Monsanto Seeks Opportunities in Asia
A main beneficiary of the growing popularity of gene-modified crops is Monsanto, an American seed and herbicide company that has a market monopoly on several key crops.
Monsanto's influence in the GM market is unmatched. About 80 percent of corn and cotton and nearly all soybean harvested in the United States in 2007 came from its seed. Brazil and Argentina are other big customers, and farmers in Asian countries are paying more attention to its products, said Brett Begemann, the executive vice president in charge of the firm's global business.
``The Asian market brings Monsanto a mixture of exciting and dynamic growth opportunities,'' he said in an e-mail to The Korea Times. ``In the Asian market, we have biotech crops production countries like Australia, India, China and the Philippines, biotech grains importing countries including Korea, Japan, China and Taiwan, and other potential countries that are interested in growing such technologies in the future like Pakistan and Vietnam.''
The Missouri-based firm's gross profit almost doubled to $4.28 billion between 2004 and 2007. And it is expected to double again by 2012. Buoyed by robust growth, its stock price rose by 115 percent in 2007.
The successes did not come without efforts. According to Begemann, who was born and grew up on a Missouri farm, Monsanto invested more than $900 million in research and development focused on discovering new higher-yielding seeds that are more resistant to insects and weeds. It has more than 250 breeders on staff working at dozens of breeding research centers worldwide, strategically focused on four crops: corn, cotton, soybean, and canola.
In the case of rice ― the staple crop of East Asians ― there is no immediate plan to develop GM products, Beggemann says. ``The seed market for rice has a history of not rewarding innovative research as demonstrated by low seed prices and saved seed. In the future if this changes we may be more open to considering options in regard to rice.''
Monsanto has faced severe criticism from countless environmental groups in many nations, and in some cases from farmers as well. Concerns over the safety of mutant crops were one reason that the firm is disliked. But Monsanto suspects that some countries are using the negative publicity of GMO as a non-tariff barrier protect local seed producers.
Most recently, the French government banned the cultivation of Monsanto's GM corn from the U.S. agribusiness giant Monsanto, on grounds that the safety of its cultivation was uncertain. The decision was welcomed by environmentalists but sparked a cynical response from the company.
``We believe there is no scientific or legal basis whatsoever for France's ban on Monsanto's biotech corn,'' Begemann said. ``The farmer is really the one who loses in this situation. Over the last several years, French farmers have seen for themselves the economic, agronomic and environmental benefits of growing biotech corn… Monsanto will continue to support our farmer customers' right to choose approved and safe technologies.''
indizio@koreatimes.co.kr