Seed World: Diving into the Mega-Merger Waters

An article written by Joe Funk and published by Seed World on January 11, 2019.

Expert weighs in on the Dow-Dupont, Bayer-Monsanto acquisitions.

In 2015 and 2016, the headlines announcing the pending Dow-DuPont merger of equals and the Bayer-Monsanto merger were still wet on the page in 2015 and 2016, respectively, when the public conversation began speculating about how much these mega-mergers would increase the farm cost of corn and soybean seeds and agricultural chemicals. There was almost unanimous agreement on the street that market concentration at this scale would certainly increase farmers’ input costs and further limit access to innovative seed technology.  Click here to read more…

 

“The agricultural industry is largely made up of collaborations and cross licensing. There is very much an interwoven web of licensing structures that are taking place across the seed industry. In my view, as long as these stay intact, there is plenty of room for competition. It is only when those relationships start to crumble that we may start seeing some blockages and barriers to entry. If you stop the cross licensing, it becomes much more quickly an industry dominated by only a few players.” – Garrett Stoerger