Is this the worst news ever for Monsanto in Brazil?
In what could be the worst news ever for Monsanto in Brazil, soy trading companies belonging to the Brazilian Association of Vegetable Oil Industries (ABIOVE) will not accept Monsanto's Intacta RR2 PRO soybeans.
Negotiations between the trading companies and Monsanto broke down in July when Monsanto insisted that they act as its royalty collectors for technology fees on RR2 PRO Intacta soybeans.
The companies didn't like that idea and now the impasse has been confirmed by ABIOVE in an announcement in which it says it won't be accepting Intacta RR2 PRO soybeans until and unless something changes.
ABIOVE represents international soybean traders such as ADM, Bunge, Cargill, and Louis Dreyfus.
Intacta soybeans: ABIOVE announces deadlock in negotiations with Monsanto
Press Release, ABIOVE, 30 July 2014
[In Portuguese: Rough English translation below by Google/GMWatch]
The Brazilian Association of Vegetable Oil Industries (Abiove), which represents the soybean processing industry, reiterating its commitment to transparency in the supply chain and the market in general, and sharing the concern of agricultural producers in Brazil regarding the approach of planting period of the 2015 season, announces with regret that it has not reached an agreement with Monsanto to provide services involving soy Intacta RR2 PRO™.
As communicated by ABIOVE on July 16, 2014, ABIOVE has been negotiating with Monsanto for about six months, providing monitoring services, with the aim of contributing to the security of the supply chain in the country. However, due to the statements of Monsanto suggesting that it could intervene unduly in the activities of member companies of ABIOVE, the agreement was not possible. This undermines any guarantee of purchasing Intacta soybean RR2 PRO™ by ABIOVE's member companies, given the possible legal risks involved in purchase.
ABIOVE reaffirms its commitment to harmony in the supply chain and assures the soybean sector in Brazil that it will continue steadfast in its efforts and that it remains open to negotiations with Monsanto, insofar as they do not involve undue interference in the activities of Brazilian companies.