Monsanto Wins EU Nod for New Biotech Soybeans
July 22 2016 - 9:00AM
Dow Jones News
European Union officials approved a new variety of biotech
soybean developed by Monsanto Co., the company said Friday.
The ruling removes uncertainty for Monsanto, which already had
sold the seeds to farmers this year, and for grain companies, some
of which had refused to purchase the soybeans from farmers without
approval from the EU to import the crop once it had been grown.
EU officials said the soybeans had "gone through a comprehensive
authorization procedure," including a scientific review by the
European Food Safety Authority. The authorization lasts for 10
years, and doesn't permit the soybeans to be grown in the EU.
St. Louis-based Monsanto said Friday it plans a "full system
launch in the United States in 2017" for the soybeans.
The soybeans, called "Roundup Ready 2 Xtend," are genetically
modified to resist a more powerful combination of herbicides, and
have been touted by Monsanto as a potential blockbuster at a time
when slumping crop prices have withered profits for the seed
company and for farmers. The company has estimated it will sell 15
million acres' worth of the seeds in the U.S. in 2017.
Monsanto sold relatively small quantities of the soybeans this
spring to farmers in the U.S. under the assumption that EU
officials would approve them on a similar time frame to prior
biotech seeds the company had submitted.
But the EU continued its review for months, while member states
debated whether to reauthorize the herbicide glyphosate, which
Monsanto markets under the Roundup brand. The European Commission,
the EU's executive arm, last month reauthorized glyphosate for 18
months after member states couldn't agree on an extension.
Without EU approval, some major grain-trading companies, like
Archer Daniels Midland Co. and Bunge Ltd., said they wouldn't buy
the Monsanto soybeans from farmers after they were harvested this
year, for fear that some of those soybeans could erroneously wind
up in EU-bound shipments and get rejected by import officials.
Representatives for ADM and Bunge had no immediate comment on the
approval.
Companies that buy, trade and process crops have been on guard
for potential trade disruptions stemming from unauthorized biotech
seeds after China began turning away some U.S. corn shipments in
late 2013, citing a variety of pest-resistant corn developed by
Syngenta AG that had yet to be approved. Grain companies claimed
tens of millions of dollars in losses from the episode.
Monsanto still needs approval from the U.S. Environmental
Protection Agency that would cover some applications of a
more-powerful weedkiller, a combination of glyphosate and dicamba,
that was designed for the company's new soybeans.
Write to Jacob Bunge at jacob.bunge@wsj.com
(END) Dow Jones Newswires
July 22, 2016 08:45 ET (12:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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