Monsanto and DuPont Sign Dicamba Supply Agreement
ST. LOUIS and WILMINGTON, Del. , July 7, 2016 – Monsanto Company (NYSE: MON) and DuPont (NYSE: DD) today announced a multi-year dicamba supply agreement for the U.S. and Canada. Terms of the agreement were not disclosed.
“This agreement represents continued commitment to the Roundup Ready® Xtend Crop System,” said Mike Frank, Monsanto vice president, chief commercial officer. “Low-volatility dicamba formulations with VaporGrip™ Technology are designed to give soybean farmers additional tools to control glyphosate-resistant and tough-to-control broadleaf weeds.”
“For several years, DuPont has been testing a solutions-based approach to optimizing weed control using this novel soybean trait and dicamba formulation technology,” said Tim Glenn, president, DuPont Crop Protection. “We are seeing excellent results in improved control of weed populations, including those resistant to a number of herbicide modes of action. This advance will help farmers manage weed competition while improving crop safety as they work to increase production to meet global food demand.”
DuPont will sell its new herbicide as DuPont™ FeXapan™ herbicide plus VaporGrip™ Technology.
Since 1967, dicamba has helped farmers manage broadleaf weeds, which are a key pest in agricultural operations around the world, limiting crop access to nutrients, sunlight and water. Various dicamba formulations have been developed over time to help reduce potential volatilization while delivering improved weed control and greater application flexibility. Dicamba has a decades-long history of effective use in the U.S. and 25 other countries in corn, wheat, fallow and pasture land; on conservation tillage acres; and for residential lawn care.
About Monsanto Company
Monsanto is committed to bringing a broad range of solutions to help nourish our growing world. We produce seeds for fruits, vegetables and key crops – such as corn, soybeans, and cotton – that help farmers have better harvests while using water and other important resources more efficiently. We work to find sustainable solutions for soil health, help farmers use data to improve farming practices and conserve natural resources, and provide crop protection products to minimize damage from pests and disease. Through programs and partnerships, we collaborate with farmers, researchers, nonprofit organizations, universities and others to help tackle some of the world’s biggest challenges. To learn more about Monsanto, our commitments and our more than 20,000 dedicated employees, please visit: discover.monsanto.com and monsanto.com. Follow our business on Twitter® at twitter.com/MonsantoCo, on the company blog, Beyond the Rows® at monsantoblog.com or subscribe to our News Release RSS Feed.
DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials and services since 1802. The company believes that by collaborating with customers, governments, NGOs and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit www.dupont.com.
Take Action is an industry-wide partnership between university weed scientists, major herbicide providers – including Monsanto and DuPont – and organizations representing corn, cotton, sorghum, soybean and wheat farmers to help them manage herbicide-resistant weeds. The Take Action effort encourages you to develop a proactive strategy to manage herbicide-resistant weeds that incorporates a diverse set of controls. To find out more about how you can take action, visit www.TakeActionOnWeeds.com or contact your local extension office.
No dicamba herbicide product has been approved for commercial in-crop use with Bollgard II® XtendFlex® cotton, XtendFlex® cotton or Roundup Ready 2 Xtend® soybeans at this time. IT IS A VIOLATION OF FEDERAL AND STATE LAW TO MAKE AN IN-CROP APPLICATION OF ANY DICAMBA HERBICIDE PRODUCT ON Bollgard II® XtendFlex® cotton, XtendFlex® cotton or Roundup Ready 2 Xtend® soybeans, OR ANY OTHER PESTICIDE APPLICATION, UNLESS THE PRODUCT LABELING SPECIFICALLY AUTHORIZES THE USE.
Monsanto Cautionary Statements Regarding Forward-Looking Information:
Certain statements contained in this release are “forward-looking statements,” such as statements concerning the company’s anticipated financial results, current and future product performance, regulatory approvals, business and financial plans and other non-historical facts. These statements are based on current expectations and currently available information. However, since these statements are based on factors that involve risks and uncertainties, the company’s actual performance and results may differ materially from those described or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, among others: continued competition in seeds, traits and agricultural chemicals; the company’s exposure to various contingencies, including those related to intellectual property protection, regulatory compliance and the speed with which approvals are received, and public understanding and acceptance of our biotechnology and other agricultural products; the success of the company’s research and development activities; the outcomes of major lawsuits; developments related to foreign currencies and economies; the impact of exploring, responding to, entering into or consummating potential acquisitions or other transactions and proposals; fluctuations in commodity prices; compliance with regulations affecting our manufacturing; the accuracy of the company’s estimates related to distribution inventory levels; the recent increases in and expected higher levels of indebtedness; the company’s ability to fund its short-term financing needs and to obtain payment for the products that it sells; the effect of weather conditions, natural disasters, accidents, and security breaches, including cybersecurity incidents, on the agriculture business or the company’s facilities; and other risks and factors detailed in the company’s most recent periodic report to the SEC. Undue reliance should not be placed on these forward-looking statements, which are current only as of the date of this release. The company disclaims any current intention or obligation to update any forward-looking statements or any of the factors that may affect actual results.
DuPont Forward-Looking Statements:
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. Forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events which may not be realized. Forward-looking statements also involve risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those projected in any such forward-looking statements are: fluctuations in energy and raw material prices; failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting products based on biotechnology and, in general, for products for the agriculture industry; outcome of significant litigation and environmental matters, including realization of associated indemnification assets, if any; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, natural disasters and weather events and patterns which could affect demand as well as availability of products for the agriculture industry; ability to protect and enforce the company’s intellectual property rights; successful integration of acquired businesses and separation of underperforming or non-strategic assets or businesses; and risks related to the agreement entered on December 11, 2015, with The Dow Chemical Company pursuant to which the companies have agreed to effect an all-stock merger of equals, including the completion of the proposed transaction on anticipated terms and timing, the ability to fully and timely realize the expected benefits of the proposed transaction and risks related to the intended business separations contemplated to occur after the completion of the proposed transaction.