Presentation on theme: "ICABR Conference Kelly Fleming 20 June, 2013"— Presentation transcript:
1 ICABR Conference Kelly Fleming 20 June, 2013 Monsanto is 100% focused on agriculture—just like our farmer customers.Our corporate mission is to work with farmers to Produce More, Conserve More and Improve Lives.I am encouraged that we are here today at this conference discussing biologicals.Biologicals are a natural tool that will help farmers be successful. Monsanto is focused on making this potential a reality.Kelly Fleming20 June, 2013
3 It All Adds up to a Doubling in Global Grain Demand By 2030…Global Grain Demand (M MT)+102%+40%+76%+28%+125%30%MEAT CONSUMPTION1.4 B PEOPLE2X Global GDPMonsanto and our farmer customers share a need to meet the growing demand for food in a sustainable way.The facts are clear—Global Grain Demand is estimated to double by 2030 and this will have to be produced on essentially the same agricultural footprint.So the challenge focuses our efforts—increase yield on that footprint.“Today” is 2010 levelsBy 2030, an additional 1.4 B people are expected to join us. That’s like adding another China to the world today. (China’s 2010 population is ~1.33B)Global GDP is predicted to nearly double between 2010 and 2030, meaning that people have more money to buy goods and improve their diets.And global meat consumption is expected to increase by 30% between 2010 and 2030All of these factors put increased pressure on farmers to increase crop production. Global crop demand is projected to roughly double by 2030 from a 2000 base.TODAYSource: IHS Global Insights, Agriculture Division
4 Genes, Germplasm, Chemistries Our R&D Engine is Evolving to Deliver Tomorrow’s Products as Systems Applied On-FarmProduct concepts based on farmers’ needs1Integrated it Platform & Enabling TechnologiesBiotechnologyBreedingAgronomic SolutionsGenes, Germplasm, ChemistriesR&D Engine23ProductsDiseases, Pests, and WeedsCrop ResiduesSeed SelectionPlant PopulationNutrientsHow can we help meet the need for increased yield?The answer to that question starts with our farmer customer. And that’s the first place we look. What are they telling us that they need to more successful and meet the need for increased yield?With that information, we look to our R&D engine to determine the best way to address that need. Our approach has included plant breeding, biotechnology, chemistry and other agronomic solutions.Finally, we deliver a product. Or more likely a system of products and services that can assist the farmer in achieving the target yield on their land.This includes products that allow them to manage pests better or improve their opportunity for yield and profitability.Seed + crop management4
5 Biologicals Complement our Systems Approach to Increasing Yield Reducing Agricultural Inputs with More Sustainable Solutions1Emerging TrendsGreen / SustainableHealthier Dietary HabitsRegulatory Pressure on Some ChemistryBreedingBiotechnologyBiologicalsChemistryAgronomicsMonsanto R&D approaches have included:Plant breedingBiotechnologyChemistryAgronomic solutions and recommendationsNow we’re adding biologicals as a key part of our systems approach to increasing yield. That’s what is new.Biologicals are complementary to our current R&D efforts.Highest yieldinggenetics for targetenvironmentComplementary agronomic and yield enhancing traitsPlant HealthExtended Disease ProtectionMid Season Insect controlBio-NutrientsTraits & Germplasm provide platform for Ag chemistry ProductsFarm management practices and optimizing genetic placement on the farm5
6 What are Biologicals? Definition Key Segments Driven By Foliar or seed treatment products which are:Based on or containing a living organismMay be used to complement or replace Ag chemistry productsMay have a shorter, cheaper regulatory cycle than Ag chem productsKey SegmentsFoliar or seed treatment products which are:MicrobialsPesticidesPlant Health/InoculantsBioDirect™ Technology— RNAPlant Growth RegulatorsPheromonesBeneficial InsectsDriven BySustainable/ Green Trends1Healthier Dietary HabitsBiologicals are not a new market areaBiologicals are:Foliar are seed treatmentsBased on or contain a living organismComplementary or replace existing ag chem productsMay have reduced regulatory requirements in some parts of the world, which could result in shorter development timeines5 main areas: Plant growth regulators, pheromones, beneficial insects, microbials and RNAi—which we call BioDirect technology.The growing interest in biological solutions is driven by both global macrotrends and by scientific advances.2Scientific AdvancesImproved Plant Testing366
7 15% of Biologicals Focused on Row Crops Global Ag Biologicals Industry Primarily Supports Fruit and Vegetable Crops15% of Biologicals Focused on Row CropsRow Crops >Trees, Vines, Orchard, Fruits>Vegetables >Looking at the history of biologicals in the market, you can see that they have been primarily focused (~85%) on fruits and vegetables.Row crops have not been a major focus.Which leads to the question: What has prevented the success of biologicals in row crops so far?It seems to be the lack of consistency and predictable performance of many of the products that have been introduced.That creates a big opportunity for growth for anyone investing in biologicals—to create products that fit a large-acre row crop production systems and offer reliable performance.7
