Roundup Ready® Canola

Industry Benefits

Implications for Industry

• Experience shows GM canola will increase the canola area grown

• Yield and Oil content of GM canola is higher than competitive systems

• Roundup Ready means increased continuity of supply for the whole supply chain

Australia is already using GM oils• Cotton seed oil

– ~94% of Australian cotton production is GM

– The majority of cottonseed is pressed for oil and meal

– Cottonseed oil is used for cooking and in a range of industrial products including as soap, margarine and cosmetics

– GM not new in the Australian oils market

– Monsanto traits already present in the supply chain

Australian canola production

Major Australian broadacre crops1

20.7 million ha

WheatBarley

Canola

Oats

SorghumTriticale Maize Lupins

Canola ha's (000s) and production (kt)2

0

500

1000

1500

2000

2500

1999

/00

2000

/01

2001

/02

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

050010001500200025003000

Hectares

Production

What is Roundup Ready Canola?Susceptible plants

Sugars shikimate-3-phosphate

EPSPSEnzyme

aromatic amino acids

production of proteins necessary for plant

growth interrupted...

plant dies

glyphosateblocks EPSPS

enzyme

X

Roundup Ready Plants

Sugarsshikimate-3-phosphate

EPSPSEnzyme

aromatic amino acids

X

CP4 - EPSPS

Roundup Ready gene

production of proteins necessary

for plant

growth unaffected

glyphosateblocks EPSPS

enzyme

+ GOX enzyme

metabolises glyphosate

to AMPA and glyoxylate

inactivates

herbicide

Timeline for Roundup Ready Canola in Australia

2009

WA Govt

Exemption for

small scale

commercial

demonstration

late 1990s

Work commences on

RR canola in Aus.

(breed + regulatory)

Pioneer, Pacific

Seeds,

Agseed/govt

collaboration

Monsanto acquisition

of Agseed (canola

breeding & research)

2001 2003

Federal regulatory

approvals of RR & LL

canola for cultivation

2004

Moratoriums enacted in

all major canola

growing states

RR work in Australia ,

Recommences. Monsanto

enters agreements with

Pioneer, Nufarm and

Pacific Seeds

2006 2007

Moratorium reviews in

three key states, seed

company field trials

Victorian &

NSW state

moratoria lifted,

commercial

plans

advanced

2008

SA govt extends

moratorium, declares

intent to enforce

grain transport

restrictions

Roundup Ready canola production• 2008

– 9500ha commercial ~ 1% of production (Vic and NSW)

– Segregated – limited delivery sites and marketing options

• 2009 East Coast

– 41000ha commercial ~10% of production (Vic and NSW)

– Delivered according to AOF canola standards

• 2009 Western Australia

– 850ha demonstration

– Segregated – limited delivery sites

Why will growers use Roundup Ready?

• Over 90% of growers rated their weed control as excellent

• 100% of growers surveyed will plant Roundup Ready canola again

Delivered exceptional weed control

• Roundup Ready canola yields were higher than or equal to Triazinetolerant varieties in 70% of cases; and higher than or equal to

Clearfield® varieties in 80% of cases

• Roundup Ready canola gross margins were higher than Triazine tolerant in 65% of comparisons & 70% of Clearfield comparisons

Outperformed alternative herbicide tolerant canola

• Non residual herbicide and crop rotation benefits

• Responsible stewardship package to ensure ongoing sustainability and resistance management

A sustainable farming tool

Roundup Ready vs Triazine tolerant

1.16t/ha

0.95t/ha

39.4%

37.4%

30

31

32

33

34

35

36

37

38

39

40

0.5

0.6

0.7

0.8

0.9

1

1.1

1.2

1.3

1.4

1.5

Roundup Ready Triazine tolerant

Ave

rage

oil

con

ten

t (%

)

Ave

rage

yie

ld (

t/h

a)

Canola system*Comparison of 59 farms growing comparable Roundup Ready and Triazine tolerant canola, surveyed January

2009

Benefits to industry

• Yield and Oil content of GM canola is higher than competitive systems

• Industry competitive with overseas production

• Potential for GM specialty oils with herbicide tolerance

• Provide continuity of supply

Sustainable Agriculture is our focus

• We are developing products that can help address Australia’s major agricultural challenges.

• In Australia we have a strong track record –

– Delivering more than an 80% reduction in insecticide applications in cotton over the past 12 years;

– improved weed management in cotton, and now canola.

• We believe we can play a significant part in the solution towards sustainable agriculture.

Roundup Ready 2 PLUS Yield™ canola

Questions?Questions?

® Roundup Ready is a registered Trademark of Monsanto Company LLC