By Alison Fitzgerald
March 10 (Bloomberg)—At least seven U.S. state attorneys general are investigating whether Monsanto Co., the world’s largest seed producer, has abused its market power to lock out competitors and raise prices.
Iowa and Illinois, whose antitrust probes Monsanto disclosed previously, have joined with Ohio, Texas, Virginia and two other states in a working group coordinating the inquiries, according to investigators, farmers and seed dealers. They declined to identify the sixth and seventh states.
The state investigations add to pressure on Monsanto over allegations of abusive competitive tactics. The U.S. Justice Department is probing the company’s marketing practices, and DuPont Co. has accused its rival in licensing litigation of anti-competitive actions. At stake are the costs to farmers who produce $80.3 billion a year in corn and soybeans, used in products ranging from Coca-Cola to cattle feed to ethanol.
“Monsanto has become such a dominant player in the seed business that producers have real concerns that the price they pay for seed is going to be anywhere near reasonable,” said John Crabtree, a spokesman for the Center for Rural Affairs in Lyons, Nebraska, a nonprofit group that provides services to farm communities. “The fear is that the sky’s the limit.”
