Monsanto

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Monsanto

logo
legal form former stock corporation
ISIN US61166W1018
founding 1901
2000
resolution June 2018
Reason for dissolution Takeover by Bayer AG
Seat Creve Coeur , Missouri , United States
United StatesUnited States 
management Hugh Grant (chairman, president and chief executive officer )
Number of employees 23,300
sales 14.6 billion US dollars
Branch Agriculture , biotechnology , chemistry
Website monsanto.com
As of August 31, 2017

Monsanto was established in 1901 and until its takeover by the German Bayer AG independent on June 7, 2018 from 1927 listed company based in Creve Coeur in St. Louis in the US state of Missouri .

Until then, Monsanto had offices in 61 countries. The company produced seeds and herbicides and had been using biotechnology to produce genetically modified crops since the 1990s . Well-known products are various transgenic maize varieties and broad spectrum herbicides with the controversial active ingredient glyphosate under the name Roundup .

The company was listed in the S&P 500 share index from August 2002 to June 2018 . Bayer AG's takeover intentions had been known since September 2016 and were finally completed on June 7, 2018 for a purchase price of $ 66 billion. The polluted name Monsanto was also deleted for reasons of reputation.

Company profile

Monsanto posted in fiscal 2016 on revenue of 13.5 billion US dollars a net profit of 1.336 billion US dollars. Research and development spending was approximately $ 1.5 billion (11.2% of sales). 20,800 permanent and 3,300 temporary employees were employed.

Revenue by segment in million $ (2016)

The company is divided into the two divisions Seeds and Genomics and Agricultural Productivity . The entire seeds business and biotechnology are located in the Seeds and Genomics division . This contributed 74% of sales in 2016. Monsanto produces genetically modified seeds that are resistant to pests ( Bt maize , Bt soy , Bt cotton ) and are tolerant of glyphosate ( Roundup Ready maize , soybeans , cotton , rapeseed ) or glyphosate and dicamba (soybeans, cotton) . Fruit and vegetable seeds are also supplied to over 150 countries via the Seminis subsidiary . The Agricultural Productivity division produces herbicides for agriculture, industry, public facilities, the home and garden and was responsible for 26% of sales. The best-known product in this area is the broad-spectrum herbicide Roundup .

Major competitors are Pioneer Hi-Bred International , Syngenta , Dow AgroSciences , Bayer CropScience and BASF Plant Science . According to an estimate by the etc group , Monsanto held around US $ 5 billion in 2007, a 23% share of the market for legally protected seeds, ahead of Pioneer Hi-Bred with 15% and Syngenta with 9%. The global sales of genetically modified seeds of US $ 6.9 billion accounted for 72%, and for the acreage of GM crops, the share with Monsanto technology was 87%.

Monsanto has over 20 seed production sites. Plant protection product production is more centralized with locations in Antwerp (Belgium), Camaçari and São José dos Campos (Brazil), Luling , Louisiana, Muscatine , Iowa, Rock Springs , Wyoming and Soda Springs , Idaho (USA) and Zárate (Argentina).

history

Corporate governance
Surname Period
John F. Queeny 1901-1928
Edgar Monsanto Queeny 1928-1960
Charles Allen Thomas 1960-1964
Edward O'Neal 1964-1975
John W. Hanley 1975-1983
Richard J. Mahoney 1983-1995
Robert B. Shapiro 1995-2000
Frank V. AtLee 2000-2003
Hugh Grant since 2003

Monsanto early days

In 1901, John Francis Queeny (1859–1933) founded the Monsanto Chemical Works , named after his wife's family name, Olga Mendez Monsanto, with an initial capital of $ 5,000. The business objective was the production of the sweetener saccharin . The only permanent employee was the Swiss chemist Louis Veillon (1875–1958), who had previously worked at Sandoz , where the raw materials were obtained from. At that time, saccharin was otherwise only produced in Germany. Queeny initially stayed with his previous employer. In 1904 Monsanto expanded its range to include caffeine and in 1905 to include vanillin . Two more Swiss chemists were subsequently hired, Gaston Dubois and Jules Bebie. There was a loss in the first three fiscal years, and in 1905 a profit of $ 10,600. The caffeine in particular turned out to be lucrative. From 1908 Queeny devoted himself to his own company alone, and in 1915 sales exceeded one million for the first time.

In 1927 the company went public and in 1928 Queeny handed the company over to his son Edgar. From 1933 the company name was Monsanto Chemical Company . In 1936, Monsanto took over Thomas and Hochwalt Laboratories , which had been founded ten years earlier, and which later became the central research department.

In 1944, Monsanto was one of a total of eleven companies which, due to the war, produced dichlorodiphenyltrichloroethane (DDT) license-free as part of a program run by the US government . Production was stopped in 1962.

Since the 1940s, Monsanto has been producing polychlorinated biphenyls (PCB), among other things , which are now one of the twelve organic toxins known as the " Dirty Dozen " and which were banned worldwide by the Stockholm Convention of May 22, 2001. Monsanto stopped production in 1977. On April 16, 1947, a French freighter explosion destroyed a Monsanto factory in Texas City , killing 512 people. In 1949, the Chemstrand joint venture for the production of acrylic fibers was founded with American Viscose . In 1961, Monsanto bought the other half from its partner. The increasing importance of oil and gas for chemical production prompted Monsanto in 1955 to take over by far the largest takeover, Lion Oil , which increased sales by more than half to 632 million dollars. The oil refinery and the petrol station network were sold to TOSCO in 1972 . a. in the North Sea and now run as Monsanto Oil Company , they separated in the mid-1980s.

From chemical to conglomerate

In 1960 the agricultural area was built up, which included fertilizers and pesticides. In 1964 the company name was changed to Monsanto Company due to the sharp increase in diversification . In the same year, Chemstrand employees developed the artificial turf ChemGrass , which became known as AstroTurf after it was installed in the Astrodome in 1966 . From 1965 to 1970, during the Vietnam War , Monsanto and its subsidiary Mobay were an important supplier of the dioxin- contaminated herbicide " Agent Orange ", which was used to defoliate forests and crops and consequently caused considerable irreversible damage to the health of the population the former operational areas and the warring US soldiers led.

