Profit from a growing population

Article Excerpt

The world’s population will probably rise from 7 billion today to 9 billion by 2050. Economic growth in developing countries is also spurring demand for more and better food. To keep up with this demand, farmers will have to significantly increase their crop production. That should fuel more gains for Monsanto, the world’s largest maker of genetically modified seeds. The company’s patented seeds are more resistant to crop-damaging insects and bad weather than regular seeds. These crops also need fewer pesticides and herbicides (or weed killers). As well, many of Monsanto’s seeds require less water, which lowers the need for costly and environmentally disruptive irrigation systems. MONSANTO CO. $86 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 534.6 million; Market cap: $46.0 billion; Price-to-sales ratio: 3.4; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.monsanto.com) is a multinational firm that sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. Overseas markets account…