Monsanto FY 2Q15 Earnings Call Notes

Tough environment for ag players

“As we look across the current landscape, we clearly acknowledge the reality facing the global players in the ag industry, namely declining corn acres and rapidly weakening foreign currencies. These industry-wide economic challenges have led us to point to the lower end of our earnings per share and cash flow guidance, and yet even at the low end of our original guidance range, we still expect double-digit ongoing earnings per share growth”

Oversupply of corn because of good growing conditions

“Two years of spectacular growing conditions have translated into the current oversupply situation for corn, and in response acres continue to decline while demand from feed accelerates to rebalance supply.’

Soybeans are 200 m acre opportunity

“Bollgard II XtendFlex cotton is now sold out from our limited commercial introduction, and plans for more than a 3 million acre launch in Roundup Ready 2 Xtend soybeans in 2016 are on pace for this nearly 200 million acre opportunity.’

Demand for corn and soybeans growing

“we continue to see annual demand for corn increasing by more than 500 million bushels per year, while soybean demand grows by more than 200 million bushels per year.’

11-12m acres of corn have come out of production

“we now estimate that at least 11 to 12 million acres of corn will have come out of production in the primary markets since 2013.”

Getting excited about Southeast Asia

“We’ve done extremely well in South Africa. We continue to do really well with those products. I have to tell you, I’m getting more excited about Southeast Asia. We got the approval for our biotech products in Vietnam in corn most recently. We’ll get to get those in the field with farmers. We’re hearing really good conversations from some of the other countries in Southeast Asia.”

Excited about Intacta performance

“I’m real excited about the Intacta performance. It’s really knocked it out of the park when you have two years back-to-back of four bushel yield advantage and you see the kind of insect performance we’re getting out of the product.”