Published:

Monsanto and China National Seed Group Corporation Increase Investments in Existing Corn Seed Joint Venture in China

BEIJING andST. LOUIS, Aug. 21 /PRNewswire-FirstCall/ -- Monsanto Company (NYSE: MON), a global agricultural company, and China National Seed Group Corporation (CNSGC) have entered into an agreement to expand their investments in the companies' existing Chinese joint venture company. The agreement is subject to approval by Chinese government authorities.

"We are very pleased to announce the signing of an agreement that will greatly strengthen our collaboration with Monsanto," said Zhang Zhiyin, vice president of Sinochem Corporation, parent of CNSGC. "China Seed is dedicated to delivering the highest yielding seed to Chinese farmers and we believe a broader joint venture with Monsanto will enable our business to expand our offerings to Chinese farmers."

"We are pleased to increase our collaboration with China Seed to deliver elite corn hybrids to farmers within the world's second-largest corn-growing region," said Brett Begemann, executive vice president of Monsanto. "This investment signals a new strategic emphasis for our business in China and a new growth opportunity for our international corn seed business. We are excited about the potential that our combined efforts can have in improving farm productivity, increasing farmer incomes and helping Chinese farmers to meet both China's and the world's growing demand for grain."

This agreement between China Seed, a wholly-owned subsidiary of Sinochem Corporation, and Monsanto Far East Limited, a wholly-owned subsidiary of Monsanto Company, will increase their investment in CNSGC-DEKALB Seed Company Ltd. ("CNDK"), an existing joint venture company formed in 2001. The investments will enable CNDK to expand its existing corn seed business, by combining CNDK's business operations with the corn seed business of China Seed and providing CNDK access to elite corn seed hybrids developed by Monsanto and China Seed.

China is the world's second largest corn growing region. Chinese farmers annually plant approximately 27 million hectares, or 67 million acres, to the crop. Once approved by Chinese Government authorities, the joint venture is expected to enable China Seed to expand its product offerings to local farmers across all four corn-growing areas, well beyond the tropical region where the company currently operates.

Under the agreement, China Seed will contribute its existing corn seed business assets and Monsanto will contribute 575 million RMB (approximately $84 million US) to the joint venture. China Seed will continue to hold a fifty-one percent ownership interest in CNDK while Monsanto will continue to hold a 49 percent ownership interest in the joint venture. Additional details of the agreement have not been disclosed at this time.

China Seed, which is recognized as a leading enterprise within the agricultural industry in China, was first established in 1978. The seed business has been awarded twice the No. 1 ranking among the top fifty seed companies in China. China Seed became a wholly-owned subsidiary of Sinochem Corporation in June 2007. Today, the company focuses on the development of three key crop businesses: corn, rice and vegetables. To learn more visit: www.chinaseeds.com.cn or www.chinaseeds.com.cn/english.

About Monsanto Company

Monsanto Company (NYSE: MON) is a leading global provider of technology- based solutions and agricultural products that improve farm productivity and food quality. Monsanto remains focused on enabling both small-holder and large-scale farmers to produce more from their land while conserving more of our world's natural resources such as water and energy. To learn more about our business and our commitments, please visit: www.monsanto.com.

Monsanto Company Cautionary Statements Regarding Forward-Looking Information:

Certain statements contained in this release are "forward-looking statements," such as statements concerning Monsanto'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; 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 report on Forms 10-Q and 10-K. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.

SOURCE Monsanto Company

Tags: ,AGR,CHM,JVN,ASI,MO-Monsanto-China

_ _

Is your favorite bookmark site missing? Ask for it.