April 23, 2007

 

Monsanto rift with Argentina worries Spanish soymeal buyers

 

 

The royalty row between top soymeal supplier Argentina and US biotech firm Monsanto worries soymeal buyers in Spain even after European courts will rule on the issue later this year, an importer said Friday (April 20).

 

Monsanto stalled shipments of Argentine soymeal at some European ports starting mid-2005 as it filed lawsuits in trying to enforce patents on its Roundup Ready gene technology in countries that import Argentine soy products.

 

Roundup Ready soy, which is genetically engineered to resist Roundup herbicide, was never patented in Argentina but is widely grown in the country.

 

Monsanto did not hold Argentine shipments since August as both sides have taken a softer line ahead of the court rulings in the second-half of the year. But Spanish buyers are worried their supplies could again be hit.

 

Jorge de Saja, director general of the Spanish Confederation of Feedmakers (CESFAC by its Spanish initials), which groups most Spanish feed producers, said the decision will not render an instant solution to the problem as legal battles wage longer waiting period because of court appeals.

 

He noted the uncertainty of Monsanto to stop shipments remains unhinged.

 

As a result of the conflict, dozens of boats were held up at port in Spain, the Netherlands, Britain and Denmark and importers lost money due to the delays.

 

Fearing a resumption of the delays, Europe-wide feed industry body FEFAC and grain merchants' association COCEREAL sent a letter to the Argentine government and Monsanto last month urging them to reach a "final compromise" on the issue.

 

Argentina said Monsanto's actions were causing economic damage to the importers involved.

 

The government of the South American country is hopeful that it will get a favourable ruling, citing a technical opinion on the issue expressed by the European Commission and a decision by customs officials to cease the embargoes.

 

Officials at Monsanto in Argentina declined to comment on the issue.

 

Europe is the main market for Argentina's soymeal and Spain is the top importer, buying 3.9 million tonnes of it last year from total Argentine exports of 25.7 million tonnes, according to government figures.