Brazil soy group says to end legal dispute with Monsanto

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article


Brazil's largest soybean cooperative, Aprosoja, has decided to drop a lawsuit against U.S.-based Monsanto and is encouraging farmers to sign agreements with the seed giant, the group's lawyer said on Friday.

Aprosoja decided after a long assembly in top soy producing state Mato Grosso late on Thursday that members should accept Monsanto's offer to reduce the price on its new Intacta RR2 pro soybeans in exchange for dropping a case against the company over its old seed technology, Roundup Ready.

"Yesterday, the agreement was accepted by the producers; next week the judicial action will be retired," Ricardo Tomczyk, a lawyer who represents Aprosoja, told Reuters.

Another entity, Mato Grosso state's farm and ranch federation Famato, had already decided to support the agreement. Tomczyk said individual farmers could still sue Monsanto for royalties, but they will no longer have the backing of the country's two powerful farm groups.

Monsanto's genetically modified technology is present in 85 percent of Brazil's soy fields and helped the country become an agricultural powerhouse over the past decade. Brazil is virtually tied with the United States in soybean production.

The company is also fighting off legal battles with farmers over its business practices in the United States.

Monsanto offered on July 24 to give Brazilian farmers a discount on Intacta seeds of 18.5 reais ($8.15) per hectare, or 16 percent off the 115 reais per hectare price if they signed an agreement promising not to sue Monsanto for royalties paid in previous years.

Producers harvest nearly three tonnes of soybeans per hectare on average in Brazil. Monsanto says Intacta, which is resistant to worms, will save farmers money on chemical sprays.

The lawsuits in Brazil started because farmers claimed Monsanto's right to charge royalties on Roundup Ready expired in 2010 under Brazilian law while the company said its patent didn't expire until 2014, the same as in the United States.

Monsanto already stopped charging royalties on Roundup Ready sales in February after Brazil's Upper Tribunal of Justice (STJ) rejected the company's 2014 patent claim. But some farmers wanted the firm to pay back the royalties collected since 2010.

China, which buys 70 percent of Brazil's soy, approved Intacta imports on June 10, clearing the way for the new seeds to be sold in Brazil and giving Monsanto a way out of the royalty dispute in its second largest market after the United States.

Monsanto's spokesman in Brazil declined to say how sales of Intacta were progressing but estimated 2.8 million bags of the seeds would be available for the 2013/14 crop that will be planted starting in September in Brazil. This represents about 8 percent of the expected demand for seed.


Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


AppliMax Spray Nozzle Calibrator

Features & Options: Quickly and easily ensure your spray nozzles are applying the correct application rate and check nozzle wear. ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form