Rath Monsanto

7/30/2019 Rath Monsanto

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Key Demand Drivers Animal Feed: Growingpopulation & Increasing Purchase power

Global demand for meat products increasing at a pace of 2.3% p.a., Meat

consumption by >3%

Global Milk consumption will be at 700 million tons by 2020.

Growth of meat & milk consumption in the developing world is predicted to be 2.8

percent and 3.3 percent annually from 1990 to 2020

1000 MMT of animal feed is produced globally every year, including 600 MMT of

compound feed.

0

20

40

60

80

100

120

140

160

180

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Br. Meat(Lakh MT) Eggs (Billion) Milk (Mil. MT)

Demand In India.


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Feed Composition- Cost Factorsaffecting the composition

Zone Wise Composition South- broiler ration contains 60-65%

corn, 28-30 % soybean meal, and 2-3%

oil..

West. Strictly a corn and soybean

meal ration. Rice polish is sometimes

substituted, but has the impact of

raising the FCR.

East- 55-60 % corn, rice

polish, sorghum, or feed grade wheat(5-10%) may be substituted for corn

depending on the least-costcombination.

North-In the Haryana-Punjab

region, the typical feedcomposition

includes 50-60 % corn, 25 % soybean

meal, and 5 % fish or meat meal.

Cost Factors Global energy costs- have

direct influence on feed

ingredient, manufacturing, and

delivery costs.

Availability of feed protein

and energy sources-supply/demand relationship of

animal by-products changes.

Feed ingredient quality -

changes in nutrient variability

and digestibility of feedstuffs.

Choice of feed additives


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Strong Demand for Corn Grains, Stable Price

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Corn acreage: 7M

hectares, 46% hybrids; 60%

rain dependence Corn Acreage static over

past 3 years

73% wet season; 24% dry

season; 3% spring

> 80% hybrid< 25% hybrid

Feed demand expected

to grow at 15%

Starch industry growth

at 4 6%

49%

12%

25%

13%

1%

Poultry

feed

Livestock feed

Humanconsum-

ption

Starch

Seed

DEMANDSUPPLY

Opportunity drivers

Elite hybrid introduction, genetic up-gradation; Conversion of OPV to hybrids & Trait introduction

5000

5500

6000

6500

7000

7500

8000

8500

9000

9500

10000

FY 06 FY 07

Corn Pr ice Trends (INR per MT)

Demand SupplyDeficit in MT

10.0020.0030.0040.00

50.00

2001 2006 2011 2016 2021 2026

Demand Supply# Source: US Grain Council, India


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Demand by Industry & Supply

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Brewery Starch Livestock Human Poultry Demand MMT Production MMT

M MT


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Deficit will drive hybridization & Superior

genetics Increased domestic deficit, Stable grain price would lead to positive

sentiments for corn. Domestic production would have to increase to meet the demand. This is possible by;

Increase in area under cultivation: Less probability as competing crops like

Soybean & cotton are also expected to grow/ stable , Shift fromRice and wheatdue to water deficit

Increase in Hybrid acres: High probability Hybrid acreage would grow by >1M Ha

Up-gradation to superior genetics: Better genetics in each segment would drive

productivity increase.


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Ind ia Corn Potent ialYield to m ore than tr ip le from 2000

base

Cumulative yield gains4820 kg/ha

2005 kg/ha BIOTECH

1446 kg/ha AGRON

1370 kg/ha Breeding2337

7157


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Hybridization Projects

Upgrade OPV to Dekalb Corn

Hybrids through Partnership.


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Challenges & Key Drivers in OPVSegments

Low Rainfall, Poor Agronomic

Practices

Appropriate Product

Initial Investment

Critical Mass Generating

Economic Surplus

Upward & Downward linkages

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Project Rainbow: demonstrated 100% productivity increase in 2007


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Project Sunshine

Sunshine FY08

2 Districts, 7 Talukas, 535

villages, approx. 30 K Farmers

Free seed & fertilizer distribution

5 NGOs helped in hybrid seed

distribution & adoption.

46 K MT grains

Sunshine FY09

5 Districts, 11 Talukas, 1700villages, approx. 1,50 K farmers

Farmer payment Rs.500 for 10Kgseed & Fertilizer free

Project Partners (12)

200K MT grains expected byOct/Nov


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Monsanto Sustainable Yield InitiativeOur global commitment to help farmers produce more and conserve more.

Produce More

We will work to double yield in our three core crops of corn, soybeans and

cotton by 2030, compared to a base year of 2000.

Conserve More

Monsanto will develop seeds that will reduce by one-third the amount of key

resources required to grow crops by the year 2030.

Improve Farmers Lives

Our company is committed to help improve the lives of farmers, including an

additional five million people in resource-poor farm families by 2030

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SYI: Project SHARE

Sustainable Harvest Agriculture, Resources, EnvironmentSmall and marginal farmers; Rain dependent; Cotton & Corn belt; poor market linkages

Project premise

Low yield due to

Lack of technical and

management know how

Lack of access to resources

Lack of access to technology

Lack of awareness and

access to government schemes

Project outputs

Increased yield

Reduction in resources utilized

Improved technical practices

Improved linkages:

Market

Finance

Technical know-how

Technology

Improved socio-economic level

Project highlights

Pilot project

10,000 households

Farmer groups

Increased awareness

Field level demonstrations

Capacity building

Multi stakeholder linkages

Query redressal service

Formationof groups

Impartingtechnicalknow-how

Forward andbackwardlinkages

Infrastructuraldevelopmentand back-up

FARMERSGROUPS asAGENTS of

CHANGE


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Developing Superior Genetics


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Superior Genetics will Play a Key RoleSuperior Genetics will Play a Key Role

US average 3.75MT/ac

India average 1.0MT/ac

Hybrids: 1.5 2.0 MT/ac

OPV: 0.4 0.6 MT/ac

Segments

Elite : 4.0 6.0 MT/ ac

Premium: 2.5 4.0 MT/ac

Mid: 1.5 2.5 MT/ac

Low: 1.0 1.5MT/ac

Increased Yield

Disease Resistance

Stress Tolerance

Grain Quality / Added Value

Build on strength of current

germplasm as well as MolecularBreeding and Crop Analytics

Capabilities

Magnetic Resonance Imaging (MRI) for


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Corn Traits Biotechnology will contributesignificantly to productivity increase

TRAIT PIPELINE

CROPS PHASE I Year of Launch

Corn YieldGardRRC2

Drought Tolerance

Nitrogen Use Efficiency

Yield booster - IY

2012

2014-05

2017

2018-09


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BRL 1 DSYGVTP X RRC2

HIGHLIGHTS:

Dry Season BRL-1 First Season

Completed at three locations

KEY OUTCOMES:

Low target insect pressure acrosslocations, data generated through

artificial infestation

Excellent weed pressure

Data generated on non target

organisms and bio-safety aspects

Residue data generated for k-salt Significant yield gains of transgenic

entries overnon transgenic entries

across locations

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