In 1968, William S. Knowles carried out the crucial experiments on chirally catalyzing hydrogenation reactions in the Monsanto laboratories, for which he was awarded the 2001 Nobel Prize in Chemistry . In the 1970s, Monsanto advanced the development of light-emitting diodes (LEDs) , after the company began mass production of (red) LEDs based on gallium arsenide phosphide in 1968 as the first company. The products ( discrete LEDs and seven-segment displays ) made the first pocket calculators and digital (wrist) watches possible .

Splitting and focus on green genetic engineering

In 1979, together with the American Society of Safety Engineers (ASSE) in memory of the disaster of 1947 and the then Board of Edgar Monsanto Queeny Safety Professional of the Year (SPY) Award donated, which annually Safety Engineers is awarded for outstanding achievements. In the same year the biologist Howard A. Schneiderman became head of the research department and had a decisive influence on the decision to invest proceeds from the "old" chemical business in the new field of biotechnology. In 1980, Monsanto acquired a stake in Biogen and entered into a research collaboration with Genentech . In 1985 Monsanto took over the sweetener manufacturer G. D. Searle & Company and created the subsidiary NutraSweet. The entire sweetener business was sold in 2000.

In 1981, Monsanto established a molecular biology group and made biotechnology the company's strategic focus. Scientists at Monsanto were the first in 1982 to genetically modify a plant cell. Monsanto filed the first patent application for a genetically modified living being in 1983 for a petunia developed by the company . In 1987, Monsanto conducted field trials with genetically modified plants for the first time in the United States. In 1994 the first biotechnologically produced product came onto the market under the brand name Posilac . It was Recombinant Bovine Somatotropin (rBST), a growth hormone used to increase the milk yield of cattle. Rights and production were sold to Eli Lilly and Company in early October 2008 .

In the spring of 1997, Calgene was bought by Monsanto. Calgene was the manufacturer of the Flavr Savr tomato seeds , the first genetically modified product to be approved on the US market. In 1998, Monsanto bought Cargill's international seeds business outside North America for $ 1.4 billion. That same year, Monsanto acquired DeKalb Genetics Corporation for $ 2.3 billion. Through acquisitions of seed producing companies, Monsanto became the second largest seed company in 1998 after the US DuPont - Pioneer Hi-Bred .

In 1997 the chemicals business was spun off into a separate company called Solutia . On February 9, 2000, the agriculturally oriented parts of the business were outsourced to a subsidiary. The original Monsanto (with no outsourced companies) merged with Pharmacia & Upjohn on March 31, 2000 and changed its name to Pharmacia . From then on, the previously founded subsidiary for the agricultural business was called Monsanto and took on some obligations from the previous business units of Pharmacia. On October 23, 2000, 15% was floated on the stock exchange and on August 13, 2002 the complete spin-off as today's Monsanto took place. On April 16, 2003, Pharmacia was incorporated into Pfizer . After the division of the company from 1997 to 2002, Monsanto developed into a specialist in agrochemicals and genetically modified seeds.

On January 25, 2005, Monsanto acquired the California-based fruit and vegetable seed producer Seminis for 1.4 billion US dollars. In February 2005, Monsanto announced the acquisition of Emergent Genetics Inc., then the third largest US cotton seed producer with the brands Stoneville Pedigreed and NexGen , for $ 300 million, which was completed on April 5th. On August 15, 2006, the company announced it had signed an agreement to purchase Mississippi-based Delta & Pine Land (D&PL) for $ 1.5 billion in cash. Previously, in 1998, a takeover attempt for 1.8 billion US dollars had failed.

In July 2009, Monsanto acquired WestBred, a company specializing in genetically modified wheat , for $ 45 million. In August 2009 Syngenta bought Monsanto's hybrid sunflower seed business for $ 160 million .

In September 2011 Monsanto took over Beeologics , which is testing an RNAi -based agent against bee viruses , in particular against the Israel Acute Paralysis Virus (IAPV). According to the researchers around Beeologics, IAPV is largely responsible for Colony Collapse Disorder (CCD) / bee deaths. With the help of Monsanto's experience in approval processes, the product is to be brought to market maturity. Another product against Nosema is currently being researched . One of Beeologics' scientific advisors is Craig Mello, who was awarded the Nobel Prize for the discovery of RNAi .

After long protests, Monsanto spokeswoman Ursula Lüttmer-Ouazane said that due to protests no more applications for the cultivation of genetic engineering products were made in Europe, although some plants are still to be approved.

Takeover by Bayer AG

On May 23, 2016, Bayer AG made an official offer to acquire Monsanto for US $ 62 billion. Since this offer was too low, the management of Monsanto decided unanimously to reject the offer, but were open to constructive discussions. On September 6, 2016, Bayer submitted a new offer in which the price per share was increased from US $ 122 to US $ 127.50. Monsanto accepted the offer a little later. The purchase price is 66 billion US dollars (60 billion euros), making it the largest takeover by a German group abroad to date. This makes Bayer the world's number one in the agrochemicals business. In the event that the takeover would not have taken place for antitrust reasons, Bayer had agreed to pay Monsanto $ 2 billion.

On March 21, 2018, the EU Commission approved the planned takeover subject to certain conditions. Bayer had previously committed to selling almost all of its global seeds and agronomic traits business, including research, to BASF . In addition, BASF is taking over the crop protection product glufosinate , three key research programs for broad-spectrum weed killers and the vegetable seeds business combined under the Nunhems brand. Approval by the US Department of Justice took place on May 29, 2018. The Mexican Comisión Federal de Competencia Económica was the last competition authority to issue its approval on June 4, subject to certain conditions. The takeover was completed on June 7, 2018. The name Monsanto will not be continued, but the integration into the Bayer Group can only take place after BASF has completed the takeover of the divisions given by Bayer.

