Monsanto Company today announced it is repositioning its Roundup soybean seeds business in the face of the uncertainty associated with the product. Monsanto said it is focusing on its glyphosate products for supporting the core seeds-and-traits business.
Glyphosate (N-(phosphonomethyl) glycine) is a broad-spectrum systemic herbicide used to kill weeds, especially perennials.
The company said it planned to drastically narrow its Roundup brand portfolio to offer farmers a simple, quality product that meets their needs at a price closer to generics.
"By reducing the uncertainty associated with Roundup, we free Monsanto to grow on its fundamentals," chairman and chief executive Hugh Grant said. "What matters to our long-term growth is our seeds-and-traits business, which is on track," he added.
Grant indicated that the company has initiated a series of actions that are expected to cumulatively reduce the ongoing earnings per share (EPS) contribution of the Roundup business in fiscal year 2010 by $0.50 to $0.70.
These near-term actions include lowering prices on volume for the 2011 season and accelerating payment on certain distributor and retailer incentives to close out multi-tier brand support and speed the transition to the new brand strategy.