Monsanto

Mutant food

A lawsuit against the FDA reveals documents that show even the agency's own scientists have doubts about the safety of genetically modified foods.

When Steven Druker filed a lawsuit against the U.S. Food and Drug Administration for its negligent oversight of genetically modified foods in May 1998, the act was written off as just another stunt by some anti-GM food activist trying to make a point. But now, the GM foods industry and the U.S. Food and Drug Administration have reason to be nervous.

A federal judge is reviewing witness statements and previously undisclosed FDA documents before issuing a summary judgement of a lawsuit Druker is leading on behalf of the Alliance for Bio-Integrity, nine university scientists and 12 religious leaders. The Washington-based International Center for Technology Assessment, a nonprofit organization that has brought previous lawsuits against government agencies on food and environmental safety issues, collaborated with Druker and has provided the lead counsel.

The suit charges the FDA with violating the very federal statute that created the agency, the U.S. Food, Drug and Cosmetic Act, because the FDA does not mandate the testing and labeling of GM foods. For its own part, the FDA asserts in its policy on GM foods that genetically engineered crops are no different than those created through traditional breeding methods. The agency bases its position on the fact that foods derived from traditionally bred crops have a history of safety. Thus the FDA takes the position that genetic engineering is just another traditional breeding method, and reasons that GM foods should be considered safe.

Whatever the judge’s decision, Druker’s actions have made public information that is very damning to both the FDA and the companies selling GM seeds simply because it highlights the central point in the controversy over GM foods: No one has proved beyond a doubt that GM foods and other products are not safe, nor has anyone proved beyond a doubt that these products are safe.

By now, most everyone in the U.S. has probably eaten GM foods in some form. According to the Biotechnology Industry Organization, genetically engineered crops accounted for 25 percent of the corn acreage planted in the U.S. in 1998, 38 percent of the soybean acreage and 45 percent of the cotton acreage. Because the FDA makes no distinction between GM crops and traditionally bred varieties, food producers are not required to separate or label their GM crops in the U.S. So without knowing it, you’ve probably eaten GM soybeans in the breakfast cereal you had this morning, in the chocolate bar you knoshed on this afternoon, and perhaps your baby has had it in his soy-based formula.

The very notion that people are eating foods derived from GM crops without their knowledge — or consent — offended Druker both as a lawyer and as a religious person when he realized this was happening back in 1996. He came upon this information while researching a book examining the relationship between science, religion and ethics. The more he researched, the more he became concerned about genetic engineering and the basic assumptions government regulators were making about the products of this science. Eventually, the 50-year old lawyer set aside his book and took up the cause of suing the FDA.

While he awaits the summary judgement of his lawsuit, Druker has kept a pretty packed schedule that has included an appearance before a panel selected by the FDA to discuss the safety and labeling issues of GM foods. Ironically, the agency has taken Druker’s arguments more seriously than much of the news media. What has made Druker’s lawsuit noteworthy to many editors is that it contends the FDA’s policy on GM foods infringes upon religious freedom rights and is in violation of the Religious Freedom Restoration Act.

This focus on the religious angle has had the effect of putting Druker in a camp with the anti-establishment fringe, a characterization that has stuck. In an Aug. 18, 1999, profile of the lawsuit, the Wall Street Journal covered only the religious aspects of the action, describing Druker as something of a small-town, Torah-thumping fanatic who was “gathering his Noah’s Ark of plaintiffs, many of whom share his mystical spirituality and distrust of authority.”

To be sure, 12 clergy leaders from a variety of established denominations are co-plaintiffs in Druker’s lawsuit — along with nine university scientists. Druker says the university scientists and the clergy leaders were each aware of both the religious and scientific aspects of the lawsuit before signing on. The religious aspects are important, Druker says, but have been overblown. The overriding concern of both clergy and scientists is that the FDA’s handling of GM foods has been unethical.

