Monsanto, Chinese company expanding seed venture

Monsanto, Chinese company plan to boost investments in Chinese corn seed venture

ST. LOUIS (AP) -- Monsanto Co. and China National Seed Group Corp. on Thursday say they will expand their joint venture that provides corn seed to Chinese farmers.
Under the deal, China Seed, a subsidiary of Sinochem Corp., and Monsanto Far East Ltd., a Monsanto subsidiary, will increase their investment in CNSGC-Dekalb Seed Co. formed in 2001. The agreement will allow the joint venture to expand its existing corn seed business by combining its business operations with the corn seed business of China Seed and providing the joint venture with access to cord seed hybrids developed by Monsanto and China Seed.

Monsanto will invest $84 million in the joint venture while China Seed will contribute its existing corn seed business assets. China Seed will continue to own 51 percent in the joint venture.

According to the companies, Chinese farmers plant 67 million acres of corn annually, making it the world's second largest corn growing region.