monsanto 09/30/04

1

Robb Fraley, Ph.D.Robb Fraley, Ph.D.

Chief Technology Officer and Executive Vice PresidentChief Technology Officer and Executive Vice President

Credit Suisse First BostonCredit Suisse First Boston

September 30, 2004September 30, 2004

2

ForwardForward--Looking StatementsLooking StatementsCertain statements contained in this presentation, such as stateCertain statements contained in this presentation, such as statements concerning the company's anticipated financial ments concerning the company's anticipated financial results, current and future product performance, regulatory apprresults, current and future product performance, regulatory approvals, currency impact, business and financial plans and ovals, currency impact, business and financial plans and other nonother non--historical facts are "forwardhistorical facts are "forward--looking statements." These statements are based on current expeclooking statements." These statements are based on current expectations and tations and currently available information. However, since these statementscurrently available information. However, since these statements are based on factors that involve risks and are based on factors that involve risks and uncertainties, the companyuncertainties, the company’’s actual performance and results may differ materially from thoss actual performance and results may differ materially from those described or implied by e described or implied by such forwardsuch forward--looking statements. Factors that could cause or contribute to sulooking statements. Factors that could cause or contribute to such differences include, among others: the ch differences include, among others: the companycompany’’s exposure to various contingencies, including those related to s exposure to various contingencies, including those related to Solutia, Inc., litigation, intellectual property, Solutia, Inc., litigation, intellectual property, regulatory compliance (including seed quality), environmental coregulatory compliance (including seed quality), environmental contamination and antitrust; fluctuations in exchange rates ntamination and antitrust; fluctuations in exchange rates and other developments related to foreign currencies and economiand other developments related to foreign currencies and economies; increased generic and branded competition for the es; increased generic and branded competition for the company's Roundup herbicide; the accuracy of the companycompany's Roundup herbicide; the accuracy of the company’’s estimates and projections, for example, those with respect s estimates and projections, for example, those with respect to product returns and grower use of our products and related dito product returns and grower use of our products and related distribution inventory levels; the effect of weather stribution inventory levels; the effect of weather conditions and commodity markets on the agriculture business; thconditions and commodity markets on the agriculture business; the success of the companye success of the company’’s research and s research and development activities and the speed with which regulatory authodevelopment activities and the speed with which regulatory authorizations and product launches may be achieved; rizations and product launches may be achieved; domestic and foreign social, legal and political developments, edomestic and foreign social, legal and political developments, especially those relating to agricultural products specially those relating to agricultural products developed through biotechnology; the company's ability to contindeveloped through biotechnology; the company's ability to continue to manage its costs; the companyue to manage its costs; the company’’s ability to s ability to successfully market new and existing products in new and existinsuccessfully market new and existing products in new and existing domestic and international markets; the companyg domestic and international markets; the company’’s s ability to obtain payment for the products that it sells; the coability to obtain payment for the products that it sells; the company's ability to achieve and maintain protection for its mpany's ability to achieve and maintain protection for its intellectual property; the effects of the company's accounting pintellectual property; the effects of the company's accounting policies and changes in generally accepted accounting olicies and changes in generally accepted accounting principles; the company's ability to fund its shortprinciples; the company's ability to fund its short--term financing needs; general economic and business conditions; term financing needs; general economic and business conditions; political and economic conditions due to threat of future terrorpolitical and economic conditions due to threat of future terrorist activity and related military action; and other risks and ist activity and related military action; and other risks and factors detailed in the company's filings with the U.S. Securitifactors detailed in the company's filings with the U.S. Securities and Exchange Commission. Undue reliance should not es and Exchange Commission. Undue reliance should not be placed on these forwardbe placed on these forward--looking statements, which are current only as of the date of thilooking statements, which are current only as of the date of this release. The company s release. The company disclaims any current intention to revise or update any forwarddisclaims any current intention to revise or update any forward--looking statements or any of the factors that may affect looking statements or any of the factors that may affect actual results, whether as a result of new information, future eactual results, whether as a result of new information, future events or otherwise.vents or otherwise.

