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4-Patents: Brazil soy seed producers reject Monsanto royalty



                                  PART I
-------------------------------- GENET-news -------------------------------

TITLE:  Brazil soy seed producers reject Monsanto royalty
SOURCE: Reuters, posted by Checkbiotech, Switzerland
        http://www.checkbiotech.org/root/index.cfm?
fuseaction=newsletter&topic_id=2&subtopic_id=9&doc_id=10900
DATE:   29 Jul 2005

------------------- archive: http://www.genet-info.org/ -------------------


Brazil soy seed producers reject Monsanto royalty

SAO PAULO - Soy seed producers in southern Brazil rejected Monsanto's
proposal to charge an 0.88 real per kilo royalty for its genetically
modified seeds, in the first season that GMO soy sales will be legal in
the country.

Earlier this month, Monsanto struck a deal with Brazil's national
Association of Seed Producers (Abrasem) on royalty payments for using its
GMO Roundup Ready soy seeds. "Monsanto's proposal is unrealistic. It
promotes illegal behavior by the producers and hurts legitimate seed
producers," said Narciso Barison Neto, the president of the Seed
Producers Association of Rio Grande do Sul State (Apassul).

Rio Grande do Sul seed producers voted on Wednesday to reject Monsanto's
GMO soy royalty.

A new law that Congress approved in March legalized for the first time
the sale of Monsanto's Roundup Ready GMO soy seeds, although local
growers, particularly in the south, have long ignored the ban and bought
them on the black market.

Over almost a decade, illegal GMO soy planting in Rio Grande do Sul has
grown to account for more than 90 percent of total soy production in
Brazil's No.3 soy state.

Monsanto has struck a deal with cooperatives to extract a 2 percent
royalty on RR soy at the point of sale by the producer for this year's
harvest which finished in May.

Until this year GMO seed sales were illegal and it was impossible to
charge the royalty on the front end.

"If Monsanto continues to permit producers to pay a 2 percent royalty at
the point of sale but at the same time tries to charge 0.88 real per kilo
for legal seed royalties, it will encourage producers to buy GMO soy seed
on the black market," Barison said.

He calculated that at current soy prices, a producer that opts to buy
certified GMO soy seed from an official producer would pay about 54 reais
a hectare in royalties.

The producer would then get a certificate exempting him from the payment
of royalties at the point of sale.

But if the producer simply bought GMO soy on the black market, not paying
the charge up front and paid 2 percent at the point of sale of the crop,
royalties would only cost 24 reais a hectare.

"Add to this that there is a risk that not all of the crop that you plant
will reach harvest because of drought or disease, so Monsanto is creating
multiple incentives to act illegally and this will hurt the seed
distributors," he said.

Barison said state seed producers believed they should charge producers
royalties for RR technology but Monsanto would have to better align
royalty costs so as not to promote illegal behavior by producers and hurt
legitimate seed producers.

The black market has grown hugely in the past decade because of the ban
on GMO soy. Certified soy seed producers only account for about 5 percent
of Rio Grande do Sul's seed market.

Barison said there would be about 3 million 40 kg-bags of certified GMO
soy based on RR available nationally for the next crop, and 600,000 bags
in Rio Grande do Sul alone.


                                  PART II
-------------------------------- GENET-news -------------------------------

TITLE:  Monsanto says readies Brazil soy royalty system
SOURCE: Reuters
        http://go.reuters.com/newsArticle.jhtml?type=topNews&storyID=8906714
DATE:   27 Jul 2005

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Monsanto says readies Brazil soy royalty system

RIO DE JANEIRO, Brazil, June 27 (Reuters) - Monsanto has prepared a
system under which Brazilian farmers can pay royalties for using Roundup
Ready (RR) technology for the 2005/06 (Oct/Sept) soy crop, the U.S.
biotech seed producer said on Monday.

Brazilian producers using RR soy technology in 2005/06 would pay 35.20
reais per 40-kg bag of seeds (0.88 real per kilo), equivalent to 50 reais
per planted hectare, Monsanto said in a statement.

"Given the gains that this technology has shown, it's a return of four
times the amount invested by the farmer," Monsanto said.

Brazilian producers have been demanding a lower royalty, saying they are
short of cash after a drought ravaged harvest and warning that they could
continue buying pirate soybean seeds unless they are reasonably priced.

Conventional seeds cost about 70 reais per bag, compared with an overall
cost of around 100 reais per bag for RR seeds.

Monsanto estimated that RR technology brought savings of 200 reais per
hectare because less agricultural chemicals were needed.

Revenue from RR technology will be shared between Monsanto and companies,
such as Embrapa, Coodetec and the Mato Grosso Foundation, which have bred
their own seed varieties and multiplied them under license .

At the same time Monsanto will continue to seek compensation for the
unauthorized use of its RR technology, Monsanto Brasil's Soy Business
manager said in the statement.

He said that Brazil would have 3 million bags of legal GMO soybean seeds
for 2005/06 harvest, enough to plant 2.2 million hectares or about 10
percent of Brazil's soybean area.

