Monsanto Company announced yesterday that the company had entered into a “long-term strategic alliance” with Novozymes, to create what it is calling the BioAg Alliance. The agreement is subject to the approval of the relevant national antitrust authorities to the extent required, but is expected to close in early 2014. Monsanto paid $300 million in the deal.
According to a press release, the BioAg Alliance will allow the companies to “leverage employees, technologies and commercial assets in the companies’ agricultural biologicals portfolios.” The partnership means Novozymes’ commercial operations and capabilities within microbial discovery, development and production will be dovetailed into Monsanto’s own microbial discovery, advanced biology, field testing and commercial capabilities. See a visual representation of the alliance here.
RealAgriculture’s editor, Lyndsey Smith, spoke with industry and public affairs lead for Monsanto Canada, Trish Jordan, about what this alliance means for Monsanto, for Novozymes and its employees, and whether or not we’re soon to see nitrogen fixation technology for cereals any time soon.
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More about biologicals:
Monsanto has this to say about microbial products:
Microbial solutions are a significant part of the agricultural biologicals industry, which today represents roughly $2.3 billion in annual sales and has posted mid-teens sales growth each of the last several years. Microbial-based solutions are derived from various naturally-occurring microorganisms such as bacteria and fungi. They can protect crops from pests and diseases and enhance plant productivity and fertility. With faster development cycles compared to other agricultural innovations, as well as broad geographic and crop applicability, microbial solutions offer tremendous potential to deliver sustainable, cost-effective solutions that can increase yield using less input.