Seed Producers Consolidation Should Concern Us All

26 Aug 2016

Posted in General by Curtis Williams

In what is being called the “hyper-consolidation” of the seed industry, Bayer’s acquisition of Monsanto moved forward this week. This follows the DuPont/Dow deal which was announced earlier this year and is projected to close by the end of 2016. DuPont/Dow intends to split the company into 3 entities; the agricultural company alone will be valued at $16 billion.

Additionally, Chinese state-owned ChemChina (we keep forgetting they are communists) is also acquiring Syngenta for $43 billion in cash this year. ChemChina’s sales were $45 billion in 2015.

These acquisitions are being touted as a justification for continued investment in R&D which has brought tremendous benefits to farmers over the last 20 years. With expectations for low commodity prices, investment in R&D can supposedly be better with stronger companies and global market access.

If these 3 mergers are completed, these 3 companies will control 82% of the corn seed market, 76% of the soybean market and 70% of the cotton seed market. While people are concerning themselves with GMO labeling and gluten free pizza crust, this should be far more troubling to all of them!