Tag Archive | "Monsanto Protection Act"

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That’s How Monsanto Makes Money

Posted on 08 April 2013 by Jerry

It takes teams of people to craft a viable strategy that gives a business success while no one is looking.  These include the best legal and legislative minds money can buy to make progress a word or a bill at a time.  Case in point is Monsanto.  The last couple of months show how Monsanto operates legislatively, corporately with other agricultural biotechnology behemoths, and globally to insure greater sales of genetically modified crops and herbicides.

Legislatively, Monsanto brought together its inside Congress man (Roy Blunt – U.S. Senator (R) from Missouri), its attorneys and strategists to craft a rider to benefit Monsanto that could be snuck into a bigger piece of legislation that would certainly pass.  It needed to be crafted in such a way as to not offend and yet compel the U.S. government to overrule the federal courts and act in accordance with Monsanto’s wishes.  It was written a word at a time to set precedents that would serve as the basis of future lobbying and political end-runs.

Such was what has been dubbed the “Monsanto Protection Act” that Barack Obama signed into law with his signature on House Resolution 933, which was a continuing resolution spending bill that Congress passed to give the government ongoing funding for its day-to-day operations.  The full text of the “Monsanto Protection Act” appears in article cited from The Guardian, below.  Of significance is selection of the phrase, “the secretary of agriculture shall”.  Shall is such a more pleasant word than Must even though its meaning is the same.

At the same time, it was announced that Monsanto and DuPont reached an agreement where they would stop their reciprocal lawsuits and DuPont would pay Monsanto royalties amounting to $1.75 billion over several years for access to Monsanto’s technology for genetically modified seeds.  After having lost one big case against Monsanto, DuPont saw great promise for its own seeds and herbicides using Monsanto’s technology to produce the next wave of herbicide resistant crops that will face a new wave of herbicide resistant weeds invading U. S. farms.

DuPont’s Pioneer brand agricultural seeds generated some $7.3 billion in sales in 2012.  Monsanto had total revenues of about $13.5 billion last year.  This is a sweet deal for these two leaders in the agricultural biotechnology space.

Separately, Monsanto reported its second quarter earnings for the beginning of 2013.  A Forbes article reporting Monsanto’s results cited net income for the quarter ending with February 2013 as $1.48 billion.  The article further cites Michael E. Cox of Piper Jaffrey as observing that higher sales of Roundup (Monsanto’s herbicide) and a lower-than-expected tax rate were responsible for the performance.  Oh look, herbicide sales are booming.  What a surprise!  Many have argued that Monsanto genetically modified seeds, which make plants impervious to Roundup, are really a way of allowing farmers to use Roundup indiscriminately to kill weeds since it will not hurt their GM crops.

Monsanto continues its full court press to spread use of its seeds around the world.  Even in its own sanitized press releases, Monsanto’s ambition is obvious.  This press release gives only hints of the complexity of its strategy, pervasiveness and costs it is incurring in just this one continent.  This is big international business at its most powerful and yet devious.  Its concentration on South American markets and Africa are where it expects it future profits to come from.  Blocked from many European Union countries and other developed nations in the world, developing nations are a key focus.  So far only the U.S. and Canada have completely embraced Monsanto and DuPont’s genetically modified crops.

The Guardian article cited below states that Monsanto’s genetically modified seeds make up 93% of U.S. soybeans, 88% of cotton and 86% of corn crops last year.  We do not have comparable data for Canada but are sure they closely follow the U.S. in GM crop percentages.

Chapter 13 of Beyond Animal, Ego and Time is completely focused on genetic engineering and synthetic biology and the inherent dangers they represent.

Use the following links to obtain more information:

http://www.salon.com/2013/04/05/who_snuck_in_the_monsanto_protection_act/

http://www.whitehouse.gov/the-press-office/2013/03/26/statement-press-secretary-hr-933/

http://www.guardian.co.uk/environment/blog/2013/apr/04/monsanto-protection-act-gm/

http://www.bloomberg.com/news/print/2013-04-03/monsanto-raises-forecast-as-profit-tops-estimates-on-corn-seed.html

http://www.monsanto.com/newsviews/pages/intacta-rr2-pro-benefits-for-south-american-countries.aspx

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