Organic Consumers Association

Monsanto Announces Mysterious Cut Back in Production of Controversial Bovine Growth Hormone

Faxed to Food and Dairy Contacts January 23, 2004

January 22, 2004

Monsanto has announced a reduction in the allocation of POSILAC bovine
somatotropin. Due to a combination of factors including necessary
corrections and improvements at our supplier's manufacturing facility,
customers will be allocated 50% of their historic shipments beginning March
1, 2004. This shortfall in supply is expected to continue through the end
of 2004.

In December 2003, we announced that the availability of POSILAC would
temporarily be limited to approximately 85% of our customers' past monthly
shipment averages, subject to adjustment. Upon further information and
evaluation, it became clear that the time needed to implement necessary
corrections at our supplier's plant would more significantly impact
production capacity than we originally anticipated.

The corrections and improvements at the plant address findings from supplier
audits, as well as observations made by the FDA during a routine inspection
in connection with requested changes at the site. Monsanto is working
diligently with the FDA and our supplier to implement these corrections and
improvements as quickly as possible.

Every batch of POSILAC released for sale continues to meet stringent company
quality standards.

We recognize and sincerely regret the inconvenience this situation creates
for our valued customers. We are in the process of contacting each of our
customers to provide facts about the reduced allocation, and we will
continue to provide updates as additional information becomes available.

Also effective March 1, 2004, the list price of POSILAC will increase by 9%,
or $0.50 per dose. The pricing decision is independent of the allocation
and is the first increase for POSILAC since its introduction in 1994.
POSILAC remains an outstanding value for dairy producers at the new price.

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