06.11.2008
Monsanto invests in the sugarcane market

US multinational Monsanto started investing in the sugarcane market. The multinational announced this Tuesday (04), the purchase of two biotechnology companies of the Votorantin Group which are specialised in genetic improvement of sugarcane. Companies Canavialis and Alellyx were purchased for approximately US$ 290 million or R$ 630 million.

In a press release from the multinational, it becomes obvious that there is huge interest from agribusinesses for Brazilian lands. According to the company, the tropical climate of Brazil is ideal for sugarcane cultivation. The multinational points out that Brazil concentrates one third of the approximately 50 million hectares planted with sugarcane in the word. Despite the huge profits from sugarcane, one cannot neglect the severe impacts to the environment, since in Brazil in particular sugarcane is responsible for extensive sol erosion and the deforestation of vast areas of the Amazon region.

In 2007 Monsanto set up a partnership with two other Brazilian companies for the development of herbicide tolerant sugarcane varieties. The transgenic sugarcane will be released in the market in around 5 years. Swiss multinational Syngenta also announced last week its interest to enter the sugarcane market.

Source: Radioagência NP, Gisele Barbieri