1. 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. 2 Solving Human Challenges Through Science Protecting Biodiversity Lack of reliable food source, malnutrition Limited arable land Insufficient fresh water Soil degradation “To feed the eight billion people expected by 2025, the world will have to double food production…” CSIS - Seven Revolutions

3. 3 * Photo credit: AAAS, ARS, Nature 1980 – 2000 Gene Sequencing, Biotech Crops, Human Insulin 2001 Human Genome, Plant Genome, Animal Genome 10000 BC Fermentation & Leavening 1800’s Mendel’s Pea, Darwin’s Species, Pasteur’s Microbes 1950-1980 DNA, Human Nutrition, Fortification, Green Revolution 1900-1950 Antibiotics, Pasteurization, Preservation, Crop Breeding 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. Continuously Improving the Quantity and Quality of Food Production Through Science

4. 4 Creating Positive Economic Impact with Increasing Speed Source: J. Bradford De Long, Estimating World GDP, One Million B.C.-Present Information Age 50 years Information Age 50 years Estimated world per capita GDP in constant 1990 dollars 6000 BC 16001700180019002000 2025 5000 10000 15000 20000 GDP Steam Electricity Microprocessor Genome Industrial Age 350 years Industrial Age 350 years Biotech Age 25 years Biotech Age 25 years Agrarian Age 7000 years Agrarian Age 7000 years

5. 5 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 Biotechnology Continues To Advance With Applications In… *: Courtesy of DOE Human Genome Project

6. 6 10 Years of Plant Biotechnology 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 canola cotton corn soy 0 50 100 150 200 250 300 350 400 1996199719981999 2000 20012002 20032004 2005F 2010F

7. 7 17 Countries Planted Biotech Crops in 2004 – Benefits Drive Adoption USA 118M A (1) Soybean, Corn, Cotton, Canola Canada 13M A (3) Canola, Corn, Soybean Uruguay 740k A (9) Soybean, Corn Paraguay 3M A (6) Soybean South Africa 1.25M A (8) Cotton, Soy Mexico 250k A (12) Cotton, Soybean Honduras <125k A (16) Corn Argentina 40M A (2) Soybean, Corn, Cotton Spain 250k A (13) Corn Colombia <125k A (15) Cotton Brazil 12.3M A (4) Soybean Australia 500k A (10) Cotton China 9.1M A (5) Cotton Philippines 250k A (14) Corn Germany <125k A (17) Corn Romania 250k A (11) Soybean India 1.3k A (7) Cotton Source: James, C. ISAAA, 2004; Brookes, G. 2005 www.agbioforum.org 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

8. 8 Biotech Crops Bring Benefits to Agriculture, Growers and the Environment 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 Control Crop Biotech Crop

9. 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. 10 Bt Cotton: Delivering Economic and Health Benefits to Indian Farmers India: Cotton = 30% Agriculture GDP -50%(-$22.3/Ac) pesticide reduction +58% (+294kg/Ac) yield increase +163% (+ $132/Ac) net return Bt Cotton Conventional Cotton 2004 Season Results of 2004 season Source: IMRB International, 2005 AC Nielsen - ORG Center for Social Research, 2004 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)

11. 11 Bt Maize: Delivering Yield Advantage and Economic Return to Philippine Farmers >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 Conventional Corn Bt Corn Conventional Bt Corn Conventional Bt Corn 6.3 T/Ha 8.0 T/Ha 5.7 T/Ha 7.7 T/Ha 27% 35% Hybrid 1 Hybrid 2 Yield Comparison

12. 12 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) Public-Private Partnerships for Developing Countries Potato Transgenic Control Transgenic Control Papaya CassavaCowpea

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

14. 14 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 Molecular Markers Crop Genome Food Quality Traits Yield Drought Flavour Nutrients Disease Oil Protein Carbohydrate Metabolism Improved Foods Improved Foods Improved Foods Improved Foods Crop Breeding Low Linolenic Soy : Reducing Trans Fats for Human Health Standard Soybean Low Lin Mid Oleic + Low Lin Zero Sat + MO + LL Linoleic 18:2 Oleic 18:1 Sats 18:0 / 16:0 Linolenic 18:3 ™

15. 15 Omega-3 Oilseed: Increasing Omega 3 for Heart Health 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 Source: W Lands, Lipids 2003: 38:317 Dietary Omega-3 in Biotech Oil seed 0 20 40 60 80 100 Fatty Acid (wt%) Control Oilseed Biotech Oilseed New Bio available Omega-3 Mono-unsaturates Saturates Other Poly- unsaturates Biotech Plants in Development Meet or Exceed 20% Target Omega levels in U.S. Field Trials target Fatty Acid Wt (%)

16. 16 ALA a-linolenic acid 18:3 n-3 Current Sources of Dietary Omega-3 canola, soy & flax Vegetable OilFish Oil EPA eicosapentaenoic acid 20:5 n-3 DHA docosahexaenoic acid 22:6 n-3 Omega-3 Consumer Awareness 82% Fish oil 58% Omega-3 55% interest in trying fortified foods Source: Sloan Trends & Solutions, Inc., 2003 66 33  18:2 linoleic acid LA 18:3  -linolenic acid GLA 20:3 dihomo-  -linolenic acid DGLA 20:4 arachidonic acid ARA 18:3  -linolenic acid ALA 18:4 Stearidonic Acid SDA 20:5 eicosapentaenoic acid EPA 20:4 eicosatetraenoic acid Pro-inflammatory Anti-inflammatory 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 * Dr. Mick James, Royal Adelaide Hospital Rate limiting step

17. 17 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 Enhancing Essential Amino Acids to Add Nutritional Value 0 1000 2000 1 st Generation South Am. Result US ResultControl MinimumTarget 2 nd Generation Event 1Event 2 Control MinimumTarget 3000 4000 5000 Free lysine level (ppm)

18. 18 Improving Nitrogen Uptake to Increase Corn Yield 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 Enhanced nitrogen uptake and utilization as demonstrated by increased:  Biomass  Greenness  Key metabolites  Yield Screening Under Limiting and Sufficient Nitrogen Limiting NSufficient N Greenhouse Field Yield Across All Acres and/or Reduced Inputs

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

20. 20 Helping Solve Water Usage Challenges Through Biotech Solutions Drought Tolerance Objective 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 Arabidopsis With Gene Control With Gene Control Rice

21. 21 Drought Tolerance Corn New Genes Provide Drought Tolerance Reduced Leaf Temperature Without GeneWith GeneWithout GeneWith Gene Reduced Leaf Rolling 4032 o C34

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

23. 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. 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. New Traits New Traits Global Food Production Global Food Production Current Food Production More and Better Foods More and Better Foods Greater Benefits Greater Benefits