Evogene, Monsanto work to up seed nitrogen intake
JERUSALEM, Sept 25 (Reuters) - Israel's Evogene Ltd (EVGN.TA) and Monsanto Co (MON.N) said on Tuesday they would cooperate on the development of seeds with an improved ability to absorb nitrogen that would boost their growth.
Under the agreement, giant U.S. biotech company Monsanto received the exclusive right to use genes found by Evogene that maintain the plant's yield despite a reduced supply of nitrogen, the companies said in a joint statement.
Monsanto will examine the effect of the genes on the improved absorption of nitrogen in corn, soya, canola and cotton seeds.
The companies did not disclose any financial details concerning their cooperation.
Nitrogen fertiliser is one of the highest expenses for the agricultural sector, and makes up a fifth of operating expenses for corn producers.
In the United States alone, more than $3 billion is spent on nitrogen fertiliser for corn fields, while crops are only capable of absorbing less than half of the fertiliser supplied.
Evogene develops plant traits for the agro-biotechnology and biofuel industries.
On Monday Evogene said it would collaborate with Ormat Industries' (ORMT.TA) subsidiary Orfuel Inc to develop biodiesel from non-edible plants with improved oil yield that can be grown in non-arable lands.
Biodiesel, an alternative to diesel fuel, is derived from plants. Its use in the U.S. and Europe currently exceeds 4.5 billion litres a year.
As the main plant feedstocks for biodiesel are soybean and canola, the increasing demand has led to rising prices for these food crops, as well as substantial usage of arable farm land for these non-food purposes.
