Statement re Monsanto
Plant Health Care PLC
21 February 2008
Embargoed for release: 07.00, 21 February 2008
Plant Health Care ('PHC')
Statement regarding a Monsanto announcement
Plant Health Care (AIM: PHC.L), a leading provider of natural products for
plants and soil, would like to draw investors' attention to an announcement
issued by Monsanto on 20 February 2008. The announcement refers to PHC in two
paragraphs (see below) and PHC confirms that the Monsanto release is entirely in
line with the PHC release dated 12 December.
The Monsanto announcement is set out in full below.
'NEW YORK, Feb. 20 Monsanto (NYSE: MON) Company's technologies have placed it in
a unique position to help farmers meet the changing supply-demand patterns of
global agriculture, Monsanto's Executive Vice President of Strategy and
Operations, Carl Casale, will tell investors tomorrow. Casale will deliver his
remarks as part of a presentation at the Morgan Stanley Basic Materials
Conference 2008 on Thursday in New York.
Casale's presentation will discuss how there has been a fundamental shift in the
agricultural landscape creating a new demand-driven agriculture market fueled by
three main factors. These factors include increased protein demand from rising
incomes, demand for grain from China and biofuels.
'The real demand pull comes from China,' Casale said. 'To meet the protein
demands of this growing population, China will look outside of its agricultural
sector, providing an enormous demand pull for grain over the next decade.'
'The solution to meeting these demands is yield,' Casale said. 'In a
demand-driven environment opportunity is defined by scarcity or innovation,' he
said. 'Monsanto's strategy is targeted on innovation -- discovering and
developing technology that is game changing.'
Casale believes the company's innovation focus sets it apart, both in the value
created for farmers and the company's strategic opportunity. 'We will grow
because of what we do, how we invest and what we deliver -- not because of what
the commodity cycles do,' he said.
Casale believes that the company's ability to provide technology to boost
per-acre productivity will be key to helping farmers meet the needs of a
demand-driven market. These potential technologies, like Roundup Ready 2 Yield
soybeans, SmartStax corn and nitrogen-utilization corn are being developed to
drive yields to meet these demands, he said.
Monsanto Establishes Global Seed Treatment Platform
As a technology company with strong cash generation, Monsanto has the
opportunity to invest in growth areas for agriculture, Casale said.
As part of his presentation, Casale will announce that Monsanto is establishing
a global seed treatment platform. The company has entered into separate
agreements with Becker Underwood and Plant Health Care Inc., as novel components
of the platform for delivering proprietary seed treatments for corn, soybeans
and cotton.
The global platform is a natural complement to the company's seed strategy and
yield-enhancing technology pioneered by Monsanto through biotechnology and
breeding, as well as its collaborative approach to new technologies, Casale
said.
'As we develop our seed-treatment platform, we're planning to stake a leading
position in an underserved, but emerging category and to enter into a variety of
licensing and supply agreements,' Casale said. 'Seed treatments are the next
step in yield protection and delivery, and represent a high-margin global
opportunity.'
The global seed treatment industry generates annual sales of greater than $1.5
billion, with almost $900 million in the crops key to Monsanto's business.
Currently, Monsanto treats more than 1 billion pounds of seed each year and sees
the potential to expand treatment to new crops and new geographies, Casale said.
'The realizable yield in seeds is so valuable to farmers that seed treatments
are the next logical complement to further protect yield created by advanced
breeding and biotech traits,' said Casale.
Monsanto plans to begin offering seed treatments as early as the 2009 season. In
2009, Monsanto plans to treat all Roundup Ready 2 Yield soybeans with a
proprietary treatment, aimed at incremental yield boost in soybeans. Similarly
in 2010, Monsanto plans to have a proprietary seed treatment for the launch of
its SmartStax corn product, and the company is also working to have a seed
treatment solution for its Deltapine cotton varieties by 2011.
The agreement between Monsanto and Becker Underwood is focused on evaluating a
biological seed treatment aimed at helping soybeans improve both their nitrogen
fixation ability and overall plant performance. Monsanto is also working with
Plant Health Care Inc. to develop and commercialize a novel seed-based solution
for nematodes, a plant parasite that can severely limit crop yields around the
world in crops such as corn, soybeans, cotton and vegetables.
Casale's presentation slides and simultaneous audio webcast of the presentation
may be accessed by visiting the company's web site athttp://www.monsanto.com/
investors . Following tomorrow's live broadcast set for 8 a.m. ET, a replay of
the webcast will be available for two weeks through this same link.
Monsanto Company is a leading global provider of technology-based solutions and
agricultural products that improve farm productivity and food quality.' For
information on Monsanto, see: http://www.monsanto.com/.
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,
including proceedings related to Solutia Inc.; 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 periodic 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.
CONTACT: media, Lee Quarles, +1-314-694-2330, or investors, Scarlett Lee
Foster, +1-314-694-8148, both of Monsanto
Web site: http://www.monsanto.com/
For further information please visit www.planthealthcare.com or contact:
Plant Heath Care plc Evolution Securities Tavistock
Limited Communications
John Brady, Chief Executive Tim Worlledge/Tim Jeremy Carey/Matt
Redfern Ridsdale
Tel: 001 603 525 3702 Tel: 020 7071 4300 Tel: 020 7920 3150
This information is provided by RNS
The company news service from the London Stock Exchange