Improving Our Quality of Life Through Advancements in Science

1. Improving Our Quality of Life Through Advancements in Science World Food Prize International Symposium 13 October 2005 Robb Fraley Executive Vice President and Chief Technology Officer Monsanto Company

2. Solving Human Challenges Through Science Lack of reliable food source, malnutrition Limited arable land Soil degradation Insufficient fresh water Protecting Biodiversity “To feed the eight billion people expected by 2025, the world will have to double food production…” CSIS - Seven Revolutions

3. Continuously Improving the Quantity and Quality of Food Production Through Science 10000 BC Fermentation & Leavening 1900-1950 Antibiotics, Pasteurization, Preservation, Crop Breeding 1980 – 2000 Gene Sequencing, Biotech Crops, Human Insulin 1800’s Mendel’s Pea, Darwin’s Species, Pasteur’s Microbes 1950-1980 DNA, Human Nutrition, Fortification, Green Revolution 2001 Human Genome, Plant Genome, Animal Genome Building on centuries of science, biotechnology is a collection of tools used to improve and enhance plants, animals, and microorganisms for the benefit of society. * Photo credit: AAAS, ARS, Nature

4. Creating Positive Economic Impact with Increasing Speed GDP 20000 Biotech Age 25 years 15000 10000 Industrial Age 350 years 5000 Agrarian Age 7000 years 1600 1700 1800 1900 2000 2025 6000 BC Estimated world per capita GDP in constant 1990 dollars Information Age 50 years Genome Microprocessor Electricity Steam Source: J. Bradford De Long, Estimating World GDP, One Million B.C.-Present

5. Biotechnology Continues To Advance With Applications In… • Ag Productivity • Food and Nutrition • Pharmaceuticals • Industrial Processes • Bioremediation • Bio-Fuels • Personal Care Advancements are Important in Both Developing Countries and Developed Countries Around the World *: Courtesy of DOE Human Genome Project

6. 10 Years of Plant Biotechnology 400 350 canola 300 cotton corn 250 soy 200 150 100 50 0 1996 1997 1998 1999 2003 2004 2000 2001 2002 2005F 2010F • 10 years of commercial experience on over 1 billion acres: • Proven economic and environmental benefits • Solid record of safety • Promising future benefits from new products • 30 years of R&D efforts M. Ac. Source: ISAAA (International Service for the Acquisition of Agri-Biotech Applications) & Monsanto estimates

7. 17 Countries Planted Biotech Crops in 2004 – Benefits Drive Adoption Spain 250k A (13) Corn Germany <125k A (17) Corn Romania 250k A (11) Soybean India 1.3k A (7) Cotton China 9.1M A (5) Cotton Canada 13M A (3) Canola, Corn, Soybean • The Global Economic and Environmental Impact • The first Nine Years 1996-2004 • Pesticide Reduction • 172M Kg (379M lbs) less pesticide use, 6% reduction • Overall Environmental Footprint reduced by 14% • Greenhouse Gas Emissions Reduction • Reduced >10B Kg Carbon Dioxide Emission • Equivalent to removing 5 M cars from the road for a year • Economic Return • $6.5B increase in farm income in 2004 • $27B cumulative net economic benefits at the farm level Philippines 250k A (14) Corn USA 118M A (1) Soybean, Corn, Cotton, Canola Mexico 250k A (12) Cotton, Soybean Australia 500k A (10) Cotton Brazil 12.3M A (4) Soybean Honduras <125k A (16) Corn Colombia <125k A (15) Cotton Argentina 40M A (2) Soybean, Corn, Cotton Uruguay 740k A (9) Soybean, Corn Paraguay 3M A (6) Soybean South Africa 1.25M A (8) Cotton, Soy Source: James, C. ISAAA, 2004; Brookes, G. 2005 www.agbioforum.org

8. Biotech Crops Bring Benefits to Agriculture, Growers and the Environment Control Crop Biotech Crop Control Crop Biotech Crop Insect resistant crops: • Reduces insecticide use • Protects farmer health • Benefits environment Herbicide resistant crops: • Reduces herbicide use • Protects farmer health • Benefits environment

