In a move indicating Monsanto is acting to diversify beyond its cornerstone glyphosate herbicide business, the news was release June 24 that the company plans to invest more than $1 billion over the next three to five years to expand a plant located in Luling, Louisiana that produces the alternative herbicide, dicamba.
Glyphosate is the key ingredient in Monsanto’s RoundUp line of products, and is integral to its symbiotic lines of glyphosate-tolerant lines of soybean, corn, canola, and cotton seeds. However, the high level popularity and widespread use of Monsanto’s products, particularly in the U.S., has led to the rise of glyphosate-resistant weeds.
This resistance has become a significant problem for farmers who began seeking alternatives, which Monsanto’s rivals have been diligently working to develop and commercialize. For instance, Dow AgroSciences, has developed lines of crops that tolerate its new herbicide which combines glyphosate with its 2,4-D.
In response, Monsanto has developed a solution called its RoundUp Ready Xtend crop system for soybeans and cotton which combines glyphosate and dicamba. The company foresees a 200 million acre market for its new RoundUp Ready Xtend system in the America’s, but is still waiting on approval from Chinese regulators to allow the importation of the new soybean variety.
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