December 4, 2015
Renegotiation needed over royalties collection of Monsanto's GM soybeans
Renegotiation is required between soybean trading firms in Brazil and Monsanto over the collection of royalties for the latter's genetically modified (GM) soybeans which are used by Brazilian farmers, Reuters reported.
While Monsanto calls for soy-buying firms to monitor royalty payments by farmers for use of its Intacta RR2 Pro technology, trading houses believe that they should be paid for such service. These had roused concerns that traders would, in protest, cease buying soybeans last year.
"They are going to have to go back to the table. The agreements in 2014 did not generate profits for the soy industry," said Carlo Lovatelli, the president of industry association, Abiove.
In fact, negotiations with Monsanto failed to reach a satisfying outcome last year. As a result, companies had to create their own compensation plans for the service.
Currently, farmers in Brazil pay Monsanto's royalty feed when acquiring seeds from the company, and not when they sell soy to trading houses, said a Monsanto representative. The representative did not confirm if the renegotiation of agreements would proceed.
There is also no mention on the percentage of Brazil's 2015/16 soy crops that would be planted with Intacta RR2 Pro seeds this season.
According to consultancy, Celeres, about a fifth of the harvest was planted with the seeds.