The American Soybean Association (ASA) is seeking to end the illegal piracy of soybean seed technology in Brazil where an estimated 25 to 30 percent of the crop this year was grown from illegal Roundup Ready^® Soybean seedstock. Like the buccaneers of yesteryear, some Brazilian growers have illegally smuggled Roundup Ready Soybean seed in from Argentina to plant on their farms.

Even though it has been and continues to be illegal to plant Roundup Ready Soybean varieties in Brazil, there is overwhelming evidence that this has been done on a large scale for several years. Because of similar latitudes, the greatest use of Roundup Ready Soybean varieties are in southern Brazil. The U.S. Agricultural Counselor’s office in Brazil estimates that 70 percent of the soybeans grown in the Brazilian state of Rio Grande do Sul in 2002 were biotech varieties.

"No royalties are being paid to the seed companies for these soybean seeds, which clearly amounts to the theft of intellectual property," said ASA President Dwain Ford. "Moreover, some Brazilian farmers are saving seed for replanting and to sell to other farmers, while U.S. farmers are required to sign a binding agreement that they will not save any soybeans they produce for planting on their farms or for sale to any other producer."

Brazilian soy exports have skyrocketed in recent years as domestic production increases have outpaced domestic consumption. The ability of Brazilian soybean farmers to illegally plant Roundup Ready Soybean seed without paying a technology or licensing fee has contributed to this growth.

"The fact that Brazilian soybean farmers achieve higher net returns because of their illegal plantings of Roundup Ready varieties allows them to be able to sell their soybeans into the market at a price that is lower than otherwise would be possible," Ford said. "Because Brazilian farmers receive all of the cost-saving and yield-enhancing benefits without paying for the right to use the technology, they have a distinct comparative advantage over U.S. soybean farmers in competing in the global soybean market."

It is conservatively estimated that the cost savings alone to Brazilian farmers amounts to about $10.00 per metric ton or 27 cents per bushel. Add in the yield and other benefits of Roundup Ready Soybeans, and the benefits to Brazilian soybean farmers amount to at least 50 cents per bushel or about $18.37 per metric ton.

To educate policymakers, ASA has prepared a "White Paper" to document the injury caused to U.S. soybean producers resulting from Brazil’s refusal to honor its international obligations to protect intellectual property rights. ASA is also working with the Bush Administration to remove this foreign trade barrier that is disadvantaging U.S. soybean producers.