From a press release via Agnet June 25/03 - II

Monsanto Canada has informed the Canadian Wheat Board that it plans to continue with its application for a food, feed and environmental safety review of Roundup Ready(R) wheat.

In its formal written response to the Canadian Wheat Board, dated June 25, 2003, Monsanto Canada president and general manager, Peter Turner said regulatory review is a very important step to building consumer confidence in the safety of biotech wheat in the food supply. He added that it is responsible and appropriate for Monsanto Canada to ask Canadian regulatory agencies - as well as regulatory agencies in other countries around the world - to conduct a comprehensive safety assessment of Roundup Ready wheat.

"Successfully completing all stages of the regulatory review process will send an important message to our customers around the world that this product has been comprehensively reviewed and is deemed safe for food, feed and environmental release," wrote Turner. "We owe this to our customers."

Monsanto also noted that regulatory approval is only the first step of several commitments that must be met before it will commercialize Roundup Ready spring wheat. Market acceptance, the establishment of appropriate thresholds, segregation and agronomic stewardship issues, in addition to
regulatory approvals in Canada, the U.S. and Japan, must also be adequately addressed before Monsanto will offer commercial seed to farmers.

"The research completed to date has demonstrated there are benefits associated with Roundup Ready wheat," said Turner. "These benefits can only be realized if we meet all our commitments. Our success is linked to the success of our farm customers. This fact guides our development of new technologies and our approach to bringing technologies forward for the benefit of farmers and the industry."

Turner also highlighted Canada's reputation as a world leader in biotechnology research and innovation - a reputation that has been built on a regulatory framework that is soundly grounded in science. Monsanto strongly supports and respects this position and believes it is very important that Canada continue to have a credible science-based regulatory process to foster continued research and development for biotechnology in wheat and other aspects of food and agriculture.

"The Canadian Wheat Board has raised other concerns we respect. We believe we can best address these concerns by fulfilling our commitments and we have been encouraged by many in the industry to continue making progress down this path," said Turner. "We remain open to working with the Canadian Wheat Board and others in the industry, including government, to find manageable and effective solutions to allow the benefits of biotechnology to continue to be shared with farmers, industry and consumers."

Monsanto Company is a leading provider of technology-based solutions and agricultural products that improve farm productivity.

A copy of the letter to the Canadian Wheat Board is attached.

Mr. Adrian C. Measner
President and Chief Executive Officer
The Canadian Wheat Board
423 Main Street
PO Box 816, Stn. Main
Winnipeg, Manitoba R3C 2P5

Dear Mr. Measner:

Thank you for your letter of May 22, 2003 and your willingness to engage in discussion with Monsanto Canada around the Roundup Ready(R) wheat project. I have appreciated the opportunity to meet with you personally and for the follow up phone conversations we have had. I hope that positive working
relationship will continue.

We have given much thought to understanding your request for Monsanto to withdraw its application from the Canadian Food Inspection Agency (CFIA) for an environmental safety assessment of Roundup Ready wheat. We believe that Canadian regulatory review for food, feed and environmental safety is a very important step to building consumer confidence in the safety of biotech wheat in the food supply. However, regulatory approval is only the first step of several commitments that must be met before we commercialize Roundup Ready spring wheat.

All the following commitments must be met before we will commercialize Roundup Ready spring wheat:

• One, the food, feed and environmental safety of Roundup Ready wheat is demonstrated, resulting in regulatory approvals not only in Canada, but also in the United States and Japan.
• Two, appropriate regulatory trade approvals, thresholds or marketing agreements are in place in major export markets. This allows wheat to be traded based on buyer preferences and specifications.
• Three, we will work with the Canadian grain handling industry to establish an effective segregation system. This will include the development and implementation of appropriate grain handling protocols and standardized sampling and detection methods to meet agreed-to international standards and thresholds. This system must maintain choice for buyers who want, and those who do not want, Roundup Ready wheat.
• Four, we will develop comprehensive, agronomic stewardship programs and best management recommendations for this technology prior to commercial introduction.
• Five, buyers are identified who will procure and use wheat ingredients with biotech traits. Consumer acceptance for the technology is demonstrated by buyer and processor acceptance.

Canada remains a world leader in biotechnology research and innovation because of a regulatory framework that is soundly grounded in science. Monsanto strongly supports and respects this position. We believe it is very important that Canada continue to have a credible science-based regulatory process to foster continued research and development for biotechnology in wheat and other aspects of food and agriculture.

As such, we believe it is responsible and appropriate for Monsanto to bring forward a regulatory package for review and we plan to continue with our application for a food, feed and environmental safety review of Roundup Ready wheat.

The research we have completed to date has demonstrated there are benefits associated with Roundup Ready wheat. These benefits can only be realized if we meet all our commitments. Our success is linked to the success of our farm customers. This fact guides our development of new technologies and our approach to bringing technologies forward for the benefit of farmers and the industry.

The Canadian Wheat Board has raised other concerns that we respect. We believe we can best address these concerns by fulfilling our commitments and we have been encouraged by many in the industry to continue our progress down this path.

We remain open to working with the Canadian Wheat Board and others in the industry, including government, to find manageable and effective solutions to allow the benefits of biotechnology to continue to be shared with farmers, industry and consumers in a way that adds value to the western
Canadian wheat industry.