Roberto BERENTSEN - Semillas Berentsen - Mexico

May 2002

How has NAFTA changed the way a company like yours does business?
The wave of mergers in the seed industry has had a tremendous impact on the seed supply in Mexico.

A clear example is the case of Monsanto, which now owns both the leading corn seed company in Mexico (Asgrow) and the leading sorghum seed company in Mexico (Dekalb). This makes Monsanto the undisputed leader of the primary grain production crops in the country.

The inclusion of Cargill Seeds in this equation means that three of the leading brands and companies which used to compete head to head in this market are now no longer "competing". This takes away the many benefits that competition brings to a market.

These mergers have severly affected the distribution companies and disrupted the sources of seed supply that many small distribution companies depended on for their competitiveness and survival.

The ability of the big corporations to finance and to offer to the growers complete packages (that sometimes even include a buyer for the crop) have been the demise of many small to medium sized companies.

 

 

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