Big Seed: How The Industry Turned From Small-Town Firms To Global Giants : The Salt Over the past century, small-town seed businesses have given way to global enterprises. The story of one small seed company in Nebraska helps explain what drove the transformation.
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Big Seed: How The Industry Turned From Small-Town Firms To Global Giants

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Big Seed: How The Industry Turned From Small-Town Firms To Global Giants

Big Seed: How The Industry Turned From Small-Town Firms To Global Giants

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STEVE INSKEEP, HOST:

The seed industry is consolidating. These are the people who sell the seeds that farmers use to grow our food. Small farms have given way to big ones for generations. And the same thing is happening to their suppliers. Small-town businesses have given way to global giants, which are now getting bigger. NPR's Dan Charles has the story.

DAN CHARLES, BYLINE: If there's anybody who can trace the history of the country's seed industry, it's Ed Robinson.

ED ROBINSON: I want to show you something.

CHARLES: We're in Robinson's home in the small town of Waterloo, Neb., just west of Omaha. Robinson is 92 years old. And for most of his life he ran the family business, the J.C. Robinson Seed Company. It grew vegetables and grain crops then collected the seeds carefully, dried them, sorted them and sold them to farmers under the brand Rob-See-Co.

E. ROBINSON: Here are two kernels of corn - right? What the seed business does is sell what's inside of this kernel.

CHARLES: Hidden potential to grow a good crop. Seeds are the lifeblood of agriculture, but they didn't always get much attention. There used to be hundreds of family-run seed companies just like J.C. Robinson's, scattered across the Midwest.

E. ROBINSON: They were a band of wonderful people.

CHARLES: There was competition among them, a race to create ever more productive seeds using plant breeding, cross pollinating plants and selecting the best offspring. The big companies did their breeding in-house. Smaller companies were able to get varieties from university researchers. Anybody could use those seeds. One university product, a variety of corn called B73, was so good everybody used it. Its offspring had a distinctive look with leaves pointing toward the sky.

STEVE PIKE: You could see it driving down the road.

CHARLES: This is Steve Pike, who was part owner of Fontanelle Seed Company in Fremont, Neb.. He's reminiscing with Ed Robinson's son, Rob Robinson.

PIKE: I don't know, Rob, I suppose 60 percent of the corn at one time got to be that upright leaf.

CHARLES: In 1970 J.C. Robinson Seed Company formed a partnership with other seed companies and called it Golden Harvest. It became one of the top five sellers of corn seed in the country. In the 1990s J.C. Robinson built a big new seed processing plant and headquarters in Waterloo. And right about then is when the world changed. Big chemical companies like Monsanto found ways to genetically engineer crops. They inserted new genes into corn and soybeans, giving plants the power to kill insects or survive weed killers. And farmers wanted those genes. In 1998 Monsanto and other biotech company started trying to buy out traditional seed companies, gave them more control over an increasingly lucrative business. Ed Robinson's son, Rob, says an offer arrived to buy Golden Harvest.

ROB ROBINSON: It was an amount beyond belief. I mean, I think it was something like $500 million.

CHARLES: The potential buyer - Robinson won't say which company it was - arrived with advisors in tow. They sat down with all five Golden Harvest partners.

R. ROBINSON: One of their advisors was sitting next to dad. And this advisor was chanting 500 million to the group of owners that were sitting there. It wasn't anything that we had experienced before.

CHARLES: That deal didn't go through. But in 2004 Golden Harvest agreed to be acquired by a Swiss-based company, Syngenta, for just under $200 million. Rob Robinson says he had mixed feelings about the deal.

R. ROBINSON: Well, I think originally I regretted it. I felt we needed to do it for the benefit of our - you know, to the livelihood of the company. But at the time I had sons.

CHARLES: He stops midsentence, unable to keep talking. He gathers himself again, goes on.

R. ROBINSON: Yeah, so I think the only regret is we had another generation ready to come into the business.

CHARLES: There's still a big factory bagging corn seed in Waterloo, Neb.. But the top executives who decide its fate are now in Syngenta's headquarters in Basel, Switzerland. And soon they may be sitting in Beijing. Syngenta struck a deal to be acquired by Chem China, a state-owned enterprise there. Meanwhile, other seed and pesticide companies are consolidating, too. Dupont and Dow are merging. There are reports that Monsanto's in talks to buy either Bayer or BASF. If those deals go through, three of these companies will control more than half of all global seed sales. Ed Robinson doesn't like it at all.

E. ROBINSON: I wish the old-fashioned seed business were back here. I think the farmer would be better off. The U.S. would be better off.

CHARLES: But his son, Rob Robinson, says it was probably necessary. Without those big companies, he says, we wouldn't have the new technology.

R. ROBINSON: I mean, the kind of dollars it takes today, the investment it takes today to do biotech research is massive and difficult for an independent company, J.C. Robinson Seed Company, was to be able to afford.

CHARLES: But he is resurrecting one small piece of the old-fashion world. He started a small but growing seed company using the original name that his great-grandfather used - Rob-See-Co. He says they try to operate in a way that takes farmers back to the small-town era.

R. ROBINSON: We're kind of a throwback. We're from a simpler world.

CHARLES: And he's able to work with his two sons. But he couldn't go back completely to the old times. He's not breeding his own new varieties or hybrid corn. The seeds he sells are supplied by Syngenta. Dan Charles, NPR News.

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