W. Virginia probing Monsanto soybean seed pricing

* West Virginia investigating Monsanto for consumer fraud

* Part of wider probe by various states, Justice Dept.

* Involves Roundup Ready 2 soybeans

By Carey Gillam

KANSAS CITY, June 25 (Reuters) - West Virginia officials have notified global seed giant Monsanto Co (MON.N) that they are probing whether or not the company engaged in unfair or deceptive practices in marketing its new genetically altered soybean seeds.

The West Virginia Office of the Attorney General said in a letter to Monsanto dated June 24 that it wants to meet with officials from the St. Louis-based company to discuss investigators' concerns that Monsanto has violated consumer protection laws.

The letter states because of the "significant issues involved" it is willing to hear from Monsanto before "moving forward with compulsory process or actual litigation."

The Attorney General's office said in the letter that investigators have reviewed several studies by agricultural experts showing that Monsanto's advertised claims of higher yields for its high-priced new soybean seed, called Roundup Ready 2 Yield, have not been realized.

"My office is concerned that West Virginia farmers are paying much higher prices for soybeans with the Roundup Ready 2 trait when the yields do not live up to the claims and do not justify the increased prices," the letter from West Virginia Attorney General Darrell McGraw Jr. states.

Monsanto officials did not immediately comment.

West Virginia is only one of several states that have been looking into similar concerns over Monsanto's seed pricing strategies and product marketing, with a particular focus on the company's handling of the release last year of its new Roundup Ready 2 Yield soybean seeds.

The U.S. Department of Justice has also been scrutinizing Monsanto's moves in the U.S. seed industry amid allegations by competitors and others of unfair pricing and antitrust violations.

The company has repeatedly said its conduct is above-board and its products are priced fairly for the value they deliver to farmers. But the company last month said it was examining and adjusting its seed pricing across the marketplace and taking farmer complaints to heart. (Reporting by Carey Gillam; Editing by Marguerita Choy)