Wednesday, June 16, 2010

Monsanto's Pricing Strategy Changes

The Financial Times has a good article on how Monsanto is changing the way they price seeds and other products - such as glyphosate herbicide (Roundup). Since Monsanto's patent on Roundup has expired, other firms (Chinese producers) have entered and competed vigorously in terms of the pricing of this product. Monsanto's original strategy was to keep the price high reflecting its superior technology. Purchasers do not seem to hold the same view as Monsanto in regard to the superiority of Roundup over generic glyphosate herbicide, and have been chipping away at Monsanto's market share.

Monsanto has reversed course and is now slashing prices on Roundup in order to maintain some market share.

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