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Grain traders rejecting new soybeans from Monsanto
May. 4, 2016
Monsanto Company
United StatesFollow
United StatesU.S. grain companies plan to reject Monsanto Co.'s new genetically modified soybeans, over concerns that they could disrupt international trade without a key regulatory approval from the European Union.
Trade groups representing Cargill Inc., Archer Daniels Midland Co., Bunge Ltd. and other grain companies blasted the biotech seed company's decision to sell the seeds before first securing an approval required to ship the crops to the EU, according to a letter reviewed by The Wall Street Journal. They are pressuring Monsanto to detail how it plans to keep the new soybeans from entering export channels.
The grain companies' stance is a potential blow to a product that Monsanto has touted as a blockbuster for U.S. farm fields. The St. Louis company this spring aimed to sell to U.S. farmers about 3 million acres' worth of the new soybean seeds called "Roundup Ready 2 Xtend." Grain traders could decide to accept the soybeans if EU officials approve them for import before U.S. farmers begin harvest this fall. Monsanto expects approval in the near future, a company spokeswoman said. Representatives for the EU didn't respond to requests for comment Monday.
"Monsanto's actions with respect to RR2X soybeans are an unacceptable and very troubling development, and we urge that it not be repeated," wrote the heads of the National Grain and Feed Association, the North American Export Grain Association, and the National Oilseed Processors Association in the letter.
The private dispute reflects commodity traders' growing concerns over seed companies' efforts to market new genetically engineered crops. Agribusiness groups estimated that grain traders lost hundreds of millions of dollars after Chinese authorities in late 2013 began rejecting shipments of U.S. corn that contained unapproved genetics developed by Swiss seed firm Syngenta AG, which led to lawsuits by traders and farmers.
Source: Market Watch
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