According to the world agrochemical network, Monsanto said on October 7 that Monsanto would withdraw from the sugarcane business in Brazil. A representative of the company said that Monsanto had been evaluating its product portfolio and growth prospects. After careful evaluation, Monsanto decided to focus on its main business and withdraw from the sugarcane market with Cana vials brand before exiting. Monsanto said it would consult with other companies to explore possible technology transfer, so that these advances can continue to contribute to the Brazilian sugarcane industry chain.
In 2008, Monsanto spent $290 million on the acquisition of Brazilian sugarcane breeding company aly participacoes LTDA. Aly Participacoes Ltda. It operates two companies: Cana vialis S.A. and Alex S.A. Monsanto said that the initial choice to invest in sugarcane business was based on the consideration of gaining market share in several areas of the bioenergy industry chain. In Brazil, sugarcane is used to produce ethanol, which can be used to start cars in domestic and export markets.
However, the global energy and bioenergy markets have changed. In addition, the global economy has tended to decline in recent years. Affected by climate, commodity prices and exchange rates, the performance of a large number of agrochemical enterprises has been frustrated. Monsanto also announced plans to cut costs and streamline business in its recently released financial report. This also forces Monsanto to abandon its business with large variables and unstable income possibility, focus on its seed, plant protection and new precision agriculture business with core technology group, and explore new market opportunities in other crop fields. According to Rodrigo Santos, President of Monsanto Brazil, Monsanto's business in Brazil will focus on seeds, plant protection, biological agents and digital agriculture. Monsanto has invested US $150 million in these fields in 2015.
Monsanto operates in Puerto Rico and 10 countries in Latin America, with offices in Argentina, Chile, Colombia, Ecuador, Guatemala, Mexico, Paraguay, Peru and Uruguay. Monsanto has been operating in Brazil for more than 50 years and 2700 of its 21035 employees worldwide are in Brazil. Monsanto has 39 branch units in 12 Brazilian states.
