5 Reasons Monsanto Will Continue Losing Money in 2015
2015 may be the tipping point
The biotech giant known as Monsanto is facing major financial downturn amid the backlash from consumers over their concerning GMO creations and the international rejection of various GMO exports following the confirmation of crop contamination across the United States.
Going further into 2015, it’s clear that this GMO behemoth has many more obstacles to face that will most likely lead to a continued loss. Here are the top 5 reasons Monsanto will continue to lose money (and at the very least, reputation) in 2015 and beyond.
1. 96% Want Their GMOs Labeled
Not 30%. Not 75%. Not even 85%. A powerful 96 plus percent of individuals within the United States are in serious favor of labeling Monsanto’s GMOs. And despite Monsanto’s millions defeating many labeling campaigns within various states like California, public resistance is catching up.
In the past, the company has used a number of pro-GMO agencies to band together in forming campaigns aimed at stopping GMO labeling altogether. Oftentimes, these groups use fabrications regarding the increased cost of groceries and even fake quotes from the FDA in order to push their agenda.
But despite the millions, the propaganda messages are no longer working.
2. Fast Food is Failing
Monsanto and the GMO industry at large absolutely love the fast food industry. They are what I call the ‘soul mates of the disease industry.’ Specifically, you have to remember that the fast food industry absolutely thrives on the cheapest, lowest quality ingredients. A market where there is no room for health, environmental concerns, or even morality.
The result: Monsanto’s GMOs are absolutely coveted in order to help produce the mass array of ultra low quality fast food ‘meals’ that, for the last few decades, have made up a major part of the American diet. Yes, it’s depressing.
But now, with McDonald’s continuing to lose money month after month, and the growth of competitors to fast food titans that are choosing to use local and even organic ingredients, the end of the fast food leaders is quickly coming. McDonald’s has even announced on record that they will not be switching to the new GMO potato, and claims have been made that their new chicken purchasing will be from farms that do not abuse antibiotics.
Is it a farce on behalf of McDonald’s and other fast food chains? It’s certainly a PR and marketing move to entice health-conscious and informed customers to consider coming back. And the end result will, ultimately, not benefit Monsanto as the company is forced to move away from many GMO-containing products.
3. The Spread of Information
Perhaps the most important key, nothing will stop the continued spread of Monsanto-related information throughout social media, websites like Natural Society, forums, blogs, and even the mainstream media. The most important intellectual tool in the fight to reclaim the food supply, the spread of information ultimately leads to the other 4 key factors in Monsanto’s financial decline.
It was back in 2011 that myself and Natural Society declared Monsanto to be the Worst Company of 2011. A campaign that, backed with an international news press release, ended up on major websites like Reuters, Yahoo News, Market Watch, Bloomberg, and many others.
What was even more empowering, however, were the 225,000 plus Facebook shares that came with an accompanying article on a major victory against Monsanto in Hungary. That’s the spread of information.
4. GMO Labeling
Undoubtedly, GMO labeling initiatives will continue to pop up around the United States, and with more support than ever. The result, I believe, will be a very serious victory in the realm of GMO labeling that ultimately spells the beginning of the end for Monsanto’s GMO peddling.
With the over 96% support for GMO labeling in the polls that we talked about, there is no question that we will be seeing a lot more labeling bills sprout in 2015. And, since Monsanto knows GMO labeling will impact their business (to such a degree that over 90% of Monsanto shareholders actually oppose labeling), we should see a decline in the company’s stock.
5. International Agencies Declare Monsanto’s Products as Poison
We have the support on the GMO labeling front, and the public backing on social media. We even have the countless scientists, researchers, doctors, and other experts who are on the forefront of taking on Monsanto. But, until recently, we did not have the World Health Organization.
This is one of the most exciting new developments for me. The World Health Organization recently released a report labeling Monsanto’s top selling herbicide Roundup as a ‘probable carcinogen’ — meaning that it can give you cancer. Now remember, this is the herbicide that goes hand in hand with GMO crops.
Millions of Americans and even individuals from other nations are spraying this stuff on their lawns, their home gardens, and even indoors. That is extremely concerning.
With the new announcement from the WHO on Roundup, we can expect to see other large international bodies come out and show support with similar findings. After all, the research is already out there on Roundup (and the chemical known as glyphosate which is the bedrock of the formulation).
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Going forward in 2015, it’s always possible that Monsanto will pull strings within the US government thanks to some of its many current and previous employees that currently hold high level positions within several branches of government, major corporations, law foundations, The Supreme Court, and even the FDA.
