GMO Protests Aren’t Enough to Slow Monsanto Company (MON) Down

Monsanto Company (NYSE:MON) is obviously one of the biggest beneficiaries of the Chinese approval. The company was waiting to launch its pest-and-herbicide resistant Intacta RR2 Pro soybean trait. With the approval secured, Monsanto has already set an ambitious initial target of 3 million acres for the product this year. The peak soybean planting in Brazil begins in October, so Monsanto has enough time to promote and distribute Intacta. That’s not all. Through Monsanto, other companies can get dip their hands into the opportunity as well.

As a licensee of Monsanto, Syngenta AG (ADR) (NYSE:SYT) can directly benefit as Monsanto spreads its wings in Brazil. DuPont is already targeting 30% higher soybean capacity in Brazil this year. With the company having settled long- pending lawsuits over patents with Monsanto recently, DuPont’s foray into GMOs and Latin American markets could only get bigger. Monsanto has agreed to  license its next-generation soybean traits to DuPont in return for royalty payments. Though the agreement caters to the U.S. and Canadian markets, it could just be the beginning.

Another company likely to jump into the GMO race even more aggressively following the latest USDA data and China’s move is The Dow Chemical Company (NYSE:DOW). The diversified company that gets 11% of sales from agricultural sciences recently got a big boost when it struck a deal with Monsanto to cross-license insect and herbicide-resistant corn product technology. The Dow Chemical Company (NYSE:DOW) has already made huge headway in Argentina last year by launching the first-ever five-trait corn, Powercore. As for soybeans, winning Canada’s approval for its herbicide-tolerant soybean, Enlist E3, last month counts among Dow’s major achievements.

With each passing day, the tailwinds for the GM crop business appear to be getting stronger, even as the march against Monsanto Company (NYSE:MON), and others, gathers steam. Whether the health-conscious like it or not, China’s nod for Brazilian imports will inevitably cause GMOs to infiltrate more and more homes, even those that still haven’t tasted the controversy. For Monsanto investors, it’s great news, but not so much for those who disagree with the company’s practices.

The article GMO Protests Aren’t Enough to Slow Monsanto Down originally appeared on Fool.com and is written by Neha Chamaria.

Fool contributor Neha Chamaria and The Motley Fool have no position in any of the stocks mentioned.

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