August 1, 1995
Monsanto and Biotech Company Join Forces
Monsanto Co., one of the world's top ten agrochemical
companies, has acquired just less than half interest in
Calgene Inc., an agricultural biotech firm. Calgene is well
known for its genetically engineered Flavr Savr tomato, which
was given U.S. government approval over a year ago. According
to industry reports, however, it remains a challenge for
growers and retailers to create demand for the high priced
tomato.
According to Calgene, there is more to the deal than
unification of Monsanto's and Calgene's tomato efforts. A
Monsanto vice president stated that his company's expertise
in herbicide-resistant crops should contribute to the
partnership. In May 1995, Monsanto gained U.S. regulatory
approval of soybeans genetically engineered to survive
applications of Roundup, Monsanto's brand name for
glyphosate. Much of the basic technology developed in these
projects may be transferred to fresh produce at some future
point. A research team at the University of Florida is
currently working on genetically engineered Iceberg lettuce
that is resistant to Roundup. Collaboration on cotton and
oilseed research is also part of future plans.
Monsanto has been working to engineer crops that are tolerant
to glyphosate in order to further expand the market for
Roundup, which is its top selling herbicide. The continued
growth of sales of Roundup worldwide are partially
responsible for the 18.6% increase in Monsanto's agrochemical
income during the first three months of 1995. Roundup also
recorded double digit volume growth in 1994 contributing to
Monsanto's agrochemical sales of US$2.1 billion for the year,
an increase of almost 10% over 1993 figures. According to a
Monsanto spokesperson, the company sells the majority of
glyphosate worldwide, with some industry estimates as high as
95% of sales.
Monsanto is planning to double the production capacity of its
glyphosate manufacturing plant in North Carolina with the
expanded facilities coming online in early 1996.
Approximately 80% of production at the North Carolina site is
intended for export. The company has already doubled the
capacity of its facilities in Belgium and Brazil and plans
additional expansion of facilities in Australia and
Louisiana. Monsanto's plans include construction of a
technical manufacturing plant in China to formulate
glyphosate for the domestic market and for export to other
parts of Asia. According to company officials, the China
plant could be operational by 1997.
Source: Agrow, January 6, March 3, March 17, June 16, July
14, 1995; The Packer, July 3 and July 17, 1995.
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