Monsanto states its case on seed competition
Written on January 11, 2010
Monsanto Co., which faces a steady barrage of criticism and an inquiry from antitrust regulators, continued to make its case this week that the U.S. seed market is competitive and that its biotech seed innovations are benefitting farmers, not hurting them.
The company this week released a copy of its statements to the departments of Justice and Agriculture, which are conducting a series of workshops this year about competition in agribusiness.
Monsanto’s statements are part of a 21-page paper titled "Observations on Competition in the U.S. Seed Industry." In it, the company argues that no seed company owns a dominant market share, and that many choices of biotech and conventional seed exist within a wide band of prices.
"It is important to distinguish what products farmers actually choose from whether or not they have robust, meaningful choices," Monsanto said. "In other words, the fact that farmers purchase high performing products that may cost more does not mean that they were forced to make those decisions."
Monsanto also contends that its biotech traits, which are licensed to competitors, have helped reduce prices for conventional seed.
The Creve Coeur-based company has faced anti-competitive claims in the past, most recently surrounding its Delta Pine & Land Co. acquisition. In recent months, however, the company’s position in the biotech corn and soybean seed business has riled critics and competitors, including chief rival Pioneer Hi-Bred International Inc cash advance payday loans.
Pioneer, a DuPont subsidiary, alleged anti-competitive behavior in a lawsuit against Monsanto in June. The claim was a response to a lawsuit initiated by Monsanto, in which it said Pioneer violated intellectual property rights. Both lawsuits are still pending in federal court in St. Louis.
In August, the Justice Department and USDA announced the workshops on competition in agriculture.
More recently, Monsanto acknowledged that the Justice Department has informally sought information concerning the company’s genetically modified seed business.
Monsanto spokesman Lee Quarles on Thursday said the company has continued to have discussions with the department and other agribusiness interests concerning the subject of competition. He declined to be more specific.
Dan Turner, a DuPont spokesman, declined to comment on Monsanto’s submission to the Justice Department. DuPont planned to make its comments on the topic of competition in agriculture public on Friday, he said.
The first competition workshop will be March 12 in Ankeny, Iowa, a suburb of Des Moines, and will cover issues that concern row crop farmers.
Filed in: legal.