Monsanto Co. and China National Seed Group Corp. have agreed to expand their investments in a Chinese joint venture aimed at delivering corn hybrids in the world's second-largest corn-growing region.

The agreement calls for Creve Coeur-based Monsanto to contribute about $84 million to a joint venture formed in 2001. Monsanto said the increased collaboration, subject to approval by Chinese government authorities, signals a "new strategic emphasis" for the biotech giant's business in China, particularly its international corn seed business.

The deal will "greatly strengthen our collaboration with Monsanto," said Zhang Zhiyin, vice president of Sinochem Corp., parent of China National Seed, also known as China Seed. "China Seed is dedicated to delivering the highest yielding seed to Chinese farmers and we believe a broader joint venture with Monsanto will enable our business to expand our offerings to Chinese farmers," Zhang said in a statement.

Under the agreement, China Seed will contribute its existing corn seed business assets and Monsanto will contribute approximately $84 million to the joint venture, called CNSGC-DEKALB Seed Company Ltd. China Seed will continue to hold a 51 percent ownership interest in the joint venture, while Monsanto will keep its 49 percent interest.

" We are excited about the potential that our combined efforts can have in improving farm productivity, increasing farmer incomes and helping Chinese farmers to meet both China's and the world's growing demand for grain," Brett Begemann, executive vice president of Monsanto, said in a statement.

China has about 67 million acres dedicated to corn annually. The parent companies hope the expanded joint venture will enable China Seed to expand its product offerings to local farmers well beyond the tropical region where the company currently operates.

Monsanto said the investments will enable the joint venture to expand its corn seed business by combining its business operations with the corn seed business of China Seed and giving the joint venture access to corn seed hybrids developed by Monsanto and China Seed.

jmcwilliams@post-dispatch.com

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