Mother Jones
Tom Philpott
There's an age-old tradition in Washington of making unpopular announcements when no one's listening—like, you know, the days leading up to Thanksgiving. That's when the Obama administration sneaked a tasty dish to the genetically modified seed/pesticide industry.
This treat involves the unceremonious end of the Department of Justice's antitrust investigation into possible anticompetitive practices in the US seed market, which it had begun in January 2010. It's not hard to see why DOJ would take a look. For the the crops that cover the bulk of US farmland like corn, soy, and cotton, the seed trade is essentially dominated by five companies: Monsanto, DuPont, Syngenta, Bayer, and Dow. And a single company, Monsanto, supplies nearly all genetically modified traits now so commonly used in those crops, which it licenses to its rivals for sale in their own seeds.
What's harder to figure out is why the DOJ ended the investigation without taking any action—and did so with a near-complete lack of public information. The DOJ didn't even see fit to mark the investigation's end with a press release. News of it emerged from a brief item Monsanto itself issued the Friday before Thanksgiving, declaring it had "received written notification" from the DOJ antitrust division that it had ended its investigation "without taking any enforcement action."
A DOJ spokesperson confirmed to me that the agency had "closed its investigation into possible anticompetitive practices in the seed industry," but would divulge no details. "In making its decision, the Antitrust Division took into account marketplace developments that occurred during the pendency of the investigation," she stated via email. I asked what precisely those "marketplace developments" were. "I don’t have anything else for you," she replied. Monsanto, too, is being tight-lipped—a company spokesperson said the company had no statement to make beyond the above-linked press release.
Diana Moss, vice president and senior research fellow of the American Antitrust Institute, told me that the DOJ's information blackout on the case is unusual—and frustrating. "To have a two-year investigation and close it without a peep in our view does a disservice." Moss is the author of a 2009 paper concluding that the GM seed market "requires antitrust enforcement and/or legislative relief." To get an idea of how far this market has come under the control of just a handful of companies, think of genetically modified seeds as computers—hardware and software. In this rather common but apt analogy, the actual seed is the hardware and the genetically modified traits they carry—like the ability to withstand herbicides, as in Monsanto's Roundup Ready traits—are the software.
Getting market share data for an industry like seeds is a maddening task. No government agency, including the US Department of Agriculture, tracks it. But it's not hard to establish that a few companies dominate it, with Monsanto at the top. Indeed, Monsanto alone essentially controls the software-like part of the market, traits: According to Monsanto's rival, DuPont, Monsanto traits end up in 98 percent of the GM soybeans grown in the US and 79 percent of the corn—a claim Monsanto doesn't dispute. In a 2009 paper, Iowa State University economist GianCarlo Moschini reported that Monsanto traits are in 78.9 percent of the GM cotton grown here.
What about the hardware side, the seeds themselves? Below is a chart from the agribiz-trade web site AgWeb, showing market-share trends in corn and soy seeds from 2004 to 2011. In corn, we can see that DuPont, Monsanto, Syngenta, and Dow together own more than 80 percent of the market, and the share owned by "local and regional companies" fell by approximately half over the period, and now stands at less than 15 percent. In soy, the same four large companies now together control more than 70 percent of the market, with both "local and regional companies" and "publics/saved seeds" showing sharp declines over the period.
The USDA does keep market share numbers for the cottonseed market (pdf here), and in the 2012 growing season, Monsanto (through its cottonseed line Delta & Pine), Bayer, and Dow (through its Phytogen subsidiary) owned 80 percent of the market among the three of them.










