Feed a company, starve a country

Monsanto purchased a Brazilian sugarcane ethanol company for $290 million 6

At a time when many people were questioning causes of the recent food crisis, many more were investigating how our food systems can move forward to sustainably feed the increasing world population. Recently, the U.N. Task Force on Trade, Environment and Development released a report touting the noteworthy yields and economic benefits of organic agriculture in Africa. Even recognizing that organic production offers significant hope for increasing food security. Another report released earlier this year by the International Assessment of Agricultural Knowledge, Science and Technology for Development noted that a "radical change" was needed for agriculture, and that agricultural biotechnology held little promise. But corporations like Monsanto took a different approach to the problem -- exploiting the food crisis as a means to sell more of their own biotech seeds.

Monsanto's website is rife with articles discussing how its applications of biotechnology will supposedly solve the food crisis. Back in June, on the cusp of the World Food Summit, Monsanto announced plans to double crop-yields by 2030 with biotechnology. The New York Times covered the story including a quote from a soybean genetics expert at the University of Nebraska who stated, "The hype-to-reality ratio of that one is essentially infinity ... seeing an exponential change in the yield curve is unlikely." But while experts were doubting Monsanto's claims, a Business Week article quoted Hugh Grant, the head of Monsanto, saying, "That isn't a feel-good thing ... Satisfying the demand curve is a great business opportunity." Grant may consider that quote a gaffe, but it was a telling sign regarding where Monsanto's true interests lie: not with people, but with profits.

Last week Monsanto purchased Aly Participacoes Ltda, a Brazilian company involved in sugarcane breeding and sugarcane ethanol. Monsanto's press release noted, "Global demands for raw sugar and biofuels are beginning to rise at a faster pace than the current production levels in sugarcane, a crop that is essential to meeting these demands," said Carl Casale, executive vice president of global strategy and operations for Monsanto. Last time I checked, hungry people can't eat ethanol and probably can't afford sugar. So why, in the middle of a food crisis, is Monsanto investing in sugarcane ethanol?

Monsanto's real focus is a profit margin that unfortunately comes at the expense of small-scale farmers and the environment. Last month Monsanto proudly noted on its website that its 2008 fiscal year net sales topped $11 billion. This is in excess of $3 billion more than net sales in 2007. Gross profit for 2008 is expected to pass $6 billion -- nearly $2 billion more than in 2007. At the same time, seed and fertilizer prices dramatically increased throughout the world, and farmers in the developing world scrambled to pay for not only agricultural inputs, but also basic commodities. So, in 2008, as Haitians were eating dirt and food riots broke out throughout the world, Monsanto made record profits.

Monsanto claims that is is feeding the world and developing crops to increase yields. But why haven't we seen a single commercially-available, nutritionally-enhanced GMO? And why do countless controlled trials show their flagship GMO, Roundup Ready soy, yields 5-10 percent less than conventional soybeans? Monsanto's homepage also states the company is "reducing agriculture's impact on our environment." But, a groundbreaking study published in Science magazine this year noted that sugarcane ethanol production in Brazil is increasing greenhouse gas emissions. Other research based on USDA data shows that since the introduction of GMO crops in the United States, pesticide use increased by 122 million pounds between 1996 and 2004.

It is estimated that there are more hungry people in the world today than ever before. As this looming crisis continues unabated, Monsanto's strategic move into the ethanol business demonstrates their commitment to profits over people. Their new role in the energy sector comes at the further expense of the environment and small-scale farmers throughout the world like those with whom I worked in Mozambique. I applaud the U.N. and others that are looking for real solutions to food security based on real situations and best practices. Monsanto is not solving our food crisis, and it's not helping our environment. Sifting through its claims can be a bit daunting, but what seems increasingly clear is that the only real priority Monsanto has is to increase profits.

Meredith Niles is coordinator of the Cool Foods campaign at the Center for Food Safety. The Cool Foods Campaign is a national public advocacy, education and policy campaign to reduce greenhouse gas emissions in our food and agriculture systems. The Campaign is working with a variety of organizations, businesses, schools, restaurants, city councils and individuals to help reduce “foodprints”. The Campaign is also working on climate change and agriculture policies that will promote the reduction of greenhouse gas emissions from industrial agriculture in our food system, and reward small-scale sustainable farmers for their positive contribution to climate change mitigation.

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  1. amazingdrx Posted 1:08 am
    11 Nov 2008

    Job/capital outsourcingThe flight of capital and jobs continues, with tax breaks for each job lost.  Not to mention that schemes like this are ridiculous from an economic and environmental perspective.
    A wholesale replacement of board rooms and executives in US corporations is necessary.  The scum have risen to the top in the cesspool of corruption created by corporate lobbyist run government.
    A new administration is great!  But corporate culture must be turned over too.  We need real leadership, put these current corporats out to pasture in country club prisons for the convictable, and mcmansions for the rest.  We just can't afford incompetent leaders anymore, the problems we face are too serious.
    This is already happening as european wind companies and japanese auto companies invest here in the US.  But do we have to watch the destruction of US companies with no recourse?  Replace the leadership and US companies could be saved.

    http://amazngdrx.blogharbor.com/blog John Schneider, Northern Wisconsin
  2. Biodiversivist's avatar

    Biodiversivist Posted 1:13 am
    11 Nov 2008

    A graphic from the science articlehttp://www.sciencemag.org/content/vol319/issue5867/images/medium/319_1235_F1.gif
    Monsanto may soon become the next Exxon of biofuels.
    The Amazon is going under the plow thanks to genetically modified soybeans, which have greatly increased the amount of soybeans available even with American farmers planting corn in place of soybeans. What a complicated mess.

    In the end, it all comes down to biodiversity. Poison Darts--Protecting the biodiversity of our world
  3. ahmednewenergy Posted 4:05 am
    11 Nov 2008

    Here's what I think about Monsanto...MONSANTO IS EVIL.  EVERYONE SHOULD KNOW THIS.

    MONSANTO IS EVIL.  EVERYONE SHOULD KNOW THIS.

    MONSANTO IS EVIL.  EVERYONE SHOULD KNOW THIS.

    MONSANTO IS EVIL.  EVERYONE SHOULD KNOW THIS.

    MONSANTO IS EVIL.  EVERYONE SHOULD KNOW THIS.
  4. Jonas Posted 4:51 am
    11 Nov 2008

    Biodiversivist, you know that graph is flawedBiodiversivist, you know that the Science article you refer to has been thoroughly debunked. It's totally fake and has discredited Science as an institution. Nice try, though.
    Let's now focus on the wind and solar power industry and the role these have played in killing 5 million Congolese and in destroying the rainforest there, which is an 'indirect' effect of these wars which are about the minerals and metals used by the wind and solar industries...
  5. Biodiversivist's avatar

    Biodiversivist Posted 5:16 am
    11 Nov 2008

    I'll alert the scientific community ...Science, having been discredited as an institution by biofuel proponents, has taken to  printing fake articles just like the Onion.

    In the end, it all comes down to biodiversity. Poison Darts--Protecting the biodiversity of our world
  6. Meredith Niles's avatar

    Meredith Niles Posted 10:28 pm
    11 Nov 2008

    Science article debunkedJonas-  Thank you for your comments and especially for reminding us of the way that many of our advancements adversely affect other countries and people.  
    I am curious though about your comments regarding Science magazine.  Please elaborate and provide some evidence and links for everyone who is interested in seeing what you are talking about.
    Thanks

    Meredith Niles

    Cool Foods Campaign Coordinator

    The Center for Food Safety

    http://www.coolfoodscampaign.org

    http://www.centerforfoodsafety.org

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