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Tech Fees & Competition
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IntegraSeeds
Posted 9/30/2007 11:12 (#212106)
Subject: Tech Fees & Competition



Hanford, CA
After reading some of the posts below (especially Monsanto posts), I see where people question as to why tech fees have increased instead of reduced with competition. This got me thinking on the matter and wonder why this is. Yes, Monsanto, DOW, Syngenta have poured millions on millions into the development of traits that are on the market and they need to recoup their expenses, but why should they raise their prices on the tech fees...there is nothing new to the trait....no new service...nothing...so why raise the price? Competition (DOW with Widestrike against BGII), these tech fees should go down because of competition?

Maybe the competition isn't trait against trait. That is if it costs $50/ac to spray for lep on a 3 yr. avg...price the trait at $35/ac. If a couple of years later, that average went from $50/ac to $65/ac to chemically control lep, then lets raise the tech fee price to $45/ac. Under this scenario, the competition is with chemical prices rather than competition between traits.

Just a thought



Edited by IntegraSeeds 9/30/2007 11:58
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