Technology Innovation in Agriculture

Transcription

1 Technology Innovation in Agriculture Bob Reiter, Ph.D. Vice President Biotechnology Monsanto Company December 5, 2012

2 Agriculture is at the Center of Some of the World s Biggest Challenges Monsanto is Enabling Innovation and is Committed to Delivering Solutions in a Sustainable Manner

3 Technology Can Continue to Propel Improvements METRIC TONS PER HECTARE..investment in yield improvements (for greenhouse gas reduction) compares favorably with other commonly proposed mitigation strategies. Burney et al. PNAS World Yield of Staple Food Crops Maize Rice Wheat Soybeans Canola U.S. agricultural output, inputs and productivity Output Inputs Productivity Index, 1948=1 Source: FAOSTAT Source: USDA-ERS data product, Agricultural Productivity in the U.S. (2010)

4 The Availability of Fresh Water is Limited Compared to the earth, the total amount of water is small.

5 Especially this Year Cartwright, Illinois August 1, 2012

6 Current U.S. Climate Assessment Shows Varying Impacts on Agriculture Increased Winter Temps Increased Summer Temps Increasing Heavy Precipitation Events While the longer growing season provides the potential for increased crop yields, increases in heat waves, floods, droughts, insects, and weeds will present increasing challenges to managing crops, livestock, and forests. Source: Global Climate Change Impacts in the U.S. (2009) U.S. Global Change Research Program

7 Our R&D Engine is Evolving to Deliver Tomorrow s Products as Systems Applied On-Farm PRODUCT CONCEPTS BASED ON FARMERS NEEDS R&D ENGINE Biotechnology PRODUCTS SEED + CROP MANAGEMENT Breeding Integrated IT Platform & Enabling Technologies Agronomic Solutions

8 Maximizing Yield Potential on Each Acre Takes a System of Solutions CHALLENGE: OPPORTUNITY: Multiple R&D platforms = Multiple Solutions WEED CONTROL INSECT CONTROL STRESS TOLERANCE Breeding Biotech Agronomic Solutions In between the planting and harvesting of a crop, a lot of factors can limit yield. DISEASE CONTROL Maximizing Total Yield Potential TOTAL YIELD

9 Plant Breeding is a System of Evolving Technologies that Combine to Increase Genetic Gain Potential for Increased Genetic Gain Speed of Product Development Ability for High Selection Intensity Understanding of Genetic Control Regions and Traits under Marker Assisted Selection Marker Trait Associations 100 s 1,000 s 10,000 s Genome Sequences DNA Fingerprints 1990 s 2000 s 2010 s

10 Combining Selection in the Lab with Selection in the Field to Rapidly Mine Our Genetic Library IT Systems Superior Genetics Advanced Automated Seed Chipping Crop Yield and Agronomic Performance FIELD LAB Phenotype Automation Phenotypic and Disease Evaluations DNA Analysis and Selection of Superior Seeds

11 Expanding Breeding Toolkits Can Be Drivers of Even Higher Yield Opportunity Breeding Program Scale 5X Larger YIELD PROTECTION SPEED ACCURACY GERMPLASM Field Plots Marker Data Points Doubled Haploid Lines Disease Plots

12 Monsanto R&D Investment in Canola Significant annual R&D investment in breeding and biotechnology Investment in new Breeding Center in Winnipeg, MB (2010) Investment to expand and upgrade seed manufacturing facility in Lethbridge (2012) New Crop Technology Research Centre, Saskatoon (2010) Lethbridge, AB Winnipeg, MB Saskatoon, SK Canola is an important crop in our R&D efforts

13 DEKALB Canola Maintains Industry-Leading Performance; Breeding Investment Positions DEKALB Among Industry Best in Canada DEKALB CANOLA SEED UPDATE CANADA S DEKALB CANOLA UPDATE Monsanto s new advancements include improvements in yield, lodging resistance, green seed and enhanced blackleg resistance over current commercial line-up Investments over the past 7 years have enabled DEKALB to catch up to the leading competitor with a breeding program that delivers nearly 2 times the annual genetic gain of other programs Yield (% of DEKALB ) Number of Comparisons DEKALB Win Rate DEKALB Canola Performance Across Western Canada DK RR DK RR DK BL RR RR BL Number of Comparisons 57% 53% DEKALB Win Rate Number of Years 3 2 Number of Years Number of Comparisons 56% 65% DEKALB Win Rate 3 2 Number of Years % 69% 2 2 DEKALB DEKALB 45H29 45H29 (Pioneer Hybrid International) L150 (Bayer CropScience) Source: Monsanto Field Scale Trials as of December 3, 2012.