That said, it is clear to me that Monsanto’s continued decline is in full swing. And, as a result, we are going to see these 5 factors show themselves more so than ever in the past several decades.
 | Natural Society staff contribution |
For over 14 years, over 60 countries have label certain foods with GMO, even Communist China. We have yet to have that freedom in the USA.
American companies have competed in these countries and have label GMO that they sell, and organic, with competitive prices. If they can do it there they can certainly do it here in the US without a problem. Since food corps. are changing labels all the time, this should not be an issue, or an added expense, as we have been lied too on this matter.
Monsanto is a filthy word. What about class action lawsuits? Kill the beast. Let’s finish them off by suing them into extinction.
Once Monsanto has been dealt with, we need to turn our attention to the FDA and EPA and hold them responsible for allowing so much death and destruction.
Um, Monsanto made $2.9 billion in the quarter just reporting, Marsh 2015. That’s down, but not out.
I.e. your “continue losing money” is a lie.
-dlj.
Just because they made $2.9 billion doesn’t mean they didn’t lose money you have to looks at how much they lost vs how much they made.
That $2.9 is the net figure, income minus outgo, pretty much.
What you call “what they lost,” Joseph, has already been included in the calculation.
If you’re still puzzled, maybe take a look at an elementary accounting course. My Google on “elementary accounting” gets 62 million hits, but all the stuff on the first page look like they might help you.
Cheers,
-dlj.
Strange how financial wizards like “little” Johnny below have said people are dumping monsanto stock for years now. Strange how it keeps on going. Of course it is all he can do to manage his welfare check. No wonder his wife is usually out tool shopping, he doesn’t even know what kind of government takes of him.
Chuckle. More childish insults from paid Monsanto shill, GMO Roberts. His obsession drives him to repeat the same mistakes over and over, but they never persuade anyone. GMO Roberts’ actions fit the classic definition of insanity. Here he is, below. Let him pass, whining into the wilderness.
At least I don’t make feeble insult attempts like you do.
#1 reason…they put the poison Gmo test center on Maui. We voted for independent long term environmental and Health impact studies before approved Gmo moratorium is lifted. If they get a corrupt judge to overturn our law, they will realize how David conquered Goliath.
Huge Hedge Funds are starting to dump Monsanto completely!
Example:
Blue Ridge Capital Exits entire Position in Monsanto
By Adam Rogers • Mar 26, 2015 12:52 pm EDT
Blue Ridge Capital and Monsanto
Blue Ridge Capital has exited its position in Monsanto (MON). The
investment represented 4.06% of the hedge fund’s overall portfolio. The
fund sold all 3,050,000 shares
https://www.youtube.com/watch?v=7jWyrbP0TJQ
Sure I’ll drink it, no problem, bring in on….on second thought, I’m not thirsty anymore, no, I don’t think I’ll have that drink after all…..perhaps I am an idiot!
It doesn’t matter how much money Monsanto and like companies lose. They are an arm of the ______ Industrial Complex that seeks to wage war on mankind. Whatever they lose will be made up for in bailouts. The best thing is to simply refuse to consume it and let it pile up on the docks. Make private neighborhood gardens and defend them with the 2A.
I can see Monsatan is fallen and when this happen, it is a good ridden.
Great article and good news! Yes, MonSatan will go down worldwide and it can’t happen soon enough. Why?
“Monsanto will be destroyed by the grassroots. No matter which way we look at it, the people will not stand for this madness for much longer…and all the lobbyists in the world cannot stop a movement that has made its decision.” —Anthony Gucciardi
i can’t wait
For Monsanto, a Season of Woes
Warning on Roundup weed killer follows low crop prices, criticism of biotech food
By Jacob Bunge March 26, 2015 3:13 p.m. ET
Time to sell your shares trolls!
Agribusiness giant Monsanto Co. is confronting some of its stiffest challenges in years, as it contends
with consumer criticism of biotech foods, farmers tightening their belts, and a global health agency that has labeled its trademark weed killer as a potential carcinogen.
The latest and most prominent threat came from a World Health Organization agency’s classification last week of glyphosate—which Monsanto sells under the Roundup brand—as likely having the potential to cause cancer in humans. The finding marks the highest-profile critique of Roundup, a product the U.S. agriculture industry has long touted as a safe way to protect cornfields and lawns.
The challenge to Roundup adds to a pile of other woes. Monsanto’s stock is roughly flat over the past 12 months)—lagging behind the S&P 500 index’s 11% rise and far underperforming its own 65%
increase from 2009 to 2014. Back-to-back bumper harvests in 2013 and 2014 in the U.S. have also been bad for Monsanto, as prices of corn and soybeans are down to their lowest level in years, prompting some farmers to choose cheaper seeds and skimp on other farm supplies. Currency
shifts have also made seeds and chemicals more expensive for farmers abroad in agricultural countries including Brazil, analysts said.
