Monsanto to increase production of bovine growth hormone

ST. LOUIS -- Monsanto will boost production of its Posilac bovine growth hormone after getting approval to make the drug entirely in the United States, the company said Monday.

The move will reduce manufacturing time for Posilac, allowing Monsanto to make more of the product and boost its customer base among dairy farmers, said spokesman Andrew Burchett.

"We've been in a situation where we face a limit in supply, not a limit in demand," Burchett said. He said Monsanto has a waiting list of dairy farmers waiting to buy doses of Posilac for their herds.

Cape Girardeau dairy farmer David Schabbing said milk production is currently high in the United States. He believes with Monsanto's increased production of Posilac, milk production will climb even higher, putting a financial strain on smaller dairy farms.

"We don't need any more milk in the country at this time," he said. "Our milk prices are dropping so low. Cows across the country are just milking their hearts out."

Schabbing said the recent mild winter contributed to the dairy farmer's increased milk production.

On Friday, the U.S. Food and Drug Administration approved Mosanto's January 2005 request to manufacture Posilac entirely at the company's plant in Augusta, Ga., Burchett said. The company currently makes the key ingredient at the Augusta plant, and a subcontractor in Austria finishes the product.

Injections of the hormone help dairy cows produce 10 percent to 15 percent more milk, according to St. Louis-based Monsanto. But the product has met with resistance among some dairy farmers who say it stresses cows and might affect human health. Many dairies avoid the drug and label their milk as "Posilac-free."

Monsanto makes a powdered form of Posilac at its factory in Augusta and then ships the ingredients to Austria where they are processed into a final gel form by Sandoz Inc.

Sandoz is a generic pharmaceutical manufacturer owned by Monsanto's competitor, Swiss drug maker Novartis AG.

Sandoz spokesman Gerold Krischker said the company will continue to manufacture the final form of Posilac in Austria to complement production in the United States. He wouldn't comment on the future relationship between Sandoz and Monsanto now that U.S. production is getting underway.

Burchett said construction on the Augusta plant started in 1998 with the final goal of making Posilac entirely in the United States.

Splitting production between the U.S. and Austria slowed Posilac distribution so much that the waiting list of customers was formed, Burchett said. He wouldn't say how many dairy farmers are on the list or how many already use the product. He also wouldn't say how much Posilac is sold annually.

The factory in Georgia employs more than 200 people, and the equipment to produce the final form of Posilac is already in place, Burchett said.

Monsanto's stock dropped 54 cents to $84.46 Monday afternoon on the New York Stock Exchange.

Staff writer Jennifer Freeze contributed to this report.