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September 21, 2009
· Monsanto steering clear of GM veggies
· Bayer goal to triple biotech and seed sales
· DuPont to hike seed prices less in 2010
· Water restrictions cost 2000 jobs in Calif.
· Lime cost effective in fixing acidic soil
Monsanto steering clear of GM veggies
(STLtoday.com)
–
The region is known for its processing tomatoes used in ketchup, soups and
salsa. In mid-August, trucks zip up and down the highways overflowing with red balls destined to be chopped, canned and shipped.
But what's grown here is exponentially more diverse. There are dozens of
varieties of tomatoes, melons, hot peppers, onions and squash. And they're not so much for eating, but specimens for probing, prodding and extracting DNA.
This small farm, about a half-hour west of
Monsanto, based in Creve Coeur, got to be No. 1 in vegetable seed through a
pair of acquisitions. Now, CEO Hugh Grant aims to boost profitability and
market share further by using much the same playbook that made the company dominant in corn and soybeans — by building seeds that produce healthier, better tasting fruit and vegetables.
Monsanto is spending about $75 million developing new vegetable seeds. Much of its budget still goes to traditional and advanced breeding. With few
exceptions, it's not investing in genetically modified varieties, which involve
introducing new genes to make plants resistant to pests or herbicide.
It's home to about 180 breeders, pathologists and other scientists. Offices,
labs and 290,000 square feet of greenhouses are surrounded by fields brimming with new and novel varieties of tomatoes, peppers, onions, squash and melons.
Take the small, bright orange grape tomato known simply as No. 3756.
To most people, it doesn't look different from what you might find today at the grocery store. Its creator, tomato breeder Doug Heath, believes it's destined to become a hit with consumers, retailers and growers — all of which will mean an opportunity to justify higher seed prices.
On a tour of the tomato plot on a sunny mid-August morning, Heath walks down a 100-foot-long row of plants full of bright orange tomatoes that stand out like lights on a Christmas tree.
The tomato is characterized by several key traits. It contains a specific "long
shelf life" gene that helps it stay fresh as it travels thousands of miles to
stores. It's resistant to Tomato Mosaic Virus, a scourge for greenhouse
growers. But mostly, it's higher in Brix, or sweetness. A slicing tomato
measures about 5 degrees Brix; a typical cherry or grape tomato is 8. This one registers near 12.
"This is a favorite of my kids," Heath says, plucking one of the bulbs and
popping it in his mouth. "Absolutely kid-proven. If I bring these home, they
eat them like Skittles."
Heath and many of the other scientists at
The company added to its seed empire last year with the $800 million purchase of Netherlands-based De Ruiter Seeds Group BV, which specializes in seeds for greenhouse vegetables, a fast-growing and more profitable segment of the business.
HEALTHIER TOMATOES
Monsanto was developing potatoes, tomatoes and berries, including genetically modified varieties, in the late 1990s. The company left that business a few years later.
Executives never lost interest, though. A few years later they saw an
opportunity to leverage the company's expertise in plant genetics and
biotechnology to take advantage of increasing global vegetable consumption.
Vegetables are still a tiny piece of Monsanto's business. Sales totaled $744
million in fiscal 2008, just 7 percent of total revenue. Overall, it sells more
than 3,000 products in 156 countries, mostly to seed dealers and distributors.
Monsanto aims to boost vegetable seed sales to $1 billion by 2012 by focusing on consumer traits such as flavor and nutrition. That's a new tack for seed companies, which historically poured their energy into boosting yields and creating produce that resisted disease. Sometimes, those grower traits came at the expense of flavor.
New products include Dolce Verde, a lettuce that combines
the sweetness and crunch of iceberg and the dark color and nutritional
qualities of romaine. It's being sold at 800 Tesco supermarkets in the
A new sweet onion will be test-marketed in
Other new products are aimed squarely at nutrition, such as high-lycopene
tomatoes and broccoli that the company claims contains more cancer-fighting compounds than varieties available today.
"When I talk to people who are leading nutritionists and ask them what we
should do to make fruits and vegetables healthier, the real consensus I get is
to make them taste better so that people will eat more," said David M. Stark,
Monsanto's vice president of consumer traits.
Booming demand for antioxidant-rich "superfoods" such as blueberries and
pomegranates are examples of consumer interest in healthy foods, said Michael O'Brien, vice president of produce and floral for St. Louis-based Schnuck Markets Inc.
"Those two items resonated with people," said O'Brien, who is part of a group advising Monsanto through his position as secretary-treasurer of the Produce Marketing Association.
Monsanto is also forging relationships with companies such as produce giant
Dole Food Co. The companies announced a five-year agreement this year to
develop healthier, better-tasting broccoli, cauliflower, lettuce and spinach.
