West Virginia probes Monsanto soy seed pricing

 

 

West Virginia officials have notified global seed giant Monsanto Co. that they are probing whether the company engaged in unfair or deceptive practices in marketing its new genetically-altered soy seeds.

 

The West Virginia Office of the Attorney General said in a letter to Monsanto dated June 24 that it wants to meet with officials from the St. Louis-based company to discuss investigators' concerns that Monsanto has violated consumer protection laws.

 

The Attorney General's office said that investigators have reviewed several studies by agricultural experts showing that Monsanto's advertised claims of higher yields for its high-priced new soy seed, called Roundup Ready 2 Yield, have not been realised.

 

Also, USDA statistics show no increase in the state's average yield for the last harvest.

 

Meanwhile, West Virginia officials that farmers had relied on advertising claims by Monsanto that its Roundup Ready 2 Yield soy seeds would yield 7-11% more than Monsanto's original Roundup Ready soy.

 

West Virginia is only one of several states that have been looking into similar concerns over Monsanto's seed pricing strategies and product marketing, with a particular focus on the company's handling of the release last year of its new Roundup Ready 2 Yield soy seeds.

 

The US Department of Justice has also been scrutinising Monsanto's moves in the US seed industry amid allegations by competitors and others of unfair pricing and antitrust violations.

 

The company has repeatedly said its conduct is above-board and its products are priced fairly for the value they deliver to farmers. But the company last month said it was examining and adjusting its seed pricing across the marketplace and taking farmer complaints to heart.

 

Monsanto's Roundup Ready soy, which are genetically-altered to tolerate the company's Roundup herbicide, have been wildly popular with US farmers and for years have been the soy seeds of choice, planted on the vast majority of US soy acreage.

 

But Monsanto's patent on the product is expiring in 2014 and Monsanto has been trying to convince customers to move to the newer version, which has been priced, by some accounts, more than 40% higher.