Blog: Clarisse vd Woude
Bayer leaves chemistry behind with Monsanto deal
The Bayer-Monsanto takeover deal is seen as a major threat. This became clear on Tuesday when the European Commission announced that it wanted a more in-depth investigation. There is also a positive effect to a merger, but I don't hear it anywhere.
The objections to joining forces are mainly due to the declining competitive climate. The mega concern would gain too much market dominance. Especially in markets with a limited product range. Furthermore, the combination of resistant crops to certain own resources is viewed with suspicion. And finally, prices of farm inputs and food may go up and there are fears of a decline in seed varieties and innovation. Valid arguments for fact-finding, but I'm missing something.
change process
Agriculture is in the midst of an important process of change: from chemistry to biology. At the same time, technological developments based on sustainable business operations also have enormous potential. Think of strong starting material that is resistant to all kinds of external influences, the early detection of infestations and diseases and, if there is something in the crop, tackle this in the most sustainable way possible. Consisting of a combination tactic of chemical and green solutions and smart farming.
Change course
Themes in which both companies invest heavily and in which they think they can really make progress together. Bayer is especially big in chemistry and sees that it has to keep up with current developments if it wants to maintain its leading position. Monsanto, which is strong in seeds and large in technological developments, is a good partner for this, according to the Germans. Market leader Bayer is therefore shifting its course from chemistry to biology and technology. With the partial farewell to the core business, the chemical giant recognizes that chemistry does not have the future in agriculture, but it does not get the credit for this step.
Frankenstein food
It should be added that the controversy over GMO crops or colloquially referred to as "Frankenstein foods," of which Monsanto is seen as the producer, is "nicht im frage" here. The European Union has closed the door. Although many companies think it is a shame, because it could have brought so much to society, they no longer put any energy into it in Europe. This discussion is mainly based on emotion and the intended mega deal is also controversial and influenced by emotion.
This is also apparent from the many letters of concern received by the Commission. Let's hope the choice the EC makes is based on facts and rationale. That in their research they only look at the competition rules and that it carries out its work without prejudice. Because we have seen too often in agriculture in recent years emotion politics.
Clarisse van der Woude
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