Sano Shimoda, president and
founder of Bioscience Securities Inc., an advisory and investment banking firm
in
"If you can create differentiated products coming off the farm, then there's
the opportunity to create brand identification that is tied to traits," he
said. "The whole point is: How can they
create product identification that the consumer will pay for, that will create
brand identity and that they can charge more for?"
But knowing what consumers want today is only part of the challenge. It can
take years to develop a new tomato, melon or pepper. And tastes vary widely by geography. Consider tomatoes: Italians want an acidic tomato. Japanese want a pinkish, sweet fruit without a hint of acid. Americans generally prefer
something in between.
Processed food companies and fast-food restaurants also have different demands.
"McDonald's doesn't want a perfectly round tomato. They want a uniform red tomato like a sausage, so that every slice is almost the same," said John
Uhlig, who runs Monsanto's food quality lab at
ACCELERATING NATURE
Uhlig's lab resembles a science classroom. Stacks of brown plastic bins holding basketball-size watermelons sit on the floor, waiting to be tested to see how they withstand the cold (typically, they don't).
On a table around the corner, clear plastic containers of slicing tomatoes are
arranged on cafeteria trays. Each box holds three or four pre-sliced tomatoes
picked days earlier. The goal: to mimic how they'll hold up when they arrive at a deli or a fast-food restaurant.
Over the course of a year, the lab will handle 58,000 pounds of produce,
running tests on sugars, acidity and pungency. In all, more than 330,000
individual items will be bar-coded and tested for various physical and chemical properties.
Much of the work is still done by hand, as are other
time-consuming chores at
Meanwhile, much of the head-spinning genetic analysis that's become an integral part of the company's plant-breeding program has been revolutionized by proprietary automated systems.
The speed and efficiency is a key to Monsanto's increased use of a powerful
biotech tool — the use of molecular markers, DNA fragments used to identify genetic features of plants.
So far, Monsanto researchers have identified more than 15,000 such markers
across a dozen key crops, such as tomatoes, peppers and melons, that can
significantly accelerate the breeding process.
Take a cherry tomato developed by Heath. It was bred with a wild species
indigenous to
disease that has wreaked havoc on some tomato crops this year.
In the past, crossing a domesticated tomato with a wild species would have
taken a decade. With markers, the time can be cut to as little as two to three
years, Heath said.
"It's almost like having X-ray glasses," he said. "My assistant takes a
millimeter sliver of leaf, extracts the DNA, and we have many markers we can look at."
Monsanto has earned billions of dollars selling genetically engineered corn and soybean, and it even markets transgenic squash developed by Seminis in 1995 that's resistant to certain plant viruses. Yet, the company doesn't have
aggressive plans to launch new GM fruit or vegetables in the near future.
The company's first foray into biotech vegetables was the NewLeaf potato, which contained a gene from a microorganism that produced a toxin to repel the Colorado potato beetle — a damaging pest for growers. At its peak, the potato was planted on 55,000 acres. But fast-food giant McDonald's instructed French fry suppliers to stop using the potato. Many farmers followed suit, and Monsanto shelved it in 2001.
Today, Monsanto said it was investing in only a handful of biotech products.
One is an insect-protected and herbicide-tolerant sweet corn that it hopes to
introduce in the
product offered by rival Syngenta.
A partner in
eggplant, for that country. Now Monsanto is considering launching the trait in its own line of GM brinjal seeds.
The projects are evidence that Monsanto continues to believe biotech traits
hold promise for consumers and growers.
But the scientific and business obstacles for successfully commercializing a
genetically modified vegetable is steep, said Doug Gurian-Sherman, a senior
scientist in the Food and Environment Program at the Union of Concerned
Scientists in
Perhaps the steepest hurdle is getting consumers to accept it. "The concept
still is somewhat troubling to people," he said.
Bayer goal to triple biotech and seed sales
(Wire Services) – MONHEIM, German -- Bayer CropScience is accelerating the extension of its biotech
and seed business. Following a record year in 2008, the company is continuing
its strategy of expansion, aiming systematically to expand its fast-growing
business in seed and plant traits in the coming years.
The intention is to more than triple sales in the BioScience
segment to around EUR 1.4 billion by 2018.
"In this context, the company is planning to invest some EUR 3.5 billion
in research and infrastructure for its biotech and seed business between now
and 2018. This figure does not include possible acquisitions," said
Professor Dr. Dr. h.c. Friedrich Berschauer,
Chairman of Bayer CropScience AG's Board of
Management, at the company's annual press conference.
