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?
Not necessarily.
Creative Solutions:
- Watch “The World According to Monsanto”
- Grow your own with seeds from Seed Saver’s Exchange, Seeds of Change, or Bountiful Gardens
- Avoid GMOs
- Get a portable farm and grow your own food
- Don’t hassle me, I’m local… and organic
I am sure glad this is getting attention from DOJ (and you!). As you say, food is of great importance — and industrial agriculture with endless annual purchases of patented seeds, insecticides, and fossil-fuel based fertilizers (made using natural gas), have driven many farmers in India and China to suicide, has damaged agriculture worldwide, all the while threatening the actual quality of our food in many ways.
Let’s hope they overstep their limits and get a good (legal) kick in the pants. One good step would be an eventual Supreme Court ruling overturning the previous decision that farmers whose land had patented seeds blow into their fields could no longer re-use their own seeds as has always been the practice. And patenting of seeds and animals? This needs to be highly regulated if it is permitted at all.
Very pleased to read this article and to view the videos, both are excellent exposures of Monsanto and their methods of pressure they apply to farners in a number of countries. This is due greatly to their links to so many U.S. Government departments.
Monsanto, Dow Chemicals are two of the 37 companies that produced Agent Orange that has had such a devastating effect on the people and land of Vietnam. With near to 4,000,000 suffering still today from illnesse and horrific disabilities.
US Vietnam veterans as with Australian, New Zealand etc who served in Vietnam are also affected. In Vietnam Agent Orange has gone inrto the third generation and could be close to the fourth.
It is long overdue for these companies to accept responsibility for the damage they have done to all the vicitms. I would suggest that an international embargo be placed on all products of Monsanto. Lets hit them where it hurts, IN THEIR POCKETS.