ForwardForward--Looking StatementsLooking Statements

3

Additional DisclosuresAdditional Disclosures

Fiscal YearFiscal YearIn this presentation, unless otherwise specified rIn this presentation, unless otherwise specified references to years, or to fiscal years, 2001 through 2006 eferences to years, or to fiscal years, 2001 through 2006 are on a fiscalare on a fiscal--year basis and refer to the 12year basis and refer to the 12--month period ending August 31.month period ending August 31.

TrademarksTrademarksRoundup, Roundup Ready, Bollgard, Bollgard II,Roundup, Roundup Ready, Bollgard, Bollgard II, YieldGardYieldGard, Harness,, Harness, PosilacPosilac , VISTIVE, Processor Preferred , VISTIVE, Processor Preferred and the Monsanto, Imagine and vine logo are trademarks owned by and the Monsanto, Imagine and vine logo are trademarks owned by Monsanto Company and its wholly Monsanto Company and its wholly owned subsidiaries. All other trademarks are the property of thowned subsidiaries. All other trademarks are the property of their respective owners. eir respective owners. ©© 2004. Monsanto 2004. Monsanto Company. All Rights Reserved.Company. All Rights Reserved.

4

Biotechnology Is Most Rapidly Adopted Technology in Biotechnology Is Most Rapidly Adopted Technology in the History of Agriculturethe History of Agriculture

Global Monsanto Planted Biotech AcresGlobal Monsanto Planted Biotech AcresAcres in millionsAcres in millions

Source: Monsanto estimatesSource: Monsanto estimates* 2004 is preliminary* 2004 is preliminary

0

20

40

60

80

100

120

140

160

180

1996 1997 1998 1999 2000 2001 2002 2003 2004*

Canola

Cotton

Corn

Soybeans

OverviewOverview

5

Source: Source: ““Plant Biotechnology: Current and Potential Impact for Improving Plant Biotechnology: Current and Potential Impact for Improving Pest Management in U.S. Pest Management in U.S. Agriculture,Agriculture,”” Leonard P. Leonard P. GianessiGianessi, National Center for Food & Agriculture Policy. , National Center for Food & Agriculture Policy.

Effect of Biotech Crops on U.S. Pesticide UseEffect of Biotech Crops on U.S. Pesticide Usein 2001in 2001

Biotechnology Provides Better Economical and Biotechnology Provides Better Economical and Environmental SolutionsEnvironmental Solutions

(46)(46)Total Reduction in Total Reduction in Pesticide UsePesticide Use

(1)(1)CanolaCanola

(8)(8)CottonCotton

(8)(8)CornCorn

(29)(29)SoybeansSoybeans

Million Million Lbs.Lbs.

OverviewOverview

6

45% 48% 49%43%

0%

10%

20%

30%

40%

50%

60%

2001 2002 2003 2004

Early, Major Investment In Seeds Captured Value ShiftEarly, Major Investment In Seeds Captured Value ShiftOverviewOverview

Monsanto Licensed ShareMonsanto Licensed ShareMonsanto Brand ShareMonsanto Brand Share

Monsanto Genetic Market Share in U.S. Corn SeedMonsanto Genetic Market Share in U.S. Corn Seed

Source: MonsantoSource: Monsanto

DupontDupont--Pioneer SharePioneer Share

7

Value and Growth Potential ContinuesValue and Growth Potential ContinuesOverviewOverview

GenomicsGenomics

ConventionalConventionalBreedingBreeding

Crop AnalyticsCrop Analytics

BiotechnologyBiotechnology

MolecularMolecularBreedingBreeding

22 Commercial UpdateCommercial Update11 R&D UpdateR&D Update

!! Collaborations with Collaborations with Devgen Devgen and Divergence and Divergence for pest controlfor pest control

!! Soybean gene sequence Soybean gene sequence sharing with sharing with QualisoyQualisoy; ; Corn gene sequence Corn gene sequence sharing with NCGA*sharing with NCGA*

!! Launched 36 new corn Launched 36 new corn hybrids and 30 new hybrids and 30 new soy varieties in 2004 soy varieties in 2004 U.S. brandsU.S. brands