At the first Bayer Annual General Meeting following the completion of the controversial takeover of Monsanto in 2019, angry shareholders refused to discharge the Board of Management headed by Bayer CEO Werner Baumann - a first in the history of the DAX . Bayer stock had lost 40 percent of its value after the Monsanto deal closed. On the stock exchange, Bayer, once Germany's most valuable DAX company, was worth 57 billion euros, only about as much as Bayer had paid the purchase price for Monsanto. Numerous major shareholders had therefore already announced in advance that they would not exonerate the management board and in some cases also the supervisory board.

Legal disputes

Lawsuits against Monsanto

In 1912, after tough negotiations, the US Department of Agriculture published Food Inspection Decision 142 based on the Pure Food and Drug Act of 1907. In the decision, saccharine was banned as an ingredient in normal foods. Use as a remedy for diabetics remained permitted. Later, the permitted use was extended to diet foods. During the First World War , saccharine was again allowed to be used as an ingredient. A lawsuit by the head of the USDA chemistry laboratory against Monsanto Chemical Works was unsuccessful in 1916. In 1920 the US government brought a lawsuit against Monsanto. Monsanto continued to bring saccharin into the trade on a large scale, violating the Pure Food Law; Saccharin has a harmful effect on health. Since the government could not adequately prove their claims, the jury did not reach a verdict. In 1924, too, a government action failed because of a divided jury. The lawsuits were finally dismissed in 1925.

Former US soldiers who came into contact with the defoliant Agent Orange during the Vietnam War had filed class action lawsuits against several manufacturers. In 1985, after an out-of-court settlement between seven companies, including Monsanto, a $ 180 million compensation fund was set up. A lawsuit brought by the Vietnamese Association of Agent Orange Victims against Monsanto and other chemical companies was rejected by a US federal court in March 2005.

In 1998 the farmers Simrall & Simrall, who had grown soybeans resistant to Monsanto's herbicide Roundup , sued the Monsanto subsidiary Jacob Hartz Seed Company for damages. The soybeans were infected with the soybean mosaic virus , even though the seeds had been advertised as disease-resistant . For the harvest loss of almost 80%, a court awarded the plaintiffs compensation of almost 163,000 US dollars. The verdict was upheld by the Mississippi Appeals Court.

In 2002 the Swiss company Syngenta brought a lawsuit against Monsanto and other companies to enforce biotechnology patents. In 2004 the lawsuit was dismissed.

In August 2003 a settlement was reached to compensate 20,000 residents of the city of Anniston , Alabama , who, to the knowledge of Monsanto, had been exposed to the harmful by-products of PCB production for years . Production was prohibited by law as early as 1976, but the process dragged on for decades. Monsanto had known about the toxic properties of PCBs since the late 1930s. Nevertheless, the group disposed of millions of tons of PCB in nearby Snow Creek for almost 40 years. Monsanto paid $ 390 million, insurance 160 million and Solutia 50 million. Other costs, such as disposal, are said to have been 100 million, bringing the total to $ 700 million. The area around Monsanto's WG Krummrich and Cerro Copper Products Company manufacturing facilities in Sauget , Illinois is contaminated with PCBs and dioxin. High levels of dioxin have also been detected at the Monsanto Nitro site in West Virginia .

On 6 January 2005, a fine of 1.5 million dollars was imposed on Monsanto, as the Group from 1997 to 2002 at least 140 government officials in Indonesia bribed , to the introduction of Bt cotton variety 'Bollgard' to undermine the environmental risk assessment required by the Indonesian government. Bribes totaling 700,000 US dollars were used to forge books and bills, among other things. The United States Securities and Exchange Commission had sued the group for violating the Foreign Corrupt Practices Act .

Shortly before the court hearing on March 19, 2008 regarding a lawsuit by Percy Schmeiser, who was awarded the Alternative Nobel Prize in 2007 for his fight against genetic engineering, against Monsanto because of genetically modified oilseed rape that had undesirably appeared in his fields in 2005 , an out-of-court settlement was reached. Monsanto paid a US $ 660 bill from 2006 for the disposal that Schmeiser carried out himself, Schmeiser paid his court costs and did not have to sign Monsanto's confidentiality clause. According to Schmeiser, Monsanto was only willing to pay in a first out-of-court settlement attempt on the condition that the case was not disclosed and that it would be impossible in the future to bring Monsanto to court for contamination of its harvest, which Schmeiser said, according to the taz rejected as "immoral".

In 1996, New York State filed a lawsuit against Monsanto in the United States because the herbicide Roundup was advertised on the outside label as "biodegradable". The attorney general condemned Monsanto not to market Roundup herbicides labeled “biodegradable”. In January 2007, the 5th Chamber of the Lyon Criminal Court in France fined Monsanto and Scotts France , Roundup's distributor, each to a fine of € 15,000. The background to this was that the organizations "Eau et rivières de Bretagne" and Union fédérale des consommateurs had brought an action because they saw the declaration of Roundup as "biodegradable" and "environmentally friendly" as a fraudulent label. Monsanto appealed this ruling, but failed. Monsanto then submitted a revision request, which was rejected in October 2009.

On February 13, 2012, Monsanto was found guilty by the 4th Civil Affairs Chamber of the Lyon Regional Court of poisoning 47-year-old farmer Paul Francois with a pesticide. The court came to the conclusion that Paul Francois sustained health damage in 2004 by inhaling the herbicide Lasso. As a result, the court ordered Monsanto to compensate Paul Francois comprehensively for the health damage he had suffered. A medical expertise was arranged as the basis for the amount of compensation.

From a medical point of view, Francois' complaints are attributed to damage to the central nervous system, which manifested itself shortly after inhalation in symptoms such as nausea, stuttering, dizziness and disorders of the muscular system and which led to a year-long break in employment. Due to chronic fatigue and persistent headaches, Francois is currently only able to work part-time. One year after he inhaled the vapors, analyzes showed that traces of monochlorobenzene, a solvent contained in lasso in high concentrations, were present in his organism. François Lafforgue, Francois' lawyer, had accused Monsanto of not having taken Lasso off the market, although the dangerousness had already been determined in 1980 and corresponding bans existed in England and Belgium.

