Thursday, April 8, 2010
Posted by D. Daniel Sokol
Today's WSJ reports that "Monsanto Co. signaled that it plans to lower prices of some crop seeds, retreating from its long-range profit goal amid farmers' resistance to seed-price hikes and a 19% drop in fiscal second quarter earnings." Having to lower prices amid resistance to higher prices suggests a competitive market rather than one that raises antitrust concerns.
Given the beating that Monsanto and Big Ag took at the DOJ Antitrust/Department of Agriculture Iowa hearings last month, might this sort of news constitute a rethink about Monsanto's ability to hurt consumer welfare?