!! 2004 U.S branded market 2004 U.S branded market share of 14% in corn and share of 14% in corn and 20% in soy 20% in soy

!!Over 2,000 active Over 2,000 active markers drive breeding markers drive breeding programprogram

!! Enabling technology for Enabling technology for early introduction of early introduction of VistiveVistive lowlow--linoleniclinolenicsoybeanssoybeans

!! Ankeny, Iowa is worldAnkeny, Iowa is world’’s s only ISOonly ISO--9001 certified 9001 certified crop analytics labcrop analytics lab

!! Processor Preferred Processor Preferred hybrids for high ethanol hybrids for high ethanol yieldsyields

!! Completed U.S. Completed U.S. submissions of full submissions of full regulatory packages for regulatory packages for Roundup Ready FlexRoundup Ready Flex

!! First reports from growers First reports from growers show high satisfaction show high satisfaction with with YieldGardYieldGard Rootworm Rootworm corncorn

*NCGA is National Corn Growers Association*NCGA is National Corn Growers Association

8

Round 1:Round 1: Seed and SingleSeed and Single--Trait Positions Firmly Trait Positions Firmly Established and GrowingEstablished and Growing

•• Seed Breeding AdvancementsSeed Breeding Advancements

•• FirstFirst--Generation TraitsGeneration Traits

•• Geographic ExpansionGeographic Expansion

•• Value CaptureValue Capture

Round 1

9

Now Commercializing First InterNow Commercializing First Inter--Company Corn Company Corn Hybrids from Industry’s Most Diverse Genetic PoolHybrids from Industry’s Most Diverse Genetic Pool

Round 1: BreedingRound 1: Breeding

TemperateTemperateTemperate

Sub-TropicalSubSub--TropicalTropical

TropicalTropicalTropical

Sub-TropicalSubSub--TropicalTropical

TemperateTemperateTemperate

6-to-8 year process66--toto--8 year process8 year processLate 1990sLate 1990s

Acquired 36 major corn Acquired 36 major corn breeding programsbreeding programs

((12 countries x average of 3 12 countries x average of 3 companies per country)companies per country)

Early 2000sEarly 2000sCrossed genetic lines Crossed genetic lines

across acquired across acquired companiescompanies

TodayTodayLaunching new hybrids Launching new hybrids

from interfrom inter--company company crossescrosses

Monsanto Monsanto corn corn

germplasm germplasm flows flows

globallyglobally

10DiscoveryDiscovery Phase 1Phase 1

Proof of ConceptProof of ConceptPhase 2Phase 2

Early DevelopmentEarly DevelopmentPhase 3Phase 3

Adv. DevelopmentAdv. DevelopmentPhase 4Phase 4

PrePre--LaunchLaunchLaunchLaunch

Roundup Ready Soybeans Continue Delivering ValueRoundup Ready Soybeans Continue Delivering ValueRound 1: FirstRound 1: First--Generation TraitsGeneration Traits

Source: Monsanto and Source: Monsanto and DoaneDoane Market ResearchMarket Research

$48$48 $40$40

19951995 2005F2005F

$ per acre$ per acre Herbicide Herbicide CostCost

Trait Trait CostCost

19991999Roundup ReadyRoundup Ready

$52$52

ConventionalConventional

HerbicideHerbicide

SeedSeed

TraitTrait

11 U.S. Grower System CostU.S. Grower System Cost

Key Market AcresKey Market AcresKey Market Acres

100%100%100%15%15%15%94%94%94%Percent Penetrated (2004 Preliminary)Percent Penetrated (2004 Preliminary)Percent Penetrated (2004 Preliminary)30M30M30M50M50M50M70M70M70MAvailable MarketAvailable MarketAvailable Market

ArgentinaArgentinaArgentinaBrazilBrazilBrazilU.S.U.S.U.S.

