By October 7, 2015 6 Comments Read More →

5 Reasons Monsanto Is Crashing And Burning

Monsanto ScarecrowEric Blair, Contributor
Waking Times

It’s hard to believe that the once almighty Monsanto is on its knees. But their dirty deeds seem to have finally caught up with them.

Monsanto shares have already dropped 27 percent this year and they just posted fourth quarter losses wider than estimates.

They also announced cost-saving measures to counter their plunge; deep cuts to their workforce and exiting the sugarcane business.

Bloomberg reports:

Monsanto Co. said it will eliminate 2,600 jobs as part of a cost-savings plan, joining a growing list of major corporations struggling to contain the damage from the decline in world commodities prices.

The St. Louis-based agricultural giant announced the reductions — the equivalent of 12 percent of its workforce — as it reported a loss of 19 cents a share in the fiscal fourth quarter and warned profit would remain weak through 2016.

Monsanto enjoys a near monopoly on corn and soybean in North America. They appear to have it all; they own the farmers, the industry, the politicians, and the regulators. And, yet, they’re crashing and burning.

Bloomberg cites slumping commodity prices for Monsanto’s decline. “Like DuPont Co. and Glencore Plc, Monsanto, the world’s largest seed maker, is taking steps to combat the effects of a commodity slump…”

However, here are 5 real reasons Monsanto is tanking:

1. Consumer activism: The market doesn’t want herbicide-soaked genetically modified food anymore. As people are becoming more health conscious, they prefer to eat organic food. It’s really that simple.

2. Lawsuits with farmers: Monsanto spends untold resources suing family farms for copyright infringement. Farmers are forbidden from saving patented seeds year to year. Additionally when Monsanto’s GMO crops pollute neighboring farms, Monsanto sues those farms too. Not a great business model when your primary customers are farmers. An organic farmer in Australia is hoping to reverse this revolting practice.

3. Funding anti-labeling campaigns in multiple states is draining Monsanto of millions of dollars. This seems to be the majority of their “marketing” budget. They spent at least $8M in 2012, over $9M in 2013 in Washington State alone, and combined for $8M to defeat just a county initiative in Maui County Hawaii this past year.

4. Flagship product causes cancer: A recent World Health Organization report concluded that the active chemical used in Monsanto’s flagship product “Glyphosate is probably carcinogenic to humans.” This unsettling realization hasn’t even begun to sink in yet. Although some cancer-stricken farm workers are suing the big “M” over their illness with many more likely to do the same.

5. National bans: An increasing number of countries are banning either GMOs or certain pesticides, or both. At least 15 European Union members move to ban GMO crops. Meanwhile some small nations like Bermuda and Colombia have banned glyphosate.

To summarize, when people no longer want a product, market share and regulatory control mean nothing. This a long-term problem for Monsanto that can’t be fixed with cost-savings measures. That is why they’re doomed.

About the Author

Eric Blair writes for Activist Post under Creative Commons. You have full permission to share or repost this article in its entirety.

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  • bsroon

    Don’t forget the world economies are crashing and burning too. The petro dollar is dying, the US is fighting wars of economic empire and throwing our youth into their graves and damaging the ‘ell out of them.
    Moron-santo is a petrochemical business. We are past peak oil and will never produce as much as now. It will all cost more. The artificial price dip right now is Obama (instructed to) wage war against Russia and China who are resisting the petrodollar and replace it with THEIR money…

    So – being petrochemical in their core – that can do nothing but increase in cost – and they have so greatly increased seed prices and since their contracts mandate your using THEIR products – that will force farmers to pay (unnecessarily) more for seeds, and then more for poisons than they would. This cannot be attrative at all to any farmer.

    We farmers already get totally shafted in the economy and are the most important job IN society. What has a millionaire/billionaire/politician done for you today? Well, today i kept you fed. (metaphorically – just go with it, lol) A hundred years ago we received 60% or more of our crop sale prices. Now we get about 6%. The middlemen get the most and that is sucked out of the functioning economy by the parasites and maggots known as the wealthy.

  • Political Vel Craft

    Couldn’t be happening to a more corrupt corporation than Monsanto. Excellent!!!

  • Dimitri Ledkovsky

    Dow Chemical became Monsanto. I wonder what Monsanto will morph into? Some are seeing a knockout where there is only a brief loss of balance control. With sustained effort though, maybe the evils of Monsanto can be retired for good.

  • Stacy

    Good riddance. I am sick and tired of them trying to bill themselves as a family company. They take out ads in parenting magazines and try to make people think they are doing good instead of the awful practices cited here. I hope they go out of business this year. They won’t be missed I’m sure.

  • Alan Wakefield

    Is the “fall of Monsanto” like the fall of the Soviet Union which is now bombing in Syria and building military/industrial coalitions with our enemies in the Middle east? If Monsanto has “one foot in the grave,” I hope some of the gravediggers are nearby with a wooden stake to administer the coup de gras just to be certain they are not resurrected by their friends in the Congress, the courts and the White House. Between their lawyers who pass through the revolving doors between Monsanto and their “REGULATORS,” (TRY NOT TO DIE LAUGHING!) at the FDA and the USDA, I suspect that even the stake through the heart will not be adequate to get them out of our lives.

  • BDBinc

    Yip the “monsanto” brand is destroyed.
    Only reason its still farting along is that it self regulates, the fraudulent accountants , bankster venture capital,funds from the “eugentics freak tank”.

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