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Gene Giants Seek "Philanthrogopoly"

Dear friends and colleagues,

A new report by the ETC Group exposes how six multinational biotechnology companies control agriculture research globally, and what they seek to do to placate anti-trust regulators and soften opposition to GMOs.

We reproduce the press release and the summary of the report below. The full report is available at http://www.etcgroup.org/sites/www.etcgroup.org/files/ETCCommCharityCartel_March2013_final.pdf

With best wishes,

Third World Network
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Website: http://www.biosafety-info.net/ and http://www.twn.my/

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Item 1

GENE GIANTS SEEK “PHILANTHROGOPOLY”

ETC GROUP NEWS RELEASE

7 MARCH 2013

www.etcgroup.org

A report released today by ETC Group warns that 6 multinational Gene Giants control the current priorities and future direction of agriculture research worldwide. Syngenta, Bayer, BASF,[1] Dow, Monsanto and DuPont control 59.8 % of commercial seeds and 76.1 % of agrochemicals. The same 6 companies account for at least 76 % of all private sector R&D in these two sectors.

Amid unprecedented corporate concentration, ETC Group’s report provides a critical look at new initiatives launched by the Gene Giants – including the false promise of cheap, post-patent GE seeds – aiming to appease antitrust regulators and pass off oligopolistic practices as acts of charity. Meanwhile, the world’s two richest men – Bill Gates and Mexico’s Carlos Slim – are teaming up with CIMMYT (the international public maize and wheat breeding center based in Mexico) to get bargain GE seeds and traits in the hands of farmers in the global South.

“The notion that farmers in the South will benefit from post-patent GE seeds is patently absurd,” said Silvia Ribeiro, ETC’s Latin America Director. “Under the guise of charity, the Gene Giants are devising new schemes to soften opposition to transgenics and reach new markets. In reality, the Gene Giants don’t have the capacity or the interest to supply the diversity needed in sustainable farming systems or to meet the urgent need for locally adapted varieties, especially in the face of climate change,” said Ribeiro.

In the face of soon-to-expire patents on a handful of biotech traits, the big-hearted Gene Giants claim they are making it possible to gain access to generic biotech traits through a legally-binding “accord.” The deal, which was originally drafted by Monsanto, encompasses two agreements [2] that lay out the rules for access to generic biotech traits at patent expiration. According to ETC Group, the contracts will ultimately control the terms of access to expired traits and reinforce market power among a handful of giant seed companies.

Appeasing Antitrust Angst: ETC Group reveals that the Gene Giants’ post-patent generic seed scheme – and, specifically, “facilitating access” to Monsanto’s soon-to-expire Roundup Ready soybean trait – is one of the primary reasons the US Department of Justice suddenly dropped its 3- year probe of Monsanto in November 2012, just weeks after the Gene Giants consulted with the antitrust regulators and launched the generic seed agreement.

In January 2013 Swiss-based Syngenta, the world’s top-ranking agrochemical giant and third largest seed firm, launched a separate initiative – a new online licensing platform to “share the benefits” of a select group of the company’s patented seeds and traits. The new intellectual property (IP) platform – dubbed “the iTunes of plant breeding and innovation sharing in agriculture”– pledges to make licenses on patented seeds and traits available for free to researchers in the global South. More than a clever and calculated public relations move, Syngenta’s “iTunes” gambit may be designed expressly to mollify anti-plant-patent fervor in Europe.

“Most countries in the South don’t recognize Syngenta’s patents on seeds and traits in the first place, so the company’s offer to give free licenses to researchers in the global South is a Trojan Horse – a move that encourages developing countries to adopt GE seeds and capitulate to the supremacy of patent laws, even when there is no legal obligation to do so,” explains Neth Da๑o of ETC Group. “Syngenta is imposing the terms and conditions for technology transfer to the global South based on its self-appointed IP rules,” said Da๑o.

Antitrust regulators must not allow an oligopoly to control global agricultural inputs, says ETC Group. The world needs agricultural biodiversity to achieve the Right to Food and respond to the challenges of climate chaos. National governments and UN agencies must take urgent action.

For more information:

Silvia Ribeiro, ETC Group Latin America Director

silvia@etcgroup.org

Tel: +52-5555-632-664 (Mexico)

Neth Da๑o, ETC Group Programme Manager

neth@etcgroup.org

Tel: +(63-82) 302-8289 (Philippines)

Pat Mooney, ETC Group Executive Director

etc@etcgroup.org

Tel: +1-613-241-2267 (Canada)

[1] BASF is active in the seed sector and is a leader in agrochemical sales and pesticide research, but it does not rank among the top 6 in global seed sales.

[2] 1) The 38-page Generic Event Marketability and Access Agreement (GEMAA); and 2) the Data Use and Compensation Agreement (DUCA), which is not yet finalized.


Item 2

Summary

Gene Giants Seek “Philanthrogopoly”: Ag monopoly makes mergers suspect – Big Six create “charity” cartel instead, conning regulators and public breeders

Communiqu้ number: 110

Issue:The Gene Giants know their market dominance looks conspicuously like an anticompetitive oligopoly, so they’re launching a series of initiatives – including the false promise of cheap, post-patent GE seeds – to mollify antitrust regulators and soften opposition to transgenics while advancing their collective market control. Meanwhile, the world’s two richest men – Bill Gates and Mexico’s Carlos Slim – are working with CIMMYT (the International Maize and Wheat Improvement Center) to make bargain GE seeds and traits available to farmers in the global South. The notion that farmers will benefit from a post-patent regulatory regime and Gene Giant charity is patently absurd.

Actors:The six Gene Giants (Monsanto, DuPont, Syngenta, Dow, Bayer and BASF) are constructing a paper tiger while outmaneuvering US and European anti-combines/antitrust regulators. These companies account for 76% of total private R&D expenditures in both the seed and agrochemical sectors. Since the global introduction of genetically engineered seeds and the first World Food Summit in 1996, the market share of the world’s 3 largest seed companies has more than doubled to 53.4% of commercial seed sales; the market share of the world’s top 3 crop chemical companies has grown from one third in 1996 to more than one half.

At Stake:Anti-combines rules assume an oligopoly if four firms have 40%+ of the market. The world’s three leading seed and agrochemical companies have already blown past this milestone. EU and US regulators are getting nervous. Accordingly, the “Big Six” are constructing agreements that aim to scare off competitors, confound regulators and pass off oligopolistic practices as acts of charity – เ la cartel.

Policies & Fora:Antitrust regulators cannot allow an oligopoly to control global agricultural inputs. The world needs agricultural biodiversity to achieve the Right to Food and to respond to the uncertainties of climate change. National governments and UN agencies need to respond. The UN Committee on World Food Security (CFS) must address the issue when it meets in Rome, October 2013. UNCTAD should undertake a special investigation of the economic implications for developing countries. The Special Rapporteur on the Right to Food has just warned that the increasing role of agribusiness in the policy work of FAO could risk its credibility.[i] The Special Rapporteur should be invited to explore the private sector’s role in other multilateral agencies related to food and agriculture – including CGIAR, which should also invite the Special Rapporteur to undertake a study of how the CG system is addressing the Right to Food. The International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) should examine the impact of seed cartels on germplasm exchange and benefit-sharing when it meets this September.

 


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