Re: Bambino watermelon & Seminis/Monsanto

**G*@aol.com**

Some of you may be interested in this from GM Watch.

Arguments continue over both Monsanto's motives in its acquisition of the 
seed company Seminis Inc. and the merits of the deal.

Prof Joe Cummins suggests that people have focused too heavily in their 
analysis of motives on the expansion of the GM giant into the fruit and vegetable 
seed market as a result of the Seminis acquisition, while ignoring or 
dismissing what Seminis has to offer Monsanto on the GM front.  

Prof Cummins considers this a mistake, particularly in relation to Seminis 
work on GM virus resistant crops for which he lists a series of relevant 
patents. Prof Cummins points out, "Prior to the Seminis acquisition Monsanto did not 
have much activity in virus resistance and gains a major input in that area 
from Seminis." (see item 1 below).

Whatever the motivation, arguments over the wisdom of the deal also continue. 
Monsanto not only paid approximately $1.4 billion for Seminis but also 
assumed about $400 million in debt - all this for a company that has a record of 
substantial losses. 

Monsanto's share price has fallen by 6% in response, apparently reflecting 
investor unease over the high purchase price, plus wariness at Monsanto's 
growing level of debt. 

Fitch Ratings has given Monsanto a high debt rating and warned of a negative 
financial outlook:

"The transaction is expected to be completed in Monsanto's third fiscal 
quarter. The [high] debt ratings apply to approximately $1.3 billion of outstanding 
debt. The Negative Outlook reflects uncertainty regarding timing and the 
total amount of potential liabilities resulting from Solutia Inc.'s Chapter 11 
filing, coupled with the proposed acquisition of Seminis."
http://www.fitchratings.com/

Solutia is Monsanto's old chemical wing which has gone into bankruptcy 
leaving Monsanto with "environmental and litigation exposures" including further yet 
to be determined liabilities.

Unlike many of Monsanto's shareholders, however, the pro-GM 'Economist' 
magazine is determined to view the Serminis deal as "a good move". A close reading 
of the article, however, reveals a certain amount of uncertainty over just why 
it is a good move! (item 2)

The piece ends up by declaring that not rushing in to GM may be the real 
advantage: "given the hassle that Monsanto's present GM crops have met, [a] slow 
approach may be wise."

1. Prof Joe Cummins on the Seminis deal
2. Lord of the seeds - The Economist
-----
1. Prof Joe Cummins on the Seminis deal

The newspaper article [quoted in Weekly Watch], like several others, reports 
that Monsanto has 
moved into vegetable and fruit seed production with that purchase but ignores 
the activity of Seminis in GM virus resistant crops. Seminis had been a major 
player in GM crops for several years. 

They own the patent on virus resistant GM papaya along with Cornell 
University and USDA. Below I include the names of some of the US patents owned or 
co-owned by Seminis. Prior to the Seminis acquisition Monsanto did not have much 
activity in virus resistance and gains a major input in that area from Seminis. 
I think Seminis will gain the major holdings of Monsanto in politicians and 
government bureaucrats which may speed release of the many virus resistant crops 
patented by Seminis. I do not know whether the newspaper writers are just 
ignorant or whether there has been an effort to obfuscate the Monsanto move into 
virus resistant crops?

Seminis patents:
*Starchless variety of pisum sativum having elevated levels of sucrose
*Plants resistant to WT strains of cucumber mosaic virus
*Transgenic plants expressing DNA constructs containing a plurality of genes 
to impart virus resistance
*Transgenic plants expressing mutant geminivirus AC1 or C1 genes
*Carbon-based process for selection of transgenic plant cells
*Plants resistant to C strains of cucumber mosaic virus
*Transgenic plants resistant to geminivirus infection
*Papaya ringspot virus NIa protease gene
*Transgenic plants expressing ACC oxidase genes
*Transgenic plants exhibiting heterologous virus resistance
*Papaya ringspot virus replicase gene
*Coat protein gene for the FLA83 W strain of papaya ringspot virus
*Transgenic plants expressing ACC synthase gene
*Potyvirus coat protein genes and plants transformed therewith
*Papaya ringspot virus protease gene
------
2.Lord of the seeds 
The Economist , Jan 27th 2005 
http://www.economist.com/business/displayStory.cfm?story_id=3600040 
[subscription]

A good move to buy the world leader in vegetable seeds

MONSANTO, the world leader in genetically modified (GM) grains and oilseeds, 
is buying a second blade for its plough: California-based Seminis, the leader 
in vegetable seeds. Seminis made a small loss in 2003-04 and news of the $1.4 
billion buy cut Monsanto's share price by 6%. But it may yet prove a smart 
move.

Seminis brings four benefits. One, a huge range of new crops - almost any 
vegetable you can name and some that you can't - to join Monsanto's maize, soya 
and others. Two, an extra $550m-a-year turnover as Monsanto's focus shifts from 
its $3.2 billion (but slow-growing) herbicide business into seeds and GM, 
whose $2.35 billion sales in its latest reported 12 months were 24% up on a year 
earlier. Three, a worldwide network, including a new operations centre in 
China and a two-year-old one in India, two huge potential markets. Four, a non-GM 
image.

Seminis was founded in 1994 by Alfonso Romo, a Mexican tycoon, as part of his 
Savia group. At the time he dreamed of GM, but Seminis made heavy losses, and 
in 2003 he sold to Fox Paine, an American private-equity firm that is now 
profitably selling out. Mr Romo's string of acquisitions created a firm that is 
widely (and wisely) decentralised. Much of its research and sales lies in 
Europe. Facing European fears and rules, however, Seminis has not tried to push GM 
there.

Indeed, it sells very little GM anywhere: its many new varieties arise from 
advanced use of the old technique of cross-pollination. The link with Monsanto, 
suggests Gillian Turco of Rabobank, a Dutch bank that specialises in 
agribusiness, might, paradoxically, be exactly what the GM cause needs. Biotechnology 
does not mean just GM. Give consumers something as unusual as Seminis's 
mini-watermelon, downsized - but not by GM - to suit one person, not eight, and they 
may realise they are already in the biotech era, and over time lose their 
fear of GM.

Well, perhaps, though enemies of GM argue persuasively that Europeans already 
know very well that their food results from cross-breeding, but still think 
GM a step too far. Monsanto itself says it will carry on with Seminis's 
traditional technology, though it might use GM in the longer term. GM farming is 
spreading rapidly outside Europe, but, given the hassle that Monsanto's present GM 
crops have met, that slow approach may be wise.

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