monsanto 07-31-06b

• Experienced, Dedicated Breeding Staff– 15 N. American breeders with 225 years of experience– 10 managers with 175 years of experience– 4 “Purity Managers” with 40 years experience– 75 full time support employees – Soybean Pathology and Nematology Teams– 3 Trait Integration Breeders– Breeding Technology expertise

• Increased lab and field testing capacities enable utilization ofnew technologies while delivering products to multiple channels

• Access to elite germplasm and a comprehensive pipeline of traits allow increased genetic gain while providing multiple trait stacking opportunities

Key Points of Monsanto’s Soybean Breeding Program

Soybean Research StationsSoybean Research Stations

Global Soybean Breeding Lead: Bob BuehlerInternational Breeding Lead: Hamer PaschalTrait Integration Lead: Joe ByrumQuality Management Systems: Claudia NariPurity Lead: Tom FreedAgronomic Traits Lead: Vergel Concibido

Varietal Development Lead: Mike Hawbaker

Redwood Falls

Glyndon

Janesville Guelph

Northern Lead: Alejandro Hernandez

BloomingtonFindlayOxford

Ames

Central Lead: Andy Nickell

Stonington

Galena

Marion

Haubstadt

Stuttgart

Mt. Olive

Southern Lead: Kevin Matson

Each station positioned to cover 5 million acres

Germplasm ResourcesSuperior Yield• Disease

resistance• Yield stability

Composition• Protein • Oil

Breeding Technology• Marker Ass’ted Breeding• Markers for Key Traits• Chromosome mapping

Soy varieties with increased value• Higher yields

• Improved consumer uses• Improvements in feed efficiency

Increased value for Monsanto and our customers

Biotechnology• RR2G & Yield• Food & Feed Traits

Success: Integration of Conventional Breeding, Breeding Technology, Biotechnology, & Crop Analytics

Soy Breeding is a Key Component of Our Integrated Pipeline

ObjectivesEnhance germplasm competitivenessOutstanding germplasm key to delivering value added traits

Key DriversTop yielding varieties Increased genetic gain through germplasm & technology High value opportunities in food & feedPipeline support

Crop Analytics• High throughput• Essential for

Marker Development

Soybean Breeding at Monsanto: Excellent Germplasm from Multiple, Complementary Sources

World Class Germplasm Pool

HartzSouthern US

Food

AsgrowElite Varieties in NA & SA

YieldDefensive traits

DeKalbYield

Midwestern US

MonSoyBrazil

High Yield

Germplasm ProvidersHigh Yields

Complementary

First LineCanadaFood

Public SourcesUSDA, AVRDC

Disease, SCN, Diversity

UniversityCollaborations

Disease, Diversity

Outstanding GermplasmYield from multiple sources in North & South AmericaPest tolerance for Yield StabilityUseful variability for protein & oil quality and quantity Aggressive development of markers for food, feed, and agronomic traits

Industry Collaborations

Germplasm Diversity

Elite Soy Varieties w/ Value Added

Traits

Soybean Breeding is a Funnel……

6-7 year process

20-30 New Brand Commercial Varieties30-40 New Licensed Commercial Varieties

Germplasm Pool• Hundreds of elite lines

• New germplasm sources

Germplasm Pool• Hundreds of elite lines

• New germplasm sources

100,000s Potential Breeding Populations

~7,000 New Breeding Populations

~600,000 New Progeny

New Progeny

New Commercials

Mul

tiple

yea

rs o

f yie

ld te

stin

g Fewer lines each stage

A1 A2

Rhg4

B1 C1 C2 D1a D2 E F

Rps3/Rps8Rsv1, Rma,Rmj, Rsa

I J

Rhg5, Rbs1

K L MD1bB2 O

Rmi

N

Rps1

Goal: Use DNA markers to improve the efficiency of plant breeding procedures by: Identifying what genes control agronomic traits, Implementing new breeding procedures that improve our ability to select for these genes, Increase the rate of genetic gain in our breeding programs

rhg1

H

10 cM

G

Monsanto has an integrated SNP and SSR linkage map to enable

marker assisted breeding applications in soybean

Legend: Rhg-SCN resistance; Rbs-Brown stem rot resistance; Rps-Phytophthora resistance; Rsv-Soybean virus resistance; Rma, Rmi, Rmj-Southern root knot nematode resistance; Rsa-soybean aphid resistance

AG3006DKB29-51

AG2801

DKB28-52

S28-L9

S2743-4

S29-C9

92M92

92M91

DKB28-53

S2702-4

AG2705

92M70

DKB27-52

AG2802DKB27-53

DKB26-52

92M80

DKB26-53

AG2703

S27-T7

DKB25-51

S26-V6

S2688-4

AG2603

92M71

49.45

50.45

51.45

52.45

53.45

54.45

55.45

56.45

57.45

11.65 12.65 13.65 14.65 15.65 16.65 17.65 18.65 19.65

Maturity (Days)

