After it was introduced in the s, Roundup was promoted as an «herbicide that gets to the root of the problem. Now, four decades later, manufacturer Monsanto will face a lawsuit that seeks to get to the root of another problem: whether the active ingredient in the weed-killer is to blame for a California man’s terminal cancer. If Monsanto fails to persuade the court that its product isn’t to blame, the agricultural company’s flagship product could take a hefty hit. In its latest fiscal year, Monsanto cited higher global sales of glyphosate for helping lift total revenue by 8 percent. Monsanto declined to comment on the potential sales impact, citing the trial proceedings. In a statement earlier this month, it told CBS News it denied the allegations. We look forward to presenting this evidence to the court,» it said. Monsanto isn’t relying only on the court to prove its case. Right to Know, a nonprofit that researches the food industry «You’ve seen a really full-court press by Monsanto. You’ve seen advertising on TV about the safety of the product and a whole array of outreach efforts to promote its safety. The court case will pit Dewayne Johnson, a year-old groundskeeper, against the agricultural giant.
What are glyphosate and Roundup?
After a blockbuster acquisition, Bayer may lose billions over claims that the No. But its market niche seems secure. Bensend relies on the key ingredient in Roundup — glyphosate — to kill weeds, improve yields and cut costs. By Patricia Cohen. From his farm in northwestern Wisconsin, Andy Bensend watched as first one jury , then another and another , delivered staggering multimillion-dollar verdicts to people who argued that their use of a weedkiller sold at nearly every hardware and home-improvement store had caused their cancer. Bensend has been using that product, Roundup, on his 5, acres for 40 years, but he said that those blockbuster awards would not alter his farm practices one whit. Neither would the 20, lawsuits still pending. Bensend, who grows corn, soybeans and alfalfa. The faith that American farmers like Mr. A settlement has been looking more likely. Feinberg to lead them. More important, rattled investors have ratcheted up pressure on Bayer to put the litigation behind it. The stock lost nearly 40 percent of its value at one point, turning a celebrated corporate acquisition into a seeming fiasco. Some institutional investors say that without a deal, Mr. But they also insist that their gamble on Bayer will pay off. Glyphosate is already the most widely used agricultural chemical in history, and farmers will continue to depend on Roundup, investors reason, especially as a growing population increases the demand for food. Consumer-protection and health groups have long warned about the safety of chemicals and pesticides used in agriculture. The chemical was introduced to commercial agriculture in Farmers saw their costs fall. Glyphosate was also considered less toxic and environmentally friendlier than many of the other substances that American farmers were using. Overman, who grows soybeans, corn and wheat. Now, 94 percent of soybean crops and roughly 90 percent of cotton and corn grown in the United States are resistant to glyphosate. According to estimates by the United States Geological Survey, million pounds of glyphosate was sprayed nationwide in , 20 times as much as was used in The phenomenally fast adoption of such a transformative technology, though, unsettled the public and spurred fears about the safety of the food supply. Glyphosate was drawn into the bitter public debate over genetically engineered crops.
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The company, based in St. Louis, Mo. Monsanto operates in two segments, Seeds and Genomics, and Agricultural Productivity. The Seeds and Genomics segment produces row crop seeds, including corn, soybean, cotton, and canola seeds. It also produces vegetable seeds, such as tomato, pepper, melon, cucumber, squash, beans, broccoli, onions, lettuce, and others. It also develops biotechnology traits that assist farmers in controlling insects and weeds in corn, soybean, cotton, and canola crops. One of its biggest selling products is Roundup, which has been the subject of controversy as there have been some reports of cancer in humans associated with the use of the product. The Seeds and Genomics segment also licenses a range of germplasm and trait technologies to large and small seed companies. The Agricultural Productivity segment manufactures and sells herbicides for agricultural, industrial, ornamental, turf, and residential lawn and garden applications for weed control, as well as for control of pre-emergent annual grass and small-seeded broadleaf weeds in corn and other crops under the Roundup and Harness brands. The EU has issues with the proposed marriage between the two companies. They are not a fan of the GMO seeds sold by Monsanto around the world, and also have problems with the potential for a global monopoly in the seed and other agricultural supply business. The EU regulators want to make sure that farmers still have choices and «affordable prices, both when it comes to seeds and pesticides. In the U. The active ingredient in Roundup is a cost-effective means of controlling pests and weeds, and its use is ubiquitous in gardening and farming. I am a big fan of the agricultural sector as population growth means that the addressable market for food is increasing on a daily basis. However, even though MON is one of the world’s leading players in the seed and pesticide business, the company could have a rough time in the months ahead given their liability over Roundup which could also impact the cost of crop production around the world.
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Image source: Dr. Andrew Kniss. Of course, the chart above also demonstrates spectacular growth in the use of glyphosate. That means Monsanto must be making money hand over fist from Roundup, right? The latest full-year financial data submitted by Monsanto to the SEC is for the fiscal year ending August The company reports operational performance in two segments: seeds and genomics, and agricultural productivity. The former comprises seed sales and revenue earned from licensing genetic traits, while the latter comprises herbicide sales. Here’s how revenue was split between the two segments in Data source: SEC filings. As you can see, Monsanto generates substantially more revenue from selling seeds and licensing genetic traits than from selling glyphosate herbicides.
