Monsanto Company (MON - Free Report) , an agricultural products and solutions provider, announced last week that its new soybean technology, INTACTA RR2 PRO™, has moved a step closer to being used in the agricultural fields.
The INTACTA RR2 PRO helps improve the yield and protects crops against pests. This technology is developed mainly for Monsanto’s South American customers, having received the regulatory approvals from markets, such as, Brazil, Argentina, Paraguay and Uruguay. Apart from these sanctions, Monsanto has also got hold of food safety approvals from 40 countries around the globe.
It is ascertained that the INTACTA RR2 PRO will increase productivity based on the successful product trials undertaken by 500 Brazilian farmers, in 2012. Reportedly, in one of the farms undergoing the trial of the product, the production increased by 19.2% to 65.8 bags per hectare.
Demand of soybeans in China is estimated to be the highest, where roughly 60% of the global soybeans production is purchased, out of which 60% is produced by Brazilian and Argentine farmers. It, therefore, becomes imperative to increase production, to meet the demand. Higher yield from the existing farms may also help curb deforestation.
The product seems to be a step above Monsanto’s already established products, and is, therefore, expected to attain success in the markets, where it will be available.
Monsanto currently carries a Zacks Rank #2 (Buy). Other agricultural chemical stocks worth a look are CVR Partners, LP (UAN - Free Report) and Balchem Corp. ; both carry a Zacks Rank #1 (Strong Buy); also, HB Fuller Co. (FUL - Free Report) , which carries a Zacks Rank #2 (Buy).