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International Corn
Harald Nitschke, German corn farmer.
Nitschke is one of several thousand farmers throughout Europe who use Monsanto’s YieldGard Corn Borer technology to protect and to increase yield on their land. A recent study across seven countries in Europe highlighted that farmers were experiencing a 10 percent yield boost with Monsanto’s insect-protected corn technology.
Europe is one of the largest corn markets in the world, with 27 million acres planted each year. Our superior yields are driving consistent annual share increases of one to two points in key corn-growing countries. In France, Europe’s largest corn-growing region, our DEKALB brand is now the market leader.
Looking ahead, our strong genetic performance in Europe positions us to take advantage of the growing acceptance of the first biotechnology trait used in the region, YieldGard Corn Borer. In 2007, farmers in France, Spain, Poland, Germany, Portugal, Slovakia, and the Czech Republic planted more than 200,000 acres of our YieldGard Corn Borer product (see story above). We believe that nearly 30 percent of corn grown in Europe is infested with the yield-robbing insect, so our corn borer trait offers an expanded growth opportunity through 2012 and beyond.
We’re seeing similar opportunities for our business in Brazil and in Argentina.
Julio Cesar Pereira Jr., Brazilian corn farmer.
Pereira uses Monsanto’s DEKALB brand of corn seed to increase yield on his farm. In the coming seasons, once all necessary approvals have been granted, Pereira is expected to have access to Monsanto’s YieldGard Corn Borer technology — presenting him with another tool to support and to protect his crop’s yield potential.
In Brazil, the world’s third-largest corn-growing region, our DEKALB and Agroceres brands, with 30 percent share, represent a powerful platform for our seed and trait offerings. This year, our acquisition of Agroeste Sementes, a leading Brazilian corn seed company, deepened our germplasm library for tropical corn-growing regions. And with Agroeste’s products currently used on approximately 10 percent of Brazilian corn acres, we acquired a strong platform for future trait introductions.
One of those traits is our YieldGard Corn Borer product. This year, the trait was approved by the Brazilian Biosafety Technical Committee. While a number of regulatory hurdles remain, the approval moves us closer to a market opportunity we estimate could be between 15 million and 20 million acres.
In Argentina, corn farmers used our DEKALB corn seed products on approximately 40 percent of corn acres planted in the country in 2007. This platform positions us for continued growth in this expanding market. Argentina currently plants 8 million acres of corn each year, but by 2012 that number could grow to 10 million as the country produces more corn to meet the import needs of the markets it serves.
Argentina is also a key platform for our trait offerings — a platform that became more valuable with the final regulatory approval this year of our YieldGard Corn Borer with Roundup Ready Corn 2 technology, the first stacked trait offering in Argentina.