The lawsuit seeks to force the FDA, at the very least, to label GM foods, to inform consumers of the genes that have been inserted in their foods so they can make a informed dietary decision. At most, Druker and the others would like to see a recall of these products and mandatory testing. To achieve even part of their goals, Druker and the CTA counsel must prove that the FDA has not followed the law to ensure the safety of consumers regarding GM foods.

Druker and the CTA may have already won the war, even if the battle is still undecided. As part of the lawsuit, the FDA was required to turn over to Druker some 44,000 internal documents. These include memos from agency scientists criticizing the FDA’s developing policy on GM foods.

The policy, which was published in the Federal Register in May 1992, is regarded even by the FDA’s own scientists as an industry cheat sheet: “The initial intent of the document was to present scientific considerations and to avoid telling industry what tests to run and how to go about doing it,” said Louis J. Pribyl, an FDA microbiologist in a February 1992 memo.

Yet a major part of this policy is a flowchart that effectively tells a company not only what to test in a crop but what results will be needed for the product to be considered safe. By including the flowcharts and telling the companies what to test and what results to get to meet safety standards and by listing all the tests and the answers, Pribyl felt that the FDA made it possible for companies to tailor their tests to get the results they would need.

Prior to Druker’s lawsuit, evidence that FDA policy was written largely to favor industry was a set of loosely connected dots. Besides the published policy in the Federal Register, there were Bush administration statements about the FDA regulations between 1991 and 1992. Vice President Dan Quayle in particular said the policy was part of a “regulatory relief program” that was intended to ensure the dominant position of the U.S. biotechnology industry.

And finally, there was a special investigation by the General Accounting
Office, the investigative arm of Congress, of the FDA in 1994 that focused on potential conflicts of interest regarding several agency officials who had once been employed by the agro-pharmaceutical
corporation Monsanto. Chief among the targets was Michael Taylor, whose job it was at the FDA to oversee and approve the very policies that would regulate GM products. Prior to joining the FDA, Taylor was a partner at King & Spalding, Monsanto’s external counsel on regulatory issues. The GAO report found no improprieties on Taylor’s part. But the document did make the connection between Monsanto and one of the main authors of FDA policy.

Now, with the newly disclosed FDA documents in Druker’s hands, the holes in this picture are filling in. The published policy is based on the idea that genetically engineered crops are no different than those created through traditional methods. Yet in previously undisclosed FDA memos, at least 10 of the 17 scientists who took part in shaping the Federal Register document along with other FDA researchers invited to comment — including head scientists from the agency’s Division of Food Chemistry and Toxicology, Center for Veterinary Medicine, Biological and Organic Chemistry Section — cast serious doubts on the scientific evidence for this assumption.

As Linda Kahl, an FDA compliance officer, noted in a memo dated Jan. 8, 1992, the FDA’s approach to writing the policy was the equivalent of “putting a square peg in a round hole — are we asking the scientific experts to generate the basis for this policy statement in the absence of any data? It is an exercise in hypotheses forced on individuals whose jobs and training ordinarily deal with facts.”

Even the FDA official with approval authority over the policy, Biotechnology Coordinator James Maryanski, raised questions about the agency’s assumptions. In a letter to a Canadian government official dated Oct. 23, 1991, Maryanski acknowledged that there was no scientific consensus about the safety of GM foods. He also admitted that the potential for genetic engineering to introduce new compounds into foods that could trigger allergic reactions “is particularly difficult to predict.”

In these documents, Druker and the CTA counsel believe they have proved that the FDA disregarded warnings of many of its own scientists about the unique risks posed by genetically engineered foods; that it covered up these opinions; and took a public stance that was entirely the opposite in tone and message than the private, internal memos.

In October 1999, the FDA announced a series of meetings around the country to discuss the safety of GM foods. Maryanski, who participated in these panels, asserted, “We are meeting our goal of ensuring that these new products meet the same safety standards as traditional foods.”

