November 5, 2003

Monsanto & Brazilian Seed Producer Alliance to Produce GM Soy Seeds Get Nod From Brazil's Finance Ministry

Brazil's Finance Ministry has approved a proposed alliance between Monsanto Co. and Brazilian seed producer Fundacao Mato Grosso to produce and sell genetically-modified soy seeds.

The Finance Ministry said it passed on the proposed alliance to Brazil's Justice Ministry for further analysis before a final decision.

Under the pact, Mato Grosso will be given authorization to use Monsanto patents to produce soy seeds containing the U.S. firm's genetically modified gene, Roundup Ready. The sales arm of Mato Grosso, Unisoja, would sell the seeds.

Monsanto would charge royalties on use of the seeds by Brazilian soy producers.

The deal comes as Brazil grapples with the legality of GM crops. The Brazilian government last week unveiled a long-awaited bill to regulate biotechnology in order to make clear the types of GM products that are, or not legal in Brazil.