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4-Patents: Monsanto plans GMO cotton royalty in Brazil

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TITLE:  Monsanto plans GMO cotton royalty in Brazil-report
SOURCE: Reuters
DATE:   23 Aug 2005

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Monsanto plans GMO cotton royalty in Brazil-report

SAO PAULO, Brazil, Aug 23 (Reuters) - The Brazilian unit of biotech seed
pioneer Monsanto Co. hopes to charge a royalty on genetically modified
(GMO) cotton in Brazil by the 2005/06 crop, the Gazeta Mercantil paper
reported on Tuesday.

Monsanto's sales manager Jose Carlos Caramate said in an interview with the
paper that he estimated that 5 percent of Brazil's 1.3 million tonne cotton
crop was from black market GMO seeds.

"We are studying the best way (to collect), but we should begin charging
during the 2005/06 crop," Caramate said.

Monsanto's press department in Brazil said it would not comment on its plans
to charge a royalty on cotton.

Monsanto has in the past charged royalties on black market soybeans in
Brazil by establishing an agreement with exporters and cooperatives to
collect from producers when they sell their soybeans.

The soy sector and Monsanto are currently in negotiations over the company's
plan to raise the royalty.

"With the exception of Parana (No. 2 soy state) and Goias (No. 3 soy state),
where negotiations are still continuing, we are prepared to collect the
royalty on our technology throughout the country, including Roraima, Para
and Mato Grosso (No. 1 soy state)," Caramate said.

Originally Monsanto had only charged royalties in the southern soy producing
states such as Rio Grande do Sul, where Brazil's black market GMO soy
production is concentrated.

But with the passage of a new biosafety law through Congress earlier this
year, the planting of GMO soybeans was legalized across the country.

The U.S. Department of Agriculture said recently that Brazil has the
potential to become a major world producer of cotton. The Latin American
agricultural powerhouse recently won a landmark dispute against U.S. cotton
subsidies at the World Trade Organizations.

European NGO Network on Genetic Engineering

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