Monsanto’s dominance of the market for genetically modified soybeans may soon be threatened, as competitors BASF and DowDuPont prepare to bring their versions of the seed to market. The new entrants arrive as Monsanto faces ongoing legal and public relations fallout after millions of acres of crops near fields planted with dicamba-resistant soybeans were damaged by the herbicide.
Historically, Monsanto has controlled more than 90 percent of all soybeans planted in the United States. Farmers currently plant around 90 million acres of soybeans each season. Last summer, roughly 3.6 million acres of non-dicamba-resistant crops were damaged by dicamba drift. Several class actions have been brought against the company.
BASF’s entry into the soybean market is a result of its $7 billion acquisition of Bayer’s LibertyLink line of seeds, a deal that would be approved as part of Bayer’s acquisition of Monsanto. DowDuPont is seeking approval from Chinese regulators to bring its new seed product to market.
Monsanto, Bayer, DowDuPont, ChemChina/Syngenta, and BASF together control the majority of the world’s seeds and agricultural chemicals. Consolidation has been a major trend in the seed and agrochemical sector, and deals between the remaining companies are topping previously held records. Dow and DuPont completed their $130 billion merger in September 2017. ChemChina’s $43 billion acquisition of Syngenta was finalized in May 2017. Bayer’s acquisition of Monsanto is valued at $66 billion.