Tag Archives: DuPont

Monsanto under investigation by at least 7 US States

According to The Organic and Non-GMO Report, April 2010 :
At least seven US state attorneys general are investigating whether Monsanto Company has abused its market power to lock out competitors and raise prices on seed. Iowa, Illinois, Ohio, Texas, Virginia, and two other unidentified states are in a working group to investigate the biotech giant.

The states are probing whether Monsanto violated laws by offering rebates to seed distributors for excluding rival seeds, imposing limits on combining the product with other genetic modifications, or offering cash incentives to switch farmers to more expensive generation of seed varieties.

The state investigations add to pressure on Monsanto. The US Justice Department is investigating the company’s marketing practices, and DuPont Company has accused Monsanto of anti-competitive practices in licensing litigation.

And Monsanto’s stock price is down more than 30%, from $93.35 in May to a 52 week low of $63.75 Friday.

Interesting developments.

DoJ vs. Monsanto Seed Monopoly

More on some welcome news,, this time from William Neuman in the New York Times:
The Justice Department began an antitrust investigation of the seed industry last year, with an apparent focus on Monsanto, which controls much of the market for the expensive bioengineered traits that make crops resistant to insect pests and herbicides.

Why?

Critics charge that Monsanto has used license agreements with smaller seed companies to gain an unfair advantage over competitors and to block cheaper generic versions of its seeds from eventually entering the market. DuPont, a rival company, also claims Monsanto has unfairly barred it from combining biotech traits in a way that would benefit farmers.

Monsanto of course claims to be unfairly maligned, and its CEO, Hugh Grant, says:

“We were the first out of the blocks, and I think what you see now is a bunch of people catching up and aggressively competing, and I’m fighting with them,” Mr. Grant said. He said farmers chose the company’s products because they liked the results in the field, not because of any untoward conduct on Monsanto’s part.

Reality seems to differ: Continue reading →

DoJ vs. Monsanto

Well, it’s a start, as reported by Jack Kaskey for BusinessWeek, Monsanto’s Roundup Ready Soybeans Probed by Justice (Update4),
Jan. 14 (Bloomberg) — Monsanto Co., the world’s largest seed producer, said the U.S. Justice Department formally requested information on its herbicide-tolerant soybean seed business as part of an investigation.

The Justice Department issued a civil investigative demand seeking confirmation that competitors and farmers will have access to first-generation Roundup Ready soybean seeds following patent expiration in 2014, St. Louis-based Monsanto said today in a statement. The company has provided access to “millions of pages of documents” as it cooperates with inquiries into its business and the industry.

After Monsanto’s stock price fell, analysts tried to put a good spin on this:
The department’s focus on Roundup Ready soybeans “likely indicates no DOJ interest in the remainder of Monsanto” operations, Vincent Andrews, a New York-based analyst at Morgan Stanley, said today in a report. He rates the shares “overweight.“
He wishes.

Meanwhile, it’s not just DoJ: Continue reading →