Monsanto To Test And Collect On Brazilian Cotton

Avatar for Matt Hopkins By Scott C. Lucas|21 March 2006

The purpose of the indemnity collection is to protect Monsanto’s intellectual property and encourage Brazilian cotton farmers to purchase certified Bollgard cottonseed. Brazil approved Bollgard technology in 2005, but authorized Bollgard seed was not available for sale to Brazilian cotton farmers before planting. Some Brazilian cotton farmers planted unauthorized Bollgard cottonseed during the current growing season.

Beginning next season, Brazilian cotton farmers will pay a technology fee when they buy certified Bollgard cottonseed and then can gin Bollgard cotton without paying the indemnity. The indemnity for farmers who do not buy seed licensed to contain Bollgard technology will be higher than the technology fee. Payment of the indemnity is only a deterrent and does not license farmers to use Bollgard technology in the future, according to Monsanto.