Dirty tricks and broken promises - Monsanto's legacy in Indonesia

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Dirty tricks and broken promises - Monsanto's legacy in Indonesia

" GM WATCH " <info

 

 

Mon, 10 Jan 2005 21:51:06 GMT

 

 

Dirty tricks and broken promises - Monsanto's legacy in Indonesia

http://www.gmwatch.org

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Between 1997 and 2002 at least 140 current and former Indonesian

government officials and their family members benefited from illicit

payments

made to them by Monsanto to the tune of at least $700,000. The famers

who grew Monsanto's seeds did less well out of it.

 

" The company didn't give the farmer any choice, they never intended to

improve our well being, they just put us in a debt circle, took away

our independence and made us their slave forever. " - an Indonesian farmer

who grew Monsanto's GM cotton

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" Bt cotton planting has given us more harm than good "

http://www.gmwatch.org/archive2.asp?arcid=3502

 

In December 2003, the Indonesian Minister of Agriculture announced that

Monsanto had pulled out of South Sulawesi [8]. In fact, Bt cotton seeds

were no longer supplied to farmers as of February that year. Monsanto

said that its cotton business there was no longer economically viable.

After two years of planting, Indonesia, the first Southeast Asian

country to commercially approve Bt cotton, was pulling the plug on

that GM

crop, and switching to a locally-developed non-GM cotton variety.

 

Monsanto's entry into the region in 2001, through its Indonesian

subsidiary PT Monagro Kimia, rode on a concerted campaign of promotion

of Bt

cotton among farmers. The company had claimed that Bt cotton was

environmentally friendly, used less pesticide, and would ensure an

abundant

harvest and increase farmers' welfare.

 

The reality was very different. In the first year of planting, during

which the government aimed to assess the crop's performance before

deciding on whether to allow further commercialisation, there were

reported

failures of Bt cotton - the crop succumbed to drought [8] and hundreds

of hectares were attacked by pests [9]. The drought had led to a pest

population explosion on Bt cotton, but not on other cotton varieties. As

a result, instead of reducing pesticide use, farmers had to use a

different mix and larger amounts of pesticides to control the pests [10].

Furthermore, the Bt cotton - engineered to be resistant to a pest that is

not a major problem in Sulawesi - was susceptible to other more serious

pests.

 

Bt cotton did not produce the promised yields [8, 10], which Monsanto

had boasted to be as high as 3 tons per hectare. Some farmers were even

promised 4-7 tons per hectare. The average yield was only 1.1 ton per

hectare, and 74% of the total area planted to Bt cotton produced less

than one ton per hectare. Some farmers only harvested about 500 kg per

hectare, others even less, about 70-120 kg per hectare. About 522

hectares experienced total harvest failure. Despite the problems, the

government extended its approval for Bt cotton commercialisation by

another

year, with equally dismal results.

 

The poor yields trapped farmers in a debt cycle [11]; some 70% of the 4

438 farmers growing Bt cotton were unable to repay their credit after

the first year of planting [10]. Branita Sandhini, a subsidiary company

of Monsanto's Indonesian subsidiary, had provided farmers with the

transgenic seeds and fertilisers on credit schemes, and bought the

harvests

so that farmers could repay their debts to the company [8]. But as the

yields were poor, many farmers were caught out. Research conducted by

various Indonesian institutions clearly showed that, in the year 2002,

farmers planting Bt cotton had lower income compared to farmers planting

non-GM cotton [12].

 

To make matters worse, the company unilaterally raised the price of the

seeds. According to Konphalindo, the National Consortium for Forest and

Nature in Indonesia, the initial agreement between the farmers and the

company set the price of the seed at Rp 40 000/kg; but this increased

to Rp 80 000/kg in the second planting season [12]. Furthermore, the

company initially bought the cotton from the farmers for Rp 2 600/kg, but

this later decreased to Rp 2 200/kg.

 

Because the company could refuse to buy the farmers' cotton harvest,

many had no choice but to agree to the higher seed prices, by signing a

letter of agreement with the company. Santi, one of the farmers said,

" The company didn't give the farmer any choice, they never intended to

improve our well being, they just put us in a debt circle, took away our

independence and made us their slave forever. They try to monopolize

everything, the seeds, the fertilizer, the marketing channel and even our

life " [8].

 

She and her fellow farmers burnt their cotton fields in protest and

refused to sign the letter, although others had no choice but to agree to

the unfair deal, and continue planting Bt cotton to try and escape the

vicious debt cycle. Eventually, many farmers refused to pay the

outstanding credit, resulting in the ousting of Monsanto from the region.

 

It is farmers - those whom GM crops supposedly benefit - who have had

to bear the consequences of the poor harvest and unfulfilled promises of

Bt cotton. In contrast, the company abandoned the region, without being

held liable for the problems it caused [10].

 

[taken from Broken Promises: Will GM crops really help developing

countries? Lim Li Ching looks at some telling examples in Kenya,

Indonesia

and India.

http://www.i-sis.org.uk/BrokenPromises.php ]

 

 

 

 

 

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