One model GM product that agency officials like Maryanski hold up as proof of the safety of GM foods is the Flavr Savr tomato, but the new memos have bruised the product’s reputation. The Flavr Savr tomato was engineered to ripen slowly, to give tomatoes a longer shelf life. It had to undergo more stringent food testing because its developer, California-based Calgene, had applied for market approval prior to the enactment of the FDA’s new policy on GM foods.

In 1994, Flavr Savr failed as a consumer product because all the genetically engineered advantages were lost in the shipping and packing stage, which bruised the tomatoes and gave them an aged appearance. According to an FDA internal memo, Flavr Savr also failed to meet the agency standards of safety.

In an assessment that went to Maryanski and others, Robert J. Scheuplein, director of the agency’s office of special research skills, found a problem with some of the testing data on the Flavr Savr. Scheuplein was unsatisfied with the explanations of Calgene scientists about one difference between regularly bred tomatoes and the Flavr Savr.

Although he regarded the effect as small, Scheuplein did say: “The data do not show the Calgene product to be unsafe but the data fall short of ‘a demonstration of safety’ or of ‘a demonstration of reasonable certainty of no harm’ which is the standard we typically apply to food additives.”

With regard to how the agency was instructing its scientists to regard GM foods in testing, Scheuplein said, “It has been made clear to us that this present submission [the Flavr Savr] is not a food additive petition and the safety standard is not the food additive standard. It is less than that, but I am not sure exactly how much less.”

The chilling implication revealed in this memo is that all other GM crops have undergone less stringent testing. In fact, testing is handled not by the agency but through voluntary consultations between the companies and the FDA with company scientists running the tests.

Previously undisclosed papers such as these tell the story of how the FDA flouted its own laws and ignored the advice and warnings of its own scientists in the process of pushing through a food technology that seemed to have immediate benefit only for the producers — namely agrochemical companies including Monsanto, DuPont and Novartis.

The ramifications stretch far beyond the U.S. borders. Together, these documents with the resulting FDA policy confirm the very fears expressed last November by WTO protesters in Seattle: that globalization will lead governments to speed up industry growth at the expense of thorough public health precautions. This is precisely what has happened with GM foods.

“Before Druker, we had no hard evidence that our regulatory system was favoring industry,” explains Gabriela Flora, program associate on Agricultural Biotechnologies, at the Minnesota-based Institute for Agriculture and Trade Policy.

By connecting the dots between U.S. regulators and industry, the hard evidence from the Druker case along with public outcry could put the breaks on the once fast-moving industry that the U.S. government has tried so hard to foster. Already, GM crop producers are reeling from partial and complete bans of GM crops throughout the European Union and Asia.

And in the U.S., where GM food fights have paled in comparison to sentiments expressed by Europeans, the tide is turning. Major food producers like U.S.-based Archer Daniels Midland have cut back on the use of GM foods or agreed to segregate and label these foods in their exports to Europe. The recent failure of the WTO negotiations, which were intended to reduce trade barriers, has forced the Clinton Administration to step back from its goal of broadening markets for GM products.

“People from the U.S. Trade Representative’s office stand up and say we have the safest food supply and the strictest regulation in the world, but Druker is showing this isn’t the case,” says Flora. So countries that once questioned the integrity of the U.S. food supply and the integrity of U.S. regulators now have ample ammunition, thanks to Druker, to prevent GM foods — produced mainly by U.S. corporations — from entering their borders.

It is somewhat remarkable that an individual such as Druker would eventually have such an impact on the high-stakes development on the GM foods industry. As he describes it, his involvement began with a simple realization of serious ethical concerns. “What I could see was that there were plans to very quickly restructure a large percentage of the world’s living organisms and that the U.S. government had given it a green light,” Druker says.