9. Most Farmers Growing Biotech Crops are in in Developing Countries 8.25M farmers in 17 countries grew biotech crops More than 3/4 of them are resource-poor farmers in developing countries

10. Bt Cotton: Delivering Economic and Health Benefits to Indian Farmers 2004 Season Conventional Cotton Bt Cotton India: Cotton = 30% Agriculture GDP • Bt cotton in 2004 helped farmers in India to earn US $172M additional income • Additional $1.33B in economic impact through cotton industry • Overall cotton production is up by 384M Kg of seed cotton or 134M Kg of lint • Bt cotton reduced pesticide loading worth US$29 million (1quintal = 100kg; 1 bale = 170kg) +58% (+294kg/Ac) yield increase +163% (+ $132/Ac) net return -50%(-$22.3/Ac) pesticide reduction Results of 2004 season Source: IMRB International, 2005 AC Nielsen - ORG Center for Social Research, 2004

11. Bt Maize: Delivering Yield Advantage and Economic Return to Philippine Farmers Yield Comparison Hybrid 2 Hybrid 1 27% 35% 8.0 T/Ha 7.7 T/Ha 6.3 T/Ha 5.7 T/Ha Bt Corn Conventional Bt Corn Conventional Conventional Corn Bt Corn • >15,000 farmers growing Bt maize in the Philippines • Yield advantage: ~30% • Production cost reduction ~20% • Income increased by 20% for farmers planting Bt maize

12. Public-Private Partnerships for Developing Countries Cassava Cowpea Papaya Control Transgenic Potato Control Transgenic • Enabling Technologies(Global) • Virus resistant Cassava (Africa) • Bt Cowpea (Africa) • “Golden Rice”(Global) • Rice genome sequence data (Global) • Delayed ripening papaya(SE Asia) • Virus resistant papaya (SE Asia) • Virus resistant potato(Mexico) • Insect resistant potato (Russia) • Virus resistant sweet potato(Kenya)

13. Monsanto: Focusing Agricultural ResearchAround Four Major Areas Yield & Stress Feed & Processing Animal productivity (e.g. amino acids) Food Human nutrition (e.g healthier oils) Agronomic Traits Insect, Weed and Disease Control

14. Low Linolenic Soy : Reducing Trans Fats for Human Health ™ Crop Genome Molecular Markers Food Quality Traits Crop Breeding Yield Drought Improved Foods Improved Foods Disease Flavour Linolenic 18:3 Linoleic 18:2 Sats 18:0 / 16:0 Oleic 18:1 Nutrients Standard Soybean Oil Protein Low Lin Carbohydrate Mid Oleic + Low Lin Metabolism Zero Sat + MO + LL • Reduce/eliminate trans fats with increased oil stability, requiring less hydrogenation • Achieve yield parity and stack with standard soybean • Reduce linolenic acid to <3% • Future developments will increase oleic and reduce saturates

15. Omega-3 Oilseed: Increasing Omega 3 for Heart Health Source: W Lands, Lipids 2003: 38:317 Dietary Omega-3 in Biotech Oil seed Omega levels in U.S. Field Trials 100 New Bio available Omega-3 80 target Fatty Acid (wt%) 60 Other Poly-unsaturates Fatty Acid Wt (%) 40 Mono-unsaturates 20 Saturates 0 Control Oilseed Biotech Oilseed Biotech Plants in Development Meet or Exceed 20% Target • Build on demand:AHA, USDA/DHHS and FDA all have recognized the importance of omega-3s for heart health • Enrich vegetable oils with bio-available Omega-3 • Promote heart health with Omega-3 • Enhance stability of SDA as an Omega-3 *AHA: American Heart Association; DHHS: Dept. Health and Human Services

