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

To: Dan Spillane who wrote (2075)	5/25/1999 5:28:00 PM
From: Anthony Wong	Respond to of 2539

Monsanto to Sell Transgenic Soybean Seeds in Brazil This Year Bloomberg News May 25, 1999, 10:44 a.m. ET Monsanto to Sell Transgenic Soybean Seeds in Brazil This Year Londrina, Brazil, May 25 (Bloomberg) -- Monsanto Co., one of the world's largest agricultural-biotechnology companies, said it plans to sell its genetically altered soybean seeds in Brazil in the third quarter, boosting sales in the world's No.2 soybean producer. The company expects its transgenic soybean seeds, which could boost yields by about 5 percent, to grow in as much as 5 percent of Brazil's planted soybean area later this year, pending approval from the Brazilian authorities. Brazil has about 13 million hectares (32 million acres) of soybeans until cultivation. ''Final numbers have not been totally prepared yet, as the seed is being harvested and the seed is still being planted,'' said Eric Johnson, soybean development manager for Monsanto. ''But typically we're expecting somewhere less than 5 percent of the soybean area in Brazil would be planted with Roundup Ready soybeans.'' St. Louis-based Monsanto said its seeds could be used in 40 percent of the planted area in Brazil within three years, as farmers are drawn to the increased output from the seeds. Roundup Ready soybeans are genetically altered to become tolerant to Monsanto's Roundup herbicides, which are used to kill weeds. Farmers are able to increase the yields on their crops because the herbicide attacks the weeds, while preserving the beans. Brazil, the world's second largest soybean producer and exporter after the U.S., is an important market for Monsanto, as the company allocates more and more of its investments to biotechnology research and development, and counts on these products for a greater portion of profits. For Brazil, the seeds offer increased production and exports. Agriculture products such as soybeans, coffee and sugar, account for a third of Brazil's $530 billion economy. The company is also counting on new markets for its genetically engineered seeds to maintain its market share and to boost sales of its Roundup herbicide. ''Genetically altered seeds for Monsanto is basically the core foundation for our businesses in the future,'' Johnson said, in an interview at a soybean conference in southern Brazil. ''It is the area we are most heavily investing our research efforts and it is definitely beginning to drive a lot of the profit generation for the company.'' Brazil's Agriculture Ministry approved five varieties of Monsanto's genetically altered seeds last week, according to press reports. The approval hasn't been officially published yet and the company hasn't been notified by the government, Johnson said. Still, the use of transgenic soy has faced protests from environmental groups in Brazil and abroad, and the government of Rio Grande do Sul state has banned the production of altered crops. The state produces about one fifth of Brazil's soybeans. Environmental groups in other countries, including the U.K., have tried to block the use of the altered seeds and food, arguing they are not safe for humans and animals. A study last week by researchers at Cornell University and published in the journal Nature found that Monarch butterfly larvae that feed on genetically engineered corn were more likely to die than butterflies that fed near traditional cornfields. Johnson said Monsanto is currently evaluating and conducting research with cotton and maize, as well as some preliminary work in sugar cane in Brazil. He said countries such as Bolivia and Paraguay may soon approve the use of altered seeds. Argentina, the world's no.3 soybean producer, already allows the use of the seeds. The price of the seeds in Brazil have not yet been determined yet, but in the U.S. the seeds cost $50 per hectare, with farmers also paying Monsanto about $22 in technology fees and between $22 and $25 for the Roundup Ready herbicide per hectare. Monsanto's shares rose 1 1/8 to 41 5/8.