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Drought Tolerant Corn

BASF
BASF

BASF and Monsanto are working together on the challenges in agriculture. The project target is to create the first-ever GM corn with drought tolerance. The presentation explains Plant Biotechnology in general, shows the projects of BASF Plant Science, and gives details on the drought tolerant corn that is developed in cooperatio with Monsanto. More info: http://www.basf.com/group/corporate/de/microsites/chemistryworldtour/innovationen/drought-tolerant-corn

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Drought Tolerant Corn
BASF Plant Science
Global megatrends drive
 demand for agricultural products

Drivers                                                                  Limitations


                                                          Agricultural
         Population                                        Demand
          Growth
                                                                                       Arable
                                                                                        Land
         Meat
      Consumption
                                                                                        Water
                                                                                       Demand
           Biofuel
           Demand


Source: UN, FAO, FAPRI, 2030 Water Resources Group, BPS                                     CONFIDENTIAL
Market development plant biotechnology

Global GM crop area                                                   Key facts
in million hectares; 1 ha = 2.47 acres                         148
                                                                       Global GM crop area
140
                                                                        continued to grow in 2010
120
                                                                       In 2010, 15.4 million farmers
100
                                                                        grew GM crops in 29 countries on
 80                                                                     148 million hectares
 60
                                                                       Biotech crops cover about 10% of
 40                                                                     the total cultivated land
 20 11
                                                                       Over 90% are cultivated by small
  0
    1997              2000           2003           2006       2010     and resource-poor farmers in
* CAGR 1997-2010
                                                                        developing countries
Source: ISAAA 2010

                     Economic gains (2006-2008) € 38 billion
BASF Plant Science

                                                                                                  Key facts
                          DNA
                                                                 Crop
                                                                          Plant Science
                                                                             Sweden                Founded in 1998
                                                                Design   Metanomics
                       LandMarks
                                                                         SunGene
             Ames
             Iowa
                                                          Limburgerhof                             Leading platform for plant
          Midsouth
                           RTP North                                                                biotechnology
                            Carolina
 Hawaii
                                   Puerto Rico
                                                                                                   7 R&D and 13 field site
                                                                                          Tamil
                                                                                          Nadu      centers
                                                  Ceara                                            750+ employees
                                                 Sao Paulo
                                                                                                    worldwide
                                                 St. Catarina
                                                                                                   Annual R&D spending
                                                                                                    ~€150 million
      R&D sites
      Field site center

                     Global research network at biotech hotspots
Our Strategy

What?
 Increase crop yield through Plant Biotechnology
  for a more sustainable agriculture


How?
 Focus on yield traits for major crops
 Develop the leading technology platform
  to deliver the best traits for the best seed
 Access market through partnerships
  with leading seed companies


                  Trait Technology Partner strategy
More yield by BASF and Monsanto

               Joint development of higher-yielding crops and crops
                that are more tolerant to adverse environmental
                conditions such as drought
               2007 agreement focused on corn, soybean, cotton and
                canola
                Potential investment of US$ 1.5 billion

               2010: expansion of collaboration to wheat
                Potential additional investment of >US$ 1 billion

               Exclusive commercialization through
                Monsanto’s channels


                                                                       6

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Drought Tolerant Corn

  • 2. Global megatrends drive demand for agricultural products Drivers Limitations Agricultural Population Demand Growth Arable Land Meat Consumption Water Demand Biofuel Demand Source: UN, FAO, FAPRI, 2030 Water Resources Group, BPS CONFIDENTIAL
  • 3. Market development plant biotechnology Global GM crop area Key facts in million hectares; 1 ha = 2.47 acres 148  Global GM crop area 140 continued to grow in 2010 120  In 2010, 15.4 million farmers 100 grew GM crops in 29 countries on 80 148 million hectares 60  Biotech crops cover about 10% of 40 the total cultivated land 20 11  Over 90% are cultivated by small 0 1997 2000 2003 2006 2010 and resource-poor farmers in * CAGR 1997-2010 developing countries Source: ISAAA 2010 Economic gains (2006-2008) € 38 billion
  • 4. BASF Plant Science Key facts DNA Crop Plant Science Sweden  Founded in 1998 Design Metanomics LandMarks SunGene Ames Iowa Limburgerhof  Leading platform for plant Midsouth RTP North biotechnology Carolina Hawaii Puerto Rico  7 R&D and 13 field site Tamil Nadu centers Ceara  750+ employees Sao Paulo worldwide St. Catarina  Annual R&D spending ~€150 million R&D sites Field site center Global research network at biotech hotspots
  • 5. Our Strategy What?  Increase crop yield through Plant Biotechnology for a more sustainable agriculture How?  Focus on yield traits for major crops  Develop the leading technology platform to deliver the best traits for the best seed  Access market through partnerships with leading seed companies Trait Technology Partner strategy
  • 6. More yield by BASF and Monsanto  Joint development of higher-yielding crops and crops that are more tolerant to adverse environmental conditions such as drought  2007 agreement focused on corn, soybean, cotton and canola Potential investment of US$ 1.5 billion  2010: expansion of collaboration to wheat Potential additional investment of >US$ 1 billion  Exclusive commercialization through Monsanto’s channels 6
  • 7. Drought Tolerant Corn Monsanto Collaboration Secure corn harvests by increasing yield by up to 6% to 10 % when under drought stress conditions Project target  First-ever GM corn with drought tolerance  Sustainable production in regions with variable water availability  Product family market value 2020: US$ > 250 million Partner  Monsanto is one of the worldwide leading companies for agricultural solutions and products
  • 8. Drought Tolerant Corn Monsanto Collaboration Status:  Prelaunch stage final phase before commercialization Next Steps:  Initial introduction in the US in 2012 through large-scale on-farm field trials to give farmers additional exposure to the technology  Pending all regulatory approvals commercialization will occur in the Western Corn Belt region beginning in 2013