Lafforgue documented the judgment as a historic decision, as it was the first time a pesticide manufacturer was found guilty of poisoning. The evidence in Francois' case differed from similar proceedings in that he knew the exact time of the inhalation. Monsanto did not rule out a possible appointment. The ruling could have a groundbreaking effect for similar proceedings.

The Monsanto Tribunal took place from October 15 to 18, 2016 .

On July 10, 2018, US judge Vince Chhabria paved the way for a wave of lawsuits against Monsanto in San Francisco. The judge stated that just because providing flawless cause-and-effect evidence was a “great challenge” for the plaintiffs, they shouldn't be denied a trial. The group had fought bitterly to the end of the rejection of the applications. There is sufficient evidence for a hearing of the lawsuits, in which the glyphosate-containing weed killer Roundup is accused of causing lymphatic cancer . In Chhabria's court alone, more than 400 farmers, gardeners and consumers accused Monsanto of contracting non-Hodgkin lymphoma from the weed killer . Over 5,000 lawsuits were pending across the United States. The lawsuit of 46-year-old Dewayne Johnson, who was diagnosed with lymph gland cancer in 2014, was brought forward to other cases because the man was already dying. The non-governmental organization U.S. Right To Know had released documents (" Monsanto Papers ") on 250 lawsuits heard in the San Francisco District Court . According to this, Monsanto had known the health dangers for many years, but they were covered up and consumers were not warned.

On August 10, 2018, the San Francisco Superior Court issued a milestone judgment in favor of Dewayne Johnson. It was the first US trial to address the question of whether glyphosate can cause cancer. Monsanto was sentenced to pay $ 290 million (the equivalent of 253 million euros). Reason: The glyphosate-containing weed killer Round-up contributed "significantly" to the plaintiff's cancer and Monsanto failed to warn customers about the risk of cancer from the herbicide. She classified this as "insidious". Johnson was awarded $ 39.2 million in damages , with the remainder being punitive damages . Environment attorney Robert F. Kennedy Jr., on Johnson's team, said, "The jury has sent a message to Monsanto's boardrooms that business must now be changed." The group tried for a long time to suppress the critical scientific findings - "but the science was much more convincing". Bayer shares plummeted massively. Chairman of the Board of Management Werner Baumann said that Bayer had not yet made provisions for compensation payments. It became public that around 8,000 lawsuits had been filed by the end of July 2018. Baumann admitted that his company did not have access to internal Monsanto emails about the health risks of glyphosate pesticides before Bayer bought Monsanto.

The judgment in the Johnson lawsuit reignited the discussion about the harmfulness of glyphosate. Shortly before the verdict, a federal judge in Brazil ruled that new products containing glyphosate could not be registered in the country and existing registrations would be suspended. France's Environment Minister Nicolas Hulot said the verdict was the " start of a war " against glyphosate in Europe. The substance must be banned, it is not a fight against the interests of the farmers, but for their benefit. In Germany , the home of Monsanto's new parent company, Bayer AG, the environment minister called for the use of glyphosate-based herbicides to be discontinued within three years. Eric Andrieu , chairman of the special committee on the EU pesticide licensing process , said " If there is any controversy, it is at least necessary to apply the precautionary principle to protect the health of 500 million Europeans ".

After a total of three lost "punitive damages litigation" in 2018/2019, a peculiarity of US law, according to Johnson, Edwin Hardeman and the couple Alva and Alberta Pilliod (first instance in Oakland for damages for the latter: around two billion $), commentators expect so that Bayer will have to give in to the US-wide wave of lawsuits and will have to set up substantial provisions for this over the next few years. As of May 2019, Bayer is facing 13,400 lawsuits in the United States. The Oakland court alone, where the Pilliods case was heard, has 250 lawsuits pending.

Judge Chhabria reduced the amount first imposed by a jury in the Hardeman case from a good $ 80 million on July 15, 2019 to $ 25.3 million. He justified this primarily with the fact that the relationship between regular damages and "punitive damages" must remain within a constitutionally appropriate framework.

Monsanto as the plaintiff

According to Monsanto’s account, the company has sued 147 American farmers since 1997 with allegations of infringing Monsanto's patents on genetically modified seeds. This is usually about the allegation that the farmers are keeping seeds from the harvest in order to use them for sowing next year, which is inadmissible due to their contracts with Monsanto. Monsanto is actively working to uncover such incidents, and has sought help from farmers, set up a free hotline to report violations, and hired detectives. According to the company, over 250,000 farmers using Monsanto's technology have a low number of suspected cases each year. So far there have been a total of eleven legal proceedings, all of which have been decided in favor of Monsanto. In order to investigate farmers for patent infringements and, if necessary, to sue them, the company set up a department with 75 employees and an annual budget of 10 million US dollars. In a press release in autumn 1998, the company confirmed that it was investigating 475 suspected cases of seed patent infringement. At least 500 suspected cases of this kind are followed up by Monsanto's "investigators" each year. The Center for Food Safety, Washington DC lists 90 US lawsuits in 2005 in which Monsanto acted as plaintiff against farmers for patent infringements affecting 147 farmers and 39 small businesses or land traders. A seed contract with a forged signature was submitted in at least six of these 90 cases. The affected farmer Stratemeyer filed a class action lawsuit against Monsanto according to the study. He justified them with the accusation of obtaining and using forged signatures on seed contracts.

A case up to the Supreme Court in Canada caused a sensation worldwide. In 1998, Monsanto accused the farmer Percy Schmeiser of growing the genetically modified oilseed rape variety "Roundup-Ready Canola", which is resistant to the herbicide Roundup , without authorization and in violation of a Monsanto patent . According to Schmeiser, rape fell from passing trucks or was blown over from nearby fields of other farmers. He had noticed this after planting around an acre along the Roundup road and around 60% of the plants survived. From this part he had obtained seeds and then specifically cultivated and commercially exploited 400 hectares. The 2004 supreme court ruling did not impose any license payments or punitive damages on the farmer because he had not benefited from the special properties of the Roundup-resistant rapeseed variety, but stated that in principle he did not have the right to knowingly cultivate the patented variety. The Schmeisers were honored with the Alternative Nobel Prize in 2007 for their fight against Monsanto . In the reasoning of the jury it says u. a .:

"... for their courage in defending biodiversity and farmers' rights, and challenging the environmental and moral perversity of current interpretations of patent laws."

