Dive Brief:
- Monsanto CEO Hugh Grant outlined the company's growth plans at Monsanto's investor day gathering. Those plans focus on data science, the "glue that holds the pieces together," Grant said.
- Monsanto plans to implement new crop-boosting technologies and also expand its footprint in microbials, microbe-based products that the company says can help increase crop yields.
- The company also plans to expand into new markets in addition to "expanding its South America-focused Intacta soybean business, launching its Xtend soybeans business, [and] developing new corn hybrids," Reuters reported.
Dive Insight:
Grant's comments reflect other moves Monsanto has made in the past couple of years, including establishing a partnership with enzyme maker Novozymes and the purchase of data science company The Climate Corporation for almost $1 billion in 2013.
"We're going to be sensible, we're going to be disciplined and we're going to be focused. But this only makes sense if we have additional layers of growth," Grant said.
This plan for growth is crucial for Monsanto as the company struggles with a strain on primary profit drivers, seed traits and glyphosate, the latter of which has been targeted as potentially carcinogenic by various entities.
In October, Monsanto reported a drop in sales for the previous quarter and that it would be cutting 2,600 jobs, about 11.8% of the company's entire workforce. Later that month, Monsanto announced it would close three R&D facilities in 2016 as part of a restructuring and cost-cutting plan, which will incur the loss of 90 jobs.