GenomicsGenomics










Roundup Ready Soybeans Continue Delivering ValueRoundup Ready Soybeans Continue Delivering ValueRound 1: FirstRound 1: First--Generation TraitsGeneration Traits


100%100%100%15%15%15%94%94%94%Percent Penetrated (2004 Preliminary)Percent Penetrated (2004 Preliminary)Percent Penetrated (2004 Preliminary)30M30M30M50M50M50M70M70M70MAvailable MarketAvailable MarketAvailable Market


22 Brazil Value CaptureBrazil Value Capture

BrazilBrazil

"" GrainGrain--based based system system implementedimplemented

"" Over 95% of grain originators in Over 95% of grain originators in the territory the territory under contract under contract

"" 100% of harvest has been 100% of harvest has been delivereddelivered

"" Demonstrated CollectionsDemonstrated Collections

Sale of Roundup Sale of Roundup Ready soybean Ready soybean varieties for this varieties for this

area requires new area requires new regulatory regulatory approvalsapprovals

Varieties from Varieties from Argentina are Argentina are adaptable to adaptable to

this areathis area

40 million planted soybean acres40 million planted soybean acres

10 million planted soybean acres10 million planted soybean acres

System SuccessSystem Success

GenomicsGenomics










Available Market for Roundup Ready Corn Is GrowingAvailable Market for Roundup Ready Corn Is GrowingRound 1: FirstRound 1: First--Generation TraitsGeneration Traits

11 Grain Channeling in the U.S.Grain Channeling in the U.S.

Business ApproachBusiness Approach## Website indicates to farmers Website indicates to farmers

which elevators in their area which elevators in their area accept biotech grain not yet accept biotech grain not yet approved for import into the approved for import into the European UnionEuropean Union

## Communication and Communication and education program under wayeducation program under way

## Percent of growers citing Percent of growers citing grain marketing concerns has grain marketing concerns has dropped from roughly 60% to dropped from roughly 60% to nearly 30% in past year*nearly 30% in past year*

*Based on Roundup Ready corn surveys taken in fall of 2003 and *Based on Roundup Ready corn surveys taken in fall of 2003 and spring of 2004 in Eastern Iowa/Northern Illinois regionspring of 2004 in Eastern Iowa/Northern Illinois region

www.866sellcorn.comwww.866sellcorn.com


0%0%0%0%0%0%32%32%32%Percent Penetrated (2004 Preliminary)Percent Penetrated (2004 Preliminary)Percent Penetrated (2004 Preliminary)5M5M5M20M20M20M20M-50M20M20M--50M50MAvailable MarketAvailable MarketAvailable Market


GenomicsGenomics










Available Market for Roundup Ready Corn Is GrowingAvailable Market for Roundup Ready Corn Is GrowingRound 1: FirstRound 1: First--Generation TraitsGeneration Traits




GenomicsGenomics





22 Regulatory ProcessesRegulatory ProcessesEuropean UnionEuropean Union

!! 23 products in regulatory queue 23 products in regulatory queue under Directive 2001/18; 12 from under Directive 2001/18; 12 from MonsantoMonsanto

!! Roundup Ready corn (NK603) Roundup Ready corn (NK603) approved for importation and whole approved for importation and whole corn feed in July 2004corn feed in July 2004

!! NK603 food application in queueNK603 food application in queue

ArgentinaArgentina

!! Roundup Ready corn (NK603) Roundup Ready corn (NK603) approved for planting in Argentina approved for planting in Argentina in July 2004in July 2004

!! Application for stacks in queueApplication for stacks in queue






Round 1: FirstRound 1: First--Generation TraitsGeneration TraitsYieldGardYieldGard Rootworm Continues High Satisfaction Rootworm Continues High Satisfaction Pattern with Biotech TraitsPattern with Biotech Traits




11 Grower SatisfactionGrower Satisfaction

11Based on all growers using specified seed and treatment and ableBased on all growers using specified seed and treatment and able to answer very satisfied, somewhat satisfied, neutral, or not sto answer very satisfied, somewhat satisfied, neutral, or not satisfied.atisfied.*Source: Marketing Horizons Trait Satisfaction Studies 2002*Source: Marketing Horizons Trait Satisfaction Studies 2002**Source: Marketing Horizons Trait Satisfaction Studies 2004**Source: Marketing Horizons Trait Satisfaction Studies 2004