14 Yesterday: Solving Grower s Challenges with Single Trait Genes Vector Insect control GENE 1 Insect control GENE 2 Transformation

15 TruFlex Roundup Ready Canola Could Provide Improved Weed Management Solutions Greater Flexibility with Extended Application Window Camrose, AB - July 2011 TruFlex Roundup Ready application window Genuity Roundup Ready Canola application window Emergence 5-6 leaf 1 st flower Improved Weed Control with Higher Application Rates Genuity Roundup Ready (off-label use) TruFlex Roundup Ready 8X current labeled rate for Roundup Ready canola, applied at 3-4 leaf stage Control (%) Dandelion n = 11; LSD = 10.4 Foxtail Barley n = 8; LSD = 5.3 Roundup application rate (g ae/ha) 450 (1X) 900 (2X) 1800 (4X) Trial does not depict actual rates for new potential product. Always follow pesticide label directions. Tolerance to higher spray rates for enhanced weed control Increased flexibility through wider application window Improved crop safety Phase 4 Pre-Launch

16 LibertyLink Trait in DEKALB Canola is Designed to Provide Growers Additional Choice for Weed Management and Herbicide Tolerance Trait Rotations DEKALB Canola Products with LibertyLink LibertyLink (single) LibertyLink + TruFlex Roundup Ready (stack) Benefits Flexibility for canola growers to have multiple herbicide choices within DEKALB brand with proven yield performance and agronomic trait package Maximize volunteer control in herbicide tolerant crop rotations LibertyLink would deliver second mode of action in Genuity Roundup Ready canola to allow flexibility for potential weed resistance management The LibertyLink Canola event was licensed from Bayer CropSciences. LibertyLink and the Water Droplet Design are registered trademarks of Bayer CropScience AG. Phase 3 Adv. Development

17 Dicamba Tolerance Would Provide Canola Growers Additional Weed Control Flexibility Greenhouse, St Louis November 2011 Non-transgenic Untreated Non-transgenic Treated Event 1 Treated Event 2 Treated Dicamba tolerance trait, combined with the Genuity Roundup Ready trait, would provide canola growers weed control choice and flexibility with multiple herbicide modes of action Demonstrating good tolerance in 2011 greenhouse trials Phase 1 Proof of Concept

18 Today s Challenges: Solving Complex Traits SCHEMATIC REPRESENTATION OF SIGNALING RELATIONSHIPS AMONG GENES INVOLVED IN DROUGHT STRESS RESPONSE Abiotic stress Potential signaling effects Activation or up regulation Inhibition or down regulation mirna TXN factor enzyme Chaperone or ligandbinding protein Transporter or channel protein Phosphorylation or other modification Unknown factors From Yang et al. (2010) Mol. Plant Vol 3:

19 X Y Y Z X Y Y Z X Y Y Z X scaffold gene Y Enabling Technology Platforms Drive the Pipeline Gene Discovery Transformation Gene Optimization Trait Development Trait Integration Breeding Stewardship Herbicide Tolerance Insect Protection Quality Yield & Stress RNAi Technology Greenhouse Automation Metabolomics Automated Screening Bioinformatics & Systems Biology Enabling Technologies Molecular Testing in Genotyping Transformation Automation Genomics Physical Genetic Combined ctg2 Chr01 Chr01 b0480o01 17 b0480o01, b0228l06, NC NC b0228l06 79 NC c0121k c0121k umc umc umc NC umc umc umc b0593e b0593e b0480o01, NC NC b0480o01, 214 NC NC NC Protein Science Protein Optimization Protein Design HT Gene Engineering Protein Activity Assays

20 Developing Multiple Generations of Rootworm Control Technology to Create Additional Tools for Growers ROOTWORM III CORN: 2011 Field Trials of CRW III RNAi Stacked Events Exhibited Excellent Root Protection ROOT DAMAGE RATINGS (0 3 SCALE) CRW III: RNAi + Cry3Bb VECTOR STACK Error bars are standard error Locations: 9 GENSS = Genuity SmartStax GENVT3P = Genuity VT Triple PRO CORN ROOTWORM TRAIT PIPELINE TESTING RESULTS GENSS GENVT3P CONTROL Phase 3 ROOTWORM IV CORN: 2011 Trials Show New CRW IV RNAi Actives Impact Corn Rootworm More Rapidly Than CRW III RNAi Actives MEAN %LARVAL MASS (VS CONTROL) CRW IV Similar effect in half the time CONTROL CRW III RNAi ACTIVE NEW CRW RNAi ACTIVE #1 NEW CRW RNAi ACTIVE #2 DAYS CRW III Discovery

