Tuesday, April 10, 2018
The Bayer-Monsanto merger has put a spotlight on relations with their principal customers -- farmers. They are concerned and fearful that the combination will increase prices of seed and fertilizer. Only time will tell if they are right, but in the meantime, the merged companies will need to cultivate good relationships with the agricultural base. Almost certainly there will be price increases for genetically modified seeds as there should be. That would have happened whether or not there was a combination, but farmers might not see it that way. This might provide an opening for competitors but there is only one that can take advantage. An oligopoly is no comfort for farmers and would only make their fears worse.