Taking a Step Back

In order to take a step forward with my blog, I want to take a step back. I feel like I did not discuss the business side of Monsanto. In order to explain in depth about the farmers and Monsanto, I want to provide some background so that we all, including myself, can understand the amount of money Monsanto is making.

In the annual report, For 2014, Monsanto had revenues of $15.855 billion. This was more than $1 billion higher than the year before. The net income attributable to the company was $2.74 billion. Monsanto is the global leader in providing agricultural products. They provide a lot of the materials and products that farmers use in the farming cycle. Monsanto sells seeds, biotechnology trait products, and herbicides. Sales in seeds alone amounted to $10.74 billion. To provide further evidence of Monsanto’s power, 49% of their sales is from abroad. That means that for the US consumers that want to buy “safer” fruits from overseas, it still might be a Monsanto product. Also, the herbicides being put on the products being grown overseas are not as heavily regulated, so you really don’t know what foreign foods have been through.

I hope these numbers will help me and anyone else understand the vast size of Monsanto. Even after all of the research Monsanto conducts, they still have over $2 billion cash available. Sometimes, Monsanto will use this cash to pay shareholders or to acquire new companies/products. Monsanto is in the business of feeding people, and they do a heck of a job at making a lot of money doing it.

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2 thoughts on “Taking a Step Back

  1. This company obviously possesses a lot of financial power, both at home and abroad. It is both a representation of an admirably successful business, and a business with small, potentially frightening monopoly on the average consumers diet. We can only hope that the company is using this financial power correctly, minding the safety of its consumers. The freedom Monsanto has overseas, with less regulated herbicide use also raises room for alarm. Are they making efforts to investigate the safety of the contents of their products? Are they keeping Americans from really knowing what they are consuming in order to continue their success? Aside from food un-safety that has not necessarily been proven with Monsanto products, they do have an excellent business that is serves as a model for other companies. Thanks for the insight on the financial situation of the company!

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    1. MCA-I believe that Monsanto has a very strong business model. I am not sure whether this model is too strong though. I think over time, Monsanto might have broke some rules in order to stay at the top. Especially as other countries develop and other companies form, competition increases. Just like Walmart forced many companies to adapt, Monsanto is doing the same to other companies and to itself. I like to think that Monsanto has put people first, but it seems like they really don’t care about people overseas. Less developed countries are not improving as much as they could if Monsanto was not so greedy. Farmers rely on Monsanto and get promised success from their products and end up struggling. Like other big companies, Monsanto should focus on helping the poor countries and developing them, and then hoping to get a little bit of a profit from them once the country is more developed. Sucking cash from poor farmers is not going to develop a country.

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