Monsantoand other biotech seed companies meanwhile have spent heavily to combat efforts to label foods made with genetically modified ingredients, part of a movement that has fueled sharp growth in sales of non-GMO food products. Meanwhile, farmers are battling hard-to-kill weeds and bugs
that have evolved to resist sprays of glyphosate and the insect-killing proteins produced by some biotech crops.
“They just can’t catch a break,” said Mark Connelly, analyst with brokerage firm CLSA Ltd. The IARC classification, he said, “is very significant because it’s the first time a relatively credible agency has taken aim at glyphosate.”
Monsanto shares have declined 2.9% over the past week.
The steep drop in crop prices may be Monsanto’s biggest challenge,
analysts say. Corn futures prices have dropped 47% over the past two
years, and soybeans 33%, crimping spending by farmers Monsanto relies on
to pay for high-tech seeds and farming services. The U.S. Department of
Agriculture in February projected that U.S. farm incomes will drop by
nearly one-third this year to the lowest level since 2009, amid a third
straight year of lower prices for major agricultural commodities.
St.
Louis-based Monsanto grew to dominate the agricultural seed business by
jumping aboard the biotech bandwagon in the early 1980s. It hit upon a
method to insert genes into plant seeds that enabled them to withstand
glyphosate, which Monsanto had patented and launched in the early 1970s.
Since the first “Roundup Ready” seeds hit the market in 1996, such
products have become pervasive in the U.S. Farm Belt, with genetically
modified crops planted on 93% of corn acres and 94% of soybeans last
year, according to the U.S. Department of Agriculture.
Farmers
embraced the crops partly because glyphosate made it simple to eradicate
weeds—which can choke out crops and diminish yields—but also because of
the product’s safety versus older, harsher chemicals, according to
academics.
Monsanto’s agricultural productivity segment, which
includes Roundup sales, generated $5.1 billion in revenue for fiscal
2014, representing about one-third of total sales. Stiff competition
from rival glyphosate makers, however, means the division is only about
63% as profitable as Monsanto’s core seeds business, and some analysts
believe Monsanto may eventually spin off the division. Monsanto declined
to comment.
The steep drop in crop prices may be Monsanto’s biggest challenge,
analysts say. Corn futures prices have dropped 47% over the past two
years, and soybeans 33%, crimping spending by farmers Monsanto relies on
to pay for high-tech seeds and farming services. The U.S. Department of
Agriculture in February projected that U.S. farm incomes will drop by
nearly one-third this year to the lowest level since 2009, amid a third
straight year of lower prices for major agricultural commodities.
St.
Louis-based Monsanto grew to dominate the agricultural seed business by
jumping aboard the biotech bandwagon in the early 1980s. It hit upon a
method to insert genes into plant seeds that enabled them to withstand
glyphosate, which Monsanto had patented and launched in the early 1970s.
Since the first “Roundup Ready” seeds hit the market in 1996, such
products have become pervasive in the U.S. Farm Belt, with genetically
modified crops planted on 93% of corn acres and 94% of soybeans last
year, according to the U.S. Department of Agriculture.
Farmers
embraced the crops partly because glyphosate made it simple to eradicate
weeds—which can choke out crops and diminish yields—but also because of
the product’s safety versus older, harsher chemicals, according to
academics.
Monsanto’s agricultural productivity segment, which
includes Roundup sales, generated $5.1 billion in revenue for fiscal
2014, representing about one-third of total sales. Stiff competition
from rival glyphosate makers, however, means the division is only about
63% as profitable as Monsanto’s core seeds business, and some analysts
believe Monsanto may eventually spin off the division. Monsanto declined
to comment.
Farmers have a long history of being traditional and doing things the way Grand dad , Dad and so forth did over generations. Most are not open to outside ideas, unless of course it comes from their friendly good old boy county agent or local Ag Rep. They have a heavy tradition of hanging on every word the government says and have been nursed along with several welfare entitlement programs. There was an article some time back about how ideology keeps them from making changes. The example was Wheat farmers. Organic growers make more profit, but conventional growers receive the Farm Subsidies benefits. This is not given the organic growers because they do make profit on their crop. That safety net is hard for them to give up. They don’t know any other way of living. Every so often though some farmers get fed up and will want to change from the Industrial Ag clutches. Joel Salatin is a great example. Man used his head, figured out just exactly how nature works and replicated it in his own business model. Biomimetics is far superior to anything the Biotechs are offering as Life. There is no Bio in Biotech. Just industrial.