LUDWIGSHAFEN, Germany, and ST. LOUIS -- BASF and Monsanto Company today announced a long-term joint research and development and commercialization collaboration in plant biotechnology that will focus on the development of high yielding crops and crops that are more tolerant to adverse environmental conditions such as drought. The collaboration is effective immediately.
Over the life of the collaboration, the two companies will dedicate a joint budget of potentially $1.5 billion/euro 1.2 billion to fund a dedicated pipeline of yield and stress tolerance traits for corn, soybeans, cotton and canola. The joint pipeline will include the companies' existing and planned yield and stress tolerance programs and be comprised of projects generated by independent plant biotechnology discovery and research from each company.
The first product developed as part of this collaboration is expected to be commercialized in the first half of the next decade.
"We are pleased to be able to work with BASF in order to enhance our ability to identify and commercialize new traits that have the potential to bring substantial value to farmers," said Robb Fraley, chief technology officer and eexecutive vice president of Monsanto. "By broadening the pipeline of potential traits, exchanging technology and sharing risk, this collaboration can accelerate the discovery of next-generation technologies for the farm and effectively double the risk-adjusted net present value of Monsanto's yield and stress trait technology pipeline."
"We are excited about the collaboration with Monsanto, which is a strong partner with outstanding capabilities," said Peter Oakley, the member of BASF's Board of Executive Directors responsible for Agriculture, Health and Nutrition. "This is a great step forward in bringing to farmers higher yielding crops that help them to meet the increasing demand in both the food as well as renewable resources segments."
Under this collaboration:
Monsanto decided to collaborate with BASF because the company is excellently positioned to provide traits as a series of successive upgrades within a particular crop. For BASF, Monsanto's track record of commercializing traits and breeding desirable germplasm ensures that BASF's innovations quickly reach the widest base of farmers.
In addition to today's collaboration, the companies also announced that they have entered into a separate development and commercialization collaboration to research methods to control the soybean cyst nematode, a parasitic worm that can limit and destroy yields for soybean farmers.
Both collaborations will be performed by Monsanto and BASF Plant Science, the plant biotechnology company of BASF.
Monsanto is an agriculture company. The company is a leading provider of technology-based solutions and agricultural products that improve farm productivity and food quality. Monsanto is committed to investing in products that can make a difference for its farmer customers and the land they farm. The company uses plant breeding, plant biotechnology and other applications of modern science to support its commitment to agriculture and the farmers that feed, clothe and fuel our growing world.
BASF founded BASF Plant Science in 1998 as its own biotechnology company. BASF Plant Science coordinates a research and development platform in Europe and North America with about 700 employees working to optimize crops for the following sectors: more efficient agriculture, renewable raw materials for specialty products and healthier nutrition for humans and animals.
BASF Plant Science focuses on second- and third-generation plant biotechnology products and has a strong discovery platform for agronomically important traits. The company's program is based on several technology platforms with innovative discovery approaches currently not used by any other company. These include high-throughput phenotyping at CropDesign in Ghent, Belgium, and high-throughput metabolic profiling at Metanomics in Berlin.
SOURCE: Monsanto Company; BASF via PR Newswire.