Tech | August 12, 2008 | 24 comments

Farm and food: Monsanto's prices to rise on RoundUp and seeds

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JanforGore
In late March, Monsanto Co. sent a Dear Valued Customer letter to most U.S. corn and soybean farmers. The reason, wrote Jim Zimmer, Monsanto's vice president of U.S. branded business, was to discuss some current marketplace dynamics that will directly affect you in terms of increased prices for Monsanto's line of Roundup herbicides for 2008.

Demand for glyphosate, Roundup's generic counterpart, is at an all time high, explained Zimmer. As such, we have seen the demand for Roundup brand herbicide increase more than our current ability to supply.

That's a problem, he continued, because We have a reliable supplier commitment to farmers who choose to purchase Roundup Ready technology and who choose to purchase Roundup brand herbicide that we will have supply available.

The solution?

Our competitive challenges have put our commitment at risk, forcing us to increase our price for Roundup herbicide.

Golly, a farmer who telephoned me about the letter asked, How much is their promise to me going to cost me?

Globally, about $411 million, the amount Roundup net sales increased from March through May over the same three months in 2007, according to Monsanto's third quarter, Form 10-Q filed with the Securities and Exchange Commission June 27.

That's a 54 percent increase.

Additionally, the 10-Q reports, Net sales of Roundup and other glyphosate-based herbicides increased 63 percent, or $1,222 million $1.222 billion in the nine-month comparison with fiscal 2007's first three quarters.

Remarkably, however, that $1.2 billion increase in Roundup sales, notes the 10-Q, was posted despite a seven percent sales volume drop in Roundup and other glyphosate-based herbicides in third quarter 2008 and only an 8 percent increase in global Roundup sales for the nine-month period ending in May.

Clearly, Roundup mostly because Monsanto boosted its price hit a home run. Gross profit increased $927 million because of higher sales of Roundup and other glyphosate-based herbicides in the first nine months of 2008, the company said.

What Monsanto did for Roundup herbicide this spring, it promises to do for Roundup seed corn next year, according to a July interview of company officials by DTN and Progressive Farmer editors.

Indeed, wrote Marcia Taylor for DTN after the gathering, Even the list price on seed corn will topple the $300 per bag barrier starting this fall, up about $95 to $100 per bag, or 35 percent on average, according to Monsanto officials.

snip

Again, according to Monsanto's most recent 10-Q: In the first quarter 2008, Monsanto entered into an agreement on corn herbicide tolerance and insect control technologies with Pioneer Hi-Bred International, Inc (whereby Monsanto will receive) cumulative cash receipts of $725 million over an eight-year period.

In third quarter 2008, Monsanto and Syngenta entered into a Roundup Ready 2 Yield Soybean License Agreement (under which) the minimum obligation from Syngenta over this (nine-) year period is $81 million, reports the 10-Q.

Is Monsanto everywhere? Almost; according to its June SEC filing, it recently bought a vegetable seed company in Europe, a seed corn company in Guatemala, another in Brazil.
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24 comments // Farm and food: Monsanto's prices to rise on RoundUp and seeds

  • JanforGore
    • 0
      JanforGore  
    • For those who wish to find out more about this company. The documentary that you won't see in American theatres, The World According To Monsanto. From PCBs , Agent Orange, Round Up and other poisions this company has done nothing but toxify our planet for profit with the help of our own government agencies.

    • 4 years ago
  • ihateyou
  • Nettle
  • darkhorsejim
    • 0
      darkhorsejim  
    • BOYCOTT ALL MONANTO PRODUCTS! They are the world leaders in Genetically Engineered & Genetically Modified food sources upon which all humans subsist. As they go global with this strategy, they are truly one of the most dangerous companies in the world as they attempt to monopolize the very essence of survival - legal ownership of patented single use seeds to grow our food, and unbelievably, must be purchased from Monsanto every year in order to plant your next crop.

      If you haven’t seen the documentary “The Future of Food” (or even "The Corporation") yet, I strongly urge you to do so. If I didn’t know that Monsanto’s goal of global food manipulation, distribution & ultimately complete crop control is perfectly legal, I would have thought this reaching the level of science fiction. However, this is one powerful & evil company that has Washington D.C.’s politicians, regulatory agencies & lobbyists in all their pockets.

      Don’t be fooled or misled, Monsanto is one of the biggest scum-sucking parasites ingratiating its way further into everyone’s daily life whether you are aware of it or not. Their logo should be the CEO with horns, a pointy tail & carrying a pitchfork in order to prod you into becoming a consumer of their products. Do not underestimate or do business with this company-you will only empower them to overpower us.

      Try to shop with as much awareness as possible, thinking about who ultimately gets your money, because it’s truly the only immediate defense we have until the right people are in the right positions to stop this evil empire. They will stop at nothing to keep any competitive products-usually organic & safe-off of store shelves in order to push their toxic products on a society too busy to notice, in most cases, without the publicity of well meaning organizations & CURRENT’s relentless search for the truth.