In fact, a large community of government officials and scientists — including Gordon Conway and Gary Toenniessen of the Rockefeller Foundation — seemed to hold the same, favorable view. Druker said he was surprised to find that “these presumptions appeared to be dubious to eminent scientists who were not indentured to the biotech industry.” Druker sought out these scientists, many of whom hold faculty positions at some of the most prestigious universities in the U.S. and Europe — including the University of Minnesota, Northwestern University and the University of Leeds.

Before long, nine of these same scientists became plaintiffs in Druker’s lawsuit. What makes their action unusual is that the atmosphere inhabited by molecular biologists and other scientists engaged in biotechnology research is a clubby one. Dissenting views about genetic engineering are discouraged, says Phillip Regal, professor of ecology, behavior and evolution at the University of Minnesota.

Regal is one of the plaintiffs in Druker’s lawsuit. Having a negative view of biotechnology, Regal warns, can cost a researcher his chances at tenure, future employment in industry, and certainly can dry up his resources for research funding. The scientists joining Druker in suing the FDA have done so at great personal and professional risk.

Why are these scientists and Druker doing this? Because they take issue with the way in which the government, corporations, and a significant portion of the scientific community, appear to speak with one voice. That one voice consistently tells the public that the industry must move forward quickly to preserve the U.S. dominance in biotechnology. At the same time, it tells us not to worry — government and industry have already taken care that public health and the environment will not be endangered as we move forward with this technology.

By suing the government, Druker feels he is getting at the major source of the biotechnology juggernaut. The publication of these documents, which Druker has gradually added to the Alliance for Biointegrity Web site since last summer, will have the effect for biotechnology that the tobacco papers had for the cigarette industry: Others will gain ammunition that can be used in later litigation and export restrictions on GM foods.

So in many ways, Druker has already won even before the final judgement is in on his case. “[The FDA memos] are out, and they can never be covered up again,” he says. “If we cannot turn the tide against genetic restructuring within the bounds of science and law, perhaps economic realities will come into play.”

Economic realities have struck. Last month, Novartis and AstraZeneca announced plans to spin off and then merge their agricultural businesses into a new company called Syngenta and Monsanto followed suit nearly two weeks later with Pharmacia Upjohn. The message in these moves is clear: The companies have taken enough of a financial bath with their investments in GM products and are, in a way, washing their hands of these ventures.

Kristi Coale is a San Francisco freelance journalist who covers science. She is currently working on a project on the environmental impact of agricultural biotechnology for the Center for Investigative Reporting.

Genetically modified Ghana

A voice of caution on GMOs from the Vatican challenges biotech inroads into sub-Saharan Africa

The Catholic News Service reported last week that the Vatican might have signaled a change in policy on genetically modified organisms by appointing Cardinal Peter Turkson as the head of the Pontifical Council for Justice and Peace.

Cardinal Peter Turkson told Catholic News Service March 9 that he would urge an attitude of caution and further study of the possible negative effects of genetically engineered organisms.

Under Cardinal Turkson’s predecessor, Cardinal Renato Martino, the justice and peace council sponsored several conferences on genetically modified food as a way to alleviate hunger in poor countries.

Agribusinesses and biotech industries that produce genetically modified organisms are justified in wanting to recoup the expenses laid out for research and development, and they have a right to want to make a profit from their work, said Cardinal Turkson, who took over the reins of the council in January.

But the issue becomes problematic when a company that controls the use of genetically modified seeds and crops is motivated more by profit than by “the declared desire to want to help feed humanity,” he said.

Cardinal Turkson is no dope (according to his Wikipedia bio he “is able to speak English, Fante, French, Italian, German, and Hebrew, in addition to understanding Latin and Greek.”) Here he seizes upon the crucial point. Every time HTWW covers the issue of genetically modified organisms, some readers immediately accuse me of anti-science bias. But I don’t actually have a position on whether GMOs are by definition good or bad for the environment or human health or even the challenge of alleviating hunger in the developing world. My basic stance, in fact, is pro-science: I believe technological advances have greatly advanced human health and affluence, and will continue to do so, if properly regulated. My concern re GMOs has always stemmed from a profound skepticism that profit-seeking corporations can be trusted to responsibly serve the public good. One need look only at the constant stream of reports detailing unethical and criminal behavior by major pharmaceutical companies to realize that this is hardly a hypothetical concern.

