process by a year. Companies have to do everything in our power to understand what regulatory agencies need and provide that. If we do that, they should be able to move quickly. Pre-empting rational questions that might come up can really shorten approval timelines.”
One thing most in the industry do agree on: the next wave of products is coming, and it’s going to change the game forever. “New traits such as increased water or nitrogen use
are going to happen, whether it’s 2012, 2015 or a year or two later,” says Klevorn. “And it’s going to be fascinating to watch this – whoever stays ahead will reap the rewards. We won’t see six, seven or eight of these folks [big seed companies] but maybe two or three. Whoever gets nitrogen utilization into corn first will also get it into other crops first, which will be a tremendous advantage – more money for future investments – so they will get ahead.” Julie McNabb
The Value of Seed
Biotech and adaptation traits such as yield enhancements and drought tolerance are going to change the name of the game – in short, they are going to change the value of seed. For example:
• Crop protection input costs account for less than 15% of a grower’s variable production costs for corn and soybeans, but can provide returns of 300% or more, according to Syngenta crop Protection.
• Roundup Ready 2 Yield soybeans produce 7.4% more soybeans per acre than the older version.
• SmartStax kills insects in multiple ways, reducing the amount of conventional corn that must be planted to deter insecticide resistance. the new seed boosts yields 5% to 10% compared with other products, partly by reducing the amount of land that must be planted as a refuge to 5% from 20%.
However, this increase in the value of seed might also mean higher seed prices. According to a presentation on Monsanto’s web site, Roundup Ready 2 Yield soybeans will cost farmers an average of $74 an acre in 2010, and original Roundup Ready soybeans will cost $52 an acre. SmartStax corn seeds will cost $130 an acre, 17% more than the YieldGard triple-stack seeds they will replace. “our pricing has the flexibility built in to ensure the grower captures the greatest return from his seed investment, irrespective of market volatility,” said chief Executive officer Hugh Grant.
the company is pricing its seeds to share the benefit of increased yields with farmers, said Mark Gulley, a New York-based analyst at Soleil Securities, in a Bloomberg.com article. Prices include seed treatments designed to protect seedlings from pests and disease, Monsanto said. “they are in essence splitting the value of the extra yield 50-50,” Gulley said.
Whose Giant Views would you like to hear?
To nominate someone in the seed industry or a seed-related industry to be part of Seed World’s 2010 crop of Giant Views, e-mail us at issues@issuesink.com.
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Nominate them for the 2010 Future Giants of the Seed Industry award. Visit
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