potato Bolivia; U. of Leeds. Disease and pest resistance in banana Uganda; NARO, INIBAP Higher protein potato India; JNU Virus resistant cassava E. and W. Africa; DDPSC, IITA The AATF is a new and unique public-private partnership designed to remove many of the barriers that have prevented smallholder farmers in Africa from gaining access to existing agricultural technologies that could help relieve food insecurity and alleviate poverty. The AATF will be based in Africa and will be led, managed and directed by Africans 5
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