Last season when RR technology was still illegal in Brazil, producers
agreed to pay 0.60 real per bag in royalties at the point of sale for
using the genetically modified (GMO) seeds.

In early March, Brazil's Congress approved a Biosafety Law paving the way
for sales of GMO soy and other crops.

Brazil is the world's second biggest soybean producer after the United States.


                                  PART III
-------------------------------- GENET-news -------------------------------

TITLE:  Brazil GMO soy sales start slowly; royalties cited
SOURCE: Reuters, by Roberto Samora
        posted by Checkbiotech, Switzerland
        http://www.checkbiotech.org/root/index.cfm?
fuseaction=newsletter&topic_id=2&subtopic_id=9&doc_id=10853
DATE:   26 Jul 2005

------------------- archive: http://www.genet-info.org/ -------------------


Brazil GMO soy sales start slowly; royalties cited

SAO PAULO - Sales of genetically modified (GMO) soybean seeds for next
harvest, which were legalized earlier this year in Brazil, are very slow,
industry sources said on Monday.

Farmers' financial difficulties and royalties charged by U.S. biotech
giant Monsanto Co. are seen as the main reasons for the slowness.

"The market isn't moving. GM sales are sluggish and things are generally
quiet because farmers don't have cash," said Ivo Carraro, executive
director of the Central Cooperative of Agricultural Research (Coodetec,
Brazil's biggest producer of GM seeds).

Coodetec has sold less than 10 percent of its seeds, compared with 90
percent at the same time last year, he said, adding that low soy prices,
weak dollar and crop losses due to drought had squeezed farmers' purchases.

Coodetec, one of Monsanto's partners in Brazil, produced around 2.5
million 40-kg bags of GM seeds for next year's harvest.

Brazil will have some 3 million bags of GM soybean seeds for the 2005/06
(Oct/Sept) crop, which would cover 2.2 million hectares, or a little less
than 10 percent of the soybean planted area in 2004/05.

Following lengthy negotiations, Monsanto reached a deal with seed growers
in mid-July to charge 0.88 real per kilo for use of its Roundup Ready
(RR) soybean technology. Its RR seeds are cheaper to grow because they
require less chemical protection.

As the market considered the charge to be excessive, Monsanto sought to
boost sales by offering farmers credit in proportion to the volume of
their GM seed purchases.

In addition, seed producers can offer farmers discounts by passing on
some of the bonuses they receive from Monsanto for various services.

"These benefits could be given to farmers," said Narciso Barison Neto,
interim president of the Brazilian Seed Producers Association (Abrasem).

Monsanto also made an agreement earlier this year with soy producers from
Rio Grande do Sul state under which those using illegal Argentine seed
must pay a charge equivalent to 2 percent of 2005/06 soy sales.

Coodetec's Carraro said that the situation concerning GM soy sales should
become clearer in August and September.


                                  PART IV
-------------------------------- GENET-news -------------------------------

TITLE:  Drought in Brazil Could Dry Up Monsanto's Sales
SOURCE: Polaris Institute, Canada, Press Release
DATE:   29 Jun 2005

------------------- archive: http://www.genet-info.org/ -------------------


Drought in Brazil Could Dry Up Monsanto1s Sales

Drought in Brazil has caused a severe 72% drop in soybean yields in the
heaviest Round-Up Ready soy using state. The Polaris Institute calls on
the company to review its FY06 earnings estimates that include new
Brazilian sales that will begin this fall. In particular, what pricing
changes should investors expect to address this crisis and how will those
changes affect next year's EPS estimates?

Rio Grande do Sul - the biggest adopter of Monsanto technology - has been
the hardest hit by the drought. The state is also home to Monsanto1s
fledgling royalty collection system. Brazil1s agricultural department
estimates that yields are down 72% in Rio Grande do Sul. Monsanto
representative Ricardo Miranda concedes that yield losses are 80% in some
areas. Soy exports from Rio Grande do Sul are expected to drop 95%.

The effects of such a severe drought are predictable. In some cases, soy
crushers are halving their staff. Cargill is even closing a processing
plant for a month for lack of inputs. Farmers have defaulted on one-third
of the government loans so far this year.

Farmers are taking notice. The president of the Rio Grande do Sul seed
association sites 25% higher crop losses in GE soy crops as compared with
conventional ones. Governor of Mato Grosso (25% of national soy
production) has publicly stated that he will not plant genetically
modified soy next year.

"Farmers and farm groups are only now realizing the full financial impact
of this drought," said Etienne Vernet, South American Research Director
of the Polaris Institute. "Many Brazilian farmers who use Round-Up Ready
soy will be thinking twice about it next year."

"Despite the distressing facts of a severe drought, which some farmers
are blaming on Round-Up Ready soy, Monsanto has been consistently
optimistic about its prospects for Brazil in FY06," said David Macdonald,
Analyst with the Polaris Institute.

The Polaris Institute calls on the Monsanto to review what pricing
changes investors should expect in the Brazilian market and how those
changes will affect next year's EPS estimates.


Contact:
David Macdonald, Tel: 613-237-1717 Cell: 613-725-7606
Etienne Vernet, e.vernet@terra.com.br, Tel: +011 55 21 22 25 67 39

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