Monsanto Takes The Offensive In Addressing Biotechnology 

DESIREE J. HANFORD / Dow Jones Newswires 27nov00

ST. LOUIS -- Monsanto Co. (MON) has the science of agricultural biotechnology down pat and now the company is turning its attention to better explaining that technology and its benefits through its own initiatives and working with others, said Monsanto President and Chief Executive Hendrik A. Verfaillie.

Speaking to Dow Jones Newswires prior to a speech that he is scheduled to give in Washington, D.C., Monday, Verfaillie said the St. Louis company began realizing about a year ago that the approach it had been taking toward explaining biotechnology and its benefits was flawed. It was an approach that said Monsanto had all the answers and that if the rest of the world would simply listen, concerns about genetically engineered crops would be resolved. It was an approach, or tone, Verfaillie is expected to say in his speech, that "was seen as arrogant."

"We realized that approach wasn't right and that we had to do as much listening as possible," Verfaillie told Dow Jones. "So we decided to change. The IPO and focus only on agriculture gave us a good opportunity to say, 'We realize we may not have done everything right.' Our science is right but our behavior isn't."

Monsanto has come under criticism, particularly in Europe, from those who oppose combining agriculture and biotechnology. Critics say the technology is unsafe and its long-term effects aren't clear.

Pharmacia Corp. (PHA) acquired Monsanto in March. Pharmacia spun off a portion of Monsanto in October, at which point Monsanto's sole focus became the agriculture business. Prior to the acquisition, Monsanto's focus had been on agriculture and pharmaceuticals.

"We are at the crossroads with biotechnology," Verfaillie said. "One one hand, biotechnology offers very significant benefits to growers, the environment and eventually healthier foods. On the other hand, there are a number of people who have concerns. As a leader, we want to send out a very strong message that we will answer questions or concerns about this technology."

Five Areas Of Policy

In his speech in Washington, Verfaillie planned to discuss elements in five areas outlining Monsanto's policy for the development, use and management of new agricultural technologies. The first area is ongoing dialogue with parties to understand the issues and concerns about biotechnology. Monsanto plans to create a Biotechnology Advisory Council to advise the company on its biotechnology practices.

Second, Monsanto plans to make published scientific data and data summaries on product safety and benefits available to the public. This includes supporting a mandatory pre-market notification process for Food and Drug Administration review of all biotechnology products in the U.S. Third, Monsanto says it is committed to "respecting the religious, cultural and ethical concerns" that people have through a number of steps, including not marketing commodity grain products until they've been approved for human and animal consumption.

The fourth area is sharing agricultural information of all types to farmers in developing countries. Fifth, Monsanto plans to deliver both environmental and commercial benefits to farmers. This includes the company's intent to launch new genetically improved commodity crops in the U.S. only after they have received approval for humans and animals in the U.S. and Japan. The company plans to extend that to Europe once there is a working regulatory system there.

It's difficult to tell how all of this will be received by biotechnology critics, although it's important that it is, Verfaillie said in an interview. The company has had a dialogue for several months with a wide variety of people, including scientists and foundations, and the feedback from that group was "enormously positive," he said.

"But obviously saying it isn't enough," Verfaillie said. "It comes down to whether we're going to do it and follow through on our promises. So there will likely be some skepticism on whether we'll follow through and that's why we intend to report the progress we make on a regular basis."

Pharmacia hasn't pressured Monsanto to do any of this, Verfaillie said, adding that this was an initiative made by Monsanto.

The "new" (It's a good thing that there are quotes on the word new) Monsanto is more focused on things that are going to make a difference, Verfaillie said. Monsanto has laid out four strategies, he said: Continued growth in Monsanto's existing business, including its Roundup herbicide business; working to ensure that biotechnology products are accepted; maintaining a strong research and development pipeline; and creating a working environment where all Monsanto employees are committed to its strategy.

-By Desiree J. Hanford, Dow Jones Newswires; 314-588-8443

http://www.monsanto.com/monsanto/media/speeches/new_pledge_speech.html