Monsanto plans to slash prices of GM seeds
The world's biggest seed company Monsanto Co. is currently mulling over a probable price cut on genetically modified (GM) seeds to boost the acceptability of the new seeds in the global market. The company is aiming at a 15 per cent bottom-line growth in financial year 2011 from increased sales due to the price cut.
The seed grower has reached to such a decision after its discussions with 1200 growers and low sales forecast, Monsanto's Chief Executive Hugh Grant said on Wednesday.
As per Grant the penetrating prices would largely focus on rapid adoption of the seeds and this could help the company showcase strong earnings.
However, Grant further added that now it's quite possible that Monsanto might fail to meet the target it set earlier in 2007 to double its gross profit by 2012.
The problem for the company at present is that the current estimations suggest that sales of two major products of the company, SmartStax corn seeds and Roundup Ready 2 Yield soyabean, may fall nearly 25 per cent as compared to what was originally expected by the company.