November 7, 2003

Monsanto To Charge Royalties From Brazilian GM Soy Growers
 

U.S. biotech seed giant Monsanto Co. said on Wednesday it would collect royalties from Brazilian growers for its genetically modified Roundup Ready soy technology for the crop now being planted.

Brazil is set to become the world's No. 1 soy exporters, resulting in the United States' loss of its long-held position. If local producers pay up, it could mean a fresh revenue source for Monsanto.

Brazil legalized in September by temporary decree the planting of genetically modified soybeans, although local farmers have long planted GM soy, ignoring the previous ban and smuggling Monsanto's RR soy seed into Brazil from Argentina.

To date, no Brazilian farmers have paid royalties to Monsanto for the seeds that rely on Monsanto's RR soy technology and producers are now duplicating illegally on local farms.

The executive said the cost farmers would pay in royalties would not be set until the government's temporary decree legalizing the planting of genetically modified soybeans was passed into law by Congress.

Monsanto has actually tried several times in the past years to collect in Brazil for its RR soy.

Monsanto said the charge for the use of the technology would fair, as it is in the rest of the world.

Brazil's Federal congressman Paulo Pimenta, said Monsanto's royalty charge would be set at approximately 25 reais ($8.73) per ton of soy.

Under the government decree, GM soy producers must register their crops as transgenic or fall subject to penalties. Pimenta said Monsanto would give a discount to those producers who registered their soy as GM.

For those who are found to use Monsanto technology without paying the royalty, they will be charged the full amount plus the cost of testing the soybeans.