Monsanto (MON) Outsourcing Deal More Transparent for Plant Health Care

An outsourcing deal by Monsanto (NYSE:MON) over seed treatments has eased the clouds over Plant Health Care, whose flagship plant protection spray looks like getting to a larger market, faster.

Plant Health Care's flagging shares bounced 4% after the alternative agrichemicals group revealed that the hefty inventory of its Harpin product built up at Monsanto last year, thanks to slower-than-expected sales of a cutting edge soybean seed, looked like being cleared.

US seed treatments group Direct Enterprises, which handles seed treatment under Monsanto brands, has bought half the surplus stock, and pledged to take the other half by the end of the year.

Furthermore, Monsanto is, through its Direct Enterprises deal, offering Harpin throughout its soybean range and on cotton seed too.

"This has greatly increased the possible market size to 35m-40m acres," John Brady, the Plant Health chief executive, said.

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