January 2000
headlines and summaries

Return to January article index

Controls agreed on GM imports

January 29
BBC

Countries will have the right to restrict imports of genetically-modified foods under an international agreement reached at talks in Montreal.

The United States, Canada and four other grain-producing nations had argued that such limits would break the World Trade Organization's free trade rules.

But after protracted negotiations, the 133 nations at the Montreal conference agreed that the new bio-safety protocol would have equal status with WTO regulations.

The argument for safeguards had come from the European Union and developing countries.

The agreement allows countries to restrict imports of GM products if they fear that these products may harm human health or get into the environment and damage it.

It covers foodstuffs, as well as seeds for farmers and feed for animals.

"On balance, we think this is an agreement that protects the environment without disrupting world trade," said David Sandalow, Assistant US Secretary of State for Oceans, Environment and Science. 

The deal was reached after intensive bilateral negotiations between representatives of the major exporters of GM products such as Canada and the United States, and negotiators representing the EU and the developing countries.

One sticking point had been US opposition to the European Union's proposals that all GM foods are labeled to alert consumers. 

The two sides agreed that shipments of GM commodities should bear labels saying they "may contain" genetically-modified organisms and are not intended for intentional introduction into the environment.

The deal also requires countries to begin negotiations on more specific labeling requirements to take effect no later than two years after the protocol enters into force.

Talks over the treaty stalled in Colombia last February when the US, Canada, Australia, Uruguay, Argentina and Chile would not agree to a draft accepted by 125 other countries.

The two sides clashed again on the issue at the unsuccessful Seattle trade talks in December.

The Montreal negotiations started on Monday amid demonstrations by campaigners who believe that GM foods pose a health threat to humans and wildlife.

Frito-Lay doesn't want bioengineered corn

January 28
Bloomberg News

Snack food maker Frito-Lay Inc. has asked its hundreds of contract farmers to grow corn that has not been genetically modified in case U.S. consumers shun bioengineered products.

Frito-Lay, a unit of PepsiCo Inc. and maker of Doritos and Tostitos corn chips, bought 1.2 billion pounds of U.S. corn last year. More than 95% of the corn is bought from farmers who hold contracts with the company, a spokeswoman said. 

The Food and Drug Administration has deemed genetically engineered food safe for human consumption but held three public hearings late last year to gauge consumer concerns. 

"The bottom line is we're stepping back and seeing what happens," Frito-Lay spokeswoman Lynn Markley said. 

Frito-Lay has no immediate plans to promote its products as free of biotech ingredients, Markley said. 

An estimated 60% of packaged foods sold in U.S. supermarkets have genetically engineered ingredients.

Australia scientists plan measles-modified food

January 28
Reuters

Melbourne - Australian scientists are researching putting a measles gene into genetically modified food to provide an alternative to traditional vaccination against the virus.

Alfred Hospital infectious disease unit director Stephen Wesselingh said a research team had successfully created measles modified tobacco and was now putting the gene into lettuce.

``We started with tobacco just because it is very easy to work with and grows quickly, and we mashed up the leaves and fed them to mice. Now we are moving into lettuce and rice,'' he told Reuters.

``We have been working on it for the past two or three years and we have been getting positive results for the last six months or so.''

Wesselingh said the research by the Alfred team and the Commonwealth Scientific and Industrial Research Organization (CSIRO) would provide a cheaper vaccine, that avoided using needles and which didn't need to be kept at cold temperatures.

``That is not a problem in Australia, but in the countries where measles is a big problem, in Africa etc, keeping the vaccine cold can sometimes be a major difficulty,'' he said.

The researchers are looking to use crops where existing genetically modified organism research has already been successfully conducted.

Wesselingh said in the tobacco experiments the H protein of the measles virus was placed in the plant.

``The plant is then making all its normal leaves and things, but it is also making this extra protein,'' he said.

``When we feed the leaves of that plant to mice, those mice then develop antibodies against the H protein, which is part of the measles virus so those antibodies then protect against measles as well.''

Rice Offers Potential

Wesselingh said rice offered great potential as the measles vaccination could be used in rice flour milk produced for children who are not covered by the current measles vaccination.

Release of measles modified food was still a ``long way down the track,'' he said, with trials in people likely to start sometime in the next five years.

Wesselingh said the modified food would be treated as a medical product and would not be available for mass consumption.

``These crops wouldn't be generally released. You would make them in special areas and then distribute them in the same way you would distribute other vaccines,'' he said. ``I think that would allay a lot of the GM-type fears.''

Similar research has also been conducted in the United States for hepatitis B and cholera and the Melbourne-based team is starting to look at genetic modification for the HIV virus, which can lead to AIDS.

Wesselingh said the Melbourne research had focused on measles as it was still a major health problem in the developing world.

``About a million children still die of measles each year and most of those are under the age of one and the current vaccine doesn't work in very young children,'' he said.

``We felt that an oral vaccine that could work in very young children might be a way to arrest that problem.'' 

