Innovation and the Competitive Seed Market
There has recently been increased attention to Monsanto’s role in the agricultural seed market. There is no question Monsanto is the recognized industry leader in biotech traits. Anti-biotech activists, and more recently our competition, have worked very hard to portray our success as resulting from anti-competitive behavior. Nothing could be further from the truth.
The very nature of the seed business helps to ensure it is competitive. Why? As opposed to many businesses, seeds are purchased every year. If a farmer has a bad experience with a seed product one season, he or she buys a different seed the next season. This is a very strong market force that ensures constant competition as well as innovation.
Contrary to what opponents may say, farmers have numerous choices when it comes to the seed, the traits and the companies. Consider the following facts:
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In 2009, there were 4,381 corn hybrids, including both biotech and non-biotech hybrids, available to the American farmer.
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In 2009, there were 2,126 varieties of soybean seed, including both biotech and non-biotech varieties, available to the American farmer.
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There are nearly 180 independent corn and soybean seed companies operating in the United States. At present, approximately 25 percent of corn planted in the United States comes from independent seed companies, up 67 percent from a decade ago.
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There are more trait technologies available to farmers in the marketplace than any other time in the history of agriculture. Today, farmers can pick the technologies they want from developers such as Bayer Crop Science, Dow AgroSciences, DuPont’ s Pioneer Hi-Bred, Monsanto and/or Syngenta.
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Unlike the approach many of our competitors have historically taken, Monsanto has broadly licensed seed genetics and traits to hundreds of seed companies around the world. Today, our licensees range from national competitors to small regional seed companies. This approach, which we’ve had in place since our products were first launched, provides farmers with the choice of getting the right combination of seed genetics and traits they want, in the local hybrids/varieties they prefer. Nothing prevents the competition from doing the same.
In 1996, the first biotech seeds came to the market as Roundup Ready® soybeans and Bollgard® insect-protected cotton. Since then, biotech seeds have been popular with farmers because they provide numerous benefits, including increased yields, reduced fuel use (less spraying and plowing), and reduced pesticide use.
Between 1980 and 1996, Monsanto invested approximately $1.5 billion in biotech research and development to improve weed and insect control. During the same period, our competitors invested $15 billion in the development of pesticide chemistry – they largely ignored biotech.
Monsanto took risks our competition chose not to take. Monsanto invested in seed-based innovation and new technology. Our competitors invested in chemical-based technology. Farmers overwhelmingly chose biotech and the benefits it offers them, their farms and the land.
In 2010, the U.S. Department of Justice and the U.S. Department of Agriculture will be holding joint workshops on competition in agriculture. The two federal agencies have invited agribusiness to participate in these workshops and requested comments from the public in late 2009. Monsanto’s submitted comments to the DOJ and USDA and have also commented on DuPont’s submission which criticized Monsanto.
Monsanto welcomes the opportunity to be an active participant in the discussion and looks forward to these workshops. There have been unsubstantiated allegations of a lack of competition in the seed market for several years now. We’re confident an objective review will reveal competition is alive and flourishing in the seed market.
Season after season, Monsanto has always chosen to compete for our customers’ business by discovering and delivering products that bring incremental value to their farms. Farmers deserve this, and they will be further rewarded when all companies to do the same.
Monsanto Company is a member of Excellence Through Stewardship® (ETS). Monsanto products are commercialized in accordance with ETS Product Launch Stewardship Guidance, and in compliance with Monsanto’s Policy for Commercialization of Biotechnology-Derived Plant Products in Commodity Crops. This product has been approved for import into key export markets with functioning regulatory systems. Any crop or material produced from this product can only be exported to, or used, processed or sold in countries where all necessary regulatory approvals have been granted. It is a violation of national and international law to move material containing biotech traits across boundaries into nations where import is not permitted. Growers should talk to their grain handler or product purchaser to confirm their buying position for this product. Excellence Through Stewardship® is a registered trademark of Biotechnology Industry Organization.
ALWAYS READ AND FOLLOW PESTICIDE LABEL DIRECTIONS. Roundup Ready® crops contain genes that confer tolerance to glyphosate, the active ingredient in Roundup® brand agricultural herbicides. Roundup® brand agricultural herbicides will kill crops that are not tolerant to glyphosate. Bollgard®, Respect the Refuge and Cotton Design®, Roundup®, and Roundup Ready® are registered trademarks of Monsanto Technology LLC. Respect the Refuge® is a registered trademark of National Corn Growers Association. ©2010 Monsanto Company.
