Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Monsanto Investors Face Catastrophic Risk

Monsanto Investors Face Catastrophic Risk

Berlin/New York, April 16th, 2003 The agrochemical giant Monsanto has received the lowest possible environmental and strategic management rating of a triple-C from Innovest Strategic Value Advisors, a global environmental and social investment research firm. Innovest s report, Monsanto and Genetic Engineering: Risks to Investors, commissioned by Greenpeace, was released at a briefing at the Harvard Club in New York City this morning.

The report, which comes just days before Monsanto s annual general meeting, warns shareholders and potential investors of Monsanto's "above average risk exposure and less sophisticated management than peers." Innovest analysts predict that "it [Monsanto] will likely under-perform in the market over the mid to long-term."

Monsanto suffered $ 1.7 billion in losses in 2002 and has failed to open new markets for its controversial genetic engineered (GE) products. Yet Monsanto continues to pursue its unsound business strategy of betting on a speedy and widespread global acceptance of GE foods. Next in the Monsanto pipeline is GE wheat, which is being boycotted in key markets by farmers and food industry even before its approval.

"While last year's profit losses led to a change in leadership at the company, they did not lead to a change in strategy. If Monsanto does not take steps to mitigate its substantial market risks, further investor losses are likely," said Frank Dixon, Managing Director at Innovest Strategic
Value Advisors. The risk of heavy financial losses due to genetic pollution or technology failure coupled with sustained market rejection of GE foods makes Monsanto a poor investment.

In its assessment of Monsanto s key markets, Innovest underscores the lack of regulatory approval and stiff consumer opposition that continue to block the company's GE crops. GE products constitute one of the most widely rejected product groups ever, and major food importers such as China, Japan and Korea have recently followed the restrictive European approach. In the US, upwards of 90% of consumers now demand GE food to be labeled and many would reject GE food if given the choice.

The Innovest analysis of the risks and liabilities associated with Monsanto's genetic engineering (GE) business pays special attention to the inevitability of GE contamination. Referring to the example of the StarLink corn contamination scandal in 2000, in which the company Aventis lost $1 billion, Innovest estimated Monsanto's potential financial fallout from a "StarLink scenario" to be $3.83 liability per share.

"Monsanto's cash cow remains its agrochemical business, but last year's 24% drop in sales of Round-up and other non-selective herbicides has left the company vulnerable and increasingly desperate. Monsanto appears to be digging its own grave with its GE strategy," said global markets specialist with Greenpeace, Lindsay Keenan.

The Innovest report can be downloaded from www.greenpeace.org/monsantoinvestor

A comprehensive video on GE wheat market rejection, called Slice of Life , is available from Greenpeace International, Martin Atkin +31 627 000 057

For more information, please contact: Frank Dixon, Managing Director, Innovest Strategic Value Advisors,Tel +1 646 237 0220 or +1 212 421 2000, ext. 200; Lindsay Keenan, Greenpeace global markets specialist, Mob: +1 202 550 3845; Teresa Merilainen, Greenpeace International Press Office, Tel: +31 205 236 637

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news