Seeds and genomics sales in The Standards and Poor company Essay
Seeds and genomics sales in The Standards and Poor company, 486 words essay example
The Yahoo Finance website conveyed that the company "markets its products through distributors, independent retailers and dealers, agricultural cooperatives, plant raisers, and agents, as well as directly to farmers. Monsanto Company has a collaborative agreement with Novozymes to discover, develop, and produce microbial solutions "(Yahoo Finance.com).
The Standards and Poor's Capital IQ website noted that "the company operates in two segments agricultural productivity, and seeds and genomics. Seeds and genomics (68% of sales and 77% of gross profits in FY 2015 [Aug.]) consists of the global seeds and related traits businesses, and technology platforms based on plant genomics, which increases the speed and power of genetic research. MON's seeds and genomics segment focuses on corn, soybeans and other oilseeds, cotton and wheat. We believe MON has focused on capturing value and profitability in its patent-protected seeds and traits business, as well as expanding its product line through its large acquisitions like Seminis in 2005 and De Ruiter in 2008, and smaller purchases like biotechnology research firm Divergence in February 2011. De Ruiter is a leader in the protected-culture segment of the vegetable seeds market, where MON had little presence. Given this trend, we think that the growth and margin outlook for MON's seeds and genomics segment is favorable" (Standards and Poor's Capital IQ).
The Standards and Poor's Capital IQ website reported that "agricultural productivity (32% 23%) consists of MON's crop protection products (Roundup herbicide and other glyphosate products) and its lawn and garden products. Following the expiration of its patent protection for the active ingredient in Roundup herbicides in 2000, MON repositioned itself as one of the lowest cost producers. The company worked hard to maintain Roundup as a premium brand, with the higher pricing afforded by that positioning. Roundup contributed nearly $2.0 billion to gross profits in both FY 2008 and FY 2009. Competition, notably from generic products being exported from China, began to pressure selling prices. This forced MON to cut prices sharply and initiate a new round of restructuring. Its contribution to gross profit in FY 2010 was just $167 million. Selling prices stabilized during FY 2011, and improved during FY 2012, FY 2013 and FY 2014. Prices were relatively flat in FY 2015" (Standards and Poor's Capital IQ).
The Gmwatch website reported that "Monsanto is the world largest seed company. Also, the GMwatch website noted that it accounts for almost one-quarter (23%) of the global proprietary seed market"(gmwatch.org). With a company this large, unethical issues are bound to happen. As stated by the Forbes website, "genetically engineered wheat developed by Monsanto, that was never approved, was found growing unintended on a farm in Oregon, and the company is under siege (Forbes.com). The Forbes website also reported that "so many consumers were concerned because while most American soybeans and corn are genetically modified, those crops are largely consumed by animals or made into processed foods (Forbes.com). Forbes reports that wheat, on the other hand, is consumed directly by people, so there has been more consumer resistance" (Forbes.com).