Monsanto and Grower Associations Announce Agreement that Supports Introduction
of Future Soybean Technologies for Brazil, and Provides a Mechanism to Resolve
Disputes on Roundup Ready 1
ST. LOUIS, Jan. 23, 2013
ST. LOUIS, Jan. 23, 2013 /PRNewswire/ --Monsanto Company (NYSE: MON) and
leading grower organizations in Brazil announced today that they have reached
an agreement that will support the introduction of next-generation products
like INTACTA RR2 PRO™ soybeans.
The agreement represents an important next step towards the commercial
introduction of INTACTA RR2 PRO™ soybeans in the country. It demonstrates
strong support by the Agriculture and Livestock Confederation of Brazil (CNA),
a leading national grower organization, as well as ten state agriculture
federations in the soybean-production regions of Brazil. The agreement
recognizes the important role of technology providers that invest in new
technologies for farmers as well as for a value collection system that ensures
technology providers are duly compensated for technology each time it is used
"Importantly, this agreement reflects the support of key grower associations
and provides a mechanism to allow all parties to focus on the long-term
solutions that will support the Brazilian agriculture industry and its growing
demands," said Rodrigo Santos, Monsanto Brazil president.
Under the agreement, participating Brazilian farmers will secure a new license
that will allow them to purchase soybeans containing the new INTACTA RR2 PRO™
technology, expected to be available in the 2013-2014 growing season. The
agreement also underscores the grower associations' support for continuing a
royalty collection approach, which ensures that growers pay royalties each
time they use the technology.
The agreement also provides clarity on first-generation Roundup Ready soybeans
for participating farmers. Those farmers will be released from payment of
technology royalty fees for first-generation Roundup Ready soybeans for this
and next season, while waiving all potential legal claims for payments
previously made for this first-generation technology. Farmers who elect to
not participate will continue to pay royalties on that technology through the
term of Monsanto's intellectual property rights in Brazil that cover the
first-generation Roundup Ready soybeans.
Monsanto had previously excluded the contribution related to the company's
first-generation Roundup Ready soybean business in Brazil from its earnings
per share (EPS) and free cash flow guidance, reflecting an estimated
historical annual range of $0.20 to $0.25.
Monsanto and the leaders of these grower groups recognize that innovation in
agriculture is one of the critical paths towards delivering value to Brazil's
farmers and its economy and meeting the demands of our growing planet. The
parties also agree and recognize the value that intellectual property rights
and the associated royalties can play in stimulating new investments made by
the agriculture industry.
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
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Cautionary Statements Regarding Forward-Looking Information:
Certain statements 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 and the previously-announced SEC investigation; 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.
Kelli Powers (314) 694-4003
Lee Quarles (314) 694-2330
SOURCE Monsanto Company
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