Monsanto Company - s.87B undertaking

On 2 May 2002, the ACCC accepted Court-enforceable Undertakings from each of Nufarm Australia Limited and Monsanto Australia Limited. The undertakings addressed the ACCC's competition concerns regarding the proposed appointment of Nufarm as Monsanto's exclusive distributor for Monsanto's Roundup range of glyphosate-based herbicides for agricultural uses.

On 16 May 2002, the parties advised the ACCC that Monsanto Company would also be a party to the proposed arrangement. Specifically, Monsanto Company will be the party responsible for supplying Nufarm Australia with the glyphosate acid required to produce the formulated end product. On 28 May 2002 the ACCC accepted a Court-enforceable Undertaking from Monsanto Company to address competition concerns arising from its involvement.

The Undertaking prevents Monsanto Company from making an application for a review of the Minister for Customs' decision in February 2002 not to impose a dumping duty on glyphosate imported from China.

For the next three years Monsanto Company must also obtain an opinion from an independent adviser regarding the prospect of success of any proposed glyphosate anti-dumping application prior to lodging such an application. The Undertaking also stipulates that the independent adviser must certify that the proposed anti-dumping application is made bona fide and not frivolously or vexatiously. The independent adviser must be approved by the ACCC and consult with the ACCC in forming their opinion.

Monsanto Company has also undertaken:

• not to supply its Roundup Ready crop seeds, or allocate licences for their use, on condition that customers acquire Roundup or other glyphosate supplied by Monsanto Company, Monsanto Australia or Nufarm;
• not to supply its Roundup Ready crop seeds, or allocate licences for their use, on condition that customers not acquire glyphosate from a competitor of Monsanto Company, Monsanto Australia or Nufarm;
• not to withhold supply of its Roundup Ready crop seeds, or withhold allocation of licences for their use, on condition that customers did not acquire Roundup or other glyphosate supplied by Monsanto Company, Monsanto Australia or Nufarm; and
• not to withhold supply of its Roundup Ready crop seeds, or withhold allocation of licences for their use, on condition that customers acquired glyphosate from a competitor of Monsanto Company, Monsanto Australia or Nufarm.

Please refer to Monsanto Australia undertaking of 02.05.2002 and Nufarm Australia undertaking of 02.05.2002