    • 4 years ago
  • Nettle
  • wholefreespirit
  • Robroy1
    • 0
      Robroy1  
    • Another greedy American corporation screwing the world. No wonder people don't like America. From what I understand there are some great strides being made by Canadian and U.S. farmers not using chemicals. I hope this grows and Monasnto dies on the vine.

    • 4 years ago
  • Bren589
  • wholefreespirit
    • 0
      wholefreespirit  
    • So wait, once organic food is less expensive than non organic does that mean it will be more available in restaurants and I can stop packing food with me everywhere I go? Brilliant! And maybe people will stop picking on me for shopping at what they call, "Whole paycheck". (Wholefoods) I'd rather spend more for better tasting, quality, safe foods anyway.
      Nanny nanny boo boo Monsanto!
      Bad thing is Pandora's box is already open : (

    • 4 years ago
  • Stradius
    • 0
      Stradius  
    • Wake up people.... there's only one end to the path this is going down.... government controlled food supplies and government controlled water supplies.

      While the environmentalists fight over natural resources and air quality these guys are sneaking around the back creating legal precedence to control you even more.

      Thanks for keeping up this topic JanforGore.

      Become Localvores, support your organic seed companies!

    • 4 years ago
  • JanforGore
  • queenofit
    • 0
      queenofit  
    • Why anyone would believe that weed killer absorbed into food we eat is a good thing, I will never understand???

      here is a quote regarding that:

      "In fact, while Roundup and similar products were originally used against weeds, 'they have become a food product, since they are used on GMOs, which can absorb them without dying,' maintains the biochemist Gilles-Eric Séralini. A member for years of the French Commission on Biomolecular Genetics (CBG) [and also a member of Criigen], responsible for preparing the files for requests for field studies, then GMO commercialization, he ceaselessly demands more intense studies on their eventual health impact" [42].

    • 4 years ago
  • ESKCSG
  • Stradius
  • bluestranger
    • 0
      bluestranger  
    • Heck Jan, this could be a blessing in disguise. If we can't get product information labeling in place, we'll be able to tell which ones are using GMO anyway. Just look for the can of corn that's marked $12.35.

    • 4 years ago
  • queenofit
  • JanforGore
  • queenofit
    • 0
      queenofit  
    • Image
    • Yes, the poison it takes to kill weeds is also increased because the weeds are becoming *resistant* to Roundup.

      You notice in this clip I took from the article I source, Roundup Ready corn had tripled from 2002 to 2005, and the chemical needed to kill the weeds? 7 times more needed of that..... and then here comes the USDA to our rescue....right? No! read this....

      "Remarkably "the USDA has announced it will completely eliminate the program [that tracks pesticide and herbicide use in agriculture] in 2008, due to budget cuts, and won't be collecting any data.... Benbrook finds the USDA's actions curious at a time when herbicide use on Roundup Ready crops has increased: 'The 2007 data would have shown an enormous increase in the pounds of herbicides applied on Roundup Ready crops, especially soybeans. The farm media has been full of stories over the past few years of the problems farmers are facing as weeds become resistant to Glyphosate and other herbicides. I find it curious that at the time of peak interest and need for solid information on pesticide use in soybeans that the Department of Agriculture has decided to stop collecting the data. I wouldn't be surprised if there was some quiet lobbying done by Monsanto to let the program lapse'" [37]. Interestingly "the Agriculture Department is looking into purchasing that information for use in policymaking, but the data would likely not be made public" [38].

    • 4 years ago
  • JanforGore
  • onechance
    • 0
      onechance  
    • Good, maybe then people won't buy their trash chemicals and they'll go out of business... Oh wait, big gov & big business are always there to bail each other out. I guess it's all up to us.

    • 4 years ago
  • JanforGore
    • 0
      JanforGore  
    • There's always hope. Education and information is the key. Hopefully with their prices going this high many farmers will see what it is all about and break ties with them.

    • 4 years ago
  • huntre
    • 0
      huntre  
    • I could be wrong but, I'm starting to sense that Monsanto is getting desperate to hold their ground.
      One can only hope that the bully, for the first time, is feeling vulnerable,

    • 4 years ago
  • ProgressiveBum
    • 0
      ProgressiveBum  
    • huntre:

      I hope, you are right; however, Monsanto has polluted particularly corn and soy crops with gene-modified varieties in North America, and probably beyond. Then their legal talent is trying to disenfranchise farmers from their own crops. For more info google "Percy Schmeiser", a canadian soy and canola farmer, who won a lawsuit against Monsanto decided by the canadian supreme court.

    • 4 years ago
  • JanforGore
    • 0
      JanforGore  
    • “Even the list price on seed corn will topple the $300 per bag barrier starting this fall, up about $95 to $100 per bag, or 35 percent on average, according to Monsanto officials…”

      Exploitive bastards. Taking advantage of farmers who cannot replant their monster seeds.

    • 4 years ago
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