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Biofuels: good for agrochemical/GMO biz

GMO giant Monsanto wows Wall Street, consolidates its grip on South America

Posted by Tom Philpott at 9:09 AM on 13 Feb 2008

While debate rages on Gristmill and elsewhere about whether biofuels are worth a damn ecologically, investors in agribusiness firms are quietly counting their cash.

As corn and soy prices approach all-time highs, driven up by government biofuel mandates, farmers are scrambling to plant as much as they can -- and lashing the earth with chemicals to maximize yields.

At a Wall Street meeting on Tuesday, genetically modified seed/herbicide giant Monsanto promised investors even-higher-than-expected profits in fiscal year 2008. The company expects to rake in $1.3-$1.4 billion in gross profit from its Roundup herbicide alone (Monsanto had been previously expecting to make $1 billion from Roundup); and it's looking for a cool $3.5 billion from its genetically modified seeds and traits.

The company said it's seeing "strong early-season order patterns in its U.S. corn seed and traits business" -- meaning farmers are scrambling to lay in supplies of GM corn and soy seed ahead of the spring planting season.

Below the fold, I'll drill down a little into Monsanto's announcement.

  • Use of "triple-stacked trait" seeds in the United States is surging. Monsanto has been pushing corn seeds with three different GM traits -- Roundup tolerance plus two kinds of pesticides. Envision vast cornfields where nearly everything is dead except the corn plants. Writes the company: "Monsanto's triple-stack trait product could be planted on 25-27 million acres in the United States, an increase of approximately 50 percent over the prior year."
  • Monsanto is making boatloads of cash on industrial-ag booms in Brazil and Argentina. The company seems to be openly establishing corn and soy seed monopolies down there. " Monsanto now estimates that Brazilian soybean farmers used its Roundup Ready technology on 55 percent of acres this season, an increase of 10 percent compared with planted acres in 2007," the report states.
  • As for Brazilian corn, "Monsanto confirmed that its corn brands, DEKALB, Agroceres and Agroeste, are expected to collectively hold share at 40 percent of the Brazilian corn seed market."
  • As for Argentina and its massive demand for corn seeds, Monsanto didn't reveal its market share. However, it did boast that its insecticide-laced corn seed has increased its market share by 5 percentage points two years running; and also that it's about to launch a "double-stacked" corn seed, featuring an insecticide and Roundup tolerance.

insecticide-laced corn plants

Hi Tom.

Can you tell us more about the insecticide-laced corn plants? What sort of protein is being expressed in the plants? This is a very important question because if some form of Bt is being expressed, then the corn field will likely be more hospitable, not less hospitable, to life. Far less spraying of chemicals or even the varieties of Bt used for organic culture will be necessary and there will be far less collateral damage. Isn't it better to eliminate the insects feeding directly on the corn plants as opposed to every insect -- or other creature -- passing through the field or exposed to drift or run-off from the field?

What do organic farmers use to control corn borer?

Based on what I've read, the corn borer inflicts damage that can result in the accumulation of toxic chemicals that can harm humans, horses, and other livestock long. This happens long before there are visible signs of damage on the plants. I have to assume that there is an acceptable preventative pesticide used for organic agriculture or you must test your corn for safety following harvest... or you don't worry about the corn borer causing the accumulation of toxic chemicals that can harm humans, horses, or other livestock.

Less pesticide is bad?

It's contradictory to want fewer pesticides and no genetic engineering. Genetic engineering is precisely what will prevent the need for increased pesticide use. As the climate becomes more unpredictable, incidence of all sorts of crop pests will increase, and so will the use of all types of pesticides. Plants can instead be engineered to protect themselves in ways that are safe for humans and the environment. In cases where eliminating all chemicals is difficult (e.g. weeds), genetic engineering lets us use less toxic and more environmentally safe alternatives. Because overall pesticide use will decrease, non-target organisms like soil bacteria and beneficial insects will flourish. How is this a bad thing? Obviously the farmers think it's good, or they wouldn't be buying. Sure, Monsanto is raking in the cash, but there's plenty of room in the market for additional biotech companies.

PS: The triple stacked "insecticide laced corn" simply contains two kinds of Bt that target rootworm and corn borer, in addition to glycophosphate resistance. Bt has proven its safety time and again, compared to pesticides like organophosphates and acetylcholine esterase inhibitors.

For more scientific discussion on GMOs, visit my blog: GeneticMaize.

Dipel

Searching the internet suggests the primary natural means of controlling corn borer is the application of DIpel.

From PlanetNatural.com:

"Specific to leaf eating caterpillars, Dipel Dust & Spray (Bt-kurstaki) is the natural choice for controlling gypsy moth, tent caterpillar, cabbage looper, tomato hornworm, leafroller and more. For use on vegetables, fruits, flowers, ornamentals and lawns. Biodegrades quickly and may require reapplication under heavy insect pressure. Harmless to humans, animals and beneficial insects."

