Monsanto is to establish a global seed treatment business to complement its seed and trait operation. The company plans to apply a proprietary seed treatment to all of its second-generation glyphosate-tolerant Roundup Ready 2 Yield soybeans, which are due to be introduced in 2009 (Agrow No 537, p 22). A seed treatment will also be applied to the multiple insect-resistant SmartStax maize, which is being developed with Dow AgroSciences and is due to be launched in 2010 (Agrow No 528, p 2). Plans are also under way to develop a seed treatment for Monsanto's Deltapine cotton varieties by 2011.

Monsanto has entered into separate agreements with the US specialty products company, Becker Underwood (Ames, Iowa), and the bioproducts firm, Plant Health Care (PHC - Pittsburgh, Pennsylvania), to develop seed treatments for maize, soybeans and cotton. The Becker Underwood deal is aimed at improving nitrogen fixation by soybeans. Monsanto has agreed to evaluate PHC's harpin technology for the control of nematodes (Agrow No 534, p 4).

Monsanto treats more than 1,000 million lbs (453,600 tonnes) of seed each year and sees the potential to expand treatment to new crops and geographic regions. Global seed treatment sales amount to some $1,500 million, with almost $900 million being spent on crops that are key to Monsanto's business, the company points out. "As we develop our seed treatment platform, we're planning to stake a leading position in an underserved, but emerging category and to enter a variety of licensing and supply agreements," says Monsanto's executive vice-president of strategy and operations, Carl Casale. "Seed treatments are the next step in yield protection and delivery, and represent a high-margin opportunity," he adds.

earnings update

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Meanwhile, Monsanto has raised its earnings guidance for fiscal 2008 for the second time in a matter of weeks. The company now expects ongoing earnings of $2.70-2.80/share rather than the $2.50-2.60/share indicated in January (Agrow No 535, p 4). The revision reflects increased confidence in the company's seed and trait business and continuing strong sales of Roundup (glyphosate) and other glyphosate-based herbicides, according to Monsanto's executive vice-president of global commercial business, Brett Begemann.

Increased sales volumes and prices for glyphosate globally have resulted in a revival in the business, Mr Begemann said at the Goldman Sachs Agricultural Biotech Forum in New York, US, this month. The improved performance is being driven by increased plantings of Roundup Ready crops, greater adoption of conservation tillage and competitive pricing, he pointed out....

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