Monday, November 30, 2009

Competitors say Monsanto's seed power too great

Ninety-three percent of U.S. soybeans and 80 percent of U.S. corn are now grown from genetically altered seeds. Monsanto "Roundup Ready" technology has allowed the seeds to stand up to herbicides like Roundup even after planting, Peter Whoriskey of The Washington Post reports. Now the Justice Department is now investigating Monsanto's stranglehold on the seed industry to see if it has too much control.

Prices for Roundup Ready seeds have increased to about $50 for a 50-pound bag. "Farmers have decried the price increases, and competitors say the company has ruthlessly stifled competition," Whoriskey writes. The Justice Department's investigation of Monsanto is the latest example of the added emphasis on antitrust regulation by the Obama administration compared to the Bush administration, which didn't file a single case under anti-monopoly laws, Whoriskey reports.

Monsanto says it's done nothing wrong and the popularity of its seeds is only a result of excellent performance. "Everybody wants it, and Monsanto is seeing what the market will bear," Maryland farmer Geno Lowe told Whoriskey. "People say that's capitalism. The question is, where does capitalism meet corruption?" Competitors say the Roundup Ready seeds are so dominant that any new biotech innovations must work with the Monsanto technology, and the company is freezing out competition by making it difficult to win patents to add traits to the seeds.

"Monsanto has abused its unlawfully acquired monopoly power to block competition, thwart innovation and extract from farmers unjustified price increases of over 100 percent in recent years," competitor DuPont argues in court papers. Monsanto says it already licenses the technology to hundreds of companies, but maintains some restrictions to ensure those companies' perform as advertised. (Read more)

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