According to Berschauer, the company's objective is
to become the farmers' first choice as a partner worldwide and to offer
"innovative and sustainable solutions all the way from sowing to
harvesting." With this in mind, Bayer CropScience
is seeking to further strengthen its role as a leading supplier of innovative
technologies in all business segments, to grow its portfolio strategically, and
to expand its business sustainably in rapidly growing emerging markets. The
growth strategy revolves around three elements: chemical crop protection, plant
traits, and high-quality seed. "We are developing from a classical
supplier of crop protection products into a supplier of integrated solutions
for farmers which comprise not only products but technologies and services as
well," Berschauer explained.
Well-filled agrochemical research pipeline
Bayer CropScience believes that it is extremely
well-positioned as a global innovation leader in the classical crop protection
business. In this segment the company has set itself the goal of bringing to
market between 2008 and 2012 ten new crop protection active substances with a
combined peak sales potential in excess of EUR 1.25 billion - previously the
target sales figure was above EUR 1 billion. Following the successful launch of
the insecticide spirotetramat and the herbicide pyrasulfotole in 2008, the company has achieved a further
milestone this year with the grant of regulatory approval for the new herbicide
thiencarbazone-methyl in combination with the safener cyprosulfamide in first
countries. Three fungicides -- fluopyram, bixafen and isotianil -- are
scheduled for launch in 2010 and 2011. In addition, three further candidates,
among them a biological pest-control product, are at an advanced stage of
development.
Plant biotechnology helps to boost productivity
Bayer CropScience has gained a strong position
worldwide in the BioScience segment with its four
core crops canola, rice, cotton and vegetables. The intention is to expand the
portfolio on a regional basis in the coming years and to include further crops.
The company has begun research into improved cereal varieties. The objective
here, as with other crops, is to increase yields and to make plants more
resistant to adverse weather conditions. The company's research activities are
also focusing increasingly on soybeans.
Bayer CropScience is currently investing the
equivalent of roughly 27 percent of sales in the development of new BioScience products - a figure that puts it among the
leaders in the industry in terms of research intensity. Almost 1,000 BioScience researchers and breeders are working on over 50
projects.
The company's own research is being rounded out by a number of cooperation
agreements. This year, more than ten alliances with public and private-sector
research bodies have been agreed so far. For example, Bayer CropScience
has been working with one of the world's leading agricultural research
institutes since July to develop new varieties of wheat. The company is also
expanding successively its global network of research locations.
"We are currently active in about one quarter of the seed and plant trait
market," said Dr. Joachim Schneider, Head of the Business Operations Unit BioScience. "In the future we want to offer an
expanded portfolio of products that will serve around one half of the total
market. Our goal is for the BioScience business unit
to grow roughly twice as fast as the market in the next few years." Sales
are planned to increase from EUR 452 million (2008) to around EUR 1.4 billion
by 2018. Bayer CropScience is seeking to offer its
solutions to as many farmers as possible worldwide by out-licensing its
technologies to other companies. The four agreements that have been concluded
to date represent a cumulative potential for license fees in excess of EUR 500
million.
Good half-year - cautious start in third quarter
Currency-adjusted sales of the Bayer subgroup grew 4.8 percent to EUR 3,972
million (previous year: EUR 3,782 million) in the first six months of 2009
despite unfavorable weather conditions in some of the major growing regions.
Sales in the Crop Protection segment increased 4 percent to EUR 3,274 million
in the first six months in response to greater demand for seed dressings,
herbicides and insecticides. Growth in North America, Europe and
The Environmental Science segment posted stable development with sales of EUR
336 million. In the BioScience business unit, Bayer CropScience increased sales to EUR 362 million --
currency-adjusted 18.8 percent ahead of the previous year. This growth was due
mainly to sales gains in canola seeds in
Good development in the first six months of 2009 was followed by a more modest
start to the third quarter. Lower selling prices for wheat and corn,
unfavorable weather conditions in Europe and the subcontinent
Bayer is a global enterprise with core competencies in the fields of health
care, nutrition and high-tech materials. Bayer CropScience
AG, a subsidiary of Bayer AG with annual sales of about EUR 6.4 billion (2008),
is one of the world's leading innovative crop science companies in the areas of
crop protection, non-agricultural pest control, seeds and plant biotechnology.
The company offers an outstanding range of products and extensive service
backup for modern, sustainable agriculture and for non-agricultural
applications. Bayer CropScience has a global
workforce of more than 18,000 and is represented in more than 120 countries.
DuPont to hike seed less prices in 2010
(Bloomberg) -- DuPont Co., the world’s second biggest seed producer, said it won’t raise prices for crop seeds as much as last year because farmers are grappling with a more difficult economy.
