BOLLGARD II® cotton will be offered to Australian growers for $190.00 per hectare in its introductory year, the same price as INGARD®.

Insect control data across the whole industry and a number of years indicates that Bollgard II is worth about $300 per hectare and this will be factored into future pricing decisions, Monsanto Australia commercial manager for biotechnology Roger Boyce said today.

The introductory price for Bollgard II in its first year of commercial release recognised that growers have had limited exposure to the technology and varieties.

"We are are very keen for growers to gain experience with Bollgard II in this transition season," he said.

"To encourage usage in 2003/04, we will make a one time offer of Bollgard II at the INGARD price of $190.00 per hectare (excl GST)."

Mr Boyce said 2003/04 is a transition year where both INGARD and Bollgard II will be available.

Because of resistance management issues, INGARD will be removed from the market in 2004/05, so it is important that growers have the opportunity to gain experience with Bollgard II this coming season, he said.

The value of technologies such as INGARD and Bollgard II change with time as varieties are developed and growers gain experience. "We have taken this into consideration when developing our pricing structures for 2003/04."

INGARD:

Mr Boyce said industry data confirmed that INGARD was providing significantly greater value to growers than it did in 1996 and this change in value was reflected in the price of INGARD for 2003/04 of $190.00 per hectare.

As part of this change, the Resistance Management Rebate of $30 will be removed.

Grower compliance had been very good and there was no longer any need to ask all growers to pay an additional amount up front and then receive a rebate.

The result will be that growers will pay $190.00 per hectare in January, whereas growers paid $197.00 in January last season with a rebate due in August.

Bollgard II:

Mr Boyce said Bollgard II will offer increased benefits over INGARD, such as longer, more effective insect control and greater defence against resistance, allowing it to be grown on significantly more hectares.

The one-time offer of Bollgard II at the INGARD price of $190.00 per hectare also reflects the removal of the Resistance Management Rebate.

Late crop removal option:

A Late Crop Removal Option will be offered on INGARD and Bollgard II to help protect growers by sharing the risk under marginal conditions.

Growers who choose to remove any area of INGARD or Bollgard II between 30th November and 20th January will receive a 50% refund on the price of these technologies. This is a partial refund as the grower will have gained some insect control benefits and there are compliance costs that still need to be covered, Mr Boyce said.

40% combined area rule:

The 40% Rule for 2003/04 allows growers to expand the area of Bt cotton while minimising the exposure of INGARD to resistance. It provides a good opportunity for growers to gain some valuable experience with Bollgard II prior to INGARD being removed in 2004.