Released: May 14, 2003

Note to Editors: This is one of two news releases being issued today by the K-State Research and Extension News Unit on this topic. The companion article is a shorter version.

K-State Details Plan for Nonprofit Genetics Wholesale Company--Wildcat Genetics to Sell Roundup Ready® Parent Seed to Seed Companies

MANHATTAN, Kan. – Kansas State University officials have announced a plan to form a nonprofit genetics wholesale company named Wildcat Genetics. The company will sell soybean seed from varieties developed by K-State researchers that also incorporate Roundup Ready traits.

Forrest Chumley, associate director of research for K-State Research and Extension, answered several questions regarding the university’s decision to form the new company:

* Why is K-State forming Wildcat Genetics? Our focus is on providing Kansas soybean producers with the best possible crop plant varieties incorporating farmer-preferred technology, such as Monsanto’s Roundup Ready® trait. We also want to get K-State soybean germplasm back in production on a major scale. We are confident that K-State genetics offers a competitive advantage for soybean producers in our region, even though acres planted with K-State varieties fell to a very low level following the advent of Roundup Ready® technology. We want to get K-state soybean germplasm back in production on a major scale by adding the Roundup Ready® trait to our genetics package.

* How did this plan come about? K-State has had a research agreement with Monsanto since 1997. It has allowed K-State soybean researchers to develop soybean varieties specifically suited for Kansas and the central Great Plains that also incorporate Monsanto’s Roundup Ready® technology. Roundup Ready® technology makes crops immune to Monsanto’s Roundup® herbicide.

K-State owns the new soybean varieties that have been developed under this agreement and the germplasm on which they’re based. Monsanto owns and controls the use of the Roundup Ready® trait. Even though the company wants the trait used in the best possible genetic backgrounds and supports commercialization of the new K-State varieties, it will not sign a Parent Seed License Agreement with a university. Instead, the company encourages the licensing of university varieties to a "genetics wholesale company" such as Wildcat Genetics, which holds or can negotiate a parent seed license.

* Is this some sort of biotech deal that will turn into more agreements with Monsanto? The only "biotech deal" between K-State and Monsanto related to this research is the research agreement, which has been in effect since 1997. We don’t anticipate any other Roundup Ready® soybean agreements between K-State and Monsanto. However, it is possible that in the future, arrangements could be made with other commercial firms through Wildcat Genetics.

* How will the arrangement work between K-State, Wildcat Genetics and Monsanto? Wildcat Genetics, when it is formed, will work with Monsanto to sign a "parent seed license agreement" to permit the sale of parent (foundation) seed to retail seed producers, who will, in turn, expand production of the seed and sell it to producers beginning in 2005.

* Who owns what in this arrangement? The new varieties – and the germplasm they are based on – are and will remain the property of K-State; the varieties will be licensed to Wildcat Genetics. The Roundup Ready® trait in these varieties is owned by Monsanto, who controls the terms on which the trait is made available to breeders, seedsmen and producers.

* Who benefits from this arrangement? Does this mean K-State will be making payments to Monsanto? Most soybean producers in Kansas and elsewhere are already planting Roundup Ready® varieties, most of which were developed by major agricultural companies. The price farmers pay for this seed includes a royalty that is transferred to Monsanto by the retail seed companies. The new K-State Roundup Ready® varieties will fit into this system without any noticeable changes for the farmer, other than superior crop performance.

Neither K-State nor Wildcat Genetics will make any payments to Monsanto.

* How will Wildcat Genetics generate revenue? How Wildcat Genetics will receive revenue is a business decision for the nonprofit company to make after it has been formed. Wildcat Genetics probably will receive a payment from seed companies when they purchase parent seed. That is how the university’s Foundation Seed Program has operated for many years. Wildcat Genetics may also collect a reasonable royalty on retail seed sales. Net revenues will be returned to the university to help support our research and plant breeding.

* What impact will this have on Kansas producers? The benefit to producers is that they will once again be farming with Kansas-adapted varieties that also include the Roundup Ready® technology that farmers have clearly favored over the past several years.

* How will this benefit K-State? The benefit to the university is that we will once again be fulfilling our mission to develop top-performing soybean varieties for use in Kansas and the central Great Plains and doing so in a way that will generate some much-needed revenue.

* How will this benefit Monsanto? The benefit to Monsanto is that their Roundup Ready® trait will continue to be available to producers and in the best possible genetic background for soybean production in Kansas.

-30-

K-State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well-being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K-State campus, Manhattan.

Story by:
Mary Lou Peter, Communications Specialist
mlpeter@oznet.ksu.edu
K-State Research& Extension News