Monsanto's 'Roundup Ready' Alfalfa Controversy


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Case Details:

Case Code : BECG078
Case Length : 13 Pages
Period : 1999-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Monsanto Company
Industry : Agricultural Biotechnology
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Controversy

Alfalfa is a fodder crop for livestock (Refer to Exhibit IV for the picture of alfalfa). It is one of the crops grown on a wide scale in the US. Alfalfa is regarded as one of the best available animal feeds and is primarily used as food for cows. Other livestock that feed on alfalfa include beef cattle, sheep, chickens, turkeys, and horses.

Alfalfa sprouts are at times used as an ingredient in salads in the US, Australia, and New Zealand. The tender shoots of alfalfa are also consumed in some places as a leafy vegetable. Besides, the dehydrated alfalfa leaf is used as a dietary supplement in the form of tablets, powders, and tea. Parts of the alfalfa plant which are very old are, however, not eaten much because they have high fiber content.

'Roundup'is trademark name for a herbicide glyphosate developed and produced by Monsanto. This herbicide was used for killing weeds, particularly perennials. Glyphosate was known to have a serious ecological impact and was reported to be toxic to some beneficial predators like spiders, mites, beetles and to detritivores like earthworms as well as to aquatic organisms like fish. The Roundup herbicide was known to accumulate in fruits and tubers, which raised questions on the safety of consuming them...

The Debate

Monsanto's RRA angered environmental groups, organic farmers, and consumer groups who feared that biotech alfalfa would lead to the creation of superweeds and would contaminate organic and conventional varieties of alfalfa. They were apprehensive that this would ultimately result in hampering the export business. Though RRA created a huge uproar, it was not the first time that the Monsanto had been the subject of criticism. In 2004, when the shareholders of Monsanto requested the company to provide evidence which would prove that the GM crops were safe, Hugh Grant, Chairman of the company, turned down their plea saying, "We believe all of our products ... can be safely used."...

Exhibits

Exhibit I: Logo of Monsanto Company
Exhibit II: Monsanto's Stock Price Chart (June 2002 - May 2007)
Exhibit III: Quarterly Income Statement of Monsanto
Exhibit IV: Visual of Alfalfa
Exhibit V: Benefits from using Roundup Ready Technology
Exhibit VI: Varieties of Roundup Ready Products
Exhibit VII: Ten Findings of CFS about Roundup Ready Alfalfa
Exhibit VIII: Environmental Impact Statement of NEPA
Exhibit IX: Global Farm Income Benefit of GM Crops 1996-2004


 

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