Monsanto, the giant biotechnology agriculture company that created genetically modified corn, soybeans and herbicides, isn’t riding so high this year in the stocks department, as news comes in that its products aren’t working like they’d hoped.
According to the New York Times, weeds are becoming immune to Monsanto’s herbicide Roundup, and its latest genetically modified, 8-gene corn is a flop, producing yields no higher than the company’s less expensive corn, which contains only three foreign genes.
“Monsanto has already been forced to sharply cut prices on SmartStax and on its newest soybean seeds, called Roundup Ready 2 Yield, as sales fell below projections,” the Times said. “And the Justice Department is investigating Monsanto for possible antitrust violations.”
“Until now, Monsanto’s main challenge has come from opponents of genetically modified crops, who have slowed their adoption in Europe and some other regions. Now, however, the skeptics also include farmers and investors who were once in Monsanto’s camp.”
Monsanto was named “company of the year” by Forbes Magazine in December. Last week, television stock market commentator Jim Cramer said it “may be the worst stock of 2010,” the Times said.