AUSTRALIAN farmers have different views on the proposed Bayer purchase of Monsanto.
Ash Fraser, seeds representative on the Victorian Farmers Federation (VFF) grains council, said he was in favour of the deal going ahead.
“Both of these businesses are in the same space and when you look at Bayer’s actions around the world you can see they are proactive on research than can benefit growers.”
“They are probably the most responsible and ethical company in that space in the world, so for them to take over Monsanto, which rightly or wrongly has a notorious reputation, will be good thing for people’s confidence.”
Mr Fraser, who is general manager at Baker Seeds at Rutherglen, said he did not think the acquisition would lessen competition in the research sector.
“The big companies already trade genetics, I don’t think it is going to have a big impact in terms of lowering the amount of crop research or mean less new varieties or herbicides are available.”
Woomelang, Victoria, farmer Chris Kelly, who worked closely with the biotechnology lobby during the push to end the moratoria on the growing of genetically modified (GM) food crops, opposed the deal.
“I am in favour of competition and I think this deal just lessens competition,” he said.
Mr Kelly said while efficiency gains would be created if Bayer acquired Monsanto, he did not think these benefits would outweigh the lost competition for growers.
He said the fact the two were in the same segment of the market did not help.
“These guys are providing high quality, high cost seeds and crop protection products and I am worried that the prices for these products could rise even further.”
“Already we are seeing in some crop inputs it is difficult to source alternative products apart from cheap generics and I think a merger between these two companies would exacerbate this.”
Mr Fraser said he expected to see a large, well-resourced business that has already demonstrated a commitment to Australia (through Bayer’s breeding facility in Victoria) provide good germplasm that would flow through to varieties suitable for Australia.
“I think we could expect to see Australia get some useful varieties and I’ve also found Bayer to be good with the licensing arrangements for its products, so I think it is a deal that works for us.”
