Roundup Ready - Monsanto

Case Study
Dialogue Leads to Wheat Decision
In May 2004, Monsanto announced that it would defer further efforts
to introduce Roundup Ready spring wheat until additional wheat biotechnology
traits were offered. Spring wheat accounts for 33 percent of total
wheat acreage grown in the United States and 21 percent of global wheat
acreage. This decision was made for business reasons, informed by practicing
our Pledge commitment to engage in dialogue with many stakeholders.
Several years ago, as Roundup Ready wheat moved through the technical
development phase, Monsanto established a wheat advisory committee to
review market-development and product-stewardship issues related to commercialization.
This panel included growers, grain handlers, millers, bakers, food companies, and other
experts who are involved in wheat or its resulting food products. Company representatives
met with many other stakeholders as well.
They found that although many growers wanted the new technology to help improve their
productivity and soil conservation, the industry preferred to wait until more biotech products,
which offered benefits to a wider segment of wheat growers, were available.
The wheat industry advisory committee helped the company identify six commercial milestones
that should be met before Roundup Ready wheat could be successfully introduced.
The company committed to those milestones which included regulatory approvals in the U.S.,
Canada and Japan; approvals or marketing arrangements in place in major export markets;
grain handling, sampling and detection methods implemented; comprehensive stewardship
programs in place; quality varieties that meet end-use needs; and buyers identified.
As the team pursued each of these criteria, spring wheat acreage in North America declined
by 25 percent — mostly lost to increased corn and soy acreage. Meanwhile, other Monsanto
investment opportunities were emerging. Given the percentage of the industry preferring to
wait for additional traits, the shrinking market for spring wheat and the near-term opportunities
elsewhere, Monsanto made the decision to defer further development of Roundup Ready
spring wheat. Monsanto will evaluate future efforts in wheat biotechnology based on evidence
of industry support and overwhelming grower interest in specific traits.
While shifting resources away from Roundup Ready wheat, Monsanto is accelerating the
development of biotech crop research in the areas of yield improvement and stress tolerance,
agronomic pest resistance traits, and food and feed improvement traits. Growers will continue
to benefit as we bring these traits to the marketplace. “We’re grateful to the many parties who
generously shared their knowledge about the benefits and challenges of moving forward with
this product. Through dialogue, we were able to arrive at a decision that is right for us and
for the market at this point in time,” said Kelly Fleming, Monsanto business leader.
DIALOGUE INFORMED
MONSANTO’S ROUNDUP
READY WHEAT DECISION.
{ MONSANTO COMPANY 2004 PLEDGE REPORT: PAGES 24-25 }