In the case of GMOs we are dealing with a remarkable concentration of intellectual property ownership in just a handful of corporations. Like all well-endowed corporate actors, these companies do not shy from vigorously lobbying governments in favor of putting into place place legal frameworks that are designed to maximize profits and minimize caution.

Cardinal Turkson is from Ghana, where this process is exquisitely visible. Most African countries are signatories to the Cartagena Biosafety Protocol, which calls for national biosafety laws to include something called the “precautionary principle.” The precautionary principle puts the burden of proof on those who favor taking a specific action, (such as introducing genetically modified cassava plants into Ghana) rather than on those who resist that action. In other words, a biotech company would have to prove its product was safe, rather than Ghana prove it was unsafe. For understandable reasons, the likes of Monsanto and Syngenta hate the precautionary principle, and are doing everything within their power to ensure that national biosafety laws avoid any mention of such a horror.

If you google Ghana and genetically modified crops, you will very quickly run into the name Walter Alhassan, a consultant for the Accra-based Forum for Agricultural Research in Africa (FARA), and a strong advocate for the position that Ghana’s government “needs to speed up the passage of the Biosafety Bill to the global trend to improve agriculture and food security.”

From AllAfrica.com:

Prof. Alhassan however brushes aside the fears expressed against GM crops. “GM crops are safer than non-GM crops because they go through stringent measures. Those who have expressed misgivings about it are only doing so because of fears of the unknown.”

He admits that GM technology could be misused. “It is possible that someone can move one gene from one crop to another to cause problems. But that is why regulatory bodies are set up to ensure that the technology is properly guarded.”

But who sets up the regulatory bodies? Tracing a connection between Alhassan and the GMO industry is child’s play. Last November, the South African-based Center for African Biosafety documented some concerns about how African biosafety laws were being shaped by foreign biotech concerns. Alhassan’s employer, FARA, noted the report’s author, Haidee Swanby, was a major player in prepping the region for “the safe deployment of modern biotechnology.”

In May 2009 the Syngenta Foundation for Sustainable Agriculture (SFSA) and FARA announced their partnership to launch a 3 year project for capacity building in biosafety in sub-Saharan Africa. The Project on Capacity Strengthening for the Safe Management of Biotechnology in Sub-Sahara Africa will be implemented by the Sub-Regional Organisations and the National Agricultural Research System in six countries in sub-Saharan Africa: Burkina Faso, Ghana, Nigeria, Kenya, Uganda and Malawi. FARA will manage the $1,265,565 project under the leadership of Professor Walter Alhassan.

Let’s be clear here: Syngenta’s motivation in strengthening the capacity of sub-Saharan Africa to safely manage the introduction of genetically modified crops is not motivated by a corporate desire to end hunger. Perhaps some Syngenta scientists are energized by such a goal, but the private-sector funding of FARA is authorized under the expectation that it will help carve out new markets for Syngenta products. In the face of such pressure, caution is always warranted.

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

Monsanto’s mermaid problem

When mythical sea creatures and antitrust lawyers gang up, you're in trouble

Monsanto is not the first company I think of when assigning blame for sabotaging climate talks, but according to 37 percent of the voters in the Friends of the Earth Angry Mermaid contest, the biotech seed company is the most egregious offender on the planet, edging out Shell and the American Petroleum Institute.

The award, says FoE, is meant to “highlight those business groups and companies that have made the greatest effort to sabotage the climate talks, and other climate measures, while promoting, often profitable, false solutions.”