0%

20%

40%

60%

80%

100%

RoundupRoundupReadyReady

Soybeans*Soybeans*

RoundupRoundupReady Ready Cotton*Cotton*

Bollgard/Bollgard/RoundupRoundup

ReadyReadyCotton*Cotton*

Roundup Roundup ReadyReadyCorn*Corn*

YieldGardYieldGardRootwormRootworm

Corn**Corn**

YieldGardYieldGardCornCorn

Borer*Borer*

Percent of customers very or somewhat satisfiedPercent of customers very or somewhat satisfied11

GenomicsGenomics










Round 1: FirstRound 1: First--Generation TraitsGeneration TraitsYieldGardYieldGard Rootworm Continues High Satisfaction Rootworm Continues High Satisfaction Pattern with Biotech TraitsPattern with Biotech Traits




22 YieldGardYieldGard Rootworm ProtectionRootworm Protection

GenomicsGenomics





16

Round 2:Round 2: Monsanto Is Uniquely Positioned To Monsanto Is Uniquely Positioned To Bring Next Generation of Traits to MarketBring Next Generation of Traits to Market

•• Continued Growth from Round 1 Continued Growth from Round 1

•• SecondSecond--Generation TraitsGeneration Traits

•• Greater Intensity of Stacked TraitsGreater Intensity of Stacked Traits

Round 2Round 1







0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent Penetrated0.5M – 0.8M0.5M 0.5M –– 0.8M0.8M10M-15M10M10M--15M15MAvailable MarketAvailable MarketAvailable MarketAustraliaAustraliaAustraliaU.S.U.S.U.S.

Upgrades in Technology Raise the Bar on Competition Upgrades in Technology Raise the Bar on Competition ----Roundup Ready Flex CottonRoundup Ready Flex Cotton

Round 2: SecondRound 2: Second--Generation TraitsGeneration Traits

11 Reproductive Tolerance to RoundupReproductive Tolerance to Roundup

Roundup Ready Flex Roundup Ready Flex CottonCotton

Roundup Ready CottonRoundup Ready Cotton

Pollen Pollen ViabilityViability

## New promoter in Roundup Ready Flex provides New promoter in Roundup Ready Flex provides reproductive tolerance to Roundup during reproductive tolerance to Roundup during cotton floweringcotton flowering

1.12 lbs 1.12 lbs aeae/A Roundup applied over the top sequentially at 4 and 8 node sta/A Roundup applied over the top sequentially at 4 and 8 node stagesges

GenomicsGenomics














22 Expanded Window of ApplicationExpanded Window of Application

EmergenceEmergence LaybyLayby Preharvest Preharvest HarvestHarvest

OverOver--thethe--top window of applicationtop window of applicationRoundup ReadyRoundup Ready®® Flex Cotton Flex Cotton

Roundup ReadyRoundup Ready®®

CottonCotton((< < 4 lf.)4 lf.)

## Expanded window of overExpanded window of over--thethe--top applicationtop application-- Increased margin of crop safetyIncreased margin of crop safety-- More More ““flexibleflexible”” weed controlweed control

## Increased grower convenienceIncreased grower convenience## Reduced need for specialized spray equipmentReduced need for specialized spray equipment

GenomicsGenomics














## Over 200 field trials conducted in 2004Over 200 field trials conducted in 2004

## 8 cotton seed companies participating in trial 8 cotton seed companies participating in trial programprogram

## Cotton States launching exclusively on a Cotton States launching exclusively on a secondsecond--generation trait platformgeneration trait platform

33 Field Trial UpdateField Trial Update

Results from the Field

Coming in January 2005

Results from the FieldResults from the Field

Coming in January 2005Coming in January 2005

GenomicsGenomics










SecondSecond--Generation Generation YieldGardYieldGard Corn Borer Controls More Corn Borer Controls More InsectsInsects



0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent Penetrated4M4M4M15M15M15M30M-40M30M30M--40M40MAvailable MarketAvailable MarketAvailable Market


GenomicsGenomics





11 22ndnd Generation Yieldgard Corn Borer Generation Yieldgard Corn Borer

## Broad control Broad control solution for fall solution for fall armyworm and armyworm and corn earworm for corn earworm for global expansionglobal expansion

