In a rapidly consolidating sector already dominated by just a handful of players, Bayer AG’s $62 billion bid for U.S.-based Monsanto Co., if executed, has significant negative implications for farmers and the industry, experts say. Bayer and Monsanto are major manufacturers of agrochemicals, seeds and genetically modified crops. There are concerns that such genetic engineering cuts down on natural biodiversity and exposes the food supply to risk from disease and unpredictable weather. Monsanto said midday Tuesday that the bid undervalues the company, but that it is open to continued talks with Bayer. The consolidation of two big industry players may also limit farmer choice and bargaining power, with increasing seed prices expected to be passed on to the grocery aisles.
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