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Biotech / Medical : Monsanto Co. -- Ignore unavailable to you. Want to Upgrade?

To: Dan Spillane who wrote (1323)	2/23/1999 4:21:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 2539

02/23 14:38 Transgenic seed seen on half US '99 corn/soy acres WASHINGTON, Feb 23 (Reuters) - Genetically modified seeds are expected to be planted on nearly half the U.S. acreage of corn, soybeans and cotton this year, as farmers continue to embrace biotechnology, an agribusiness professor said Tuesday. "In 1999, just four years from commercial introduction, almost 50 percent of the total corn, soybean and cotton acreage will be planted with transgenics," Nicholas Kalaitzandonakes, associate professor of agribusiness at the University of Missouri, said at a session on biotechnology at the U.S. Department of Agriculture's annual Agricultural Outlook Forum. Kalaitzandonakes compared the adoption rate of Roundup Ready soybeans to that of hybrid corn, which he called the most dominant agricultural technology of the past. Using data from Iowa, Illinois and Wisconsin, he estimated that 55 percent of soybean acres in those states will be planted to Roundup Ready soybeans in 1999. In the case of hybrid corn, it took those states more than seven years to reach the adoption levels of Roundup Ready soybeans. Roundup Ready cotton and two other bioengineered crops, known as Bt corn and Bt cotton, also exhibit adoption rates significantly faster than that of hybrid corn, he said. Roundup Ready soybeans, a product of Monsanto Co. <MTC.N>, are genetically modified to resist Roundup herbicide, also made by Monsanto. Bt corn plants are bioengineered to contain a naturally occurring toxin for insects. Yields for Roundup Ready soybeans do not appear to come in significantly higher or lower than those of nontransgenic seed, he said, noting that university trials in many states show Roundup Ready soybeans varying up to three bushels per acre above and below conventional varieties. Yet on average, Kalaitzandonakes said, farmers have realized net profits of $15 to $25 per acre because of Roundup Ready seed, due primarily to lower chemical input costs. "The profits come from a lower herbicide bill and vary with specific cultivation practices and product pricing," he said. "Back-of-the-envelope' calculations suggest that in 1999, the on-farm value delivered by Roundup Ready soybean technology alone could range from $600 million to $1 billion." Kalaitzandonakes cautioned that economic benefits of "first-generation" biotechnology such as Roundup Ready soybeans could be transitory. The faster that farmers adopt technology that can increase supply, the faster prices can fall due to inelastic demand, ultimately resulting in a loss of value. But this may not be the case with the first generation agrobiotechnologies, which are not strongly yield-boosting but rather input-reducing, he said. The outlook for "second-generation" biotechnologies, which are modified to carry certain qualities, such as higher oil, starch or protein content, is less clear. "A key question, then, is how soon will such value be delivered to the market?" Kalaitzandonakes said. "Unlike first- generation agrobiotechnologies, which fit existing systems with few or no adjustments, second-generation biotechnologies require many. More importantly, end-users must reach a level where they are able to appreciate and take advantage of the value created by quality-enhanced crops."