Brazil soy farmers, Bayer clash over seed 'breeding incentives'

By Ana Mano

SAO PAULO, Aug 27 (Reuters) - An association representing soybean farmers nationwide asked Brazil's antitrust watchdog to formally complete a pending review of a case challenging the legality of "breeding incentives" offered by one biotechnology company to its commercial partners.

According to a public complaint lodged in mid-August with competition watchdog CADE, Aprosoja Brasil specifically expressed concern regarding the timing for issuance of a final opinion by the agency's General Superintendent regarding the case.

The latest significant development came in September 2023, when CADE's Economic Studies Department concluded "the granting of breeding incentives led to a decrease in the number of cultivars developed with alternative technology" to Bayer's BAYGn.DE Roundup Ready, according to public disclosures. Two months later, CADE's SG concluded additional studies that supported the department's findings.

"The case is ripe," Amanda Oliveira, a lawyer representing Aprosoja before CADE, told Reuters.

In Aprosoja's filing, it calls on the SG to issue its final recommendations, allowing the matter to be heard before CADE's tribunal. Oliveira said farmers fear delays triggering a "statute of limitations," which bars legal claims after a certain period of time of the alleged injury.

CADE declined to comment.

In a statement, Bayer defended its breeding incentives program targeted at breeders which develop germplasm, or genetic resources, adapted to the biotechnologies it creates. The contracts signed by Bayer that included breeding incentives were "submitted, scrutinized, adjusted, and approved by CADE in a series of merger proceedings between 2013 and 2016," it added.

Bayer, which completed its acquisition of Monsanto in 2018, said its soy biotechnologies helped farmers boost yields in Brazil, the world's largest producer and exporter of the oilseed.

"Farmers have a wide variety of seed options from other companies, and it is up to them to decide which soybean variety and technology best suits their needs," Bayer said.