Yiel

d (B

U/A

CR

E)

New Products Current products Competitor

Molecular Marker Assisted Breeding For Yield

VistiveTM Variety Pipeline• Branded Portfolio

– Current Products

– AG2421V (released in 2005)• Rps1c; PTOL=8; BSR=9

– Products for ‘06– AG2221V

• Rps1k; PTOL=9; BSR=3

– AG2422V• SCN MR3; Rps1c; PTOL=9; BSR=6

– AG2821V• SCN R3; Rps1k; BSR=2

– AG3421V• SCN MR3; Rps1c

– Products for ’07 – AG3121V

• SCN MR3; Rps1k

– AG3521V• SCN MR3; Rps1c; BSR=9

– Products for ‘07– CSRV2509

• Low Lin; Rps1c; BSR=8

– CSRV2519• Low Lin; Rps1k

– CSRV2609• Low Lin; Rps1c

– CSRV2709N• Low Lin; SCN R3; S

PRR

– CSRV2809N• Low Lin; SCN MR3; S

PRR

– CSRV3009N• SCN MR3; S PRR;

BSR=8

– CXRV3109• Rps1c

– CSRV3119• Rps1c; BSR=5

– CSRV3309N• SCN R3; Rps1c: BSR=9


BSR=9

– CSRV3419N• SCN R3; Rps1c; BSR=8


BSR=7

• Corn States/ASI Portfolio– Products for ‘06

– CSRV2309• Rps1k; BSR=2

1.55

1.35

1.64

1.37

1.91

1.53

1.1

1.97

00.20.40.60.8

11.21.41.61.8

22.22.4

2005 2004 2003 2002

Yiel

d A

dvan

tage

(B

u/A

cre)

ASGROW DEKALBWeighted average of all head to head commercial comparisons

Yearly Brand Performance Advantage vs. Top CompetitorSummary of all head to head commercial comparisons within +/- 0.3 RM

Corn States Performance Comparison

40.00

45.00

50.00

55.00

60.00

MG0 MG1 MG2 MG3 MG4 MG5

CS PION SYN

CS AdvCS PION SYN PION SYN

MG0 43.17 40.77 41.12 2.39 2.05 MG1 49.73 46.94 48.05 2.79 1.68 MG2 53.45 52.17 50.28 1.28 3.18 MG3 55.89 54.69 53.75 1.20 2.13 MG4 52.31 51.22 49.66 1.10 2.65 MG5 47.74 46.70 46.24 1.04 1.50 Mean 50.38 48.75 48.18 1.63 2.20

2 Yr Combined (04' and 05')Monsanto/MOS Research Trials

Maturity Group Avg (Excluding New CS Releases))

Performance advantage across ALL maturity Groups

Maturity Group 2.5 to 2.9: Pipeline Yield Summary

90%

92%

94%

96%

98%

100%

102%

104%

106%

108%

Perc

enta

ge o

f Tes

t M

ean#

AG2

603*

AG2

605*

AG2

801

AG2

802*

AG3

003

AG3

006

DKB

27-5

2*

DKB

27-5

3*

DKB

28-5

2

DKB

28-5

3

DKB

29-5

1

CSR2

632N

CSR2

863

CSR2

923

CSR2

942N

92M

70

92M

71

92M

80

92M

91

92M

92

S26-

H2

S26-

V6

S27-

R1

S27-

T7

S28-

L9

S28-

W2

S29-

C9

BPR

2617

*New Product

# Loose site analysis for years 2001-2005


93%

95%

97%

99%

101%

103%

105%

107%

109%

Perc

enta

ge o

f Tes

t M

ean#

AG3

005

AG3

006*

AG3

101

AG3

203*

AG3

505*

DKB

31-5

1

DKB

34-5

1

DKB

35-5

1

DKB

35-5

2*

CSR3

143

CSR3

232N

CSR3

532N

CSR3

552N

93M

10

93M

11

93M

30

93M

41

93M

60

S31-

V3

S32-

G5

S34-

U4

3390

RR

*New Product



96%

98%

100%

102%

104%

106%

108%

Perc

enta

ge o

f Tes

t M

ean#

AG3

505*

AG3

602

AG3

705*

AG3

802

AG3

905

AG3

906

DKB

35-5

2*

DKB

36-5

2

DKB

37-5

1

DKB

38-5

2

CSR3

532N

CSR3

542N

CSR3

552N

CSR3

800

CSR3

932N

93M

50

93M

90

93M

92

93M

93

S35-

F9

S37-

N4

S39-

K6

S39-

Q4

BPR3

567N

NRR

BPR3

644R

R

BPR3

704R

R


*New Product

Variety Development: Maturity Group 2.0 to 2.9

• Background– Key states/provinces: IA, IL, IN,

MI, MN, NE, OH, SD, & WI– 30% of US soybean acres (#1)– Roundup RReady2Yield initial

release market– Vistive Low Lin initial release

market– Renessen targeted growing

region• Germplasm Strengths

– PRR resistance– SCN resistance– IDC tolerance

• Value Added Traits– Renessen– Vistive Low Linolenic– Roundup RReady2Yield– High Beta Conglycinin

