Rising corn seed sales helped Monsanto Co. boost its second-quarter profit by 15 percent compared to last year. The world's biggest seed company said Wednesday that corn seed revenue jumped 7 percent. The company is rolling out more expensive brands of genetically altered corn seeds, and competing fiercely for market share against seed developers like DuPont.also:
Second quarter results are critical for Monsanto, because they cover a period when the company books its seed sales to farmers. Analysts had questioned whether Monsanto would be able to convince farmers to pony up more money for strains of corn seed that had several genetically altered traits. Competitors like DuPont's Pioneer Hi-Bred have been trying to steal away customers, in part by lowering prices.My own observation, Pioneer's former outperformance in yield isn't there anymore. The large investment Monsanto has made in buying up smaller seed companies and merging their genetics with its GMO technology seems to be paying off.
Monsanto CEO Hugh Grant said the second quarter results show Monsanto's sales strategy is working.