21 Protein Engineering Leverages Sequence Exploration, Biochemical Characterization, and Computational Tools to Develop Next Generation Products High Throughput Sequencing Structural Biology Gene Engineering & Protein Production Protein Protein Modeling & Design Testing Leads for Protein Production Biochemical Characterization Products OUTPUT Iterative Protein Optimization Custom Protein with Desired Function

22 Protein Engineering was used to Rapidly Improve a Lead Gene for Lygus Control in Cotton 90x ~ improvement in protein performance Lygus Control Gene is Now in Phase 2 Target for commercial control Sep Oct Nov Dec Jan Feb Mar Without Gene With Gene Arkansas October 2011 Starting protein Lead protein

23 DroughtGard Hybrids Corn Began On-Farm Testing in 2012 Strong Initial Results in Areas Experiencing Moderate Drought Halstead, KS August 2012 Nickerson, KS July 2012 On farm Ground Breakers TM testing to give farmers exposure to the product, while generating data to help inform commercial launch decisions Testing involved ~250 of our lead customers in the Dryland fields of the Western Great Plains On farm trials of up to 40 acres per farmer COLLABORATION WITH Competitive Hybrid Phase 4 Pre Launch

24 Higher Yielding Canola Could Increase Profitability and Sustainability of Canola Production Hope, ND July 2011 COLLABORATION WITH Control With Gene Increased productivity per acre through higher yield potential Opportunity to increase production without increasing inputs Phase 2 Early Development

25 Two New Platforms are the Next Step in Evolution of Technologies for Solving Farmers Challenges EVOLUTION: AG PLATFORMS DRIVING YIELD NEXT INFLECTION POINT Monsanto s leading genomics and agronomics systems capability are key catalysts: data and insight enables multiple, complementary R&D platforms GENOMICS NEW NEW ADVANCED BREEDING AG BIOTECHNOLOGY AG BIOLOGICALS INTEGRATED FARMING SYSTEMS SM (IFS) SYNTHETIC AGRICULTURAL CHEMICALS 1980S 1990S 2000S 2010S DESIGNED TO BRING GENOMICS TO THE FIELD WITH INTEGRATED FARMING SYSTEMS SM AND AGRICULTURAL BIOLOGICALS

26 Integrated Farming Systems SM Would Combine Advanced Seed Genetics, Onfarm Agronomic Practices, Software and Hardware Innovations to Drive Yield DATABASE BACKBONE Expansive product by environment testing makes on-farm prescriptions possible BREEDING Significant increases in data points collected per year to increase annual rate genetic gain YIELD MONITOR Advances in Yield Monitoring to deliver higher resolution data VARIABLE-RATE FERTILITY Variable rate N, P & K Apps aligned with yield management zones PRECISION SEEDING Planter hardware systems enabling variable rate seeding & row spacing of multiple hybrids in a field by yield management zone FERTILITY & DISEASE MANAGEMENT Apps for in-season custom application of supplemental late nitrogen and fungicides

27 IFS Combines Monsanto Core Capabilities in Seed Science, Field Research, Breeding Analytics & Precision Planting to Boost Yields Science Monsanto Breeding & Technology teams will provide agronomic know how Gen V Seed Data Science of Seed Testing Hybrid match using Genetic Suitability Index Field Research Trials FIELD 1 Product Percent Fit 'DKC62 97' 100.0% 'DKC63 84' 95.5% 'DKC57 50' 91.2% 'DKC59 35' 86.6% 'DKC64 69' 82.8% 'DKC61 69' 82.4% 'DKC59 64' 81.1% 'DKC63 14' 75.1% 'DKC58 83' 74.8% 'DKC61 19' 74.3% 'DKC63 42' 72.5% 'DKC62 54' 72.3% 'DKC61 06' 72.0% 'DKC57 67' 66.3% 'DKC60 51' 62.7% 'DKC55 09' 58.5% FIELD 2 Product Percent Fit 'DKC62 54' 100.0% 'DKC59 64' 99.0% 'DKC59 35' 91.8% 'DKC60 51' 90.8% 'DKC57 67' 89.3% 'DKC61 06' 86.3% 'DKC55 09' 85.9% 'DKC57 50' 84.2% 'DKC61 69' 77.2% 'DKC61 19' 76.7% 'DKC63 14' 72.4% 'DKC63 84' 68.6% 'DKC63 42' 68.0% 'DKC64 69' 65.4% 'DKC62 97' 64.9% 'DKC58 83' 55.7% FIELD 3 Product Percent Fit 'DKC62 97' 100.0% 'DKC61 19' 99.2% 'DKC63 84' 96.8% 'DKC59 64' 92.5% 'DKC61 69' 88.6% 'DKC64 69' 85.6% 'DKC58 83' 79.7% 'DKC63 14' 79.6% 'DKC59 35' 76.6% 'DKC61 06' 74.3% 'DKC55 09' 74.2% 'DKC62 54' 73.9% 'DKC60 51' 70.3% 'DKC57 50' 62.8% 'DKC57 67' 61.4% 'DKC63 42' 17.9% Analytics Monsanto IT capability required to deliver prescription FieldScripts SM Precision Planting Precision Equipment Variable rate planting retrofit Improved yield monitor Planting optimization for yield