Agriculture giant Monsanto was nominated for promoting its genetically modified (GM) crops as a solution to climate change and pushing for its crops to be used as biofuels. The expansion of GM soy in Latin America is contributing to major deforestation and greenhouse gas emissions…. Monsanto also wants GM soy to be funded under the Clean Development Mechanism.

Seems to me that there is a bit of a contradiction at work here. If Monsanto believes that GM soy should qualify as a carbon offset under the Clean Development Mechanism, wouldn’t that mean that the company would support a strong agreement on emissions at Copenhagen? If a world carbon tax regime or cap-and-trade scheme became reality, wouldn’t that make Monsanto’s products more valuable? (Providing, of course, that anyone could prove that GM soy plantations or GM corn-derived biofuels really did result in a net decline in greenhouse gas emissions, which seems highly dubious.) But I’m betting the voters in FoE’s poll did not stop to think this through. Monsanto has become one of those brands that inspires overwhelming kneejerk antipathy — the American Petroleum Institute never had a chance, even though API has done far more to fight action on climate change than any biotech company.

And of course, good reasons to distrust Monsanto are legion. I wrote earlier this summer about hints that the U.S. Department of Justice was considering antitrust action against Monsanto, based on the company’s near complete monopoly power in huge sectors of the U.S. seed market. On Monday, the Associated Press published a blockbuster expose of Monsanto’s anti-competitive practices in the seed business, written by Christopher Leonard (no relation), that makes a darn good case for trust-busting.

Among the goodies dug up by Leonard: When Monsanto licenses its gene traits to independent companies, the terms of its contracts include a clause that requires the licensee to destroy its inventory of seeds in the event of a change of ownership. What this means is that Monsanto’s competitors have no chance to bid against Monsanto in any potential buyouts.

Monsanto’s provision requiring companies to destroy seeds containing Monsanto’s traits if a competitor buys them prohibited DuPont or other big firms from bidding against Monsanto when it snapped up two dozen smaller seed companies over the last five years, said David Boies, a lawyer representing DuPont who previously was a prosecutor on the federal antitrust case against Microsoft Corp.

Competitive bids from companies like DuPont could have made it far more expensive for Monsanto to bring the smaller companies into its fold. But that contract provision prevented bidding wars, according to DuPont.

“If the independent seed company is losing their license and has to destroy their seeds, they’re not going to have anything, in effect, to sell,” Boies said. “It requires them to destroy things — destroy things they paid for — if they go competitive. That’s exactly the kind of restriction on competitive choice that the antitrust laws outlaw.”

Maybe the Angry Mermaid can help?

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

The future of corn on a hot planet

Crop scientists have been pushing up corn yields for decades. But the newer strains just can't stand the heat

A troubling fact about corn: In the United States from 1940-1960, after the introduction of hybrid corn and in the wake of the disastrous Dust Bowl years of 1934 and 1936, corn yields and corn heat tolerance both grew. But since 1960, while yields have continued to grow as new hybrid and genetically modified varieties have been introduced, along with other agricultural innovations, heat tolerance has actually fallen.

Why is this significant? Because after a certain temperature, usually around 86 degrees Fahrenheit, corn yields drop dramatically. And even the most conservative mainstream climate scientist predictions about the effect of global warming include temperature rises that would hammer the corn-growing heartland of the United States.

These insights come from a fascinating new paper, “The Evolution of Heat Tolerance of Corn: Implications for Climate Change” by North Carolina State University’s Michael J. Roberts, a professor of Agricultural and Resource Economics, and Wolfram Schlenker, an economist at Columbia University. The researchers take advantage of a 100 years of incredibly detailed information on corn yields and temperature records in Indiana, the third-largest corn-growing state in the U.S.

Since the mildest scenario for climate change would result in heat extremes “worse than the worst of the Dust Bowl years” the question of corn heat tolerance is critical for the future of the American corn belt. Perhaps most alarming:

The… decline in heat tolerance might be due to the fact that maximizing corn plants for average yields also makes them more sensitive to suboptimal growing conditions…”

Which leads to the question “whether recent increases in yields could only be achieved by making plants less heat resistant, or whether future breeding cycles can increase both heat tolerance and average yields at the same time.”

