Defended the concept of seed freedom for avoiding

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defended the concept of seed freedom for avoiding complete corporate control over seeds’ patents, and strongly criticized how seed chemical packaging, including pesticides, jeopardized people’s health and destroyed living ecosystems.33 Another major dispute was over GMOs. GMOs were organisms whose genetic material had been changed by scientists. People were afraid of prevalent use of GMOs in the seeds market to improve productivity or for disease resistance because there was insufficient knowledge for predicting the consequences of GMOs on human health and on soil conditions. These genetic materials were commonly accepted in the United States but strictly prohibited in some European countries. For the exclusive use of C. Baker, 2019.This document is authorized for use only by Christopher Baker in FinancialAnalysis&ValuationWinter2019 taught by JONATHAN MOULTON, University of Oregon from Jan 2019 to Jul 2019.
MONSANTOCOMPANYPage 6 9B17M182The future challenges for this industry thus involved the recent trend in different countries of creating new agricultural techniques to avoid the negative effects resulting from agrochemicals, such as organic farming and applying labels certifying natural protection processes. Another obvious challenge was the evolution of legislation. While the United States was mainly using these biotechnologies, Europe was still very conservative and forbid the growing of these GMO crops. Monsanto was a leading agrochemical company. It had been a chemical company from 1901 until World War II, but entered the agriculture business in the mid-1940s with an insecticide to control corn borer and other insect pests. In 1970, Monsanto produced its most famous herbicide product, Roundup, which killed not only the leaves of weeds but also down to their roots. In 1979, aspiring to be a world-class molecular biology company, Monsanto hired professors and scientists in the field, marking the start of biotechnology in the agriculture industry.34 The company aimed to develop a methodology to transfer cloned genes into plant cells to generate a better plant. In 1987, the U.S. Department of Agriculture approved field tests of Monsanto’s genetically modified tomatoes. From 1996 to 1998, the company conducted several mergers and acquisitions in the seed industry, including those involving Agracetus Inc., Calgene, Asgrow, Holden’s Foundation Seeds, Corn States Hybrid LLC, and DeKalb Genetics Corporation. This consolidation strategy allowed Monsanto to create more synergies while enabling the resistance of its own seeds to the Roundup herbicide. Thus, Monsanto’s seeds were also protected from insects.35 In 2000, Monsanto pursued a massive merger that separated the company into three main businesses: agriculture, pharmaceutical, and chemicals. The former Monsanto was thereafter known as Pharmacia LLC and was a wholly owned subsidiary of Pfizer. Its chemicals business became a wholly owned subsidiary of Eastman Chemical Company. Monsanto, as it was known in 2016, operated only the agriculture business.

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