Wednesday, August 6, 2008

Monsanto's Posilac to be sold

The Wall Street Journal MarketWatch and Feedstuffs reports today (6 August 2008) that Monsanto is selling its Posilac product. No additional details were reported, but the press release is available. The Feedstuffs article was very similar to the text in the WSJ MarketWatch article.

The MarketWatch article quotes Carl Casale, Monsanto's Executive Vice-President of Strategy and Operations.The Posilac product was cited as the "... leading dairy animal supplement." Monsanto will focus on its agronomic seed products, like 'Roundup Ready Soybeans'.

The articles and press releases indicate that the plans are to have the buyer for the Posilac product to continue to market the product so "that loyal dairy farmers continue to receive the value of POSILAC in their operations." An authoritative summary concerning the safety of rbST for both humans and cattle is available for those interested.

It's unclear how and even if this is related to the efforts to have a marketing niche for rbST-free milk, which was discussed in a previous blog posting here in the Dairy Farm Adviser's Coffeeshop. The New York Times had an article on 7 August 2008, quoting representatives of various groups essentially claiming victory by forcing Monsanto out of the market. Monsanto released this press release on the same day that they announced their 4th quarter dividend of 24 cents per share. It should also be noted that late in July of 2008, Monsanto was recommended as a "Powerful Buy" stock by Zacks, reputed to be an industry leader in independent research for stock evaluation.

Interesting stuff! Hope that helps.


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