Monsanto Company (AMEX:MON)
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The head of Monsanto Co. (MON) said Wednesday that 2010 would be a "critical" year as it lines up new seed products to counter lower earnings from its crop-protection business.

Hugh Grant, chairman and CEO of the world's largest seed producer by revenue, said the rollout of high-tech new corn and soybean seeds and international expansion will provide "the slingshot" to reach its medium-term growth targets.

The strategy hinges on persuading farmers to buy the more expensive new offerings at a time when global agricultural incomes are under pressure from the reverse in global commodity markets.

Monsanto pioneered genetically-modified seeds that can boost crop yields by offering more protection against pests and herbicides.

The company still has a technology lead in many areas over rivals such as DuPont Co. (DD) but is accelerating product roll-outs with an unprecedented seven offerings over the next seven years.

Grant said on an analysts' call that Monsanto has been beefing up its sales and marketing effort ahead of next year's crucial launch of SmartStax corn seeds and Roundup Ready 2Yield soybeans.

The two are seen as offering a step change in productivity - but at a cost. While pricing for its existing seed line-up will be flat next year, overall pricing will rise by 8% to 10%.

"We nail this in 2010 and it puts us in a great position for 2011 and 2012," said Grant, as Monsanto reported a higher fiscal fourth-quarter loss on lower earnings from its Roundup herbicide.

Roundup had been a moneyspinner that Grant once called a "windfall" to fund research into its core business of seeds and traits.

Monsanto has cut staffing and other costs to bridge the gap caused by Roundup's challenges, and Grant has sought to focus investors on the growth potential of seeds and traits, which are expected to account for 85% of earnings by 2012.

The company on Wednesday reported a loss of $284 million, or 43 cents a share, for the fiscal fourth quarter to Aug. 31. This compared with a prior-year loss of $172 million, or 31 cents.

Monsanto shares were recently trading flat at $75.32, a little more than half their all-time peak in June 2008.

-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com