Background

As part of the regulatory requirement in Canada for plants with novel traits, Monsanto has been actively involved in the variety registration process administered through the Prairie Regional Recommending Committee on Grains (PRRCG) and the Canadian Food Inspection Agency (CFIA). There is keen interest in the development of Roundup Ready wheat in Western Canada and the annual PRRCG review is a focal point for those involved in wheat variety development. Monsanto has been an active and willing participant in the PRRCG process for the past several years.

Up to this point, Monsanto s involvement at the PRRCG has included three years of testing for agronomic, disease and quality attributes. PRRCG members have been involved in reviewing the field trial protocols and conducting the Private Registration trials on behalf of Monsanto.

Monsanto has now completed the required three years of field testing of several of our Roundup Ready wheat lines and is in a position to request recommendation for registration from the PRRCG at its 2004 annual meeting to be held in Saskatoon, February 24-26, 2004. However, Monsanto does not intend to bring forward any of our current lines for recommendation at the 2004 Annual Meeting. As per previous years, we will be requesting acceptance of the 2003 data and acceptance of the private registration trial protocol for 2004. We will also request a 4th year of testing for the Roundup Ready BW251 lines.

The decision not to bring forward any of our current lines for recommendation was made after extensive review and discussion with both internal and external stakeholders, and is in keeping with the milestones we have set for the responsible and positive introduction of Roundup Ready wheat.

We are actively working to develop a system in Canada that will allow the regulatory approval and variety registration processes to take place, while providing the Canadian government and industry with assurances that Roundup Ready wheat will not be commercially available until we have met all of the milestones we have outlined. We have also publicly communicated that the introduction of Roundup Ready wheat as a commercial product is not imminent. As such, the decision not to ask for variety recommendation in 2004 has no commercial impact on this project. We remain fully committed to this project and continue to make good progress against each of our milestones

Key Points

Monsanto Canada will not be bringing forward any lines for recommendation at the February 2004 PRRCG Annual Meeting.
This decision is in keeping with the milestones we have set for the positive and responsible introduction of this product.
As publicly communicated on many occasions, the introduction of Roundup Ready wheat as a commercial product is not imminent. Therefore, our decision to not bring forward varieties for review in February 2004 has no commercial impact on this project.
We remain fully committed to this project and continue to make good progress against each of our milestones.
We acknowledge and respect the complexities of today s trade and export environment. We are working diligently with the wheat industry to identify how a biotech trait can successfully enter the marketplace. Roundup Ready wheat will be introduced only when ALL the following milestones have been achieved:

o Regulatory Approvals The food, feed and environmental safety of Roundup Ready wheat is demonstrated, resulting in regulatory approvals in the United States, Canada and Japan.

o International Standards Appropriate regulatory approvals, thresholds or marketing arrangements are in place in key export markets.

o Grain Handling System Appropriate grain handling protocols and standardized sampling and detection methods are developed and implemented.

o Stewardship Programs Comprehensive, agronomic stewardship programs and best management practices are developed.

o Quality The varieties meet or exceed industry standards for grain end-use quality.

o Market Acceptance Buyers are identified who will procure and use wheat ingredients with biotech traits.