The Mysterious Monsanto Unmasked

by Kevin McCann - 12.22.09

Why it matters:

Because Monsanto is creating a literal monopoly on the world’s food supply.

Recap:

A recent expose by AP journalist Christopher Leonard confirms many of the rumors about seed giant Monsanto. For the uninitiated, Monsanto is one of just a handful of companies that own and oversee the world’s seed stock (read: food supply), and over the past decade has established itself as the unequivocal market leader. In fact, Neil Harl, an agricultural economist at Iowa State University, asserts that Monsanto controls nearly 90 percent of seed genes.

As recently as twelve years ago Monsanto was just a cog in the seed company machine, but with a surge of scientific and legal innovations the company cleverly established its strangle hold on seed genetics.

Monsanto’s meteoric rise to power started in 1996, when the company’s scientists created a strain of RoundUp-resistant soybeans. The development meant farmers no longer had to wait for crops to mature before dousing them with the ubiquitous herbicide. Other genetic innovations followed, including pest-resistant corn. Before long Monsanto genes were in 95% of all soybean and 80% of all corn crops grown in the U.S.

But it wasn’t until the company’s legal team got involved that they truly crushed their competition. Monsanto licensing agreements include clauses that prevent farmers from combining Monsanto genes with those of their competitors.

With their products so prevalent in the market, the behemoth has concocted several other ways to shut out competition. For example, should a small seed company decide to sell to one of Monsanto’s competitors like Dow or DuPont, they must destroy any stock containing Monsanto genes. The companies are stuck in a bind: Destroy most of their inventory and risk losing the sale or sell to Monsanto and take whatever deal they want to give.

Farmers complain that because of their level of control, Monsanto can (and does) raise prices however and whenever it chooses. In the past year, the company raised corn seed prices 25% and soybean prices 28%, with additional price hikes announced for 2010.

A spate of lawsuits from Monsanto competitors has done little to slow the giant’s march. The company recently settled with competitor Syngenta in one of these suits. The result? To allow “gene stacking” (mixing genes from different companies). In fact, to hedge its bets, Monsanto has signed several cross-licensing agreements with competitors.

Commentary:

So, Monsanto owns genetic material in 90% of the world’s food supply, sets prices at will, and colludes with its competitors to stay in power. Um, hello, Department of Justice?

Luckily, the DOJ has decided to get involved. Or at least, has begun investigating whether Monsanto’s practices violate anti-trust laws.

Monsanto’s monopoly on America’s seed stock has gone largely unreported by the press and unnoticed by the American people, while on capitol hill Congress is busy trying to decide if Bill Gates and Windows 7 are getting too big for their britches.

No one company should dominate any market. But food? Food! The only thing besides water we really need to STAY ALIVE!

America’s disconnect with food is astounding. “Okay, these Monsanto guys sound like jerks, I’ll just eat Cap ‘N Crunch and sausages for the rest of my life.” Cap N’ Crunch is made of corn, cattle and pig feed is made of corn.

“Fine, soy sausages!”

Soy. They’ve got us over a barrel, eh?