Why Monsanto, Sygenta Are in Bed With Evogene

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March 28 (Bloomberg) -- What do the world’s biggest seed companies, like Monsanto and Sygenta, have in common? As well as developing and selling seeds - no surprise there - they’ve partnered with Israel’s Evogene. Bloomberg’s Elliott Gotkine has been finding out why.

They may be small, but these are model plants.

Genetically modified by evogene to see how they might improve crops, like cotton or corn.

The genes are identified using proprietary computer algorithms from one of the most extensive databases in the business.

We established a form which is a combination of a deep understanding of lance and cutting edge competitive technology.

When we integrate them together we create a synergy that helps us to understand how the plant is operated so we can leverage his understanding in order to improve crop activity in the field itself.

The potential is huge.

The market for genetically modified seeds is worth around $19 billion, about the same as conventional ones.

Throw in evogene's non-gm seeds and by 2020 it could be raking in over $200 million a year in sales.

Equally, it could be much less.

Identifying seeds takes time and money.

Even with evogene sophisticated algorithms, there won't be any major crops on the market with evogene inside until 2019. in the meantime, it aims to start selling high-yielding castor seeds for biofuel by 2016 and is looking to use its algorithms to get into the $50 billion market for crop attraction chemicals like herbicides.

Or branches to an increasingly diversified business.

They have a long road ahead of them.

Would make see evogene store unique is the fact that their success is not entirely contingent upon one product or even one collaborative agreement, which is significantly diversifies their risk.

When one looks at the potential commercialization of even a few of their products within the pipeline, the potential value of that significantly exceeds the near and intermediate term risks.

They are convinced they can turn the computer algorithms into super corn or wheat or canola.

For now, investors are keeping their bets is safe.

They're betting this company

This text has been automatically generated. It may not be 100% accurate.

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