Monsanto Takes US$ 209 Million Foray into Sugarcane

Monsanto Company announced plans to acquire the sugar cane-breeding company Aly Participacoes Ltda., in a bid to tap the growing demand for raw sugar and biofuels. Monsanto agreed to pay US$ 290 million for the Brazil-based company, which operates CanaVialis S.A. and Alellyx S.A.

CanaVialis is the world's largest private sugarcane breeding company. Alellyx, on the other hand, is an applied genomics company that focuses on developing biotech traits primarily for sugarcane. Monsanto has previously established a licensing and trait-collaboration agreement with these companies to develop and commercialize Roundup Ready and Bt insect-protected technologies for sugarcane growers in Brazil.

“We expect the additions of CanaVialis and Alellyx will allow us to combine our breeding expertise with key large-acre crops with their breeding expertise in sugarcane. Our goal with this approach is to increase yields in sugarcane while reducing the amount of resources needed for this crop's cultivation, just as we're doing now for corn, soybeans and cotton,” said Carl Casale, executive vice president of global strategy and operations for Monsanto. Brazil is the world's largest producer of sugarcane, the largest exporter of finished sugar, and the world's second-largest producer of ethanol after the United States.

Read the press release at http://monsanto.mediaroom.com/index.php?s=43&item=656