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Is Monsanto – The Publically Proclaimed GMO Villain – About to Collapse?

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Touch the Soil News #384

With a long history of buying other companies and thwarting efforts by states to label foods containing GMOs, Monsanto may be consumed by another beast – Bayer Ag from Germany. Bayer Ag (twice the size of Monsanto) has announced it has visited with Monsanto officials for an unsolicited takeover.

Monsanto is consumed with a host of problems that are impacting the value of the company. The problems are of such magnitude, that Monsanto has turned from feeding on smaller prey, to becoming fodder for a bigger fish. In its weak condition, Monsanto stockholders may want to bail ship and sell the company.

Here is a partial list of woes that Monsanto is beset with:

  1. The global contraction of farm income (See our previous news story #382 – Is Something Wrong With This Picture) has materially impacted Monsanto’s income and business activities as farmers cut back.
  2. Both India and Argentina are forcing Monsanto to reduce its royalties on GMO seeds sold within the countries – dramatically taking the profit out of it for Monsanto.
  3. Monsanto is reeling from public embarrassment over an $80 million fine incurred from the Securities and Exchange Commission for income accounting violations.
  4. Delays in regulatory approvals, Monsanto will lose out this season on planned new product introductions.
  5. The World Health Organization’s study that Monsanto’s key product glyphosate (Roundup) is a possible carcinogen is reverberating around the world. Governments are starting to question past regulatory approvals and whether more studies are need to continue on.

Bayer Ag office building in Levenkusen, Germany. Bayer Ag is researching the feasibility of a takeover of Monsanto.

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Wall Street analysts are rumbling that Monsanto’s leadership may not be a match for the tsunami of problems they are facing. It may take days before anything concrete comes out of Bayer Ag in terms of a concrete acquisition proposal for Monsanto.

On the street, Monsanto has become the world’s most hated corporation for aggressively pushing GMO seeds that rely on heavy chemical use. If you were Bayer Ag, would you take on this package of problems called Monsanto?

Following is a short video of recent protests against Monsanto in Argentina. While the video is not in English, one can get a sense of the global frustrations boiling over against Monsanto. At the root of the protests are claims of birth defects and elevated risks of cancer due to the high use of pesticides in conjunction with GMO crops.

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