DuPont raised average prices for soybean seeds in 2009 by 35
percent and corn seeds by more than 20 percent, Paul Schickler,
president of the Pioneer unit, said at the JPMorgan Chase & Co. 4th Annual
Diversified Industries Conference in
“The economic environment and situation farmers face today is different compared to one year ago,” Schickler said. “We are going to deliver solid price increases that will be consistent with historical increases while maybe not at the level of 2009.”
Profits for
DuPont expects to boost seed sales and profit by more than
15 percent this year. The Pioneer unit gained 2 percentage points market share
in North American corn, the most profitable seed market, reversing years of
losses to Monsanto Co., the biggest seed producer. DuPont grabbed three more
percentage points of soybean seed sales in North American, and it also gained
in crops outside the
DuPont climbed 75 cents, or 2.3 percent, to $33.90 at 4:03 p.m. in New York Stock Exchange composite trading. The shares have gained 34 percent this year.
DuPont won’t detail increases for 2010 seed prices until discussions with customers conclude in January, said Doyle Karr, a spokesman.
Water restrictions cost 2000 jobs in
Calif.
(HanfordSentinel.com) – Officials at the San Luis & Delta-Mendota Water Authority issued a statement Friday claiming100,000 acres went unplanted and 2,000 jobs have been lost on the Westside because of federal pumping cutbacks to protect the endangered Delta smelt fish.
The statement refutes a document released Thursday by the
U.S. Department of the Interior that claims it’s “not true” that “water
shortages and high unemployment rates in
“Interior is lacking candor in explaining and accepting the human impacts of the Endangered Species Act restrictions,” said Jason Peltier, deputy general manager of Westlands Water District.
Westlands, a member of the
authority, has about 80,000 acres in
“I would just say in general we look forward to ... working with the local and state government, as well as the water authorities and our other partners, to solve this problem,” said Interior spokeswoman Kendra Barkoff.
Barkoff declined to get into specifics about how much of a role environmental regulations play in the current situation.
Current laws call for a certain percentage of the Central
Valley Project water to go to environmental protection and ecosystem
preservation in the delta and other areas. These rules are not suspended in drought
situations like the current one —
Many of the regulations were included in the Central Valley Project Improvement Act, passed in 1992, which reserves some water for fish and wildlife protection and ecosystem preservation.
But this year Westside farmers are facing additional regulations stemming from a 2007 federal court order to protect the delta smelt fish and a 2009 federal biological opinion mandating additional cutbacks to protect other fish species including salmon and steelhead.
The cumulative impacts have left giant bare patches of earth on the Westside and created high farmworker unemployment in small towns like Avenal, Huron and Mendota.
Westlands officials predict district farmers will lose 1 million acre-feet of water as a result of both the court order and the biological opinion.
The Interior Department is right about the fact that there is a natural drought, but has tried to “minimize the role that regulatory decisions play,” said Dan Nelson, executive director of the authority.
Lime cost effective in fixing acidic soil
(
A soil pH of 6.0 to 6.5 is optimum for most crops in
Soil pH affects the availability of soil nutrients to plants. An increase in soil acidity (lower pH) reduces the amount of available phosphorous in the soil while increasing the amount of available aluminum and hydrogen. At a pH of 4.5, available aluminum and hydrogen are at toxic levels, he said.
To counter these effects, an application of lime can reduce soil acidity. Liming increases the activity of organisms responsible for nitrification and nitrogen fixation and improves the overall condition of the soil.
"MU research indicates that increasing the pH of a soil
from 4.5 to 6.0 through liming can increase soybean yield by as much as 15
percent," Harper said. "Given the benefits of liming, and the fact it
is one of the cheapest products farmers add to the soil, there should be no
reason the pH levels of
A soil test, available through local MU Extension centers, can measure soil pH and indicate the amount of lime necessary to neutralize soil acidity.
The amount of lime to apply is expressed in terms of
"effective neutralizing material" (ENM). All lime sold in
"For example, a soil test may indicate that a soil is acidic and needs 1,200 ENM to increase the pH," Harper said. "If lime from a dealer is 400 ENM per ton, the farmer would need to apply three tons to correct the soil pH."
The main disadvantage with lime is that it can take a long time to correct soil acidity, especially if it's not properly incorporated. MU research indicated it would take 10 to 14 years for surface-applied lime without incorporation to raise the soil pH to a depth of 6 inches. All applied lime should be incorporated for maximum effectiveness.
Even with incorporation, it may take several months for lime to correct soil pH. For this reason, don't apply lime in March in an attempt to correct the soil pH for a crop you are going to plant in April.
"An ideal situation would be to take a soil sample right after harvest, then apply and incorporate the recommended amount of lime that fall," Harper said. "There should be sufficient correction in soil pH by the following spring to have a positive impact on crop growth."
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