## Durability Durability solution for solution for insect resistance insect resistance managementmanagement

YGCB YGCB II

Fall Armyworm ControlFall Armyworm Control

No Yieldgard YGCB II

Corn Earworm ControlCorn Earworm Control






SecondSecond--Generation Generation YieldGardYieldGard Corn Borer Controls More Corn Borer Controls More InsectsInsects



0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent Penetrated4M4M4M15M15M15M30M-40M30M30M--40M40MAvailable MarketAvailable MarketAvailable Market


22 Field Trail UpdateField Trail Update## 2004 field trials conducted in Puerto Rico, 2004 field trials conducted in Puerto Rico,

Argentina and U.S.Argentina and U.S.

## Multiple trials per yearMultiple trials per year

## Excellent control in high infestations levelsExcellent control in high infestations levels





GenomicsGenomics





22

1.5

1.2

1.01

1.1

1.2

1.3

1.4

1.5

1.6

1996 1997 1998 1999 2000 2001 2002 2003 2004F 2005F 2006F

Cotton (2 Traits)

Corn (3 Traits)

Soybeans (1 Trait)

Stacking Biotech Traits Adds New Dimension to Stacking Biotech Traits Adds New Dimension to Market Potential Market Potential —— Multiplying Margin OpportunitiesMultiplying Margin Opportunities

Monsanto U.S. Biotech Intensity Index*Monsanto U.S. Biotech Intensity Index*

Average number of biotech traits per biotech acreAverage number of biotech traits per biotech acre

Round 2: Stacked TraitsRound 2: Stacked Traits

10 million 10 million biotech biotech AcresAcres

16 million16 millionbiotech biotech margin margin

opportunitiesopportunities

==XX1.5 1.5

intensity intensity indexindex

CottonCotton42 million 42 million biotech biotech acresacres

52 million52 millionbiotech biotech margin margin

opportunitiesopportunities

==XX1.2 1.2

intensity intensity indexindex

CornCorn

* Monsanto traits only* Monsanto traits only

U.S. Biotech Margin Opportunities U.S. Biotech Margin Opportunities –– 2004 Preliminary*2004 Preliminary*

23

Round 3:Round 3: Pipeline Potential Builds on Established Pipeline Potential Builds on Established PlatformPlatform

•• Continued Growth from Rounds 1 & 2Continued Growth from Rounds 1 & 2

•• Improved Food and Feed Biotech TraitsImproved Food and Feed Biotech Traits

•• Biotech Yield TraitsBiotech Yield Traits

Round 2 Round 3Round 1

24

Pipeline Products Reach New Markets and Expand Pipeline Products Reach New Markets and Expand Base in Corn, Soybeans and CottonBase in Corn, Soybeans and Cotton

Round 3: Food, Feed and Yield TraitsRound 3: Food, Feed and Yield Traits

Roundup Ready Roundup Ready Flex CottonFlex Cotton

YieldGard YieldGard Rootworm Rootworm

CornCorn

YieldGard YieldGard Corn BorerCorn Borer

Bollgard I & II Bollgard I & II CottonCotton

Roundup Roundup Ready Corn, Ready Corn, Soy, CottonSoy, Cotton

Commercialized Agronomic TraitsCommercialized Agronomic Traits

YGCB II CornYGCB II Corn YGRW II CornYGRW II Corn22ndnd GenerationGenerationAgronomic TraitsAgronomic Traits

Nitrogen Nitrogen Utilization CornUtilization Corn

Cold Tolerant Cold Tolerant CornCorn

Drought Tolerant Drought Tolerant Corn, Soy, CottonCorn, Soy, Cotton

YieldYield

Low Linolenic Low Linolenic SoySoy

Healthier Oil SoyHealthier Oil Soy(Low Linolenic(Low Linolenic

Mid OleicMid OleicLow Saturate)Low Saturate)

OmegaOmega--3 Soy3 Soy((Stearidonic Stearidonic acid)acid)

FoodFoodFeedFeed

High Lysine CornHigh Lysine Corn

Enhanced High Enhanced High Lysine CornLysine Corn

Improved Protein Improved Protein SoySoy

Improved Protein SoyImproved Protein Soy(Beta Conglycinin)(Beta Conglycinin)