16. Current Sources of Dietary Omega-3 Vegetable Oil Fish Oil Omega-3 Consumer Awareness • 82% Fish oil • 58% Omega-3 • 55% interest in trying fortified foods EPA eicosapentaenoic acid 20:5 n-3 DHA docosahexaenoic acid 22:6 n-3 canola, soy & flax ALA a-linolenic acid 18:3 n-3 Pro-inflammatory Anti-inflammatory w6 w3 SDA Benefits • In humans,* SDA is converted to EPA ~5X more efficiently than ALA • In foods, SDA has greater oxidative stability than EPA or DHA 18:3 a-linolenic acid ALA 18:2 linoleic acid LA Rate limiting step 18:3 g-linolenic acid GLA 18:4 Stearidonic Acid SDA 20:3 dihomo-g-linolenic acid DGLA 20:4 eicosatetraenoic acid 20:4 arachidonic acid ARA 20:5 eicosapentaenoic acid EPA Source: Sloan Trends & Solutions, Inc., 2003 * Dr. Mick James, Royal Adelaide Hospital

17. Enhancing Essential Amino Acids to Add Nutritional Value 5000 Minimum Target 4000 2nd Generation 3000 Free lysine level (ppm) 2000 1000 1st Generation 0 Minimum Target Control Event 1 Event 2 Control US Result South Am. Result High Lysine Corn • Amino acid enhancements add human nutritional value for developing countries • Enhance level of limiting essential amino acids and corn oil content • Improve amino acid balance and total energy

18. Improving Nitrogen Uptake to Increase Corn Yield Yield Across All Acres and/or Reduced Inputs Screening Under Limiting and Sufficient Nitrogen Product Concept • 10% yield increase over elite varieties at time of launch • Equivalent yield with 50% less nitrogen fertilizer Benefits • Produce greater output per unit input • Manage yield variability • Potential to reduce fertilizer • Environmental benefits from reduced fertilizer run-off Greenhouse Limiting N Sufficient N • Enhanced nitrogen uptake and utilization as demonstrated by increased: • Biomass • Greenness • Key metabolites • Yield Field

19. Water…One of the Most Limiting Resources in Our World 1995 2025 Developed Countries Developing Countries 0 Household Household 13% -100 8% Irrigation Industrial -200 62% 5% Irrigation million mt Livestock -300 Industrial Base Case Sustainable Water Use 85% 2% 22% -400 Water Crisis -500 Livestock 3% Loss of Grain Production Due to Water Scarcity in Developing Countries By 2025, Developing Countries will have about 300 Million MT grain deficits due to water scarcity Water Consumption Shares by Sector(1995) Source: International Food Policy Research Institute

20. Helping Solve Water Usage Challenges Through Biotech Solutions Drought Tolerance Objective Arabidopsis • Yield Protection on all acres to protect against drought stress • Yield enhancement on all acres through improved water use efficiency • Cost savings on irrigated acres through reduced water use • Improved economics and environmental sustainability Rice With Gene With Gene Control Control

21. New Genes Provide Drought Tolerance Drought Tolerance Corn With Gene Without Gene With Gene Without Gene Reduced Leaf Temperature Reduced Leaf Rolling 40 34 32oC

22. Drought Tolerant Corn for Every Farmer 10+ % (8+ bu/A) yield benefit stackable with best elite germplasm and biotech agronomic traits Consistent Drought Stress (western US dryland) Broad Acre Water Use Efficiency Reduced Irrigation Costs Drought “Insurance” Market Segment Central , E and S. corn belt KS, NE, TX, CO, SD KS, NE, TX, CO All corn acres 10-13 M corn + 5 M non-corn Potential US Acreage 30-50 M 70- 80 M 12 M Water usage down and pumping prices increasing Most corn experiences low water that limits yield More reliable yields Opportunity to utilize in other crops

23. Imagining the Benefits of Drought Tolerance For the Developing Country Farmer We are developing a plan to ensure humanitarian access to drought tolerance trait • White maize is the single largest subsistence food crop in Africa & subject to repeated drought caused famines • Offer broad humanitarian access to any drought tolerant maize that we develop for food security in Africa • Continue to explore humanitarian access and development partnership concepts for other crops for Africa

24. Improving Food Quality and Production for Our World’s Farmers and Consumers • Biotech crops have been planted for a decade with successful, safe and beneficial use in countries that account for more than half of the world’s population. • The tools of biotechnology continue to improve the quality of our food and our lives. Greater Benefits More and Better Foods Global Food Production New Traits Current Food Production