Monsanto is the largest seed company in the world. It controls 95 percent of the market for insect and herbicide resistant cotton traits. In 2008, Monsanto had shares of up to 65 percent for traited corn and soybeans and about 45 percent for traited corn. During the late 1990s and through the 2000s, Monsanto acquired almost 40 companies “creating the horizontal and vertical integration that underlies the firm’s platforms in cotton, corn, and soybeans,” according to a whitepaper by American Antitrust Institute’s vice president and senior fellow, Diana Moss. Most of the acquisitions were seed companies.
The whitepaper cites a report by the Government Accounting Office (GAO), which noted that Monsanto’s U.S. patents for Roundup Ready soybean seeds give it power over the seed market. It also points out that during the years 2002 to 2009 there were almost 60 patent infringement and antitrust court cases in federal district and appeals court. Almost 55 percent involve Monsanto as the plaintiff, and 20 percent as the defendant. This amounts to three-quarters of all the cases. “The lack of competition and innovation in the marketplace has reduced farmers’ choices and enabled Monsanto to raise prices unencumbered,” said Keith Mudd from the Organization for Competitive Markets, after Monsanto decided to raise some GM maize seed prices by 35 percent.Click to continue reading »