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  • December 2006 (Revised October 2007)
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Monsanto: Realizing Biotech Value in Brazil

By: David E. Bell and Mary L. Shelman
  • Format:Print
  • | Pages:35
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Abstract

In 2003, Monsanto's patented "Roundup Ready" technology was used illegally on 70-80% of the soybean area in southern Brazil. Under pressure from U.S. soybean growers, who were paying to license the technology, the firm implemented an innovative delivery-based collection system in Brazil. Growers paid a post-harvest "indemnity" fee for those soybeans grown with illegal seed. Although there were initial concerns by farmers and grain companies--who collected the fee on Monsanto's behalf--the system worked smoothly, with over 97% of the farmers "self-declaring" their Roundup soybeans the first year. Jerry Steiner, executive vice-president of commercial acceptance, must decide if the situation in Brazil is stable enough to support a significant increase in breeding and biotech spending to develop products specifically designed for the Brazilian market. In addition, outlines situations in Argentina and India, and asks if the world's leading biotechnology firm should develop similar delivery-based systems.

Keywords

Plant-Based Agribusiness; Patents; Lawfulness; Emerging Markets; Product Development; Agriculture and Agribusiness Industry; Biotechnology Industry; Brazil

Citation

Bell, David E., and Mary L. Shelman. "Monsanto: Realizing Biotech Value in Brazil." Harvard Business School Case 507-018, December 2006. (Revised October 2007.)
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About The Author

David E. Bell

Marketing
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