CREVE COEUR, MO. - Monsanto Co. Chief Executive Hugh Grant set a bold goal for the company on Wednesday, promising to develop by 2030 new strains of corn, soybeans and cotton that can yield twice as much grain and fiber per acre while consuming one-third less water.
Grant announced the initiative during a company meeting without laying out specific strategies or initiatives Monsanto would employ to reach the goal. He said afterward that Monsanto will rely on its current research and development team that is developing crops resistant to drought and pests.
"If we succeed in doubling yields, it absolutely changes the opportunity for food availability," Grant said.
Monsanto, the world's largest seed company, made its announcement against the backdrop of rising food prices and tight grain inventories worldwide. U.S. and European policies that encourage using grain crops for ethanol and biodiesel are coming under attack for tightening grain supplies even as food riots break out in some countries.
Grant said Monsanto's new effort will show that farmers can grow enough corn and soybeans to supply a booming biofuels industry while still providing enough feed for the livestock industry and for human consumption.
A key part of realizing the goal is developing crops that need less water, he said: "You double yields while avoiding chopping down another tree or draining another swamp."
The company also plans to donate $10 million over five years to help public-sector scientists develop better- yielding strains of wheat and rice.
Monsanto's stock dropped $1.54 Wednesday to close at $131.60 per share.