• Agronomic Traits– SCN>PRR>IDC>BSR>SDS> White

Mold>Soy Aphid

Yield Summary

0.0

10.0

20.0

30.0

40.0

50.0

60.0

2001 2002 2003 2004 2005

Asgrow

DeKalb

PioneerSyngenta

Aver

age

Bu/A

c

*SCN – Soybean Cyst NematodePRR – Phytopthora Root RotPTOL – Phytopthora toleranceWM – White MoldBSR – Brown Stem RotIDC – Iron deficiency chlorosisSDS – Sudden Death Syndrome

Maturity Group 2.0 to 2.9: Variety PipelineBranded Portfolio– New Products for ’06

– AG2205• Rps1k; PTOL=3; BSR=1; SDS=5

– A2442 (non-Roundup Ready)• SCN R3; BSR=1

– DKB26-53 • Rps1c; BSR=6; SDS=4; IDC=4

– Products for ‘07 – AG2002

• SCN MR3; Rps1c; PTOL=6; IDC=4– AG2204

• RR/STS; Rps1k; PTOL=4; BSR=4; SDS=4; WM=4– AG2406

• SCN MR3; S PRR; PTOL=4– DKB24-52

• SCN MR; S PRR; PTOL=5; BSR=2; SDS=6; WM=4– AG2603

• SCN MR3; Rps1c; PTOL=5; BSR=8; SDS=7; WM=7– AG2605

• Rps1k; PTOL=8– DKB27-52

• SCN R3; Rps1c; PTOL=5; BSR=2– DKB27-53

• SCN MR3; Rps1c; PTOL=7; BSR=4– AG2802

• SCN R3; Rps1k; PTOL=6; BSR=2


Corn States Portfolio– Products for ‘06

• CSR2412-03N– SCN R3; Rps1k; BSR=3

– Products for ‘07• CSRX255N

– SCN R3 (Peking)• CSR2642N

– SCN MR3; Rps1c; PTOL=7; BSR=2

• CSR2732N– SCN MR3; Rps1k; PTOL=6;

BSR=1• CSRX265N

– SCN MR3; Rps1c; PTOL=5; BSR=1

• CSR2832N– SCN MR3; Rps1a; PTOL=5;

BSR=2ASI Portfolio

– Products for ’07• CSRX265N

– SCN MR3; Rps1c; PTOL=5; BSR=1• CSR2732N

– SCN MR3; Rps1k; PTOL=6; BSR=1

Variety Development: Maturity Group 3.0 to 3.9

• Background– Key states/provinces: IA, IL,

IN, KS, MO, NE, OH, – 28% of US soybean acres (#2)– Roundup RReady2Yield initial

release market– Vistive Low Lin initial release

market– Renessen targeted growing

region• Germplasm Strengths

– PRR resistance– SCN resistance– SDS tolerance

• Value Added Traits– Renessen– Vistive Low Lin– Roundup RReady2Yield– High Beta Conglycinin

• Agronomic Traits– SCN>PRR>SDS>BSR

Yield Summary

0

10

20

30

40

50

60

2001 2002 2003 2004 2005

Asgrow

DeKalb

PioneerSyngenta

Aver

age

Bu/A

c


Maturity Group 3.0 to 3.9: Variety PipelineCorn States Portfolio

– Products for ’06– CSR3102N

• SCN R3; Rps1k– CSR3352N



• SCN R3; Rps1k– CSRX355N

• SCN R3; Rps1k,7– CSR3812N

• SCN R3; Rps1c

– Products for ‘07– CSR3012N

• SCN R3; Rps1k; BSR=1– CSR3432N

• SCN MR3; Rps1c; PTOL=8; BSR=1– CSR3822N

• SCN R3 (Peking); Rps1c– CSR3942N

• SCN R3; Rps1c

ASI Portfolio– Products for ’07

• ASI345– SCN MR3; Rps1c; PTOL=7; BSR=1

• CSR3432N– SCN MR3; Rps1c; PTOL=8; BSR=1*SCN – Soybean Cyst Nematode

PRR – Phytopthora Root RotPTOL – Phytopthora toleranceWM – White MoldBSR – Brown Stem RotIDC – Iron deficiency chlorosisSDS – Sudden Death Syndrome

Branded Portfolio– Products for ’06

– AG3006• SCN R3,MR14; Rps1k,7; BSR=2

– AG3203• SCN MR3; Rps1c; BSR=1

– AG3505 • SCN MR3,14; Rps1k; PTOL=4; BSR=2;

SDS=4

– Products for ‘07– DKB35-52

• SCN MR3; Rps1c; PTOL=5– AG3705

• SCN MR3; Rps1c; PTOL=6; BSR=2

Economy & Finance

monsanto 07-31-06b