Monsanto's stock peaked at around $140 per share in mid-2008, but recently closed at $47.77, "having fallen about 42 percent since the beginning of the year."
Early returns "from this year's harvest showed that Monsanto's newest product, SmartStax corn, which contains eight inserted genes" showed that the product provided "yields no higher than the company's less expensive corn, which only contains three foreign genes." Sales for the company's newest soybean seed, Roundup Ready 2 Yield, also fell below projections.
Additionally, sales of "Monsanto's Roundup, the widely used herbicide, has collapsed this year under an onslaught of low-priced generics made in China. Weeds are growing resistant to Roundup, dimming the future of the entire Roundup Ready crop franchise." Lastly, the company is being investigated by the Justice Department for possible antitrust violations.
Brett D. Begemann, Monsanto's executive vice president for seeds and traits, "said the setbacks were not reflective of systemic management problems and that the company is moving to deal with them."
To read the New York Times story, click here.
Posted: 10/06/2010
