Company Monsanto company confirmed its intention to expand interest in the agrochemical sector, announced plans to invest more than $1 billion in enterprise for production of alternative herbicide.
In the next three to five years, the leadership of Monsanto plans to spend the money on the expansion of productive enterprise in Elinge, Louisiana, which will produce destroys the weeds a chemical called dicamba. Luling was the main place of production of glyphosate for many years.
Interest and investment in dicamba reflect the withdrawal of the company from the use of glyphosate, which is a key component in the brand's line of herbicides Monsanto Roundup.
Glyphosate is also the key to many genetically modified varieties of crops Monsanto. The company produces corn, soybeans, cotton, canola and other crops that are resistant to the spraying of glyphosate.
The company has stated that in the next decade, Monsanto will support the potential for further diversification of its agro segment and provide a source of long-term growth prospects.
GM varieties of crops Roundup and Roundup Ready Monsanto are in great demand among farmers, especially in the US. However, widespread planting of corn and soybeans Roundup Ready associated with significant use of the herbicide Roundup, helped increase the spread of weeds resistant to glyphosate.
The problem of weed resistance has become so important for grain production, farmers are looking for alternatives, and Monsanto and its rivals in the agrochemical industry are rushing to introduce new alternatives to glyphosate and grain Roundup Ready.
In fact, the industry faces the need to evolve the same way how the life of plants, analysts said Edward Jones
Monsanto combines glyphosate with dicamba for the production systems of grains under the name Roundup Ready Xtend developed for farmers growing cotton and soybeans.
Competitor Monsanto Dow AgroSciences, Department of Dow Chemical Co, has developed crops that are resistant to the new herbicide that combines 2,4-D with glyphosate.
Monsanto said it expected the practical application of his system Roundup Ready Xtend at least 200 million acres in the Americas.
The company said it is still waiting for permission from Chinese regulators to import the new soybeans. China is a key buyer of U.S. soybeans, but is in no hurry to allow the import of new GM crops.
Translated by the service "Yandex.Translation"