8 Biologicals Research Focus For Monsanto, Biologicals = BioDirect™ Technology+ MicrobialsBiologicals Research Focus+™MicrobialsTECHNOLOGYWeed ManagementInsect ManagementVirusControlBeeHealthPest ControlPlant Vigor & YieldDisease ControlMonsanto’s biological focus in on both our BioDirect platform and on microbials. I’ll be describing more about each of them.Both BioDirect and microbial technology have the potential to create products that are foliar sprays or seed treatments.And both technologies could offer products that align with Monsanto’s Integrated Farming Systems (IFS) approach. IFS is a services platform being developed that uses data to make precise field by field recommendations for growers to increase yield.BioDirect technology Research & Development is focused in four areasWeed managementInsect managmentVirus controlAnd bee healthMicrobials technology R&D is focused on :Pest controlPlant yield & vigorDisease controlThis is very early days for both technologies. These opportunities are in discovery or pre-discovery phase.Seed TreatmentFoliarApplicationsIFSDelivery Methods
9 Evolution: AG Platforms Driving Yield New BioDirect™ Technology is Next Step in Evolution of Technologies for Solving Farmers’ ChallengesEvolution: AG Platforms Driving YieldNext Inflection PointNEXT INFLECTION POINTAG BiologicalsMonsanto’s leading genomics and agronomics systems capability are key catalysts: data and insight enables multiple, complementary R&D platformsNEWNEWIntegrated Farming Systems℠ (IFS)GenomicsAdvanced BreedingAG BiotechnologySynthetic Agricultural ChemicalsOur first area of focus within biologicals is BioDirect technologyWe focused here first because—like molecular breeding and biotechnology—BioDirect is powered by genomics.Monsanto has made a significant investment in genomics technology—both sequencing and bioinformatics. These same enabling technologies are key to BioDirect.Using our understanding of plant and pest genomes, we can use BioDirect to precisely and effectively target specific pests with a biological—a naturally derived solutions. A successful product discovered with BioDirect technology would be:Targeted & specificEfficaciousAble to rapidly breakdown in nature after use1980s1990s2000s2010sBioDirectTM Monsanto’s Biological Ag Solutions TechnologyCreating potential breakthrough AG biological products with BioDirectTM technology
10 BioDirect ™ is Based on New Applications of RNAi Technology DNAGeneRNAProtein Produced“Transfers information from gene to construct a protein”When cells make RNAi it specifically targets an RNARNA broken upProteinProtein not producedX“Trigger”RNAi is A Natural Mechanism to Control the Expression of a GeneBioDirect is based on a natural process called RNAiMany of you have heard of RNAi, so I apologize for reviewing it againBut for those of you hearing it for the first time, I want to offer a very simple explanation.DNA is the genetic code of all living thingsDNA code for RNARNA are instructions for a organism’s cells—telling it what to do. For example, perhaps telling it to make a specific protein.Those instructions can be interrupted—and that’s the process of RNAi.In the case of BioDirect, it would be interrupted by using a biological that contains an RNA trigger—meaning a very small sequence of RNA that matches up very specifically with the set of instructions the RNA is giving to the cellsSo if the organism is a pest, and if the RNA sequence is coding for production of a protein vital for that pest’s survival, a biological using RNAi could disrupt that protein production and kill the pest.BioDirect is not GMO. It could be foliar or seed treatment.
11 Early Testing Indicates BioDirect™ Technology Has Potential To Be Step Change In Weed Control BioDirectTM Technology Glyphosate-Resistant Weed Control Targets Resistant WeedsGlyphosate-Resistant (GR) Palmer Pigweed Control Field TrialsTunica, Mississippi – 2012Glyphosate-Resistant WaterhempLab Trials – 2012GR Palmer pigweed sprayed with glyphosate aloneI mentioned 4 focus areas for BioDirect. I’d like to tell you a little bit about each one and show you some preliminary results where we have them.The first area is weed control. This is one of the platforms we’re working on, and our work validates that we can use biologicals with existing herbicides to create new value by controlling weeds better.One of the ways we can do that is to target the “resistance mechanisms” in resistant weeds to overcome them and enable herbicides to regain their commercial efficacy.The example shown here how this has worked with 2 glyphosate resistant weeds. On the left,you see a field example with glyphosate-resistant palmer pigweed. In the very left-most photo, a field with the weed is sprayed with glyphosate—these are very resistant weeds and very little control is achieved. The photo just to the right of that has been sprayed with a combination or glyphosate and a biological produced via BioDirect technology that allow glyphosate to overcome the resistance mechanism in the plant.In the 2 photos on the right, you see a similar example with another weed—glyphosate resistant waterhemp. This is a greenhouse experiment that shows a similar effect.Although I’m showing photos involving experiments with glyphosate resistant weeds, we’ve repeated this work to show the same effect in number of different herbicide classes, including ALS, HPPD and PPO chemistries.GR Palmer pigweed sprayed with BioDirect™ Technology + glyphosateUntreated CheckGlyphosate OnlyGlyphosate + BioDirectTM TechnologyNon-transgenic weed control topical technology designed to complement glyphosate chemistry to target glyphosate-resistant weeds and provide broader spectrum of controlComplementary to Monsanto’s other weed control platforms