High Lysine Enhances Essential Amino Acids in FeedHigh Lysine Enhances Essential Amino Acids in FeedRound 3: Feed TraitsRound 3: Feed Traits


0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBDTBDTBDTBDAvailable MarketAvailable MarketAvailable Market


GenomicsGenomics





11 High Lysine Corn High Lysine Corn ## Enhance level of limiting Enhance level of limiting

essential amino acids in feedessential amino acids in feed

## Lower cost of animal feed rationLower cost of animal feed ration

## Improved amino acid balanceImproved amino acid balance

High Lysine Corn High Lysine Corn –– Total LysineTotal Lysine

Inde

xed

Inde

xed

00

5050

100100

150150

Neg.Neg. Neg.Neg.Pos.Pos. Pos.Pos.Event 1Event 1 Event 2Event 2

TargetTarget## Increased total Increased total energyenergy

## U.S. regulatory U.S. regulatory packages packages submittedsubmitted






High Lysine Enhances Essential Amino Acids in FeedHigh Lysine Enhances Essential Amino Acids in FeedRound 3: Feed TraitsRound 3: Feed Traits




22 Field and Feeding Trial Update Field and Feeding Trial Update





## Field trials conducted in U.S. and Field trials conducted in U.S. and Argentina this yearArgentina this year

## Evaluating over 12 hybrid genotypes in Evaluating over 12 hybrid genotypes in this yearthis year’’s programs program

## Excellent performance demonstrated in Excellent performance demonstrated in feeding trials to datefeeding trials to date

GenomicsGenomics











0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBD5M5M5MAvailable MarketAvailable MarketAvailable Market


Preparing for 2005 Launch of FirstPreparing for 2005 Launch of First--Generation Output Generation Output Trait PreTrait Pre--Launch Launch —— VISTIVE SoybeansVISTIVE Soybeans

Round 3: Food TraitsRound 3: Food Traits

11 VISTIVE Low VISTIVE Low LinolenicLinolenic SoySoy

Std SoybeanStd Soybean

VISTIVEVISTIVE

SatsSatsLinolenicLinolenic

18:318:3 OleicOleicLinoleicLinoleic

## A more stable soy oil A more stable soy oil requiring less requiring less hydrogenation: hydrogenation: reduce/eliminate trans reduce/eliminate trans fatsfats

## Yield parity and Yield parity and stacked with Roundup stacked with Roundup Ready traitReady trait

## LinolenicLinolenic acid < 3% acid < 3%

GenomicsGenomics











0%0%0%0%0%0%0%0%0%Percent PenetratedPercent PenetratedPercent PenetratedTBDTBDTBDTBDTBDTBD5M5M5MAvailable MarketAvailable MarketAvailable Market


Preparing for 2005 Launch of FirstPreparing for 2005 Launch of First--Generation Output Generation Output Trait PreTrait Pre--Launch Launch —— VISTIVE SoybeansVISTIVE Soybeans

Round 3: Food TraitsRound 3: Food Traits


## Advanced field testing Advanced field testing ## Shipping several tons of oil to food companies Shipping several tons of oil to food companies

for food formulation testingfor food formulation testing## Finalizing processor programs; Ag Finalizing processor programs; Ag

Processing, Inc. (AGP) participatingProcessing, Inc. (AGP) participating## Launch in 2005Launch in 2005





GenomicsGenomics













Round 3: Food TraitsRound 3: Food TraitsOmegaOmega--3 3 BiofortificationBiofortification Is a Food Industry Is a Food Industry BreakthroughBreakthrough

11 Oilseed Produced OmegaOilseed Produced Omega--33

!! American Heart Assn., American Heart Assn., American Dietetic American Dietetic Assn., and 1,600+ Assn., and 1,600+ research studies research studies support health benefitssupport health benefits