"... for their courage in defending biodiversity and farmers' rights, and for pointing out and denouncing the perversity of the current interpretation of patent law in relation to the environment and morality."

- Explanation of the jury

In 2004 Monsanto took legal action against an advertising campaign by Oakhurst Dairy in Portland , Maine , claiming that the milk used was from cows that had not received Monsanto's growth hormone rBGH , which is banned in Europe and Canada . Monsanto considered this advertising claim to be detrimental to business. The two companies agreed out of court on a changed wording.

In April 2009, Monsanto filed a lawsuit against Agriculture Minister Ilse Aigner's ban on the cultivation of the genetically modified maize variety MON810 . However, the cultivation ban was confirmed in an urgent procedure by the Braunschweig Administrative Court. Another urgent application by Monsanto before the Lower Saxony Higher Administrative Court in Lüneburg was rejected on May 28, 2009.

Others

Between 2002 and 2007, Monsanto sold 1782 cases of Bt cottonseed in the USA, the application brochure of which did not contain the information about a cultivation ban in ten Texas counties contrary to the legal requirement (until September 2008 a cultivation ban was in force in these counties in order to prevent the development of resistance To hinder Bt toxins). Monsanto notified the EPA of the lack of information in 2007, then corrected the application brochure and in July 2010 agreed to pay a fine of US $ 2.5 million for this. This penalty is the highest ever imposed under the Federal Insecticide, Fungicide and Rodenticide Act .

In 2005 the beekeeper Karl-Heinz Bablok sued the Free State of Bavaria for damages because traces of pollen from genetically modified maize (MON810) were found in his honey. In September 2011, the European Court of Justice ruled that pollen in honey is to be classified as an ingredient and that the plant of origin requires special approval if it is genetically modified. MON810 does not have this approval. On the one hand, the new ruling means that there is no tolerance threshold for the ingredient pollen from GMOs that are not approved in the EU. On the other hand, the honey ingredient pollen must be labeled as “genetically modified” if the proportion of pollen from GM plants approved for this purpose is more than 0.9% of the total pollen content.

Controversy

Bt cotton and suicides in India

Monsanto's introduction of Bt cotton has sparked polarizing controversy in India. Prior to this, in March 1998, Delta & Pine Land, together with the United States of America , had been granted the first patent on a terminator technology by the US Patent Office . The terminator technology was declared as a "system for controlling the reproductive capacity of the seed without affecting the fruit". The discussion about this technology had focused on Monsanto. The reason for this looks André de Kathen , molecular biologist , u. a. the 1999 attempt by Monsanto Delta & Pine Land to take over, as well as that this technology would have consequences for subsistence farming in developing countries. The environmental activist Vandana Shiva (2002) or the Gene Campaign (1999) network stated that Monsanto had products based on “ terminator technology ”, which causes seeds to lose their ability to germinate. Marketing this technology would threaten biodiversity and farmers would lose the ability to re-sow parts of their crops. Activists destroyed several field tests with Bt cotton in India under the name Operation Cremate Monsanto . The Indian government banned the domestic use of Terminator technology in 1998, but the movement persisted. According to Shiva, the cultivation (officially since 2002) of Bt cotton in India has increased the suicide rate among Indian smallholders. In 2006, Shiva claimed, according to political scientist Ronald Herring , that Monsanto's Bt cotton is based on terminator technology and that it drove thousands of Indian farmers into "debt, despair and death". He analyzed the failure of Operation Cremate Monsanto in 2006 as follows: Bt cotton had largely prevailed in India for agronomic reasons, the activists behind the campaign had misjudged the objective class interests of the cotton farmers in higher and more reliable income, they had Monsanto's Terminator technology attributed due to unreliable sources and the campaign was based on empirically refuted claims about Monsanto's influence on the Indian seed business.

Monsanto denies developing or commercializing products with Terminator technology. Analyzes of Bt seeds carried out at the University of Delhi found no “terminator genes”. A study by IFPRI published in 2011 comes to the conclusion that an increase in suicides cannot be proven by official statistics. The introduction of Bt cotton has resulted in great gains in productivity and income for farmers. Glenn Davis Stone , professor of anthropology, points out that there has always been an increased suicide rate among farmers in the main cotton growing area in India. Publications that attribute the suicides to the new seeds are often based on dubious empirical material. In his current study (2011), which is also based on comparative studies in selected villages in the Warangal District ( Andhra Pradesh ), GD Stone found that Bt cotton had higher yields (18%) with lower pesticide use (54%). At the same time, he points out that it is unclear how long these gains would last in view of increased damage from non-target organisms (harmful insects against which the poisonous gene is not effective). In connection with the cultivation of genetically modified cotton, the farmers lack the possibilities to control processes in a meaningful way for their own interests with regard to the rapid change of seeds and technologies. In surveys, even seed suppliers were unable to provide any information on possible uses for the seeds they offer. In connection with developments established in the history of the region, this situation has led to a long-term loss of agricultural know-how among farmers. Srijit Mishra from the Indira Gandhi Institute of Development Research and K. Nagaraj from the Madras Institute of Development Studies found in their studies on the suicides of Indian farmers an increased suicide rate during the period in question. The suicide statistics at Nagaraj also include suicides by farm women, which are usually included in the suicide statistics for the total population. Both studies attribute the suicides to a combination of socio-economic causes. A lack of alternative sources of income, low income, debts, insufficient regulation of credit markets and the lack of suitable support structures for farmers are named as such. The current study by Gruère and Sengupta (2011) finds increasing absolute suicide figures, but no increase in farmer suicides compared to the total Indian population. Their meta-study on the impact of the introduction of Bt cotton showed an increase in income for farmers of 50–94%. After a detailed study of suicide figures at the individual state level, they conclude that the possibility that Bt cotton is "a necessary or sufficient condition for peasant suicides in India" could be dismissed. However, they state that they cannot rule out that Bt cotton may have played a role in the discrete rise in suicides, particularly in 2002, 2004 and 2006 and in the Andhra Pradesh and Maharashtra areas.