Monsanto, I am sure, would answer the latter part of that question with a resounding affirmative. But the alternative is chilling: We have been progressively breeding and engineering crop strains that are less and less able to cope with climate change.

Roberts and Schlenker conclude with an interesting point about crop prices and income inequality, and a slight dig at Michael Pollan. Pollan has argued for years that subsidizing corn production has led to artificially low prices for corn products and thus contributed to undesirable things such as the obesity crisis. In that scenario, higher prices for corn would be better for our health.

But Roberts And Schlenker point out that such would only be true in a world without vast disparities in income. Rich people, or rich countries like the United States, shrug off rising grain prices and continue to merrily go about their carnivorous corn-fed-meat-eating ways. But poor people in poorer countries can’t handle even minor price increases, and starve.

If incomes were not so divergent, prices would simply rise until enough people substituted to a presumably more healthy diet with less meat. The main reason climate change impacts on agriculture pose such a great threat lies not just in the size of potential production impacts, but also because massive income inequality limits potential adaptation on the demand side of the market. The greatest hope is an uncertain one: that technological change will obviate the need for behavioral change.

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

Monsanto’s weedkiller problem

Chinese competition and slumping demand are stunting RoundUp's growth. Farmers don't seem to mind

Whatever happened to peak weedkiller? On Wednesday, Monsanto announced a fourth quarter loss of $233 million, blaming the shortfall on weakening demand for one of its prize products, the herbicide RoundUp.

In April 2008, the last time HTWW reviewed global herbicide pricing trends, Monsanto was raising RoundUp prices, sticking it to farmers. The reason? Both the cost of production and demand for weedkiller had risen sharply. Industrial production of glyphosate, the key ingredient in RoundUp, is highly energy intensive, and the commodity boom that pushed corn and other grain prices sky-high in 2008 had farmers hungry for as much weed-killer as they could get. Even though Monsanto’s patent for RoundUp expired in 2000, paving the way for scores of Chinese generic glyphosate companies to enter the market, demand was still so high that Monsanto could cover its rising energy costs and still reap significant profits.

This year, it’s a different story. Demand for glyphosate, post-global recession, has plummeted, and production cost pressures have eased as energy prices have fallen. But that hasn’t stopped Chinese generic production. In recent months, Monsanto has slashed prices by as much as fifty percent in a desperate attempt to keep market share, and even mulled the idea of divesting itself of the one-time cash cow and spinning it off as its own separate concern.

So what looked like a bottleneck with all kinds of nasty implications for the future of agriculture in a resource-constrained world with billions of upwardly mobile humans demanding more and more food, is suddenly a surfeit. How long the current market abundance will last if the global economy starts growing vigorously again is anyone’s guess, but the whole episode offers a good reminder about why generalizing into the future based on today’s prices for any given commodity is a pretty risky business.

Monsanto’s plan is to concentrate on its genetically engineered seeds business, where profits are higher, and where it can continue to roll out new, more biotechnologically advanced products as the old ones lose patent protection. But you’ve got to wonder how long it will be before Chinese competitors start selling their own genetically modified organisms.

Putting aside the health and environmental complications that could ensue from cut-throat GMO competition for the moment, one also wonders whether American corn and soy farmers, who currently have essentially no choice but to buy Monsanto seeds, would mind a little monopoly-busting variety.

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

The U.S. versus Monsanto?

Big Agriculture better watch its back. Obama's antitrust lawyers just rode into town

Did a warning shot just fly across Monsanto’s bow?

Most of the focus on the newly invigorated antitrust division of the Department of Justice has centered on the possibility that the feds are taking a hard look at Google’s domination of the online advertising market. My former colleague Farhad Manjoo does a great job of explaining why that’s not a particularly smart idea. But for the foodies, organic and family farmers, and anti-GMO activists of the world, there’s a far more provocative target at which to aim the antitrust cannon: the Roundup, GMO-corn and GMO-soybean king, Monsanto.

