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Context of 'January 28, 2004: Southern Brazilian Farmers Agree to Pay Royalties on Monsanto’s GM Soybeans'

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Monsanto spends $8 billion acquiring, or establishing relationships with, several US and foreign seed companies. [Canadian Business, 10/8/1999; Center for Food Safety, 2005, pp. 9-10 pdf file] The list of companies includes: Calgene, Inc.; Asgrow Agronomics; Asgrow and Stine Seed; Agracetus; Holden’s Foundation Seeds, Inc.; Monsoy (a Brazilian soybean company); Cargill’s international seed divisions (with operations in Asia, Africa, Europe, and Central and South America); Plant Breeding International; and DeKalb Genetics (the world’s second largest seed company). Pioneer Hi-Bred is the only major US seed company that Monsanto does not buy out. However, Pioneer has purchased rights from Monsanto to use technology relating to Roundup Ready soybeans and Bt corn. A 2005 report by the Center for Food Safety will say that one of the factors contributing to Monsanto’s cornering of the GM market (see 1998 and later) is its control of these seed companies. “[T]hese companies (often owned or indirectly controlled by Monsanto) had to agree that 90 percent of the sales of herbicide-tolerant soybeans would contain Monsanto’s patented technology. This requirement was later dropped to 70 percent after Monsanto came under scrutiny from government regulators. Through this sort of ownership and control of seed companies, Monsanto has been able to ensure that competition [will] remain small and that its patented genetically engineered crop varieties [will] be the ones most readily available to the American farmer.” [Center for Food Safety, 2005, pp. 9-10 pdf file]

Entity Tags: Monsanto, Calgene, Inc, Pioneer Hi-Bred International Inc., Agracetus, Asgrow and Stine Seed, Asgrow Agronomics, Holden’s Foundation Seeds, Inc, Monsoy, Plant Breeding International, DeKalb Genetics, Cargill

Timeline Tags: Seeds

Monsanto’s net sales for the year is $8.6 billion and its share of the genetically modified seed market is 88 percent. Trailing behind Monsanto are Novartis and DuPont. [Canadian Business, 10/8/1999]

Entity Tags: Dupont, Novartis, Monsanto

Timeline Tags: Seeds

Ray Mowling, a vice president for Monsanto Canada in Mississauga, concedes to the Washington Post that some cross-pollination does occur between Monsanto’s genetically modified plants and other plants. Referring to Monsanto’s lawsuit against Percy Schmeiser, a canola farmer accused of illegally growing Monsanto’s Roundup Ready Canola, Mowling “acknowledges the awkwardness of prosecuting farmers who may be inadvertently growing Monsanto seed through cross-pollination or via innocent trades with patent-violating neighbors,” but explains that Monsanto believes that Schmeiser’s case is “critical” to win in order to protect its patent rights against the use of its seed by farmers who have not paid Monsanto’s technology use fees. [Washington Post, 2/3/1999]

Entity Tags: Monsanto, Ray Mowling, Percy Schmeiser

Timeline Tags: Seeds

Monsanto announces that it is temporarily halting sales of genetically modified soybean seeds because farmers are saving and replanting patented seed, making it difficult for the company to collect royalties. “We are suspending our soybean business… because it’s simply not profitable for us,” says Federico Ovejero, a spokesman for Monsanto Argentina. “We remain committed to releasing our technology in places where we can ensure a fair return on our investment.” Monsanto has been pressuring Argentina to clamp down on what it says is “seed piracy.” [Associated Press, 1/19/2004; Latin America News Digest, 1/20/2004; ETC Group, 2/26/2004] Monsanto estimates that more than half of the seeds planted during the October-November planting season appears to have been pirated. [New York Times, 1/20/2004] One Argentinean seed industry executive warns that Monsanto’s action “is the first warning sign that all new technologies will abandon us if intellectual property rights are not respected.” [Associated Press, 1/19/2004; ETC Group, 2/26/2004]

Entity Tags: Subsidiary Body on Scientific, Technical and Technological Advice

Timeline Tags: Seeds

Farming cooperatives in Brazil’s southernmost state of Rio Grande do Sul agree to pay Monsanto royalties for all genetically modified soybeans they grow in 2004. Exporters and crushers will sign licensing agreements with Monsanto requiring them to collect a $.21 royalty for every 90-kg bag of GM soybeans purchased from farmers. [Latin America News Digest, 1/29/2004; Chemical News & Intelligence, 1/29/2004; Resource News International, 1/30/2004; ETC Group, 2/26/2004]

Entity Tags: Monsanto

Timeline Tags: Seeds

Monsanto announces that it will purchase Delta & Pine Land Company, the world’s largest cotton seed company, and the first company to obtain a patent on terminator technology (see March 3, 1998). Monsanto has had its sights on Delta & Pine Land for years. A previous plan to buy the company—announced in 1998 (see May 11, 1998)—fell through in December 1999 (see December 19, 1999). The acquisition means that Monsanto will control over 57 percent of the US cotton seed market. It will also deepen Monsanto’s reach into the developing world, where Delta & Pine Land has subsidiaries in 13 countries—including India, Brazil, Mexico, Turkey, and Pakistan. According to the ETC Group, an outspoken critic of terminator technology, “the takeover means that Monsanto will command a dominant position in one of the world’s most important agricultural trade commodities and that millions of cotton farmers will be under increased pressure to accept genetically modified (GM) cottonseed.” [Monsanto, 8/15/2006; ETC Group, 8/16/2006]

Entity Tags: Monsanto, Delta & Pine Land Company

Timeline Tags: Seeds

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