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Monsanto Extends Efforts in Vegetable Seed Market

28 October 2011

US - The agribusiness company has quietly stepped into the marketplace with vegetables grown from its seeds. The goal is to use its technology to create produce that tastes better and plants that yield more product, while letting farmers use fewer resources.

Monsanto Co., whose genetically modified corn and soybeans have reshaped America's heartland and rallied a nation of fast-food foes, wants to revolutionize the produce aisle, reports the Chicago Tribune.

The agribusiness giant already has quietly stepped into the marketplace with produce grown from its seeds.

Grocery customers in California and elsewhere are chopping its onions that produce fewer tears, stir-frying its broccoli that decreases cholesterol and biting into tiny orange tomatoes that last longer on the shelf.

Soon, people will be thumping melons bred to be a single serving and shucking sweet corn genetically modified to enable farmers to spray the fields with the company's weed killer, Roundup.

To do this, it's marrying conventional breeding methods with its vast technological resources to bring about changes in fruits and vegetables in months or years, rather than in decades.

Monsanto's goal: to dominate today's $3-billion global market for produce seeds, much as it already has done with corn and soybeans.

"This isn't a hobby.... We're serious about it," said Monsanto Chief Executive Hugh Grant, who expects the company's vegetable seed revenue to rival its $1.5-billion soybean business in the coming decade.

The move has raised the hackles of some environmental and organic farming groups that fear it will ultimately squeeze out smaller, independent vegetable seed firms.

They also worry that the company will use technology to introduce revolutionary new genes into vegetable plants, just as Monsanto scientists have done in corn, soybeans and cotton.

"Clearly, the company wants to keep its options open," said Doug Gurian-Sherman, senior scientist with the food and environmental program at Union of Concerned Scientists. "But I think they understand it's a dicey proposition to move into [genetically engineered] foods that are widely consumed, rather than foods that are highly processed or used as animal feed."

Monsanto officials said the opportunities for growth in the vegetable seed market were too good to ignore. They said there were plenty of ways to use technology to design better-tasting vegetables, yet avoid the financial and consumer hurdles that would inevitably come with rolling out genetically engineered produce for a grocery store.

The amount of arable land worldwide is dwindling, while the world's population is forecast to jump to more than 9 billion by 2050 from nearly 6.9 billion today. Shifts in weather patterns have caused recent slumps in key crops.

All this, in turn, has water-strapped countries eager to establish secure food supplies. Fast-growing economies, such as those in India and China, also are stepping up food imports to feed a burgeoning middle class.

Given these factors, Monsanto is making a multibillion-dollar bet that global farming conditions are going to get tougher and farmers are going to be hungry for their vegetable and fruit seeds.

Revenue from Monsanto's vegetable seed business totaled $895 million for the company's fiscal year that ended Aug. 31. That's about 8 per cent of its annual revenue, a figure the company hopes to grow steadily in coming years.

Monsanto moved aggressively into the vegetable business in 2005 when it bought seed powerhouse Seminis Inc. in Oxnard. Since then, it has acquired four other vegetable seed companies, opened 57 research centers worldwide and hired a slew of seed geneticists and agricultural researchers.

Today, Monsanto has about 4,000 employees — nearly a fifth of its 21,000 global labor force — working on its vegetable seed business worldwide.

It has nearly doubled the staff at its test farm and research greenhouses in Woodland, Calif., a farm community 18 miles west of Sacramento, where much of the company's vegetable seed research happens.

TheCropSite News Desk



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