Business conduct in general

Anti-Monsanto Stencil in Buenos Aires, 2013 (Monsanto siembra muerte = Monsanto sows death)

Critics complain that Monsanto is pursuing an offensive policy of buying up other seed companies and already holds a monopoly on the production of genetically modified seeds. In 2005, Monsanto's market share was over 90% of all transgenic crops grown worldwide, according to Greenpeace . Greenpeace claims Monsanto wants to bring global agriculture completely under its control.

In April 2009, in the column “Das Kapital” of the Financial Times Deutschland , the business conduct of Monsanto was criticized under the title “Monsanto's Poison Kitchen”. The author compares Monsanto's approach to the bankers who sparked the financial crisis. Monsanto is loved by financial market analysts because the group was able to increase sales, market share and return on equity even in the difficult year 2009. Farmers in developing countries are dependent on the products of the "quasi-monopoly". What Monsanto is doing is "still hard to believe". The author described the damage caused by banks in the financial crisis as "a mild breeze against what is looming in the agricultural sector".

Monsanto announced in May 2013 that it would stop lobbying for the cultivation of genetically modified seeds in Europe. However, this announcement did not refer to lobbying for the approval of imports of such plants. In October 2013, at the request of Monsanto and Dow Agrosciences, the EU approved another genetically modified maize (“SmartStax”) for import, not cultivation. Dow Agrosciences and Monsanto have a common interest in this, as do the parent company Dow Chemicals and Monsanto in some cases with joint major investors.

Business conduct towards farmers

In May 2003, the Center for Food Safety (CFS) in the US launched an investigation into legal disputes among US farmers who cultivated patented, genetically modified crops under the title “Monsanto versus US Farmers” . It was found that Monsanto is increasingly suing farmers for actual or suspected patent or contract violations on the basis of the additional contracts they have concluded with farmers (“technology” or “cultivation contracts”). The working group for rural agriculture (AbL) from Germany published excerpts from this study in 2009 as well as the Monsanto cultivation contract for Germany 2006 as an appendix. In the foreword to the publication it writes:

" Monsanto's attempt to make farmers dependent, the use of aggressive investigative methods and the unscrupulous suing of farmers represent an attack on the foundations of farming habits, including one of the oldest rights of farmers: to store the seeds of their own harvest and to sow them again (replica) . "

In 2006, the film author Christian Jentzsch criticized the fact that in the event of a conflict with Monsanto, farmers were contractually not allowed to speak to third parties. Furthermore, these farmers are contractually prohibited from taking legal action against Monsanto in the event of crop or yield losses (e.g. decline in fertility in breeding pigs).

In 2008, the sociologist Souleymane Ouattara complained that Monsanto forbade its customers in Mali from re-sowing crops from Monsanto seeds and that the purchase agreements in order to avoid patent infringement allow verification of compliance with these contractual conditions. The farmers are not used to this system. So far, they have kept seeds from each harvest for the next sowing or have received it free of charge from the state textile company. In the event of a shortage or a second sowing, mutual help is available. Since the Monsanto Treaties do not allow this, a social system is at stake, according to Ouattara.

Patents

Monsanto uses the legal possibilities of patents that some countries grant on plant varieties. In these countries the law prohibits the sowing of the harvest from patented seeds. The patent holders can take legal action against farmers who violate this prohibition. However, patent protection is only granted in some countries. In the USA, Mexico and China, genes and plants can be protected by patents, but this protection is hardly controlled in China. In Germany, India and Argentina, however, genes and plants are not protected by patent. The European Patent Convention also does not provide for patent protection for plant varieties. However, intellectual property in new varieties can also be protected in Germany (see plant variety protection ).

In 1990 Unilever filed a patent application with the European Patent Organization for a wheat variety in which an Indian variety (Nap Hal) was crossed. In 1998 Unilever sold the wheat business to Monsanto. In May 2003 the patent application was granted. In October 2003, the French RAGT took over the Monsanto division. In January 2004, Greenpeace took action against the patent on the grounds that European farmers and bakers had to pay royalties to Monsanto. In March 2004 the patent office requested the patent owner RAGT to submit a statement on the opposition. In September 2004, RAGT revoked its patent.

In April 2000, Monsanto filed an application with the World Intellectual Property Organization for patent protection for a breeding method and the resulting higher quality soybean plants. Greenpeace feared that farmers around the world would have to pay royalties to Monsanto. It is not known whether any payments will actually be made to Monsanto based on this patent.

In 2003, Monsanto owned 647 patents on genetically modified plants, more than any other genetic engineering company.

In 2009 and 2010, Monsanto applied for international patents for a certain type of feeding of pigs and fish in aquaculture, including genetically modified feed, which has a high content of unsaturated fatty acids and is said to have beneficial effects on the products. The patent claim therefore also includes the products produced in this way. The former Greenpeace employee Christoph Then described this as an abuse of patent law, since schnitzel and ham were not inventions.

Accusation of falsifying scientific research results

Tiruverda Jagadisan, who worked for Monsanto for nearly 20 years, eight of which as managing director for Monsanto India, accused Monsanto of falsifying scientific data submitted to government regulatory agencies in order to obtain approvals for their own products in India. At a public hearing in February 2010 in the context of the approval process for the genetically modified Bt aubergine (aubergine in Indian: brinjal ), he spoke out against this aubergine. Jagadisan said that the government regulatory agencies that Monsanto dealt with in the 1980s “simply” relied on the data Monsanto gave the agency to approve herbicides . The central authority for the approval of insecticides did not issue approvals on the basis of local and variety-specific data from India - as was actually expected of them - but accepted foreign test results from Monsanto without the technical possibility to check them. In addition, the data were at times falsified. He said he had withdrawn from the company because he had the impression that Monsanto's management was exploiting India. At this point he had received the information that Monsanto was going to build terminator genes into his seeds.