12 Initial Testing Indicates BioDirect™ Technology Could Provide Significant New Source of Protection Against Insect PestsBioDirectTM Insect Control TechnologyColorado Potato Beetle Lab Trials*Monsanto Research – 2012Mexican Bean Beetle Lab Trials*Lab Trials – 2012Untreated plantsA similar results can be achieved for control of insectsHere I’m showing 2 examples of a biological produced using BioDirect technology that acts as an insecticide—this is not in combination with current chemical insecticidesOn the left is an example with a coleopteran pest called Colorado potato beetle. You can see the untreated plants in the far left photo—or what’s left of them. They’ve been completely defoliated by the pest. Just to the right of that are plants where a biological has been applied and good control is achieved.The example on the right is similar, though not as dramatic, and uses Mexican bean beetle.Both of these are greenhouse experiments.Plants protected with BioDirect™ TechnologyUntreated plantsPlants protected with BioDirect™ TechnologyNon-transgenic insect control topical technology designed as a new source to control insects for potential opportunity across a spectrum of cropsLeverages Monsanto’s core capability in genomics, using genome sequences to identify more precise, effective tools for pest control* Photo of plants depict plants grown and treated in lab environment
13 Initial Testing Indicates BioDirect™ Technology Could Reduce The Symptoms Of Viruses BioDirectTM Virus Control TechnologyVirus Control in Pepper Lab Trials*Monsanto Research – 2012Virus Control in Tomato Lab Trials*Lab Trials – 2012Untreated plantsPlants protected with BioDirect™ TechnologyUntreated plantsPlants protected with BioDirect™ TechnologyOur 3rd area of focus is virus controlThis is a very exciting area as farmers often don’t have any tools or options that offers efficacious control of viruses.And we can’t even be sure of the total damage being done by viruses and the yield losses that could be mitigated—it could be quite impressive.I’m showing 2 examples of virus control in this slide. On the left are photos of pepper plants. The far left photo is the untreated control and the photo just to the right of that shows pepper plants that have been treated with a biological produced with BioDirect technology. The plant height and health difference is quite noticeable.The 2 photos on the right are a similar set up, this time with tomato plants and again, we’re seeing an impressive effect in these greenhouse experiments.Non-transgenic virus control topical technology designed as a new tool to potentially reduce the impacts of virusesLeverages Monsanto’s core capability in genomics, using genome sequences to identify more precise, effective tools for virus control* Photo of plants depict plants grown and treated in lab environment
14 Bee Health Focus Varroa Genomics, Viral Sequencing BioDirect TechnologyProof of ConceptField Testing AnalyticsVarroa Delivery MethodsEstablish complete and annotated genomics database of phoretic and brood mitesViral sequencing used to select targetsSubstantial and reproducible Varroa gene silencing by feedingAnalytical methods Virus and Varroa field data assessment developed, field trial completedDelivery to Varroa by feeding bees shownFormulations and application methods are being developedField study with Dr. Jamie Ellis (UF) initiatedOur 4th area of focus is Bee Health.As part of our commitment to sustainable agriculture, Monsanto acquired an Israeli company, Beeologics, in 2010.Beeologics already had an active research program in bee health using RNAi technology.Our current R&D work is pursuing:Sequencing of the genome of key bee pests—the varroa mite and several important virusedDemonstrating the successful use of BioDirect technology on these key bee pestsImproving analytical methods so that we can better measure the impact of any new discoveriesFinding ways to adequately deliver a biological to these key pests
15 BioDirect™ Technology Monsanto is investing in a new R&D platform called Agricultural Biologicals.BioDirect ™ is the first AG biological technology we have in discovery.BioDirect™ technology uses molecules found in nature and are selected to be effective and specific for their intended target.BioDirect™ technology is expected to further support farmer and consumer demand for sustainable agricultural practices.So in summary on BioDirect technology—these are very early days and we’re just beginning to explore the technology.We’re excited because we believe this technology will expand farmer choices.We’re just beginning to explore this technology, but believe potential pest control products (weed, insect, and virus) will expand farmers’ choices.
16 Microbials Offer Additional Biological Solutions for Agriculture Microbial Products Are Emerging in Row CropsNew Technologies Are Enabling Discoveries to Expand Agricultural Impact of Microbial BiologicalsGenomic analysis of microbe-plant communitiesEnhanced screening and analytics to discover high performance microbial agentsHigh-resolution Field TestingMonsanto recently added a research focus—MicrobialsMicrobials are naturally occurring microorganisms—many come from soilThey can 1. Protect plants and 2. Stimulate growthPotential R&D work could include:Genomic analysis of microbe-plant communitiesEnhanced screening & analytics to find high performance microbialsHigh-resolution field testingMonsanto acquired a California-based company called Agradis this year as a step in building out our discovery capabilities in this area.Status: Building increased microbial field testing capacity for potential in-licensing opportunities and internal discovery research via Agradis acquisition
17 Thank you Biologicals ---What is all the fuss about? I think it is about an opportunity to provide a new tool to growers in the quest to help them meet global food demand and do it sustainably.It’s EARLYIt’s EXCITINGIt’s ENVIRONMENTALLY SUSTAINABLEThank you.