Evogene Ltd. (TASE:EVGN) will collaborate with Monsanto Company
(NYSE:MON) to improve nitrogen use efficiency in corn, soybeans,
canola and cotton. The deal comes one day after the company reported
a collaboration with Ormat Industries Ltd. (TASE: ORMT) subsidiary
Orfuel Inc. to develop oil-rich plants for the production of
biodiesel. Evogene rose another 11.5% in morning trading today.
Monsanto received the exclusive right to a number of genes discovered
by Evogene that help plants maintain yield with lower applications of
nitrogen. Monsanto will examine the effect of the genes on the
improved absorption of nitrogen in the seeds. The genes have
potential features that complement Monsanto's R&D programs for
improving nitrogen absorption and could be an opportunity for
improving products in this field.
The companies note that nitrogen fertilizer represents one of the
largest input costs in agriculture; it accounts for approximately
one-fifth of the operating costs for a corn producer. In the US
alone, farmers spend more than $3 billion annually on nitrogen
fertilizer application of corn fields, with plants typically
absorbing less than half of the nitrogen fertilizer applied.