Monsanto Company expressed its disappointment today that recent discussions with the Argentina Ministry of Agriculture and previous areas of alignment have yet to result in a mutually-agreeable solution for soybean growers, the broader agriculture industry and the Government of Argentina.
Therefore, as a result of its obligations to its farmer customers worldwide, who expect and deserve a level playing field, as well as the company’s owners, Monsanto is reinforcing its commitment to enforce its private contracts and intellectual property rights both inside and outside Argentina.
Additionally, until such time that there is further clarity within Argentina on a predictable way to collect royalties on the value new patented soybean technologies bring, the company plans to take measures to protect its current assets and will suspend launching any future soybean technologies in the country, including Roundup Ready 2 Xtend soybeans.
“We were optimistic that a solution would be secured to allow the legally operating soybean technology royalty system to continue uninterrupted following recent discussions between the Ministry of Agriculture for Argentina and the soybean industry stakeholders,” said Brett Begemann, Monsanto President and Chief Operating Officer.
“While the Government of Argentina has acknowledged to us that they were committed to supporting a conducive environment for continued investment and further long-term development of agriculture through recognition of intellectual property rights and a recognition of private agreements, the recent actions are not consistent with that position. Both endorsing and actively supporting these basic principles are necessary to create a predictable business environment, which invites foreign investment.”
During conversations, the soybean industry stakeholders heard the Minister of Agriculture’s concerns with the existing system, which has been legally operating for more than a year, and responded with several proposals. Unfortunately, the parties were unable to come to a mutually agreeable solution.
“While Monsanto is concerned that the recent government actions may adversely affect its private agreements, the company remains committed to engage in dialogue with the Government of Argentina to try and find a solution that will help encourage and spur new investments in Argentina,” Begemann added.
In light of the continued evolving business environment in Argentina, the company is doing a full review of its business plans and projections for Argentina and will assess any implications to its balance sheet and earnings.
