October 27, 2006

 

Argentine group rejects Monsanto's soy fee deal

 

 

Transgenic seed sellers led by Monsanto are circulating a letter among Argentine soy growers seeking direct agreements on royalty payments as talks with the government have broken down.

 

The letter, titled "Consensus for the Strengthening of the Production Chain and the Development of Seed Technology," was strongly rejected by the Argentine Agrarian Federation (FAA).

 

The letter "asks producers to agree to a number of points clearly in violation of the Argentine Seed Law," the FAA, which groups together small-scale growers, said in a release.

 

"These attempts to collect royalties are a violation of producers' rights," Eduardo Buzzi, FAA President, told Dow Jones Newswires.

 

Monsanto spokesman Federico Ovejero said the company has no comment at this time.

 

Under Argentine law, producers are entitled to hold over seed from each crop for their own use in planting the following year.

 

The letter says that the present seed law is out of date and needs to be revised. It doesn't protect the rights of improved seed strains, and therefore doesn't guarantee producers access to technological advances, the transgenic seed sellers say.

 

Monsanto says it's poised to release the next generation of Roundup Ready soybeans, RR2. The company claims the new beans are drought-hardy and may significantly increase yields.

 

However, many growers aren't seduced by the promise of new seed strains.

 

"If Monsanto leaves Argentina, Argentina will continue to produce the same. Maybe we could produce a little more or a little better ... but the country can survive without Monsanto," the FAA's Buzzi said.

 

Transgenic seed sellers counter that royalty payments are important to stimulate investment, ensure access to new technology, and to guarantee socially-responsible agriculture.