Jan 27, 2010
Monsanto Will Not Sell Bt Roundup Ready 2 Soybeans In Argentina
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Monsanto has taken the unusual step of deciding not to sell a new soybean technology in Argentina even though it was developed specifically for the South American market. The reason they stated for this action is the lack of a suitable method of collecting royalties for the new technology.
The new soybean varieties, Bt Roundup Ready 2 soybeans, are resistant to herbicides and leaf eating worms that are major pests problems in South America. Brazilian soybean farmers routinely make multiple applications of insecticides in order to control the leaf-eating insects. The Bt gene could result in significant cost savings for farmers in South America.
Monsanto is still trying to develop a system to collect the royalties from the use of Roundup Ready soybeans in Argentina even though the soybeans have been grown in the country for 13 years.
They had a similar problem in Brazil, but they managed to solve it by convincing the multinational grain companies to respect their intellectual property rights. Originally, they charged the grain company the royalty if Roundup Ready soybeans were found in one of their shipments. Today, they have managed to charge the seed laws in Brazil and the royalty is paid at the time the seed is purchased. When Brazilian farmers sell their soybeans to the grain companies, they must present proof that they paid the royalties. If a grain company is found to possess Roundup Ready soybeans in their shipments without that proof that the royalty was paid, Monsanto then charges the grain company a much higher royalty.
A similar approach has been attempted in Argentina, but it has not worked, leaving the company with few options on how to collect the royalty.