Updated January 2017
As most of us are aware, Monsanto is a major supplier of the world's food through its corn, cotton, canola and soybean seed (germplasm) business and is currently looking to merge with Bayer which would create a massive agribusiness. On its own, Monsanto had net sales of $13.502 billion in 2016 and net income of $1.336 billion and has set a long-term target of doubling its earnings-per-share by the end of fiscal 2019, an issue that could be complicated by its dropping net sales which are down from $15.85 billion in 2014. The company is the largest biotechnology seed company in the world.
As most of us are aware, Monsanto is a major supplier of the world's food through its corn, cotton, canola and soybean seed (germplasm) business and is currently looking to merge with Bayer which would create a massive agribusiness. On its own, Monsanto had net sales of $13.502 billion in 2016 and net income of $1.336 billion and has set a long-term target of doubling its earnings-per-share by the end of fiscal 2019, an issue that could be complicated by its dropping net sales which are down from $15.85 billion in 2014. The company is the largest biotechnology seed company in the world.
Here is a chart showing
Monsanto's major businesses:
Monsanto's seeds are
marketed to every agricultural region in the world and, in countries where they
have received approval, Monsanto markets its genetically modified seeds
including its Roundup Ready soybeans, canola, corn (under the DEKALB
brand) and cotton seeds, plant varieties that allow farmers to apply more of
Monsanto's famous herbicide on their crops without the fear of killing the genetically protected seedlings and plants. In 2016, Monsanto spent $1.512 billion on
research and development, up from $1.725 billion in 2014. As an aside, it is
interesting to note that Monsanto's patent on Roundup Ready soybeans expired in
2014.
Monsanto spent years buying up America's seed companies in an effort to control the world's seed business.
The company's 2005 purchase of Seminis earned Monsanto a
40 percent share of the U.S. vegetable seed market and 20 percent of the
world's total seed market in one transaction alone. Seminis supplied the genetics
for 55 percent of the lettuce found on the shelves of U.S. grocery stores along
with 75 percent of the tomatoes and 85 percent of the peppers plus a
substantial portion of beans, cucumbers, melons, carrots, squash, zucchini and
watermelons. According to a report by Food and Water Watch, in 2009,
Monsanto's products were in use on 282 million acres worldwide and on 40
percent of U.S. agricultural land.
From this video, we get
the first glimpse of how Monsanto's business model began to change in the 1980s:
With Monsanto's modern
day focus on the agricultural industry, we tend to forget about the
corporation's past. Monsanto was founded in 1901 as a small chemical
company by John Francis Queeny. Its first product was saccharin, a sugar
substitute that was supplied to Coca-Cola. As the years passed,
Monsanto's product offerings expanded to include aspirin, sedatives and laxatives.
When John Queeny's son, Edgar, took over in the late 1920's the company's
product line expanded to include industrial chemicals, fertilizers, pesticides
and herbicides including DDT and Agent Orange. It was also producing a
chemical that had the trade name of Aroclor which is better known to most of us as
polychlorinated biphenyls or PCBs. These chemicals were widely used as
coolant fluids in electrical equipment as a replacement for flammable mineral
oil and were manufactured at Monsanto's Anniston, Alabama facility among others. I can recall
working with pole-mounted electrical transformers filled with PCB coolant in the early 1970s
when I worked for a utility company. The use of PCBs was ubiquitous until
it was banned by the United States Congress in 1979 because of its
environmental toxicity and persistence in the environment. In a trial in
2001, Monsanto claimed that first found out that PCBs were harmful to human health
and the environment back in 1966 when scientists in Sweden discovered PCBs
in human hair, fish, birds, eggs and pine needles and that the company began to
take steps to curb the problem at that point in time. In fact, this is
not the truth as you will see in the remainder of this posting which speaks volumes about Monsanto's corporate culture.
Here is an internal memo dating from October 11,
1937 where it is noted that experimental work with animals showed that
prolonged exposure to both PCB vapour and liquids led to toxic effects:
As well, this internal document dating from December
1947 from instant to the Celanese Corporation states that experiments with
Aroclor in the 1930s led to liver damage in rats and that the "...vapors
of the other Aroclors (other than Aroclor 1268) are toxic and should be avoided.":
An additional internal document that outlines
handling instructions for Aroclor notes that "...prolonged and repeated
exposure to such fumes may, in addition to causing irritation, interfere with
the normal skin functions and result in physiological disturbances."
It also recommends that a gas mask is required when dealing with Aroclor
fumes and that cold cream should be applied to the skin to prevent since
particles of Aroclor from entering pores. Workers who had contact with
Aroclor were to change their work clothes daily and not wear them outside the
plant. Before changing into street clothes, workmen were to bathe with
plenty of soap and warm water. It was noted that failure to follow these
precautions could result in skin infections, ill health and discomfort.