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Image source: Flickr user Mike Mozart. Whether most of the monsqnto being thrown the company’s way is merited or not, a considerable amount of the distrust harbored by consumers stems from its relationship with a potent active ingredient in many widely used herbicides: glyphosate. That’s because the company was the first to introduce the chemical back inand it continues to sell the well-known Roundup brand of glyphosate herbicides for home and commercial use.
Well, glyphosate is back in the news recently, thanks to monsahto assessments from the World Health Organization and U. Environmental Protection Agency. That might have you wondering, «How much money does Monsanto make from Roundup? Glyphosate is a simple molecule which inhibits a key biological process only found in plants and some bacteria and keeps them from growing.
Roundup is a brand of herbicide sold by Monsanto which contains glyphosate as its active ingredient. Although the company manufactures glyphosate for its own products, the last patent on glyphosate expired in Therefore it should be no surprise that the chemical is manufactured by numerous other companies and included in numerous other herbicide brands throughout the globe.
Glyphosate-based herbicides are the most commonly used in the United States, thanks in no small part to agricultural crops that have been genetically engineered to tolerate herbicide applications. This genetic trait, commercially known as «Roundup Ready,» is widely licensed to global seed manufacturers and allows crops to tolerate glyphosate in other brands of herbicide, not just those sold by Monsanto.
The introduction of Roundup Ready crops has greatly simplified weed control for farmers and allowed the United States to phase out herbicides considered more harmful from environmental and health standpoints, such as alachlor and cyanazine.
The ease of use provided by Roundup Ready crops has indeed resulted in an explosion of glyphosate sales mknsanto usage in the past 20 years. Part of the observed trend is caused by monsamto starting point near zero, while part is caused by weeds developing higher tolerance to glyphosate, which requires higher doses of herbicides to maintain effectiveness.
These trends are demonstrated roundkp data compiled by the U. It’s important to note that farmers often apply more than one herbicide to their crops. Image source: Dr. Andrew Kniss. Of course, the chart above also demonstrates spectacular growth in the use of glyphosate. That means Monsanto frm be making money hand over fist from Roundup, right?
The latest full-year financial data submitted by How much money did monsanto make from selling roundup to the SEC is for the fiscal year ending August The company reports operational performance in two segments: seeds and genomics, and agricultural productivity. The former comprises seed sales and revenue earned from licensing genetic traits, while the latter comprises herbicide sales.
Here’s how revenue hoe split frim the two segments in Data source: SEC filings. As you can see, Monsanto generates substantially more revenue from selling seeds and licensing genetic traits than from selling glyphosate herbicides. The relative importance of each segment holds when one hiw gross profits, which are even more heavily skewed in favor of seeds and genomics:. These data reflect the fact that Monsanto is only one of dozens of hlw manufacturers, most of which reside in China.
In other words, margins are more important than volume, which means Monsanto’s market share in terms of rounfup is larger than its market share in terms of sheer volume of glyphosate produced.
The manufacturing facility will support the launch of a next-generation genetic trait — Roundup Ready 2 Xtend — that allows crops to tolerate both glyphosate and dicamba. The effort is aimed at combating weeds that are growing more resistant to glyphosate, but is likely rroundup attract even more criticism from those wary of agricultural chemical use.
How much money does Monsanto make from Roundup? That represents a significant portion of the global glyphosate market, although the company will continue to lose market share to generic competitors as demand grows. Therefore, as far as Monsanto sellimg concerned, the road to the future will be paved with seeds and genomics products, not chemical herbicides.
May 26, at AM. Author Bio Maxx has been a contributor to Fool. Stock Advisor launched in February of Join Stock Advisor. Di Articles.
The herbicide Roundup is widely associated with Monsanto. Here’s what you need to know about the product’s financial importance to the company.
Image source: Flickr user Mike Mozart. Whether most of the shade being thrown the company’s way is merited or not, a considerable amount of the distrust harbored by consumers stems from its relationship with a potent active ingredient in many widely used herbicides: glyphosate. That’s because the company was the first to introduce the chemical back in amke, and it continues to sell the well-known Roundup brand mame glyphosate herbicides for home and commercial use. Well, glyphosate is back in the news recently, thanks to toxicity assessments from the World Health Organization and U. Environmental Protection Agency. That might have you wondering, «How much money does Monsanto make from Roundup? Glyphosate is a hpw molecule which inhibits a key biological process only found in plants and some bacteria and keeps them from growing. Roundup is a brand of herbicide sold by Monsanto which contains glyphosate as its active ingredient. Although the company manufactures glyphosate for its own products, the last patent on glyphosate expired amke Therefore it should be no surprise that the chemical is manufactured by numerous other companies and included in numerous other herbicide brands throughout the globe. Glyphosate-based herbicides are the most commonly used in the United States, thanks in no small part to agricultural crops that have been genetically engineered to tolerate herbicide applications. This genetic trait, commercially known as «Roundup Ready,» is widely jow to mobey seed manufacturers and allows crops to tolerate glyphosate in other brands of herbicide, not just those sold by Monsanto. The introduction of Roundup Ready crops has greatly simplified weed control for farmers and allowed the United States to phase out herbicides considered more harmful from environmental and frrom standpoints, such as alachlor and cyanazine. The ease of use provided by Roundup Ready crops has indeed resulted in an explosion of glyphosate sales and usage in the past 20 years. Part of the observed trend is caused by a starting point near zero, while part is caused by weeds developing higher tolerance to glyphosate, which requires higher doses of herbicides to maintain effectiveness.
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