Monsanto, Agriculture and

SUSTAINABILITY

Monsanto Company“Agriculture is our only business”

Focused on the farmer

and the future of agriculture.

“We succeed when farmers succeed.”-Hugh Grant, Monsanto CEO

Monsanto is 100% focused on agriculture.

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Monsanto at a Glance

• A leader in seeds, crop protection, biotechnology

• Headquartered in St. Louis, MO

• More than 320 locations worldwide in 4 primary regions — Europe/Africa, Asia Pacific, Latin America and North America

• Employs more than 22,000 people worldwide

Monsanto Company’s Vital Statistics Crop Research Focus Areas

CottonCorn Soybeans

Fruits & Vegetables

Breeding and Biotech Provide Parallel R&D Paths to Commercial Products

PHASE II PHASE III PHASE IVPHASE IDISCOVERY

BREEDING

BIOTECHNOLOGY

MARKERS

ELITE GERMPLASM

IT PLATFORM

ANALYTICS

COMMERCIAL

GENOMICS

Monsanto Commitment to Diversity

• 33% of US employees are women

• Women networks, recruitment programs, youth education

• Recognized for innovative programs– Working Mother 100 Best Companies 2008

– DiversityInc Top 50 Companies 2008

• Team-based approach to stimulate innovation also leverages participation of women.

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Agriculture is at the Center of Many of Society’s Most Important Debates

Technology Is Addressing These Challenges

• Global food security•

• Water availability

•

• Biofuels

•• Global warming

•

Mill

ion

Met

ric

Tons

Source: IHS Global Insights, Agriculture Division

Global demand for crops increasing as population and income continues to rise

2008 Global Food Crisis

Copyright: 2008 WFP/Peter Smerdon

52% increase in Global Food Prices in June 2008

Of the 550 million working poor in the world, an estimated 60% are women

Greatest Challenge is in sub-Saharan Africa (SSA)

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• Half of SSA lives on less than $1 a day.

• The average life expectancy is 49 years vs. 78 years in US.

• The only continent where the per capita food production is getting worse, not better.

• Agriculture is the basis for most African economies

• 30% GDP vs. 7% in US

• 75% employment vs.1.9% in US

Yields in sub-Saharan Africa are Lowest in the World

Average maize yields (Mt/ha)

The Smallholder Farmer Poverty Trap

Lack of economic

development

Not enough to invest

Lack of health and education

Not enoughto eat

Not enoughto sell

Cycle of Poverty

Africa’s Woman Farmer – Our Customer

• African Women:

• Produce 80% of the crops in Africa.

• Transport 80% of food, often on their heads.

• Process 90% of the food, including threshing and cooking.

• Fetch 90% of the firewood and water to prepare the food.

Women are the last to eat and the first to go hungry.

A Day in Her Life

4:45 a.m. Wakes up first and kindles the fire5:30 a.m. Walks over a mile to fetch water 6:00 a.m. Makes breakfast6:30 a.m. Dresses and feeds the children7:15 a.m. Walks another mile to fetch water7:45 a.m. Washes utensils and clothing8:45 a.m. Begins working in the field 11:00 a.m. Brings food to her husband12:15 p.m. Returns to the field3:15 p.m. Walks home and gathers firewood4:30 p.m. Pounds and Grinds grain into flour5:30 p.m. Fetches more water6:15 p.m. Kindles the fire6:30 p.m. Prepares the evening meal7:30 p.m. Feeds her family8:30 p.m. Washes children, dishes and herself9:30 p.m. Cleans the house 10:30 p.m. Goes to bed, last in the family

Agriculture as a Wealth-Creating Investment

Current system• ½ ha yields ~ ½ T maize• Hunger and poverty• Destroys ag infrastructure

Improved system• ½ ha yields ~ 2 T maize • Enables ag infrastructure• Alleviates hunger but not poverty

Diversified system• ¼ ha yields ~ 1 T maize• Income to purchase school uniforms, supplement diet, etc.• Alleviates hunger AND poverty

Lower quality seed, few inputs

High quality hybrid seed, some inputs

Hybrid maize

Cash crop

Biotechnology offers Unique Benefits

• Scale neutral• Technology in the seed• Address old problems in a new and better way• Address problems that have never had a solution• Leapfrog over major constraints, e.g. lack of water, fertilizer

Monsanto’s Commitment to Sustainable Yield

Conserve More

Improve Farmers’Lives

Produce More

Goal:Help farmers double yields of corn, soybeans and cotton from 2000-2030

Combination of Breeding, Agronomics and Biotech Can Maximize Yield Gains

CORN YIELD POTENTIAL TO 2030 IN THE UNITED STATES

Goal:

Help farmers reduce use of key resources used in agriculture by 1/3 per unit of output

DROUGHT TOLERANT CORN FAMILY: LEAD PROJECT

2008 Dryland Field Tests Showed Lead Drought Event Increased Yield in Stressed Conditions

Discovery Phase 1Proof of Concept

Phase 2Early Development

Phase 3Adv. Development

Phase 4Pre-Launch

Launch

Targeted to minimize uncertainty in farming by buffering against effects of water limitation

In U.S., this historically has been dryland farms of Western Great Plains

Yiel

d D

iffer

ence

(bu/

acre

)

13.4% 6.7% 10.5% 11.3%

Percentage yield difference vs. control

7.7%

COLLABORATION WITH

With Gene Control Corn with Drought GeneFarm Progress Show, 2008

Goal:Farmers of all sizes become more productive, including >5M people in resource-poor families

Three complementary approaches to reach all farmers

• Commercial Business Development (for-profit):– maximizes farmer choice– requires infrastructure & market opportunity in country– self funding, self-growing & self-sustaining

• Cooperative Market Dev. (facilitated until profitable):– subsidized learning and infrastructure– requires public-private partnerships & funding– becomes self-supporting when successful

• Humanitarian Partnerships & Public Goods (non-profit): – subsistence applications & stewardship– requires public-private partnership & funding

Scale Neutral Benefit of GM Crops

Economic & Environmental Impacts

$33.8 billion added net

income>100 MMT of additional crop

production (higher yields)286 million kg in pesticide

applications14.76 billion kg of GHG

emissions (CO2-eq)

Source: GM Crops: global socio-economic and environmental impacts 1996-06; Brookes & Barfoot; PG Economics UK Ltd

Benefits of Bt Cotton in India 2002 - 2008

• Bt cotton adopted by nearly 4M smallholder farmers.

• Acreage grew from 72K to 17M -76% of India’s cotton acres.

• India doubled its cotton production, making it the second largest producer and exporter in the world.

• Socioeconomic analysis found major benefits for women and children:– Increased maternal services– Increased school enrollment– Increased immunization

Source: Trust in the Seed. ISAAA.

Lesson from 2005:Cost of inputs for local production = $40/t maize

vs.Cost of transported food aid = $400/t maize

Quality Hybrid Maize Seed in Malawi

Impact since 2005:

Year 2005 2007Average yield (t/ha) 0.81 2.04% Maize requirement -44% +57%

Hunger Project Micro-Finance System

Virus resistant Cassava (Africa)

Bt Cowpea (Africa)

“Golden Rice” (Global)

Rice genome sequence data (Global)

Delayed ripening papaya (SE Asia)

Virus resistant papaya (SE Asia)

Virus resistant potato (Mexico)

Insect resistant potato (Russia)

Virus resistant sweet potato (Kenya)

Mustard oil pro-Vitamin A (India)

Examples of Technology Sharing Projects

Potato

TransgenicControl

TransgenicControl

Papaya

Cassava Cowpea

Water Efficient Maize for Africa (WEMA)

• Drought is a primary cause of food aid need in sub-Saharan Africa (SSA)

• Meeting global food production will require more “crop per drop”

• Over 95% of cropland in SSA is rain-fed and will remain so in the near future

• The risk of drought prevents investment in improved agricultural products Yield stability is key to unlock the value of basic inputs

Recorded droughts between 1971 and 2000, and the number of people affected

Water Efficient Maize for Africa (WEMA)

THE PARTNERS• African Agricultural Technology Foundation (AATF) is leading

the project• CIMMYT and Monsanto will bring best in global maize

germplasm, testing and breeding methods, and biotechnology• National Ag. Research System (NARS) participation is a crucial

part of testing products and bringing WEMA to Sub-Saharan African farmers

THE TECHNOLOGY• Best global germplasm to combine new sources of

drought tolerance and African adaptation• More rapid gains in conventional drought tolerance

through molecular breeding• Additional drought tolerance obtained through

state-of-the-art biotechnology

WEMA Objective

• Increase yields 24 to 35% in ten years

• Enable use of hybrids and fertilizer

• Enable crop diversification

To increase yield stability and reduce risk under drought conditions

WEMA Team

“A single bracelet does not jingle.” - Congo proverb

Thank You!

For More Information

www.ProduceMoreConserveMore.com