Wouldn't it be better to grow corn expressing the Bt-kurstaki protein in its leaves? If organic farmers are spraying Bt-kurstaki, a bacterium, on their fields, it seems inevitable that some of the bacteria will land on other plants. You want to control the insects feeding on corn, not neighboring plants. While the product does not kill beneficial insects, probably refering to predators that do not feed on leaves, there is no reason to assume it will not kill butterfly and moth caterpillars feeding on nearby trees, shrubs, and herbaceous plants, especially in an environment that encourages growing those plants around agricultural fields.

I'm not engaging in idle speculation here. It is well known that spraying urban trees with Bt to kill gypsy moth caterpillars leads to the death of valuable and/or endangered butterflies and moths -- important for feeding birds or pollinating plants -- whose caterpillars feed on understory vegetation. If Dipel is used in orchards or fields of mixed vegetation, the collateral damage, even on an organic farm, must be enormous.

It seems it would be much more favorable to the environment and protection of endangered species to put Bt protein in plants cultivated for food rather than spray Bt bacteria on entire orchards and fields.

I suppose someone will say organic farmers spray Dipel only when necessary. But, again, I've read that corn borer causes severe damage to crops before there are visible signs. Thus, logic suggests that Dipel is sprayed on crops quite often as a preventative measure.

OK

GMOs have resulted in an explosion in pesticide, specifically glyphosate (Roundup). Corn farmers often use other herbicides in conjunction with glyphosate when planting.
Also, corn was cultivated for thousands of years, sustaining several cultures, long before Monsanto showed up to tell us how it's done. I think we can survive without that company's wares. We've survived fine on our organic sweet corn, and have not been tempted to plant Roundup Ready or Bt corn.
As for corn and soy that "express" the Bt gene that's toxic to bugs, I doubt we understand yet what effect it has to blanket millions of acres of earth with it. We'll find out soon enough, though.

Victual Reality
OK

"GMOs have resulted in an explosion in pesticide, specifically glyphosate (Roundup). Corn farmers often use other herbicides in conjunction with glyphosate when planting."

But not all GMOs promote further use of pesticides. They can actually reduce the use of pesticides. Fine. Reject RoundUp and use other methods for suppressing weeds. But why spray the fields and surrounding areas with different varieties of Bt bacteria, not knowing the consequences of doing so on a large scale, when you can put the protein right in the leaves of the desired plant? It doesn't even have to be in the flowering portion, pollen, or seeds... just in the leaves.

"Also, corn was cultivated for thousands of years, sustaining several cultures, long before Monsanto showed up to tell us how it's done. I think we can survive without that company's wares."

The number of human beings on the planet was also substanially lower for thousands of years. Civilizations also catastophically collapsed. There was also sufficient land available for lower intensity of agriculture. The European corn borer was in Europe...now it is in North America. The world is a bit different and corn, and other crops, are subject to new pests. I suppose we could go back to famine as means of controlling human population.

"We've survived fine on our organic sweet corn, and have not been tempted to plant Roundup Ready or Bt corn."

Are your organic practices suitable on a global scale?

"As for corn and soy that "express" the Bt gene that's toxic to bugs, I doubt we understand yet what effect it has to blanket millions of acres of earth with it."

What about spraying different varieties of Bt bacteria over millions of acres, along with the unexpected effects on non-target organisms? Are you confident that releasing bacteria in numbers far exceeding natural levels is really better than expressing a protein -- one that starts to break down as soon as it enters an animals stomach in a plant's leaf?

I guess we'll find out eventually. But how many important butterflies, moths, and all of the species dependent on them will be lost in the mean time?

If organic farmers are interested in protecting nature, I suggest calling for a complete ban on the use of Bt bacteria until we know they are absolutely harmless as far as non-target organisms are concerned. Are you with me?

I'm certainly not using it my garden. I'm trying to preserve native insects, not kill them. I sincerely believe the use of Bt for organic agriculture is essentially green-washing... using a product to feel good, while not really looking into the damage it inflicts.

Reply to Tom

Roundup use is definitely up.  But this has replaced many other herbicides that had been used on corn and soybeans prior to roundup resistant cultivars.  Those replaced herbicides include those like Atrazine and Lasso, both of which leached into groundwater and are present in home wells scattered through the Midwest.  Roundup is deactivated by soil contact so it can be assumed that from this standpoint this has been a more environmentally beneficial means of weed control.

But, from other aspects, like the evolution of Roundup resistant weed strains, there may be trouble ahead for the future of Roundup.  By applying one chemical over such vast areas and many different weed species we are selecting for resistance.  

Same with the Bt gene in corn.  This trait has been so successful that farmers have adopted it on too much of their corn acreage.  They are supposed to be (regulated) planting a percentage of their acreage in non Bt varieties to reduce the potential for the buildup of resistant strains of target species like corn borer and rootworm.  But there apparently is some cheating going on and many farmers are not following the guidelines.

This has been one of my chief criticisms of GMOs -- can we successfully keep ratcheting up the gene technology to keep ahead of pest resistance?  All of this depends on keeping the wheels on a system that is inherently unsustainable and continuing to develop scientific elites in functioning universities.  Can we maintain these higher and higher levels of complexity to keep this high tech system afloat?  Can the Monsantos of the world continue to pull the rabbit out of the hat?  And can the basic agronomic inputs keep up with the genetics?  

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