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

Untreated soybean seed Heartland Coop
Seed/BiotechMarrone Bio Innovations, Groundwork BioAg Bio-stacked Microbial Seed Treatments Result In Increased Yields
February 13, 2017
Marrone Bio Innovations, Inc. and Groundwork BioAg, Ltd have announced successful seed treatment field trials of the world’s first all-biological Read More
Fertilizer Storage
Crop InputsThe State Of The Fertilizer Industry
February 9, 2017
He’s all hat, no horse.” It’s a humorous way of describing a person who tells a good story, but is Read More
Corn Field
InsecticidesArysta LifeScience, DuPont Collaborate On Rynaxpyr Premix Formulations
February 8, 2017
Arysta LifeScience recently announced that it has entered into a global collaboration with DuPont Crop Protection for the development of Read More
World Agri-Tech Innovation Summit Panel 2016
Crop InputsWorld Agri-Tech Innovation Summit To Be Held In San Francisco
February 8, 2017
“Breakthrough Applications and Business Models for Sustainable Farming” is the theme of the World Agri-Tech Innovation Summit to be held Read More
Trending Articles
Farmer and aptop
Matt Hopkins10 Warning Signs Your Website Is Grossly Outdated
February 8, 2017
Your Website is often a visitor’s first impression of your ag retail business. A positive first impression can set the Read More
AgriSync
Matt Hopkins17 Agriculture Apps That Will Help You Farm Smarter In 2017
December 9, 2016
Ag professionals are working smarter, not harder, than ever before. Smart farming technologies have enabled them to reduce costs, maximize Read More
R4023 Sprayer, John Deere
CropLife 100Ag Retail Equipment Report: The Green Party Continues
December 7, 2016
In the annual race for sales in the ag retail equipment marketplace, the color schemes for participants are a little Read More
Mike Stern
Precision AgClimate Corp. CEO Talks Retailer Support For Digital Ag
December 1, 2016
CropLife Magazine’s sister publication, AgriBusiness Global, recently sat down with Mike Stern, CEO of The Climate Corp., following the Monsanto subsidiary’s Read More
Precision AgTrimble Debuts End-to-End FMIS Platform
November 28, 2016
October’s inaugural PrecisionAg Vision Conference left this author with many thoughts and things to ponder in the coming months. Probably Read More
CHS Primeland
CropLife 100The 2016 CropLife 100 Report: Reviewing The Many Bulls And Bears Impacting This Year’s Marketplace
November 28, 2016
For virtually all of 2016, the nation was wholly focused on the big Presidential election. Some folks aligned themselves with Read More
Latest News
Greenleaf Technologies TADF03-D Dual Fan Nozzle
NozzlesSix Greenleaf Nozzles Approved For XtendiMax With Vapor…
February 22, 2017
Greenleaf Technologies has announced that six of its TurboDrop D Series nozzles have been approved for use with Monsanto’s XtendiMax Read More
Winter Wheat
Industry NewsTiger-Sul Hires Manitoba And Eastern Canada Account Man…
February 22, 2017
Tiger-Sul, a global leader in sulphur fertilizers and crop performance products, has announced that sales veteran Trevor Loewen has joined Read More
NFMS 17 Hagie Sprayer
Eric SfiligojThe Read From Louisville: Uncertain
February 22, 2017
By the time this column appears across the country, the annual Commodity Classic will be in full swing. This means Read More
SprayersApache 1000 Series Sprayer Earns 2017 EquipmentWatch Hi…
February 21, 2017
ET Works has been named a winner in the 2017 EquipmentWatch Highest Retained Value Awards program, the industry’s only award Read More
Measuring Bulk Tanks
StewardshipMeister Media Among 2017 Award Winners Presented By The…
February 21, 2017
The Pesticide Stewardship Alliance (TPSA) held its annual conference in San Diego, CA, earlier this month where three awards were Read More
John Reifsteck
CropLife 100GROWMARK’s Reifsteck Earns NCFC Director Of The Y…
February 21, 2017
GROWMARK Chairman of the Board and President John Reifsteck has earned the prestigious Director of the Year Award from the Read More
Roy Blunt
LegislationARA Recognizes Blunt, Heitkamp For Legislative Efforts …
February 17, 2017
Agricultural industry continues to face federal regulatory challenges. Thankfully, agriculture’s allies in the U.S. Senate stepped forward. The Agricultural Retailers Read More
LegislationThe Fertilizer Institute Commends Senate On Confirmatio…
February 17, 2017
The Fertilizer Institute (TFI) President Chris Jahn issued the following statement on the Senate confirmation of Oklahoma Attorney General Scott Read More
Trump, Senate, Cabinet
LegislationBREAKING: Trump EPA Nominee Scott Pruitt Confirmed by S…
February 17, 2017
Scott Pruitt, who as Oklahoma’s attorney general spent years suing the Environmental Protection Agency over its efforts to regulate various Read More
ManagementFebruary Road Trip Edition
February 17, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss their recent visits to Indiana and Kentucky. Read More
Heritage Cooperative Finished Building Aerial
ManagementHeritage Cooperative, Agland Co-op Approve Merger
February 17, 2017
Agland Co-op and Heritage Cooperative stockholders have both approved the merger agreement between Agland Co-op and Heritage Cooperative. Now begins Read More
LegislationARA Fly-In: Ag Retail Descends on Capitol Hill, Lawmake…
February 15, 2017
More than 100 agricultural retailers, distributors and suppliers headed to Capitol Hill Tuesday morning for the Agribusiness Congressional Fly-in, according to a Read More
Untreated soybean seed Heartland Coop
Seed/BiotechMarrone Bio Innovations, Groundwork BioAg Bio-stacked M…
February 13, 2017
Marrone Bio Innovations, Inc. and Groundwork BioAg, Ltd have announced successful seed treatment field trials of the world’s first all-biological Read More
NL5000 With G5 Technology
SpreadersNew Leader Introduces NL5000 Dry Nutrient Applicator Wi…
February 13, 2017
New Leader, a division of Highway Equipment Company (HECO), has announced the next generation of spreading technology with the NL5000 Read More
Fertilizer Storage
Crop InputsThe State Of The Fertilizer Industry
February 9, 2017
He’s all hat, no horse.” It’s a humorous way of describing a person who tells a good story, but is Read More
CropLife 100Pinnacle Agriculture Agrees To Credit Agreement Amendme…
February 9, 2017
Pinnacle Operating Corp. has entered into an amendment (the “Amendment”) to its First Lien Credit Agreement that will provide for, Read More
ManagementUpdates on Upcoming Trips, Dow-DuPont, and the Des Moin…
February 9, 2017
Editors Paul Schrimpf and Eric Sfiligoj review a few future travels, along with the latest on big company mergers and Read More
Championship Tractor Pull
EquipmentNational Farm Machinery Show Highlighted By Championshi…
February 9, 2017
The scream of monster engines, the stench of burning rubber and the ground-pounding vibrations of the country’s largest, loudest and Read More