18.7

%18

.7%23

.1%

23.1

%

24.9

%24

.9%29.4

%29

.4%

30.9

%30

.9%

32.0

%39.1

%39

.1%

Soy

Prot

ein

Soy

Prot

ein

Om

ega

Om

ega --

33Fi

ber

Fibe

r

Who

le G

rain

sW

hole

Gra

ins

Vita

min

CVi

tam

in C

Vita

min

EVi

tam

in E

Folic

Aci

dFo

lic A

cid

% general population % general population stating they consider theirstating they consider their

Omega-3 Deficiency Implicated in CVD

Rat

io d

ieta

ry o

meg

a-6:

3

4:1

80:1

Japan

UKUS Diet

Canada

Recommendations are for a ratio of 4:1

omega-6 to omega-3

CV deaths/100,00050 200

!! Vegetable oils Vegetable oils enriched with bioenriched with bio--available Omegaavailable Omega--33

!! OmegaOmega--3 promotes 3 promotes heart healthheart health

!! Enhanced stabilityEnhanced stability

diet deficient diet deficient inin……PIC?PIC?

GenomicsGenomics













Round 3: Food TraitsRound 3: Food TraitsOmegaOmega--3 3 BiofortificationBiofortification Is a Food Industry Is a Food Industry BreakthroughBreakthrough


!! 2004 field trials in U.S. Midwest2004 field trials in U.S. Midwest!! Analyzing OmegaAnalyzing Omega--3 oil assay in Ankeny, Iowa and 3 oil assay in Ankeny, Iowa and

St. Louis labsSt. Louis labs!! Testing for taste, odor and for agronomic performanceTesting for taste, odor and for agronomic performance





PIC?PIC?

GenomicsGenomics













Round 3: YieldRound 3: YieldDrought Stress Tolerance Is One of Potential New Drought Stress Tolerance Is One of Potential New Agronomic Traits in PipelineAgronomic Traits in Pipeline

GenomicsGenomics





11 Drought ToleranceDrought Tolerance!! Yield insuranceYield insurance

on all acres to on all acres to protect against protect against water deficitswater deficits

!! Yield enhancementYield enhancementon all acres on all acres through improved through improved water usewater use

!! Cost savingsCost savingson irrigated acreson irrigated acres

!! Pricing depends on choice Pricing depends on choice of marketof market

!! Stack with weed and insect Stack with weed and insect control traits enhances control traits enhances margin opportunitymargin opportunity









Round 3: YieldRound 3: YieldDrought Stress Tolerance Is One of Potential New Drought Stress Tolerance Is One of Potential New Agronomic Traits in PipelineAgronomic Traits in Pipeline

GenomicsGenomics









Coming in January 2005 Coming in January 2005

33

Value Shift to Seed Continues…Value Shift to Seed Continues…SummarySummary

Source: U.S. 1996Source: U.S. 1996--2003 2003 DoaneDoane AgroTrakAgroTrak & Seed Studies; 2008 Monsanto Estimate& Seed Studies; 2008 Monsanto Estimate

Crop ChemicalsCrop Chemicals GermplasmGermplasm Biotech TraitsBiotech Traits

$4.5$4.5

$3.0$3.0

$0.1$0.1

1996 1996 $7.5 Billion$7.5 Billion

$3.6$3.6

$3.5$3.5 $1.3$1.3

20032003$8.4 Billion$8.4 Billion

$2.6$2.6$3.8$3.8

$2.7$2.7

2008F 2008F $9.2 Billion$9.2 Billion

Industry value shift from crop chemicals to Industry value shift from crop chemicals to seeds and traits is well under wayseeds and traits is well under way……

34

Value Shift to Seed Continues…Value Shift to Seed Continues…SummarySummary

Value shift extends to feed, food, and yieldValue shift extends to feed, food, and yield……

SeedSeedCrop

ChemicalsCropCrop

ChemicalsChemicals Value ShiftValue ShiftValue Shift

AnimalNutritionAnimalAnimal

NutritionNutrition Value ShiftValue ShiftValue Shift

HumanHealthHumanHumanHealthHealth Value ShiftValue ShiftValue Shift

Water and Soil

Nutrients

Water and Water and Soil Soil

NutrientsNutrientsValue ShiftValue ShiftValue Shift

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Questions?Questions?

monsanto 09/30/04

Economy & Finance

Transcript of monsanto 09/30/04