March 14, 2011
- Successful field trials pave way for licensing and supply agreement
- Contract includes collaboration on stewardship package
LUDWIGSHAFEN, GERMANY and ST. LOUIS, MISSOURI, USA (March 14th, 2011) – BASF and Monsanto Company (NYSE: MON) today announced a new agreement to collaborate on the advancement of dicamba tolerant cropping systems. The companies have granted reciprocal licenses, and BASF has agreed to supply formulated dicamba herbicide products to Monsanto.
The agreement will facilitate further development work and subsequent commercialization of a dicamba tolerant system, which includes innovative dicamba formulations proprietary to BASF and the dicamba tolerant trait for soybeans, which is proprietary to Monsanto. The system is expected to be introduced in the United States and Canada in the middle of the decade, pending regulatory approvals.
Both Monsanto and BASF will have the right to commercialize new dicamba herbicide formulations optimized for use with dicamba tolerant crops and the right to develop their own mixtures with certain herbicides. In addition, the two companies will collaborate on the development of stewardship guidelines and best management practices for the dicamba tolerant system. Further details of the agreement were not disclosed.
“The introduction of dicamba tolerant crops combined with improved dicamba formulations will provide farmers the tools they need to combat the yield-robbing weed resistance some are facing in their fields today,” said Markus Heldt, President of BASF’s Crop Protection division. “Since the introduction of Clarity® in 1992, BASF has continually improved its dicamba offerings. Our next generation products will offer yet another step change in volatility reduction while maintaining the highest level of weed control. The system, along with proper stewardship measures, will ultimately deliver peace of mind for growers.”
“We are committed to providing farmers with the weed management tools they need to be successful,” said Robb Fraley, Monsanto’s chief technology officer. “Our work with BASF brings us one step closer to bringing more improved weed control offerings to farmers. We expect the formulations to be an excellent complement to Monsanto’s dicamba tolerant seed technologies when they are brought to market.”
Upon commercialization, the dicamba tolerance trait is expected to be stacked with the high yielding Genuity® Roundup Ready 2 Yield® soybean trait. Monsanto also has corn, cotton and canola dicamba tolerant crops in its research and development pipeline. These next-generation technologies are aimed at offering farmers multiple modes of action and superior application timing flexibility in combating weeds.
In November 2010, Monsanto and BASF published favorable results of joint field testing of new dicamba-based formulations with Monsanto’s next-generation dicamba tolerant soybeans. The new formulations demonstrated excellent weed control and crop safety. BASF, the world’s leading chemical company, and Monsanto, the world’s leading agriculture technology company, first announced a joint licensing agreement to develop innovative formulations for dicamba for use with herbicide-resistant cropping systems in January 2009. The two companies also have an established R&D collaboration to develop other new trait technologies for farmers.
BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and agricultural products to oil and gas. As a reliable partner BASF creates chemistry to help its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF posted sales of about €63.9 billion in 2010 and had approximately 109,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com or in its Social Media Newsroom at newsroom.basf.com.
About Monsanto Company
Monsanto Company is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. To learn more about our business and our commitments, please visit: www.monsanto.com. Follow our business on Twitter® at www.twitter.com/MonsantoCo, on the company blog, Beyond the Rows® at www.monsantoblog.com, or subscribe to our News Release RSS Feed.
Cautionary Statements Regarding Forward-Looking Information:
Certain statements about Monsanto Company contained in this release are "forward-looking statements," such as statements concerning the company’s anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company's actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company's exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public acceptance of biotechnology products; the success of the company's research and development activities; the outcomes of major lawsuits; developments related to foreign currencies and economies; successful operation of recent acquisitions; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company's estimates related to distribution inventory levels; the company's ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters and accidents on the agriculture business or the company's facilities; and other risks and factors detailed in the company's most recent Form 10-K Report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.
Clarity is a registered trademark of BASF. Genuity and Roundup Ready 2 Yield are registered trademarks of Monsanto Technology LLC.