Monsanto Discussions Ongoing with Argentina’s Government on Latest Soybean Innovations; Growers Continue to Have Access to Intacta RR2 Pro® Soybeans

Company Remains Committed To Dialogue To Find A Solution That Will Help Encourage And Spur New Investments In Argentina

Category:

Saturday May 7, 2016

Dateline:

ST. LOUIS

Public Company Information:

NYSE:
MON
"During recent discussions, the Government of Argentina acknowledged that it supports a conducive environment for continued investment and further long-term development of agriculture through recognition of intellectual property rights and private agreements"

ST. LOUIS--(BUSINESS WIRE)--Monsanto Company (NYSE:MON) today released details about its ongoing discussions with Argentina President Mauricio Macri’s administration and industry representatives to find a mutually agreeable solution for soybean growers and the value chain for a soybean technology royalty system in Argentina.

Discussions have found common ground around four main principles:

1. Private contracts will be recognized and respected, including thousands of grower, grain handler and inland elevator contracts that support new technologies in Argentina;

2. Intellectual property would be respected for each and every use of patented technology, both inside and outside of Argentina;

3. Testing and sampling of grain should continue; and

4. The country’s soybean technology royalty system will remain operational.

“During recent discussions, the Government of Argentina acknowledged that it supports a conducive environment for continued investment and further long-term development of agriculture through recognition of intellectual property rights and private agreements,” said Brett Begemann, Monsanto President and Chief Operating Officer. “Both endorsing and actively supporting these basic principles are necessary to create a predictable business environment, which invites foreign investment.”

Throughout the course of discussions, Monsanto also heard the administration’s concerns with the existing soybean technology royalty system. The system in Argentina offers growers who choose to use Intacta RR2 Pro® technology the choice and flexibility in payment timing, from the time of purchase of certified seed and at various points along the way, up the point of grain delivery. Monsanto has provided additional flexibility beyond those payment options to give growers the opportunity to pay for Intacta RR2 Pro at and after the point of delivery of grain. Monsanto intends to continue operating the royalty system in Argentina as it has been implemented, until the company can reach an acceptable alternative arrangement with the government.

The current soybean technology royalty system is legal, as Intacta RR2 Pro is a biotechnology invention that is protected in Argentina and other countries around the world by patent rights owned by Monsanto and its affiliates. In Argentina, two patents have been issued that protect Intacta RR2 Pro (Patent AR026994B1, “New constructs expressed in plants and method for expressing a DNA sequence in plants” and Patent AR010897B1, “Method for controlling infestation of a soybean plant by an insect of the family tortricidae.”) Additionally, Monsanto has four patent applications pending for Intacta RR2 Pro soybean products in Argentina. Multiple patents have been issued in other countries to protect the use of this technology outside of Argentina. The soybean technology royalty system is in place to ensure recognition of Monsanto’s intellectual property rights and was designed within the framework of Argentine law and International Treaties. Under these protective systems, Monsanto will enforce its private contracts and intellectual property rights both inside and outside Argentina.

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.

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; pursuit of acquisitions or other transactions; 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.

Contact:

Monsanto Company
Christi Dixon, 636-359-0797