October 2, 2006

Monsanto cuts Roundup Ready seed royalties in Brazil

Monsanto will cut royalty payments for its Roundup Ready transgenic soybeans in the 2006/07 season in response to an ongoing liquidity crisis on Brazil soy and grain farms, the company said Friday (Sep 29).

Farmers must pay royalties of 0.30 Brazilian reals (0.13 cents) per kilogramme compared to 0.50 reals per kg in the 2005/06 crop season, Monsanto said.

Seed companies have lowered prices overall for the new planting season in response to low demand from soy and corn farmers. Transgenic soy seed costs have fallen 36 percent to 0.80 reals per kg, according to the Brazilian Seed Association.

Brazil is the world's second-largest soy producer.