From 1952, here is an internal document that outlines an
agreement between the United States Public Health Service and the manufacturers
of chlorinated hydrocarbons (including PCBs) about labelling requirements for
Aroclor:
Stunningly, the document makes note of a rather unusual proposed
use for Aroclor....as a chewing gum additive! The memo goes on to note
that Aroclor is not designed with the intention that people would bathe in it.
It also notes that there have been few deaths associated with use of the
product but that there have been a relatively large number of cases of skin
irritation including those cases transmitted by workers to their wives at home.
Here is another internal
document from 1955 in which Monsanto's Medical Department recommends that
company employees at its Krummrich Plant not eat lunch within the confines of
the Aroclors Department because "...in any case where a workman claimed
physical harm from contaminated food, it would be extremely difficult on the
basis of past literature reports to counter such claims.":
Lastly, here is a
document outlining the reasons why the United States Navy was not using Pydraul
150, a hydraulic fluid that contained Aroclor in its submarines:
In its own toxicity
tests, the Navy found that all rabbits tested were killed and that there was
definite liver damage after inhalation of Pydraul.
By the later 1960s,
Monsanto was fielding increasing questions about its product from a number of its Aroclor customers and
struggling with pollution problems at its aging Anniston, Alabama plant.
By 1969, the global Aroclor business had grown into a $22 million a year
business, generating healthy profits of $10 million. Obviously, Monsanto
needed to protect its investment so it created a committee whose job was to
protect the sales and profits generated by Aroclors, to permit the development
of new uses for Aroclors and to protect the image of the Organic Division and
Monsanto as a whole as shown in this confidential memo:
What is particularly
frightening is that during the 1960s, Aroclor was very widely used; it was a component of highway line marking paints (one million
pounds were used annually) which were likely leaching into watersheds and were used in rubber-based paints and surface coatings that
were used to coat the interior walls of potable water storage tanks and
swimming pools.
Now, let's get to
Monsanto's bottom line as shown in this memo from February 16, 1970:
Note the first sentence
of the last paragraph which states "...we can't afford to lose one dollar of
business.". Also note that customers who were asking questions
about Monsanto's Aroclor/Pydraul hydraulic fluid products were to be given verbal answers only
and that no written answers were to be provided. As well, no fluids were to be
taken back from customers, rather, newly formulated fluids that were less
damaging to the environment were to be sold to the customer.
PCBs are now found
globally and have been linked to cancer, effects on the immune, reproduction,
nervous and endocrine systems according to the EPA. Since PCBs are not naturally
occurring substances, all occurrences in the environment can be attributed to
manmade sources. PCBs are found around the world which suggests that PCBs
are transported in air. The highest concentration of PCBs in air are found
indoors, particularly in buildings that were constructed using PCB-containing
rubber sealants. It is currently assumed that most of the world's
population receives its major exposure to PCBs through the food chain because
PCBs are lipohilic (fat-loving i.e. they dissolve in fat). Foods of animal origin are an important source of
exposure for humans whereas, plant-based foods generally contain much lower levels of PCBs,
often just above the detection level for these chemicals. PCBs are also
found in human milk, particularly in individuals that consume large amounts of
contaminated food such as fish.
While Monsanto
transformed itself into an agricultural and biotechnology company by divesting
of its interests in its chemical business between 1997 and 2002, it has a
heritage that is unforgettable. What should be of concern to the world's
consumers is that the same company that brought us PCBs, one of the world's
most persistent and widespread chemical contaminants, is now attempting to gain
a monopoly on our food through "better science".
it has a heritage that is unforgettable. I think you meant to say Monsanto has a heritage that is unforgivable. Anyone with a functioning mind should think about where this company came from and why in the hell should anyone trust them to modify our food supply...
ReplyDeleteAnd we spend all our time worrying about GMOs and carbon dioxide when we need to deal with REAL environmental pollution and dangerous chemicals. the companies must love these red herrings. Monsanto was a minor producer of Agent Orange during the Vietnam war. Dow Chemical was the main one and when they could not keep up, it was farmed out to others including Monsanto, but for some reason we only remember Monsanto.
ReplyDeleteThe notion that businesses and industries will police themselves is not only ludicrous but dangerous. IF governments had engaged in proper oversight, with laws with TEETH, including fines and prison sentences, the concentration of power in Monsanto's hands would not have happened nor would the PCBs and so many other horror stories. Government MUST fund research and conduct lab analysis in situations completely independent of both corporate and political pressure