The circumstances that have caused this situation have been a matter of deep frustration at Monsanto. It was not our intent and certainly not a part of our marketing plan for our seed prices in Argentina to be lower than in the United States. In fact, Roundup Ready soybean seed was initially more expensive in Argentina than it was in the United States. And we are certainly not benefiting from this unfortunate situation today. Seed companies pay a technology fee to Monsanto, but farmers are not charged a specific technology fee.
Argentine sales are often in different size bags than in the United States.
He says only about 25 percent of the Roundup Ready beans sold in Argentina are certified and come directly from seed companies. The situation is complex, according to Bruce Bailey, president of BSF Ag Research Inc. and partner in BF Seeds in Portland, Ind. U.S. seed companies often make less per bag even with the lower price on non-Roundup Ready beans than on Roundup Ready beans, Bailey says, citing higher royalties and tech fees. He adds the pricing system for seed in Argentina is different than it is here, as is the government program. Farmers in Argentina have no LDPs or AMTA payments, he explains. They pay a tax on grain sold and eventually get some of that money back.