EU approves Monsanto’s Roundup Ready 2 Xtend genetically modified soybean variety
23 Jul 2016
The European Commission (EC) yesterday approved imports of Monsanto's Roundup Ready 2 Xtend genetically modified soybean variety. The approval had been delayed for months derailing the US seed giant's product launch this spring.
With the decision, the decks are now cleared for the next planting season and removes a hurdle for North American farmers and grain traders, who had to keep tabs of unapproved biotech traits that could disrupt trade. The soybeans had been approved earlier this year by top importer China.
US grain trader and processor Archer Daniels Midland Co told Reuters yesterday, its elevators and processing plants would now accept the Xtend soybean variety.
The EU approval is not likely to have a major impact on merger plans of Germany's Bayer AG, whose sweetened $64-billion buyout offer of Monsanto was rejected last week, as it had been widely anticipated, analysts said yesterday.
"It would have been a big deal if it hadn't been approved, but this was the expected outcome, although it took longer than anyone thought," said Bernstein analyst Jonas Oxgaard, Reuters reported.
According to commentators, the approval marks a key victory for Monsanto after months of regulatory delays over the launch and controversy over glyphosate, the chemical in its popular Roundup herbicide, which is allegedly carcinogenic.
Meanwhile, the US Soybean Export Council, announced that the EU had approved three biotech soy traits for import and processing. The latest three are:
Monsanto's Roundup Ready 2 Xtend with dicamba and glyphosate tolerance
Monsanto's Vistive Gold, a high oleic soybean with glyphosate tolerance.
Bayer's Balance GT, which offered tolerance to glyphosate and the company's HPPD inhibitor developed with MS Technologies.
In a press statement, US Soybean Export Council (USSEC) chair, Laura Foell, said, "The EU's approval of these events is welcome news for U.S. soybean farmers. We're happy that we can supply our European customers with a reliable supply of safe food."