Roundup Ready Relations in South America
The farm sector in Brazil's Rio Grande do Sul state has, according to the state cooperatives federation and Monsanto, agreed to pay royalties to Monsanto for the use of its genetically modified soybean seed. This would be the first time in Brazil the farm sector agreed to pay royalties to Monsanto, which has been trying for years to collect from producers for the use of Roundup Ready-based soybeans. Monsanto was cited as saying that the farm industry in Brazil's number three soy state and the company had agreed that a charge of 10 reais ($3.45) to 20 reais ($6.90) a ton would be added to the sale price of GMO soybeans in compensation for the company's research and development. Both sides said the exact charge was still under discussion.
In related activity, Monsanto has stopped selling soybean seeds to the world's number three producer, Argentina, because of the huge black market for the genetically modified seeds. A spokesman for Monsanto Argentina, was cited as saying that some 50 percent to 60 percent of all soybean seeds in Argentina are bought on the black market. Until that changes, Monsanto Argentina won't sell new-and-improved soy seeds or carry out research to develop new varieties tailored to local conditions. The move has fueled fears that farmers will lose out on biotech advances and new seed varieties, and that other businesses may pull out of Argentina - which has been struggling to recover from an economic collapse that sparked the world's biggest debt default in 2002. Roundup Ready soybeans have become Argentina's top crop and biggest source of foreign currency.
