Ag News Friday, June 19, 2015

NFU Objects Potential Monsanto-Syngenta Merger

The National Farmers Union Board of Directors has passed a resolution stating its objection to a potential merger of Monsanto and Syngenta. Monsanto is seeking to acquire Swiss based Syngenta. The resolution states “NFU will oppose any proposed acquisition of Syngenta by Monsanto for the damaging impacts it may have on farmers and rural America.” According to the National Farmers Union, the merger, if achieved, would combine the world’s number one seed company and the number one pesticide company into a single entity. NFU President Roger Johnson said an acquisition of this magnitude should be subject to full review and scrutiny as an anti-competitive acquisition that would substantially lessen competition.

Potential Monsanto-Syngenta deal would Prompt Industry Review

The Head of Bayer AG’s CropScience unit told Bloomberg this week, a potential merger of Monsanto and Syngenta would prompt an industry review. Liam Condon said “there’s only six research and development based players in this industry so if the two biggest were to go together, inevitably it would force others to review their strategies.” He declined to comment to Bloomberg on what Bayer would do if the two rivals combined. Bayer would be a candidate to buy Syngenta’s seed business, which Monsanto would need to sell for antitrust reasons. Monsanto already pitched the idea to Bayer last year, according to the report. Condon did say Bayer has a “clear” view on how to respond in the event Monsanto proceeds with its takeover plan.

Foster Farms Suspends Workers in Undercover Video

Following an undercover video released earlier this week by animal rights group Mercy for Animals, Foster Farms announced the company has suspended five employees. Meatingplace reports the five employees were either directly involved in abusive behavior or witnessed the incidents without reporting the violations to management. Investigations were conducted by the company and the Fresno County California Sheriff’s Department. In a statement, Foster Farms officials said the company is reinforcing animal welfare training company wide on its ranches and in its plants.

Brazil to Set Corn Export Record

Brazil has started harvesting a record second corn crop which will set a corn export record for Brazil in 2015. DTN reports virtually perfect weather conditions over the last three months will allow Brazilian farmers to harvest over 52.5 million metric tons in June and July, up from 48 million in 2014. The excess will be exported, causing shipments to rise from 20.1 in 2014 to 27.1 million metric tons in 2015, creating distance between Brazil, the world's No 2 exporter, and the Ukraine in third place. Brazilian analyst forecast the majority of the extra export market will be stolen from the U.S.

Source:  NAFB News