Monsanto

Monsanto Reaffirms Committment To Product Stewardship To Ensure Choices For Farmers And Markets For Their Products

ST. LOUIS (Dec. 4, 2000) Monsanto Company today reaffirmed its pledge to work closely with interested parties on biotechnology and renewed its long-standing a commitment to product stewardship to ensure choices for farmers and markets for their products.

"Our stewardship program helps ensure that all of our technologies will continue to be available to any grower who wants to plant them. Where there are delays in European approval, we will continue to work with industry partners to channel grain to appropriate markets," said Carl Casale, Monsantos vice president of North American markets.

"The bottom line is that no one should deprive American farmers of their right to choose any approved product that they feel will help them grow their crops with higher yields and lower costs," he said.

Product stewardship is part of the New Monsanto Pledge, a series of commitments that describe the companys policies for the products developed through biotechnology. Hendrik Verfaillie, the companys president and chief executive officer, announced the pledge last week, committing the company to dialogue with interested parties; transparency with information and regulation; respect for religious, cultural and ethical concerns; sharing of knowledge and technology; and benefits for growers and the environment.

As part of the pledge, the company affirmed its intention to commercialize commodity crops only after they have full food and feed approvals in both the United States and Japan, an intention that Monsanto hopes to extend to Europe as soon as it establishes a working regulatory system. Monsantos largest-selling biotech crops, YieldGard corn and Roundup Ready soybeans, are fully approved for food and feed use in the United States, Canada, Japan and Europe.

The companys newest commodity product is Roundup Ready corn, introduced in 1998. Roundup Ready corn was grown on approximately 2.8 million acres in 2000, and 96 percent of the growers who planted it said they were satisfied with the results, said Casale.

Roundup Ready corn grain is fully approved for food and feed use in the United States, Canada and Japan. However, it is still awaiting final approval in Europe, where a regulatory application was first submitted in 1997.

Monsanto is working directly with seed companies, growers and grain handlers to provide a comprehensive program to channel Roundup Ready corn away from grain handlers and processing plants that send products to Europe.

Roundup Ready corn is available in all areas of the United States, to any growers who agree to follow the channeling program. Growers who plant Roundup Ready corn must sign a written agreement before planting which outlines their obligations to comply with the channeling program. These market options are repeated in ongoing communications throughout the season. Seed companies and grain handlers also communicate the channeling programs requirements.

For the 2001 season, Monsanto will continue its policy of continuous improvement in product stewardship, including:

• Additional confirmation of channeling requirements for products that are approved in the U.S. and Japan but are not yet approved in Europe.
• Continued open dialogue and partnership with seed industry partners, growers and their organizations, and the grain handling and processing industry.
• Cooperating with industry groups and government agencies to develop global standards for grain and seed quality.
• Technical support to the U.S. Department of Agricultures accreditation program for analytical testing laboratories.

"Roundup Ready corn lets me control weeds on some tough acreage where other weed control programs just didnt work," said Randy Phelps, who grows corn on 4,000 acres in central Illinois.

"Im glad to get the additional yields it offers to me, and its no problem for me to take the grain to Cargills river elevator at Havana, Illinois. They serve markets that arent affected by Europes slow approval," Phelps said.

"Sales of Roundup Ready corn are concentrated in areas where demand is highest. This tends to be areas where on-farm and feed use are more prevalent and where there are fewer processing facilities with European export issues. But we make it available throughout the Corn Belt, as long as our customers accept the terms of channeling their grain away from facilities where products go to Europe," Casale said.

"Monsanto is committed to the strong stewardship of our products and to ensuring that growers have an appropriate market to sell their grain," he said.

"By maintaining a dialogue with all parties involved in the channeling structure and using their feedback to evaluate and improve the program, we can feel confident that we are designing an outstanding model for our industry. We will continue to work with the industry to ensure that all U.S. growers have the opportunity to choose the technology they think is best for their farms," Casale said.

Monsantos next-generation corn crop, offering protection against corn rootworm, has been submitted to regulatory agencies and is expected to be commercially launched in 2002 once it receives the necessary approvals.

Monsanto Company, an 85 percent owned subsidiary of Pharmacia Corporation (NYSE:PHA), is a leading global provider of technology-based solutions and agricultural products that improve farm productivity. For more information on Monsanto, see: www.monsanto.com.

Certain statements contained in this release, such as statements concerning product launches and product stewardship, are "forward-looking statements." These statements are based on factors that involve risks and uncertainties, and actual results may differ materially from those expressed or implied. Factors that may cause actual results to differ include, among others: the success of the companys product development activities and the speed with which regulatory approvals and product roll-outs may be achieved; domestic and foreign social, legal and political developments, especially those relating to agriculture products developed through biotechnology; and other risks and factors detailed in Monsantos Registration Statement on Form S-1, as amended, Quarterly Report on Form 10-Q and other filings with the U.S. Securities and Exchange Commission. Monsanto disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.

Monsanto Company, an 85 percent owned subsidiary of Pharmacia Corporation (NYSE:PHA), is a leading global provider of technology-based solutions and agricultural products that improve farm productivity and food quality. For more information on Monsanto, see: www.monsanto.com.

For the complete text of Monsanto CEO Hendrik Verfaillie's speech as well as additional background materials, click here.

For more information, please contact:

Loren Wassell (314-694-7002) or
Lee Quarles (314-694-4452)

Note to the Editors: YieldGard and Roundup Ready are trademarks of Monsanto Company.

Copyright 2000 Monsanto All Rights Reserved