Monsanto, Syngenta Settle Their Differences

Your grower-customers — and your retail seed business — are the real winners as Monsanto Co. and Syngenta AG settle their dispute over licenses for gene-modified corn and soybeans. The settlement now clears the way for both companies to accelerate product development.

The agreement settles all outstanding patent, antitrust, and commercial litigation relating to the two companies’ global corn and soybean businesses. Some of these disputes include Syngenta’s antitrust suit, Monsanto’s patent infringement suit on herbicide-tolerant corn technologies, and a dispute between the parties on herbicide-tolerant soybean technology. According to one Syngenta source, the two companies were due in court this week on these matters. Both companies released statements on May 23.

The two companies accused each other of infringing patents in the race to develop crops tolerant to herbicides and protected against insect attack as global demand for food soars. Syngenta stepped up its challenge to St. Louis, MO-based Monsanto in 2006 by forming a joint venture with DuPont Co. to license corn and soybean genetics to North American seed makers.

Under the agreement:

• Monsanto grants Syngenta a royalty-free license to its rights around specific herbicide-tolerant corn technology (GA21 event) and to its rights around specific insect-protected corn borer technology (Bt11).

• Syngenta receives a royalty-bearing license to Monsanto’s Roundup Ready 2 Yield soybean technology. This technology is slated to be introduced to U.S. soybean farmers in 2009.

• Monsanto receives a royalty-bearing license to Syngenta’s enabling technology related to Monsanto’s third-generation herbicide-tolerant technology, dicamba tolerance.

• The two agreed to cross-enable each other to develop and deliver innovative new herbicide-tolerant and Bt insect-protection products in corn, cotton, and soybeans to compete for the business of growers around the world.

"The global business agreement provides broader farmer access and expands the market opportunity for Monsanto’s second- generation herbicide-tolerant technology," according to the Monsanto statement. Monsanto’s Asgrow brand and American Seeds Inc. companies’ brands are preparing for the introduction of this higher-yielding soybean technology, and the company is also broadly offering the technology to its Corn States customers to further expand the reach at the time of its launch.

"This is surprising and good news for Syngenta," said Martin Schreiver, Zuercher Kantonalbank analyst, in Monsanto’s official statement. "It is positive for its market position as there will be a cross-selling effect. It is very important that you can offer the whole palette."

"The need to increase agricultural productivity has never been greater than it is today. We are therefore very pleased to have reached an agreement which expands the choices available across the US corn and soybean markets," said Davor Pisk, chief operating officer of Syngenta Seeds, according to a statement from Basel, Switzerland-based Syngenta.

With the issue of Roundup Ready 2 Yield license settled, Monsanto now estimates a potential available acreage for the product of 45 million to 55 million acres in the U.S., or an increase of more than 10 percent over its original projection of 40 million to 50 million acres. Monsanto believes that Roundup Ready 2 Yield ultimately could be used on approximately 75 percent of an average of 60 million to 70 million soybean acres in the U.S. Sales of Syngenta’s brands represented approximately 12 percent of total U.S. soybean sales in 2007. Monsanto’s Asgrow and American Seeds Inc. brands collectively represented approximately 27 percent of total U.S. soybean sales in 2007.

Monsanto’s Roundup Ready 2 Yield soybeans will be introduced on 1 million to 2 million acres for the 2009 season as part of a controlled commercial release, followed by a large-scale product launch of 5 million to 6 million acres scheduled for 2010.

The pair have reached a global business agreement that establishes cooperative arrangements that are expected to result in new technology options for growers.

"We’re pleased that we were able to work with Syngenta to put farmer-customers first and reach an agreement that offers them tremendous benefits and choice in the seasons ahead," said Brett Begemann, executive vice president of Monsanto’s global commercial business. "Our goal is to be the technology collaborator of choice within the agricultural industry."

Additional specific details of the agreement were not disclosed.