Political influence and involvement with politics

The criticism is also a mixture of Monsanto's activities and politics. Under the name “revolving doors”, critics denounced the “perfected” staff amalgamation with the ruling administration and the likelihood of lucrative jobs for civil servants and political assistants, and described Monsanto as “a boarding school for former Clinton employees ". Linda J. Fischer initially worked as an administrative clerk at the Environmental Protection Agency (EPA) in the area of ​​environmental prevention pesticides and toxins, then she became Vice President of Public Relations at Monsanto and then Deputy Director of the EPA. William D. Rückelhaus was initially the head of administration with the Food and Drug Administration (FDA) and served on the Monsanto board of directors for more than a decade. Michael Kanto was initially a US representative on trade issues and then also a board member at Monsanto. Magret Miller was a supervisory chemistry lab technician at Monsanto, then assistant director of food safety at the FDA. Michael R. Taylor was the FDA's legal advisor and assistant policy officer, and subsequently headed Monsanto's Washington office.

In Mexico there is a law on biodiversity and GMOs, which critics call the "Monsanto law", because it is not the majority of the Mexican farmers that should benefit from it, but rather Monsanto in addition to a few large companies.

In April 2007, the then German Agriculture Minister, Horst Seehofer , instructed the Federal Office for Consumer Protection and Food Safety (BVL) to ban the sale of MON810 seeds , a genetically modified maize from Monsanto. Immediately after the ban, the head of the BVL's genetic engineering department wrote an email to his manager. In it he claims that there is no new knowledge that could justify restrictive measures against the placing on the market of MON810. In a dispute over genetically modified maize, a lawyer from Monsanto presented this email to the Brandenburg Higher Regional Court. It is unclear how this e-mail was sent from BVL to Monsanto. Former Greenpeace employee Christoph Then sees a link between Monsanto and BVL. The Ministry of Agriculture, however, has no doubts about the independence of the BVL. In December 2007 the BVL decided to re-approve MON810.

When the Federal Minister of Agriculture Ilse Aigner no longer allowed the cultivation of MON810 in German fields on April 14, 2009, the sales representative of the United States Ron Kirk summoned the German ambassador Klaus Scharioth to the ministry, where he expressed the displeasure of the US government about the ban on MON810 expressed. The Guardian evaluated US embassy dispatches that had become accessible via Wikileaks. US diplomats then worked directly for genetic engineering companies such as Monsanto and, at its request, officially advocated a less restrictive genetic engineering policy.

In September 2017, Monsanto lobbyists were banned from entering the European Parliament by withdrawing their access authorization because they had not attended a hearing in Parliament. The background to this were open questions about the company's role in the preparation of studies on the active ingredient glyphosate ( Monsanto Papers ). This is the first time that such a ban has been issued.

Some examples even suggest suspicion of Monsanto influencing political decisions without seeking or finding evidence. At least it is very difficult to assign them to individual politicians. In 2017 , the German Agriculture Minister Christian Schmidt approved a further approval of the controversial herbicide glyphosate in the EU until 2022, completely surprising and against the agreement of the cabinet and the rules of procedure of the Federal Government. Schmidt justified his yes with "important improvements for the protection of the flora and fauna" and admitted that he had made up his mind alone. He did this even though around 73% of Germans were in favor of a ban. The impulse could also have come from the management level of the ministry: According to this, the responsible specialist department for plant protection, Minister Christian Schmidt, recommended on July 7th, 2017 to check whether the EU Commission's proposal could be "independently" without the consent of the SPD-led Environment Ministry could agree. The cabinet rejected a request from the ministry to this effect. Thilo Bode wrote the headline in the newspaper for German and international politics in the October 2018 issue: "Lobbyism 2.0: The industrial-political complex." There has been a lot of opposition in the EU to the extension to get rid of an industrial agrochemical that "poisons farmers and ecosystems," as a comment in the French newspaper "Le Monde" put it. Monsanto is the world's largest producer, and the minister has been referred to as Monsanto's chief lobbyist in some media. However, there was also active lobbying in Brussels: The responsible EU health commissioner Vytenis Andriukaitis from Lithuania was impressed after the vote: “Can't you see that on our faces that we have won?” How extensive Monsanto's lobbying can be , showed in 2019: According to media reports, the glyphosate manufacturer is suspected of secretly funding studies in Germany that were then used as arguments against politicians.

The cultivation of MON810 is prohibited in Germany

After the Federal Office for Agriculture had banned the sale of the genetically modified MON810 maize for a short period in 2007 (see above), Federal Agriculture Minister Ilse Aigner announced on April 14, 2009 that the cultivation of MON810 on German fields was no longer permitted. Shortly thereafter, US sales representative Ron Kirk summoned German ambassador Klaus Scharioth to the ministry, where he expressed the US government's displeasure with the MON810 ban. Ten well-known German science organizations (including the Helmholtz Association , Fraunhofer Society , Max Planck Society , German Research Foundation , Leibniz Association ) protested against the decision in a joint declaration. Monsanto failed in 2009 with a lawsuit against the cultivation ban issued by the Federal Ministry of Food, Agriculture and Consumer Protection .

Dispute over television report on controversial growth hormones in milk production

Monsanto sold a growth hormone for increasing the milk yield of dairy cows ( Recombinant Bovine Somatotropin - rBST) under the brand name Posilac . The two FOX journalists Steve Wilson and Jane Akre reported in 1997 that they had information that Posilac should not have been approved as safe by the FDA in 1993 .

Monsanto explained to FOX that the report by the journalists was based on research that had long since been refuted and was not suitable for presenting the complicated scientific background. The question of whether and to what extent Monsanto was allowed to reflect its position in the report led to a rift between the journalists and the television station. The contract with FOX was not renewed and in 1998 they sued the station. In 2005, the two failed in the last instance before a court. The media authority also refused to accept the application to have FOX's license withdrawn. It was not an attempt to suppress the news from FOX, but an editorial dispute.

Genetically Modified Corn Controversies and Roundup

Some Monsanto products have been controversial about their effects on human health .

