Consolidation in the Global Seed Industry: Genetic Modification Just Another Tool in the Toolbox

Since the commercialization of transgenic crops in the mid-1990s, the sale of seeds has become dominated, globally, by three agrochemical companies; Monsanto, DuPont, and Syngenta. So how have the ‘big three’ taken control of our food system? Their success has been attributed to a growing percentage of farmers who purchase their products year after year and believe in the biotech giant’s mantra that this new technology, and their suites of chemical protectants, will boost productivity and bring big dividends.  However, by going the biotech route, farmers give up their right to save this seed, and by default, become locked in, literally, by contract. This causes a reduction in seed diversity and the consolidation of genetic resources stewarded by farmers and smaller seed companies. Small farmers and seed companies cannot buy into this technology and are often bought out by the ‘bigs’. There are those who have resisted increasing agricultural industrialization, but because of strong capital interests, the risks associated with crop production, and the market which drives it a more mechanistic and dependable production system has ensued, albeit one that is increasingly dependent on a corporate agricultural structure.

Like the chemical treadmill, herein lies the technological treadmill. (See  MSU’s Dr. Philip H. Howard). New technologies offer financial benefits for a small number of early adopters who are able to produce more food for less. The majority of farmers, however, need to adopt the same technology in order to maintain yields and profit. Production increases, which depresses prices further. Inevitably, this system leads to the extinction of smaller, “less productive” farms and their eventual consolidation that works to further centralize agriculture. Fundamental economic theory, right?

A parallel treadmill was ramping up with the industrialization of the seed trade during this time as well. The seed industry probably saw its first boom and subsequent consolidation with the development of hybrid corn in the 1930s. The commercialization of full patent-protected transgenic seeds in the 1990s has triggered even greater consolidation with agrochemical companies bundling technologies at a premium. The top three seed firms control over 85% of transgenic corn patents and 70% of non-corn transgenic plant patents in the US.

Monsanto, while not known to the seed industry before the mid-1980s, is now the world‘s largest seed company. Their rise has accompanied the patenting of technologies for transgenic traits, which has facilitated the licensing to other seed companies and made producers dependent on the technology. The acquisition of biotech and traditional seed companies has expanded the company’s reach from cash crops into vegetable crops with holdings of over 26% of the global market. In 2010, some estimated 80% of the land planted with major field crops in the US contained transgenic traits owned or licensed by Monsanto. Vertical integration with firms like Cargill and Sysco have allowed essential control of corn and soybean distribution from ‘trait to plate’. And we wonder why the world is both ‘Stuffed and Starved‘.

A Dow spokesperson, Ted McKinney, said in 2007, “In our view you do not have to fully own each segment of the value chain so long as you have access to it. We lead with the idea of partnering, alliances, and joint ventures.” Cross-licensing agreements have essentially allowed the ‘bigs’ to “co-operate” for their own best interests at the expense of ours.

Take back control from those who wish to get rich at any cost. Food is life. Patenting life cannot be the only way. Strength is in the seed. Strength is in the food harvested from that seed and shared with your local community. Their weakness is money and by not buying into convenience we can take back what it means to be human.