MONSANTO CO.

American-based agribusiness company

Formerly manufactured controversial products such as the DDT, Agent Orange, and bovine
growth hormone.
Has been criticised for negative impacts of its business & products on environment and small
farmers livelihoods
Notable products:
1. Bt Cotton, a breed of cotton resistant to bollworm pests. Used extensively in India.
2. Roundup Ready or Roundup-resistant seeds resistant to herbicides such as glyphosate.
Farmers can plant these seeds first then use herbicides which will not affect Roundup Ready
seeds but will kill all other unwanted weeds.

History
Founded in 1901, initially produced commodity food additives (artificial sweeteners), moved
onto production of industrial chemicals in 1920s
CEO bought laboratories owned by two famed chemists, Charles Allen Thomas and Dr. Carroll
Hochwalt in 1936. This was an important acquisition that gained Monsanto the expertise of the
chemists along with the labs.
(Fun Fact: Mr Charles Thomas was involved in Manhattan Project which produced first atomic
bombs during WW2.)
Forayed into R&D from 1960s 1990s, with many breakthroughs in industrial processes
carried out by scientists.
Research tests on Genetically Modified (GM) crops began in 1980s
Divested its chemical businesses between 1997 2002 through mergers so that the company
could focus on biotechnology. As a result, the Monsanto of 1901 and Monsanto of 2000 have
become 2 legally distinct corporations.
Modern Monsanto largely sells GM seeds and biotechnological products.

Spatial Organisation
HQ in Missouri, USA
Branches are located in
South America: Argentina, Brazil, Colombia, Peru, Chile, etc.
Europe: UK, Belarus, Finland, Russia, Switzerland, [Spain, Poland, Italy, Netherlands,
Hungary, Germany, Denmark, France, Czech Republic, Bulgaria, Belgium]
(Regional HQs)
Africa: Morocco, South Africa, Zimbabwe etc.
Asia Pacific: Singapore (Regional HQ), Australia, Thailand, Sri Lanka, India, etc.
Branch plants are variously administrative and sales offices, manufacturing plants, seed
production facilities, research centres, and learning centres
Regional HQs: Jordan (Middle East), USA (North America)

Impact on Home & Host Countries

Environment:
 Argentina: since 1996, use of Monsantos GM Roundup Ready soybean has caused
rapid spread of weeds naturally resistant to the Roundup herbicides. Critics say such
weeds could develop into a generation of superweeds impossible to control.

USA: Federal authorities delayed approval of Monsantos new herbicide-resistant crops

as some farmers/ environmentalists opposed their sale, because they could cause over-
dousing fields with pesticides, potentially causing eutrophication in nearby water bodies
if chemicals flowed into them from agricultural fields.
Gene contamination (mixing of GM & non-GM seeds) occurs easily in physical
environments due to spreading of seeds by GM crops in fields. Although not an
environmental issue by itself, Monsanto sues farmers suspected of growing its GM
seeds without paying for them for infringing on patent rights, even if the seeds were
blown or dispersed onto farmers fields without their knowledge or farmers were not at
fault. The farmers are often unable to afford legal fees to defend themselves against a
large TNC such as Monsanto.
In a 2004 pilot study, the Union of Concerned Scientists tested samples of conventional
(non-GM) corn, soy, and canola seed and found low-level but pervasive contamination
with genes derived from GM varieties. 4 About 50% of corn and soybean samples and
over 80% of the canola samples were contaminated, with Monsantos genes detected in
all three crops.

Socio-economic:
USA:
In 2012, Monsanto spent $8.1 million opposing Proposition 37 California which
would have decreed the disclosure of GM crops used to produce California food
products. Proposition 37 was rejected.

Because GM food labelling is not required by the USA Food and Drug
Administration (FDA), consumers are still kept unaware about the food they
consume information about what is in their food is withheld from them.
Monsanto opposes labelling as they think consumers will be misled to think there
is something wrong with purchasing GM food, which will affect sales.

Argentina:
in 1996, when Argentina approved the cultivation of GM crops, the government
consolidated land for soy production which grew to 42 million acres by 2008. This
has caused a decrease in production of many staples such as milk, rice, &
potatoes. As of 2004 about 150,000 small farmers had been driven from the
countryside so their land could be used for growing soy; by 2009 in the Chaco
region, 50% were displaced.

India:
From the 1990s 2000s, Bt Cotton developed by Monsanto was accused of
being responsible for a spate of farmer suicides in the Andhra Pradesh state
 (average of 7 farmers committed suicide per day). Critics claimed crop failures
could be traced to Bt cotton, that the seeds increased farmers' indebtedness,
and that Monsanto had misrepresented the profitability of their GM cotton. Bt-
cotton, even though promoted as resistant to the boll worm, has created new
pests, and to control these new pests, farmers are using 13 times more
pesticides then they were using prior to introduction of Bt-cotton.
Farmers lost 1 billion rupees in 2002 when Bt cotton was introduced due to crop failure.
Monsanto promised 1500 kg per acre but harvest was as low as 200 kilos per acre.
Furthermore, farmers had previously spent around 7 (rupees) per kilogram for seeds
but had to pay up to 17,000 per kg per year after using Bt cotton.

1593 farmers committed suicide in Indian state of Chattisgarh in 2007 after problems
with crop failure.

In 2006, the Andhra Pradesh state government tried convincing Monsanto to reduce
prices at which it sold Bt seeds (as of 2005, Bt seed pack, was sold at rupees 1,820
out of this, 1,250 rupees was paid as royalty to Monsanto). As Monsanto did not reduce
prices enough, the state filed several cases against Monsanto.

References
1: http://www.theguardian.com/environment/2012/nov/05/prop-37-food-gm-bill
2 http://www.theguardian.com/science/2004/apr/16/gm.food
http://www.thehindubusinessline.com/todays-paper/tp-agri-biz-and-commodity/nuziveedu-
launches-bt-cotton-strains/article2178519.ece
3 http://www.huffingtonpost.com/vandana-shiva/from-seeds-of-suicide-to_b_192419.html
http://rt.com/usa/monsanto-crops-usda-delay-323/
http://www.ucsusa.org/food_and_agriculture/our-failing-food-system/genetic-engineering/eight-
ways-monsanto-fails.html
4 http://www.ucsusa.org/food_and_agriculture/our-failing-food-system/genetic-
engineering/gone-to-seed.html
http://archive.constantcontact.com/fs122/1104248386985/archive/1114774940086.html
http://en.wikipedia.org/wiki/Monsanto