October 4, 2005

Monsanto strikes deal for royalties on GM soy

Monsanto has struck a deal with Brazilian soybean seed producers over royalty payments for its GM Roundup Ready (RR) seeds, following four months of negotiations.

An umbrella royalty contract would be applied in individual contracts signed by seed companies valid for the 2005-06 harvest.

For subsequent harvests, further negotiations would be made through Monsanto and the seeds industry association Abrasem.

Under the deal, farmers would pay Monsanto 0.88 real/kg of certified RR seeds, while the fixing of seed prices was free. Monsanto wanted to charge a two percent royalty on the production value of its non-registered GM seeds. However, the company has not yet reached an agreement with Brazilian grain producers OCB and Associacao dos Cerealistas.