28 A New Class of Agricultural Biologicals with the Potential to Deliver Effective Plant and Beneficial Species Protection MONSANTO s AG BIOLOGICALS PLATFORM FOCUS AREAS BioDirect TECHNOLOGY TM WEED MANAGEMENT INSECT MANAGEMENT VIRUS CONTROL BEE HEALTH 1. GENOMICS-ENABLED DESIGN 3. SPECIFIC, EFFECTIVE CONTROL 2. PRODUCT DEVELOPMENT Precision in design which could lead to effective, highly specific control of a pest (plant, insect or virus).

29 Early Testing Indicates BioDirect Technology Has Potential to be Step Change in Weed Control, Targeting Better Performance and Resistant Weeds NEW BIODIRECT TECHNOLOGY WEED-CONTROL RESEARCH MONSANTO RESEARCH, 2009 LAB TRIALS GLYPHOSATE-RESISTANT WEEDS SPRAYED WITH GLYPHOSATE ALONE GLYPHOSATE-RESISTANT WEEDS SPRAYED WITH BioDirect TECHNOLOGY + GLYPHOSATE Example: Glyphosate-Resistant Weed Control Early testing indicates that BioDirect technology can be used with Glyphosate to target resistant weeds and provide more effective spectrum of control of problem weeds MONSANTO RESEARCH, 2011 LAB TRIALS SPRAYED WITH HPPD CHEMISTRY ALONE BioDirect + HPPD CHEMISTRY SPRAYED WITH ALS CHEMISTRY ALONE BioDirect + (RESISTANCE EVIDENT) ALS CHEMISTRY SUPPLEMENT TO EXISTING HERBICIDES FOR IMPROVED PERFORMANCE Example: Better Weed Control Performance Early testing indicates BioDirect technology can be used with multiple other herbicides for weed control: Improve performance Provide more effective spectrum of control of problem weeds

30 Advances in Technology Could Help to Meet the Global Food Demand Challenges Past Present Future

31 Thank You Bob Reiter, Ph.D. Vice President Biotechnology NOTES Certain statements contained in this presentation 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 and the previously announced SEC investigation; 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 presentation. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results. Commercialization is dependent on multiple factors, including successful conclusion of the regulatory process. The information presented herein is provided for educational purposes only, and is not and shall not be construed as an offer to sell, or a recommendation to use, any unregistered pesticide for any purpose whatsoever. It is a violation of federal law to promote or offer to sell an unregistered pesticide. The Genuity DroughtGard Hybrids trait has been deregulated by the U.S. Department of Agriculture. Import approvals in key corn export markets with functioning regulatory systems are in progress. For 2013, DroughtGard Hybrids will be commercially available in the western great plains area to growers who have signed and agree to follow the Genuity DroughtGard Hybrids Stewardship Agreement. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Monsanto Company is a member of Excellence Through Stewardship (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. This product has been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confirm their buying position for this product. Excellence Through Stewardship is a registered trademark of Biotechnology Industry Organization. B.t. products may not yet be registered in all states. Check with your Monsanto representative for the registration status in your state. ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup brand agricultural herbicides. Roundup brand agricultural herbicides will kill crops that are not tolerant to glyphosate. BioDirect, DEKALB and Design, DEKALB, DroughtGard, FieldScripts, Genuity Design, Genuity Icons, Genuity, Integrated Farming Systems & Design, Monsanto imagine and Vine Design, Roundup Ready 2 Technology and Design, Roundup Ready 2 Yield, Roundup Ready, Roundup, SmartStax, TruFlex Roundup Ready and VT Triple PRO are trademarks of Monsanto Technology LLC. Ground Breakers is a servicemark of Monsanto Company. LibertyLink and LibertyLink and the Water Droplet Design are registered trademarks of Bayer. Herculex is a registered trademark of Dow AgroSciences LLC. Respect the Refuge and Corn Design and Respect the Refuge are registered trademarks of National Corn Growers Association. All other trademarks are the property of their respective owners. Precision Planting is a registered trademark of Precision Planting LLC Monsanto Company.