Wednesday, March 10, 2010

Monsanto (NYSE:MON) Under Antitrust Investigation

Monsanto Antitrust Investigation

Monsanto (NYSE:MON) has come under the scrutiny of a number of states who are investigating the biotechnology company over antitrust issues.

The first of a number of meetings will be held Friday, where talks on genetically-modified soybean and corn seeds will take place, as the seeds are used in about 80 percent of U.S. corn grown and 90 percent of soybeans grown in the U.S.

Much of this centers around prices charged by the company for its seeds, which users say are high because of the lack of competition, thus the antitrust aspect of the investigation.

Competitors, as usual, are also behind the push to look at Monsanto, which needs to be taken into consideration.

They create a great product, farmers love it, then gripe about the prices. And competitors gripe because Monsanto has a second-generation soybean seed in the pipeline awaiting as their existing patent runs out.

The specific seed that will really be the primary focus is the Roundup Ready soybean seed which allows farmers to spray Roundup weedkiller on their crops without them being harmed by it. Monsanto also owns the Roundup brand.

It's like the fact Monsanto has created another great product which other companies aren't able to match is their fault for being good at what they do, and so much be put under antitrust investigation as a consequence.

Monsanto Antitrust Investigation

1 comment:

Mike Anderton said...

Recent study shows mice dragging around large tumors after being fed Monsanto Korn (corn).