This is not idle speculation. On Aug. 7, Philip Weiser, a newly appointed deputy assistant attorney general in the antitrust division, gave an important speech in St. Louis, which just happens to be where Monsanto is based. The title of the speech: “Toward a Competition Policy Agenda for Agriculture Markets.”

Weiser started off with some historical observations about the Sherman Act, the enabling legislative authority for antitrust enforcement, pointing out that worries about price fixing by “the Beef Trust” in the late 19th century encouraged senators representing agricultural states to support passage of the bill. Weiser then delivered a pair of pointed paragraphs unlikely to be received with smiles at Monsanto HQ. Italics mine.

Over the last twenty years, changes in technology and the marketplace have revolutionized agriculture markets, producing some substantial efficiencies as well as concerns about concentration. Notably, farmers today increasingly turn to patented biotechnology that is used to produce seeds resistant to herbicides and insects, producing larger crop yields than ever before. At the same time, this technological revolution and accompanying market developments have facilitated the emergence of large firms that produce these products, along with challenges for new firms to enter this market.

…For many farmers and consumer advocates, we understand that there are concerns regarding the levels of concentration in the seed industry — particularly for corn and soybeans. In studying this market, we will evaluate the emerging industry structure, explore whether new entrants are able to introduce innovations, and examine any practices that potentially threaten competition.

I have written before about how Monsanto’s growing control of the seed business is ripe for trust-busting treatment. Either by direct ownership or through licensing of its genetically modified traits, Monsanto may dominate as much as 90 percent of the U.S. corn and soybean seed market, to the point that farmers are complaining about the difficulties involved in simply locating non-GMO seed.

Monsanto, of course, has its defenders, who argue that any antitrust enforcement would unfairly punish the company for its successful development of innovative über-corn. Why should we care about the small farmers who can’t afford high-priced seed or are struggling to stay organic?

From Dow Jones’ Randomly Noted:

Exactly who’s getting hurt by the structure and composition of U.S. agribusiness? Not consumers. Americans have enjoyed gloriously low food prices for years. But of course it’s not supermarket patrons the DOJ’s worried about. It’s family farmers — moms, pops and kids living on farms in the midwest, Great Plains and South who have trouble making a living while seed, grain, dairy and livestock distributors and processors rake in all the dough. The Jeffersonian strain in our country’s collective consciousness means every few years we wring our hands over the plight of the family farmer. We need to get over it.

As for Monsanto, the rumbling from the DOJ has nothing to do with competitiveness and everything to do with Monsanto’s main competitor, DuPont. Monsanto recently sued DuPont for patent infringement, and has a list of grievances against the company a mile long on its corporate Web site. Among the complaints: A PR firm hired by DuPont allegedly forged letters critical of Monsanto and mailed them to congressional legislators, and Monsanto also claims that DuPont has been funding critics of the company for years.

Sure enough, the conference at which Weiser gave his speech was convened by a group called the Organization for Competitive Markets, which bills itself as an advocate for consumers and small farmers against “big agriculture.” And yes, OCM has received funding from DuPont.

But no matter what Monsanto would like to think, its legions of critics are not all on the payroll of DuPont. For one thing, from the standpoint of the safety of genetically modified organisms, something which antitrust enforcement would have little to no bearing on directly, both DuPont and Monsanto are viewed with equal suspicion by activists.

Indirectly, however, the implications of antitrust enforcement could be immense. The long-term health effects of GMOs is a hotly contested issue. But the critical point is that Monsanto’s domination of the seed market means that, increasingly, farmers — and, ultimately, consumers — have little choice over what they can plant or what they eat. Breaking up that monopoly power is a crucial step in ensuring that multiple varieties of agriculture can contend for their space in the sun.

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

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