Novozymes inks deal with Monsanto

Companies to collaborate on 1.6 billion kroner agriculture project

Dec 11, 2013

Novozymes is partnering with Monsanto on a venture that the two companies say will increase agricultural yields worldwide.

“Today we are part of an alliance that will fundamentally change the terms of world agriculture,” Novozymes head Peder Holk Nielsen said in a statement. “With a soaring world population over the next decades, we need to substantially increase the yield of our soil without increasing pressure on the environment.”

The deal between the two companies has been tagged the BioAg Alliance and, according to the statement, it “will investigate and develop methods to increase the efficiency of farmers through ‘microbial solutions’”.

Monsanto and Novozymes will share research and development costs, while the lion’s share of marketing responsibility will go to Monsanto.

Novozymes was awarded its share of the deal for what the statement called “its know-how and experience in industrial enzymes and microbial technologies".

The agreement is subject to the approval of the relevant national antitrust authorities. Pending that approval, it is expected to be in place at the beginning of next year.

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