Farm tractor on a sunny crop field

Monsanto/Bayer: Mega-Mergers Threaten Seeds, Food Security

Policymakers could still block the agribiz mergers; peasants and farmers will continue the fight for seeds and rights

September 16, 2016 | Source: ETC Group | by

Wednesday’s confirmation that Monsanto and Bayer have agreed to a $66 billion merger is just the latest of four M&A announcements, but at least three more game-changing mergers are in play (and flying under the radar).  The acquisition activity is no longer just about seeds and pesticides but about global control of agricultural inputs and world food security.  Anti-competition regulators should block these mergers everywhere, and particularly in the emerging markets of the Global South, as the new mega companies will greatly expand their power and outcompete national enterprises.  Four of the world’s top 10 agrochemical purchasing countries are in the global South and account for 28% of the world market.[1] If some of these throw up barriers, shareholders will rebel against the deals regardless of decisions in Washington or Brussels.

“These deals are not just about seeds and pesticides, but also about who will control Big Data in agriculture,” says Pat Mooney of ETC Group, an International Civil Society Organization headquartered in Canada that monitors agribusiness and agricultural technologies. “The company that can dominate seed, soil and weather data and crunch new genomics information will inevitably gain control of global agricultural inputs – seeds, pesticides, fertilizers and farm machinery.”

Neth Daño, ETC’s Asia Director, continues, “Farmers and regulators should be watching out for the seventh M&A – John Deere and Company’s bid to merge its Big Data expertise with Monsanto-owned Precision Planting LLD. After the Bayer-Monsanto merger, it’s not clear whether Precision Planting will go to Deere and Co. or if Bayer will protect its future in agricultural data.” Daño, based in the Philippines, points out that “Deere started connecting its farm machinery to GPS in 2001 and since then has invested heavily in sensors that can track and adjust seed, pesticide and fertilizer inputs meter by meter. The company has 15 years of historic data as well as access to terabytes of other weather, production and market data. Quite literally, Deere and the other farm machinery companies (the top three account for half of the world market) own the box in which the other input enterprises have to dump their products. That means Deere also owns the information.”

Silvia Ribeiro, Director of ETC’s Latin American office, agrees that the latest news confirming Monsanto agreement has “created alarm throughout Latin America and raised big concerns about increased input prices, more privatization of research and huge pressure from these Giant companies to make laws and regulations in our countries that allow them to dominate markets, crush farmers’ rights and make peasant seeds illegal.”