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Monsanto and the World's Food Supply (Two Articles)

 

Monsanto 'may face disaster', 2003

Big Corporations Tighten Grip on World Food Supply , 1999

Brazil GM Crop Plan challenged , 2003

Monsanto 'may face disaster'

Paul Brown
The Guardian Weekly 20-3-0508, page 21

A report on the prospects for the genetic engineering giant Monsanto, which has 91% of the world's market in GM seeds, says the company "could be another financial disaster waiting to happen". Innovest, specialists in environmental, social and strategic governance based in New York, says the company may not be able to obtain insurance against risks of contamination of food and other farm products, which might result in big compensation claims.

The report, which was commissioned by Greenpeace, says the company's prospects for expansion are limited because of increasing rejection of GM. One of Monsanto's latest products, GM wheat, might be a "costly failure" because of market rejection and could cost the US large grain exports, the report says. Monsanto dismissed the report and reacted angrily to being given a CCC environmental rating, the lowest possible score. It said the report coincided with an assessment from the Bank of America suggesting Monsanto stock was undervalued and it was time to buy.

In a statement Monsanto said: "The report is highly biased and cherry-picks information about plant biotechnology and Monsanto in order to further a political agenda."

Big Corporations Tighten Grip on World Food Supply

Andrew Simms is author of the Christian Aid report, Selling Suicide, about farming and genetic engineering in developing countries
Date: 11 May 1999, The Guardian Weekly Page 18

INSTEAD of a plough, the poorly sketched Indian cow pulls an upturned bottle of Monsanto's herbicide in promotional leaflets that are distributed in Indian villages. In Brazil, even before legal permission for commercial growing has been given, farmers are invited to demonstrations of genetically modified soya, and Monsanto is in court for alleged illegal planting.

In a David and Goliath struggle between farmers, landless labourers and huge multinational corporations, it is Goliath who has the lethal weapon. The advent of genetically modified crops and an emerging international regime that allows companies to turn public natural resources into private property is intensifying the balance of power.

The top 10 agrochemical companies control 85 per cent of the global agrochemical market; the top five control virtually the entire market for GM seeds. Concentration of ownership within the industry is increasing. Monsanto has bought stakes in the major national seed companies of both India and Brazil. Outside China, these are the farming giants of the developing world.

A spate of massive mergers and the tight control afforded by the new gene technologies, added to the lobbying and marketing clout of the agro-biotech companies, means enormous power over the world's food supply has been grabbed by very few hands. Is the world sleepwalking into a gene trap? Mario Gusson, who works in Brazil with Christian Aid-backed organisations, thinks so: transnational corporations will have a monopoly over price, hence control over food production and manipulation of the market.

Without a global competition policy or enforceable code of practice for multinationals, Adam Smith's age-old warning should be heard: people of the same trade seldom meet together... but the conversation ends in a conspiracy against the public.

Ismail Serageldin, head of an influential World Bank-funded global network of agricultural research centres, has questioned whether biotech advances will be to the public good. Hi-tech farming has always been like a glass bicycle, it looks good in the showroom, but just try riding it on the farm tracks of poor countries.

One legacy of the last farming revolution is the permanent loss of at least 75 per cent of food varieties. In the heartlands of the so-called green revolution, despite increases in food supply and even allowing for population increase, more people were left hungry. Today 70 per cent of GM crops are engineered not to improve their food value but to make them dependent on the seed companies' own-brand agrochemicals. They maximise profit and market share for the parent company, while tying farmers into tight contracts.

Environmental impact, too, follows the harmful farm tracks of the past. Using herbicide-tolerant crops is like giving one plant a genetic radiation suit, then dropping a small nuclear device to wipe out all other plant life in the area as well as the animal life that depends on it and any hope of sustainable agriculture.

Battered by criticism, the agro-biotech firms argue that we need GM crops to feed a hungry world. Such claims take the debate on hunger and poverty back to the Dark Ages. We know there is more food than we need to feed the world, yet more than 800 million people go hungry. Eight out of 10 children in developing countries live surrounded by food surpluses. GM crops cannot resolve these paradoxes but, by concentrating power into fewer hands and continuing the green revolution trend of farming based on monocrops and dwindling natural resources, they can make it worse. People go hungry because they are poor and because they have no land on which to grow food. Poor farmers stay hungry because they lack access to water and credit, and lose out in the hustle for government support that rich farmers and corporations win.

GM crops are being promoted in poor countries before any international agreement on biosafety measures. The huge soya-growing state of Rio Grande do Sul in Brazil is fighting against GM crops and alleged illegal planting of GM soya by Monsanto's affiliate Monsoy. If they lose, consumers in Brazil and elsewhere could lose their choice in a wide range of GM-free products that depend on soya. Their struggle has become every consumer's struggle.*

* FOOTNOTE: Brazil, the world's second largest producer of soya, has authorised the cultivation and sale of genetically modified soya crops, the last major producer to do so. The Guardian Weekly Volume 160 Issue 21 May 23, 1999, Page 4

Brazil GM Crop Plan challenged

http://news.bbc.co.uk/2/hi/americas/3163522.stm
Date: October 4, 2003

Environmentalists say GM crops will compromise Brazil's integrity.

One of Brazil's most senior lawyers has appealed to the Supreme Court to overturn a government decision which allows farmers to grow genetically modified crops.

Last week, a government decree permitted the planting of genetically modified soy beans for one year in the south of the country. But Procurator-General Claudio Fonteles, a senior official who rules on the legality of government policy, has now joined the Green Party and the Confederation of Rural Labourers in challenging the decision. Mr Fonteles argues that ministers acted unconstitutionally by introducing the policy in the form of a decree - a charge the government rejects.

Test cases

The procurator-general also says the government ignored an earlier court ruling which said there should be an independent study of the issue before planting could begin. In its defence, the government points out that this is a limited measure under which genetically modified soya beans will only be planted in the south of the country and only for one year.

Landless peasants

Brazil's vast agricultural tracts are a tempting prospect for biotech companies The BBC's Steve Kingstone in Sao Paulo says the government's controversial decision has prompted strong criticism from environmental campaigners. But our correspondent says Mr Fonteles' challenge is the most significant of three legal challenges from groups and individuals opposed to the measure. A second comes from the country's Green Party, which says the government has a duty to guard Brazil's environmental integrity. Also seeking to block the move is the Confederation of Rural Labourers. It says the planting of genetically modified crops will adversely affect the working lives of 15 million people. Brazil was one of the last of the world's major agricultural producers to ban GM crops. And even now, correspondents say, many of its soya farmers have simply ignored the ban - smuggling illegal seeds in from neighbouring Argentina for cultivation. Some have estimated that one-third of Brazil's soya fields are given over to illegal GM crops.

 

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