Pesticides and Profits
From the Pesticide Action Network (PAN)
Six multinational companies dominate the agricultural input market, and theyāre in cahoots. When a handful of corporations own the worldās seed, pesticide and biotech industries, they control the fate of food and farming. Between them, Monsanto, Dow, BASF, Bayer, Syngenta and DuPont control the global seed, pesticide and agricultural biotechnology markets. This kind of historically unprecedented power over world agriculture enables them to:
Control the agricultural research agenda;
Dictate trade agreements & agricultural policies;
Position their technologies as the āscience-basedā solution to increase crop yields, feed the hungry and save the planet;
Escape democratic & regulatory controls;
Subvert competitive markets;
Intimidate, impoverish and disempower farmers, undermine food security and make historic profits - even in the midst of a global food crisis.
"What you are seeing is not just a consolidation of seed companies, itās really a consolidation of the entire food chain" āRobert Fraley, co-president of Monsanto's agricultural sector
According to the UN, corporate concentration of the agricultural input market āhas far-reaching implications for global food security, as the privatization and patenting of agricultural innovation (gene traits, transformation technologies and seed germplasm) has been supplanting traditional agricultural understandings of seed, farmers' rights, and breeders' rights.
Examples of Cartel Agreements:
Monsanto & BASF announce a $1.5 billion R&D collaboration involving 60/40 profit-sharing. (March 2007)
Monsanto & Dow Agrichemicals join forces to develop the first-ever GE maize loaded with 8 genetic traits, for release in 2010. (Sept. 2007)
Monsanto & Syngenta call a truce on outstanding litigation related to global maize & soybean interests, forge new cross-licensing agreements. (May 2008)
Syngenta & DuPont announce a joint agreement, broadening each company's pesticide product portfolios (June 2008)
Source: ETC report, āWho Owns Nature?"
Through a mix of tactics outlined above, the agricultural input sector has become one of the most highly consolidated, integrated and collusive in the world.
Unprecedented Market Consolidation:
Although multinational corporations have been in food and farming for decades, only over the last 10 ā 20 years have they achieved todayās levels of consolidation and control.
Since the 1990s, the Big 6 have been on a spending spree, buying up the three key segments of the agriculture industry (pesticides, seeds, and biotech) to assemble proprietary lines of chemicals, seeds, and genetic traits that are engineered to go together.
Cooperative strategies and collusive practices between the few major competitors, notably through the establishment of elaborate cross-licensing structures.
Vertical integration upward along the food chain, with the establishment of food chain clusters that combine agricultural inputs with the grain handlers' extensive processing and marketing facilities.
Corporate Science:
Since the mass introduction of pesticides into food & agriculture following WWII, control over the knowledge needed to grow food has been shifting from farmers to the laboratories of multinational corporations. As a result, scientific research that benefits corporate profit, rather than the public good, has become the norm.
The importance of science for the public good is difficult to overstate - especially when it comes to feeding our world. When a democracy loses the capacity to transparently research and understand complex problems and solutions, the ability to make sound policy decisions and chart a future for the health and security of a nation is under threat.
Instead of asking, āHow can we efficiently grow the most nutritious tomato in a sustainable way?ā we ask, āHow can we genetically modify a seed that tolerates large doses of my companyās flagship pesticide product?ā Unfortunately, it is impossible to verify that genetically modified crops perform as advertised. That is because agritech companies have given themselves veto power over the work of independent researchers.
Privatizing our Public Universities:
Land grant universities were established in the late 1800s by Congress to study agriculture, and for 150 years they supported ground-breaking research. In recent decades 3 developments have undercut our public research system, with particularly devastating effects on food & farming research:
Systematic funding cuts to public educational institutions;
Heavy private investment in universities & in a satellite ring of contract research organizations by companies like Monsanto, Cargill & Dow;
Changes in U.S. law which allow the patenting of life & privatization of publicly funded research.
The 1980 Bayh-Dole Act joined a series of shifts in patent law in the 1980s to privatize domains previously held in public trust for millennia: seeds and genes. As a result, our capacity for research that safeguards and supports the long-term prosperity of food and agriculture for the public good is on the verge of extinction. When the research agenda is dictated by a handful of pesticide and seed corporations, the scope narrows to include only those technologies which can be patented and profitably brought to market. Alternatives are simply not considered, let alone developed. Entire fields of practice and inquiry - like agroecology - are marginalized.
Science Suppressed & Ignored:
Perhaps nowhere are the risks of this situation more evident than the corporate push for genetically modified (GM) crops. Scientists often shy away from making political statements, but in 2009, scientists from 15+ states told EPA that companies like Monsanto that produce GM seed āinhibit public scientists from pursuing their mandated role on behalf of the public good,ā and warned that corporate influence had made independent science on GM technologies impossible.
In 2007, EPA approved an extraordinarily toxic new fumigant pesticide, methyl iodide, over the objections of 50+ scientists (including 6 Nobel Laureates). The battle then moved to California, where an independent Scientific Review Panel was convened to evaluate the chemical for the state. The panel found that methyl iodide will be "difficult, if not impossible, to control" as an agricultural pesticide, and it's lead scientist called methyl iodide "Without question, one of the most toxic chemicals on earth." California's Department of Pesticide Regulation proposed approval anyway. Both regulatory agencies faced intense lobbying pressure from industry to approve methyl iodide.
In 2008, the UN- and World Bank-sponsored International Assessment of Agricultural Knowledge, Technology and Development (IAASTD) issued it's findings after 4 years of analysis. 400+ scientists and development experts joined industry and civil society from more than 80 countries in conducting what was and is the most comprehensive analysis of world agriculture to date. Their key finding: "business as usual is not an option" for world agriculture; we should invest in small-scale, agroecological farming if we want to actually feed the world.
In the assessment's final days, as it became clear that corporate-controlled technologies like agricultural biotech were not to be recommended, industry walked out in a huff. The agbiotech industry subsequently attacked and then attempted to bury the IAASTD. In the U.S., they have been largely successful.
Undue Influence:
Much as the chemical industry complains about regulation, the regulatory process in the U.S. is largely captured by corporate interests. Corporations wield unmatched money and influence, and regulatory agencies rely on industry-funded studies, antiquated legal frameworks and inadequate enforcement tools.