Indiana Grain Company, LLC

Posted: 07/07/10

By: tomgrisafi

It's been rumored on he drawing board for quite some time.

Now its official.

Monsanto and BASF are aiming to develop genetically modified wheat.

On Wednesday, a "joint venture" was announced that will focus heavily on the commodity and its potential for the future. Earlier plans for biotech wheat were dropped in 2004 on fears of export markets not accepting it.

But those fears are over.

According to the Wall Street Journal, "Monsanto and its partner plan to add wheat to existing efforts to develop corn, soybean, cotton and canola that is more resistant to pests, herbicides and drought. They are boosting their potential spending on the efforts by another $1 billion to $2.5 billion."

"They really feel they need more ... research going into wheat, because they're lagging behind in terms of yield improvement," said Peter Eckes, president of BASF's plant science division.

Eckes says it will be at least 2020 "before the first biotech products emerge."

Wheat is the world's second-largest crop after corn.

"There's no doubt that part of the reason we've been losing the battle for acres is we haven't been getting the research support," said

Steve Mercer, spokesman at U.S. Wheat Associates.

Monsanto, according to the WSJ, "still faces substantial opposition in Japan and the European Union, but...the introduction of biotech wheat should not hurt U.S. exporters, despite undeniable concern in some markets."