Topics: ,

Leave a Reply

Crop Inputs Stories
Crop InputsPlatform Specialty Products To Acquire Arysta LifeScience
October 20, 2014
Once the acquisition is complete, Platform Specialty Products will combine Arysta LifeScience with previously acquired companies Agriphar and Chemtura Crop Solutions. Read More
MicronutrientsMicronutrients Going Macro
September 9, 2014
Between 2014’s fantastic growing conditions and a heightened awareness on plant nutrition, the major players in micronutrients are gearing up for another big year. Read More
FertilizerFall Fertility 2014: Forecasting Fertilizer Use
September 7, 2014
Great crops this year have tapped the soil, and fall work is definitely called for, but how challenging will that get? Read More
FungicidesSudden Death Syndrome, Brown Stem Rot Reported In Indiana Soybeans
September 3, 2014
Farmers and retailers should be watching for symptoms of these two diseases over the next few weeks as they are best managed through preventative methods. Read More
Top 100 Articles
Milan Kucerak, president/CEO, West Central
CropLife 100West Central Cooperative And Its New President Are A Match Made In Deviation
June 29, 2015
To appreciate just how unique West Central Cooperative is in the world of ag retail, an observer need only consider Read More
Winter Wheat
CropLife 100South Dakota Co-op Member Owners Vote No On Unification
June 26, 2015
The Boards of Directors for North Central Farmers Elevator (NCFE) and Wheat Growers (WG) have announced that member-owners have voted Read More
CropLife 100The Andersons Acquires South Dakota Plant Nutrient Manufacturer Kay-Flo
May 20, 2015
The Andersons, Inc., ranked No. 22 on the CropLife 100, has purchased Kay Flo Industries of North Sioux City, SD. “This Read More
CropLife 100AgGateway’s Barcoding Initiative Progressing Nicely
May 8, 2015
According to legend (or Wikipedia), the first step towards modern bar codes came back in 1948, when Bernard Silver, a Read More
CropLife 100Pinnacle Agriculture Acquires Minnesota Retailer
April 14, 2015
Pinnacle Agriculture Holdings, LLC, ranked No. 6 on the CropLife 100,  has successfully acquired Liebl Ag, LLC in Ada, MN.  Read More
CropLife 100CHS, Aurora Cooperative Complete Fertilizer Storage, Grain Shuttle Loading Facility
April 13, 2015
CHS Inc., the nation’s leading cooperative and ranked No. 5 on the CropLife 100, and Aurora Cooperative (ranked No. 21) Read More
Latest News
Agworld Apple Watch Farm Management
EquipmentAussie Data Management Software Company Making Its Mark…
July 4, 2015
Zach Sheely, vice president of sales and operations, says that several large, well-known U.S. cooperatives (Stanislaus Farm Supply, Wilco-Winfield and Read More
Topcon AGI-4 on MF Planter
EquipmentAutosteer: Compatibility, Accuracy Remain Top Of Mind
July 3, 2015
The world of automatic steering solutions in agriculture has evolved rapidly in the last few years. From after-market add-ons that Read More
ManagementUnited Suppliers/Land ‘O Lakes Merger & Crop Update
July 2, 2015
CropLife’s Paul Schrimpf and Eric Sfiligoj talk about the reasons behind the United Suppliers/Land ‘O Lakes merger and USDA’s recent Read More
Industry NewsBioSafe Adds To Sales Force
July 2, 2015
BioSafe Systems has announced the hire of two new members for its service team. David Britt recently joined the team Read More
Chesapeake Bay
ManagementChesapeake Bay Clean-Up Gets Renewed Attention
July 2, 2015
The Chesapeake Bay has been called one of the most biologically productive ecosystems in the world. It’s also one of Read More
Measuring Bulk Tanks
ManagementBulk Pesticide Compliance: Top 10 Areas Of Improvement …
July 1, 2015
  In honor of the 33-year run of David Letterman’s Late Show, the American Agronomic Stewardship Alliance (AASA) is happy Read More
Industry NewsArysta North America Hires Midwest Sales Manager
July 1, 2015
Arysta LifeScience North America recently announced the hiring of Brian Battles as the Senior Technical Sales Manager for the Midwest Read More
Farmer on tablet
Eric SfiligojThe Never-Ending Battle Against Modern Agriculture
July 1, 2015
In the world of comic books, the character of Superman often refers to the fight to save the world as Read More
Retail FacilitiesBuilding Up Ag Retail
July 1, 2015
In the oftentimes unpredictable world we live in, it’s nice to know some things can be reliably countered on to Read More
Retail FacilitiesMaple River Grain And Agronomy Phases In Site Developme…
July 1, 2015
Marcus Construction helped Maple River Grain and Agronomy in Casselton, ND, with the design-build of its dry fertilizer, liquid chemical/seed Read More
Retail FacilitiesA&B Welding Builds A New Liquid Terminal Hub For Br…
July 1, 2015
To build its new hub facility, Briggs Crop Nutrients enlisted the help of A&B Welding. The result, an efficient facility Read More
Edon Farmers Co-op
Retail FacilitiesNew Marcus Facility At Edon Farmers Co-op Provides More…
July 1, 2015
Edon Farmers Co-Op in Edon, OH, needed a new facility to consolidate outdated locations. Marcus Construction was able to design Read More
Retail FacilitiesKinder Morgan Expands Its Storage With A New Dome Barre…
July 1, 2015
Kinder Morgan wanted additional covered storage at its Dakota Bulk Terminal on the Mississippi River in St. Paul, MN. With Read More
Retail FacilitiesHeartland Tank Protects Fertilizer From Extreme Cold At…
July 1, 2015
The Arthur Companies in Harvey, ND, enlisted the help of Heartland Tank Companies to develop a new liquid fertilizer facility Read More
The McGregor Co. fertilizer loadout
Retail FacilitiesThe McGregor Co. Partners With Kahler Automation To Cre…
June 30, 2015
Kahler Automation helped The McGregor Co. expand its Clarkston, WA, operation with unstaffed loadout technology that enables customers to pick Read More
Dry and Liquid Plant
Retail FacilitiesKahler Automation Helps CHS Dakota Ag Cooperative Build…
June 30, 2015
CHS Dakota Ag Cooperative in Mooreton, ND, wanted a liquid/dry blender system that could meet the needs of its customers Read More
Crop InputsLand O’Lakes, United Suppliers To Merge Crop Inpu…
June 29, 2015
Land O’Lakes, Inc. and United Suppliers, Inc. of Ames, IA, today announced their intent to merge their crop inputs businesses. Read More
FungicidesHelena To Distribute Unique Summit Agro Fungicide
June 29, 2015
RANMAN 400 SC fungicide, the only fungicide with a FRAC group 21 designation, is now part of the innovative Summit Read More