US Biotech Giant Monsanto Buys Brazilian Hybrid Corn Producer

Brazil's Agroeste Sementes US-headquartered biotechnology multinational Monsanto announced that it has acquired Agroeste Sementes, a leading Brazilian corn seed company, for slightly more than US$ 100 million. Agroeste focuses on hybrid corn seed production and serves farmers throughout Brazil, the world's third largest corn production area.

Under the terms of the agreement, Monsanto acquired ownership of 100 percent of Agroeste's businesses including its corn seed brands. Monsanto paid cash for the acquisition.

"Agroeste will serve as an important complement to our existing national brand approach in Brazil," said Brett Begemann, Monsanto's Executive Vice President of Global Commercial.

"The acquisition will allow our companies to provide new and innovative higher yielding seed offerings through multiple brands and will bolster our genetics platform for the introduction of our trait technologies longer term," Begemann said.

Brazilian farmers planted approximately 30 million acres of corn in the 2006-2007 growing season. Today, Monsanto estimates that the Brazilian hybrid corn seed market is 23 million acres.

Monsanto says that the acquisition will enhance the company's existing corn germplasm portfolio, enabling the company to deliver new higher-yielding seed offerings to Brazilian corn farmers.

Agroeste's corn seed products are currently used on approximately 10% of Brazil corn acres. Monsanto's corn seed products, sold locally through the Dekalb and Agroceres seed brands, are currently used on approximately 30% of corn acres in Brazil.

Monsanto noted that the combination of each company's germplasm portfolios is also expected to support the introduction of biotech trait offerings in Brazil longer term.

Last month, the Brazilian National Biosafety Technical Committee's (CTNBio) approved Monsanto's MON 810 insect protection event, known in the United States as YieldGard Corn Borer, for future commercial use in corn in Brazil.

The CTNBio approval may be followed by a review from the National Biosafety Council (CNBS) to examine social and economic factors.

Following a favorable review by CNBS, and approvals of the individual MON 810 events in specific hybrid varieties, farmers will be able to plant these higher-yielding seeds.

Tags:

You May Also Like

In Brazil, Apartheid Is a Growing Cancer

During the apartheid regime in South Africa, black people were segregated.  There were separate ...

Brazil: 1001 Nights Gets First Translation from Arabic to Portuguese

“O my sister, relate to us a story to beguile the waking hour of ...

No Tears Shed for Windows in Brazil

The 1st National Free Software Meeting for Municipalities got underway August 23 in Rio das Ostras, ...

Senator Gives First Salvo on Brazil’s Disarmament Campaign

Today the president of the Brazilian Senate, Renan Calheiros from the Alagoas PMDB party, ...

After Blue Skies Brazilian Embraer Fears a Bumpy Flight in 2009

The year of 2008 has been a good one for Embraer, the Brazilian aircraft ...

NY Times’s Joe Sharkey Sued in Brazil for Role in Boeing Crash

Rosane Gutjhar, the widow of one of the victims of flight 1907's accident, a ...

Brazilian Indians Get Water Filter and Info to Reduce Kids’ Diseases

57 indigenous tribes of the state of Mato Grosso do Sul, in the Center ...

Brazil’s Central Bank Chief See Country on Recovery Path

Henrique Meirelles, the president of the Brazilian Central Bank said that Brazil is leaving ...

Brazil Creates Close to 200,000 New Jobs in May, Less than April or May 2005

198,837 new formal jobs (with signed working papers) were created in May, in Brazil, ...

Brazil Starts Year with US$ 916 Million Trade Surplus

Brazilian exports totalled the equivalent to US$ 3.577 billion up to the second week ...