Corn MON863

A scientific controversy about a possible health risk flared up in the course of the 2006 European approval of the genetically modified maize MON863. A research group led by the French molecular biologist Gilles-Eric Séralini published a study in 2007 in which the results of a feeding study relevant for approval were re-evaluated using an alternative statistical method and significant deviations were found. The research group therefore did not rule out a possible health risk. After consultations with the Member States and the Seralini group, EFSA saw no evidence “that the observed differences suggest undesirable effects” and “no reason to revise [...] previous opinions that state that MON 863 maize could be used when the Application has no negative effect. ”The current scientific consensus is that transgenic maize does not present any risks beyond those of conventionally bred varieties.

Glyphosate / Roundup

Amaranthus palmeri ; the plant is one of the most famous superweeds and hasdeveloped glyphosate resistance

Another scientific controversy, which is also currently being conducted, arose over the interpretation and informative value of various studies from 2009 and 2010 that determined the potential toxicity of glyphosate and glyphosate-based herbicides and derived a possible health hazard for humans. Other studies indicate that the intended use of glyphosate poses no health risks. In the current discussion in Germany, the Federal Ministry of Agriculture confirms that Letters to the Editor to a specialist magazine were used to assess the risk of glyphosate. The Federal Institute for Risk Assessment (BfR) has taken a position on this and stressed that letters to the editor are a means of academic communication between the author of an article and the academic readership of a journal and not 'letters to the editor' as has been claimed by some media. " According to the Süddeutsche Zeitung, ten of the 14 letters to the editor used came directly from Monsanto employees or from people around the group.

The Austrian environmental organization Global 2000 and the German association Umweltinstitut München have filed criminal charges against Monsanto because important studies were allegedly systematically excluded or misinterpreted in the re-authorization procedure for glyphosate.

Dicamba and NemaStrike

A problem also arose with the herbicide dicamba , which was banned in the US state of Arkansas. The reason was that Dicamba drifted away from the locations where it was used, causing widespread damage to arable crops that were not resistant to the herbicide. The pesticide NemaStrike was stopped when it was found to be harmful to the skin.

Monsanto lists for glyphosate approval renewal in the EU

On May 9, 2019, the newspaper Le Monde revealed that from 2016 Monsanto had clandestine lists drawn up in France with some personal information about politicians and officials, journalists, heads of professional and public organizations and even scientists who were involved in the debate in Europe involved in the authorization extension of glyphosate and genetic engineering, with the aim of monitoring and influencing them. However, the French Criminal Code prohibits the creation of a database of personal data that stores a person's political and ideological opinions without their consent. The Paris public prosecutor opened an investigation. Bayer apologized three days later for the actions taken by its subsidiary Monsanto. Bayer later announced that Monsanto had probably had lists of the names of supporters and critics drawn up across Europe since the middle of the decade. The German Association of Journalists explained that in Germany the Federal Data Protection Act makes “the processing of personal, not generally accessible data a criminal offense”. After the Monsanto lists became known, Ségolène Royal , then French Environment Minister, declared: "This secret lobbying, which uses illegal methods similar to espionage, is perverse."

reviews

For "pioneering achievements and outstanding contributions to the development of sustainable technologies" Monsanto was recognized in March 1996 by the then Vice President of the USA, Al Gore , with the Presidential Award for Sustainable Development .

The Ethics & Economics Foundation ( ethecon ) justified the presentation of its negative Black Planet Award to Monsanto on December 2, 2006 with the “aggressive corporate strategy of this corporation”, through which “the profit-based power of global corporations and the associated ecological and socio-economic consequences are particularly clear become".

2010 Monsanto was from Forbes Magazine for Company of the Year nominated, on the part of Forbes magazine itself, however, this decision is now being challenged. Hugh Grant was named CEO of the Year by Chief Executive magazine in 2010 .

Monsanto manager Robert Fraley received the Monsanto-sponsored 2013 World Food Prize along with two other scientists in the field of biotechnology, Marc Van Montagu and Mary-Dell Chilton .

The market research company The Harris Poll (formerly Harris interactive) annually determines the reputation and trustworthiness of the 100 most famous companies among consumers in the US market, called "The Reputation of America's 100 Most Visible Companies". Monsanto ranked 96th out of 100 in 2016.

Before the Bayer-Monsanto merger, Monsanto's image was one of the worst in the world.

Movies

literature

Web links

Commons : Monsanto Company  - collection of images, videos, and audio files

Remarks

  1. Original Monsanto (part of Pfizer since 2003 )
  2. Today's Monsanto (founded in 2000 as a subsidiary of the original Monsanto) - see history for explanation

Individual evidence

  1. Company Leadership ( Memento from November 3, 2016 in the Internet Archive )
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  13. Edmund Russell, War and Nature: Fighting humans and insects with chemicals from World War I to Silent spring , Cambridge University Press 2001, p. 148.
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  15. ^ Dan J. Forrestal: Faith, hope, and $ 5000 . Simon and Schuster, 1977, ISBN 0-671-22784-X , XV. (English).
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  33. ^ Securities and Exchange Commission , sec.gov
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  36. ^ Emergent Genetics, Inc. | News & Media. Archived from the original on January 21, 2010 ; accessed on October 5, 2018 (English).
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  41. Monsanto buys Beeologics, working to save pollinating bees , stltoday.com
  42. ^ New treatment against CCD ( July 1, 2011 memento in the Internet Archive ), goodfruit.com
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  45. Monsanto gives up Europe - victory for anti-genetic engineering movement , Taz on May 31, 2013.
  46. "Monsanto is not withdrawing at all" , EU Commission advises on the approval of a controversial maize variety, Heike Moldenhauer from BUND in an interview with Britta Fecke on Deutschlandfunk on June 10, 2013:
    That was really an endless newspaper duck, where then a Monsanto Employee made a vague statement. Some journalists picked up on that. Then some activists expressed their euphoria, but there was nothing behind it. Monsanto is not withdrawing at all. Monsanto has no reason at all to withdraw from such a lucrative market as the EU market, and Monsanto is in the approval pipeline, i.e. with what is to come in terms of plants, with eleven plants for cultivation and with 46 for import into the EU. A retreat looks really different.
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  54. No discharge for Bayer boss Baumann In: Sueddeutsche.de of April 26, 2019
  55. Historical general accounting - Bayer boss not exonerated In: Welt.de of April 26, 2019
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