China, India lead Asia race on GM crops

January 28
Reuters

Manilla - The world's two most populous countries, China and India, are racing to develop genetically modified crops to feed their growing populations, an official of Monsanto Co said.

``I would say there is a biotechnology race already under way in Asia, led by China and India because there is no other way to deal with their population and preserve their environment,'' said Charles Martin, vice president of Monsanto's corporate communications in Asia and the Pacific region.

He said field trials on GM crops have gained ground in Asia, despite grave concerns in Europe over the long-term environmental and health effects of genetically modified food.

Martin said biotechnology research in both countries was increasing because of support from their governments.

``Right now, I would say that China is spending about $80 million a year for countrywide research and development on GM crops,'' he said.

Indian newspapers have reported that India's Department of Biotechnology urged the government last year to provide 150 billion rupees ($3.44 billion) for a 10-year plan to boost biosciences, he said.

Field Tests On Gm Corn, Rice

``Leaders in Asia are increasing research on biotechnology. They are moving toward trials in a variety of products that will benefit their countries not only in corn but rice, papaya, cassava,'' Martin added.

GM sweet pepper, cotton and tomatoes have been commercialized in China while field testing on GM cotton is under way in India, he said.

Martin, who is based in Beijing, was in Manila to meet scientists and Philippine officials in relation with Monsanto's field trial of so-called Bt corn in the country's southern island of Mindanao.

BT corn contains the bacterium Bacillus thuringienesis (Bt) proteins and is resistant to the corn borer, a major cause of crop losses.

Martin said Monsanto was also running field-trials on Bt corn in China, Thailand and Indonesia.

``(These) countries are very interested in the technology... because right now 30 percent of the world's corn crop production is lost because of the corn borer,'' he said.

Martin said he expected Bt corn to be commercially available in China, Indonesia and the Philippines within the next two years.

``These countries are looking at their population and they are saying, well 'How are we going to feed the increasing population on the same amount of land?'''

``China and India, the two largest populations in the world, both said a strong yes to biotechnology,'' Martin said.

Monsanto, in a joint venture with an Indian firm, is also currently making field tests on genetically altered cotton in India, he said.

``India (on its own) is also doing wide research on other crops,'' Martin said.

Martin said China has been working with biotechnology for about 12 years and that genetically modified cotton has been planted on 150,000 hectares of land in China.

Martin said worries that GM crops may harm the environment or may not be safe to health have no scientific basis.

The debate over the safety of genetically modified foods has grown increasingly fierce, with some firms like Monsanto saying that biotechnology offers better and hardier crops. Critics counter that the long-term effects are far from clear. 

Monsanto's name radically modified

January 28
Guardian (London)

The Monsanto company name, which has become synonymous with the genetically modified food business, is to be ditched, the company revealed last night.

The beleaguered American biotech company is merging with the US-Swiss drugs group Pharmacia & Upjohn and the $50bn corporation will in future be known as Pharmacia.

"We have chosen a name with power and global relevance," said Robert Shapiro, chairman of Monsanto, who will lead the new company. "This name and logo will create a strong new identity for our 60,000 employees and will build value with our existing customers worldwide."

Mr Shapiro, who championed GM food, was once regarded as a visionary who would mix nutrition, biotechnology, crop protection and medicine in one commercial venture. But the Monsanto name became tainted last year as the consumer backlash against GM food spread from Europe to the US.

In addition to food safety and environmental fears there were concerns that farmers in developing countries would never be able to afford the new Monsanto seeds.

Last month a shareholder campaign in the US unveiled a plan to target 24 companies, including Monsanto, demanding a moratorium on the use of GM food until independent testing had been completed. The campaign is being coordinated by 275 religious and other groups which claim to control $100bn of shares in US companies.

Monsanto, which had been a high-flying pharmaceutical stock and darling of Wall Street, fell swiftly from grace when its crop technology business, which little over a year ago was regarded as a world beater, turned into an albatross. Shareholders watched as their investments lost a third of their value.

The newly merged Pharmacia Corporation will use the names Searle, Pharmacia and Upjohn for its three sales divisions. Only an autonomous agricultural subsidiary will continue to use the Monsanto name.

Pharmacia is new name of merged companies

January 28
St. Louis Post-Dispatch

And the winner is . . . 

Pharmacia Corp.

That's the name of the new company to be created in the planned merger of Pharmacia & Upjohn and Monsanto Co., officials of the two companies announced Thursday. 

Executives said the Pharmacia name will better reflect the new organization's focus on developing and selling pharmaceuticals.

"The Pharmacia name is well tied to the industry that we are in," explained Monsanto spokesman Bryan Hurley.

But, as expected, the Monsanto name won't completely disappear. The company's agricultural subsidiary, which is to remain based in Creve Coeur, will still be called Monsanto.

The agricultural business includes Roundup and other herbicides as well as genetically engineered seeds, crops and food. Company officials have said they intend to sell up to 20 percent of the agricultural unit in an initial public offering of stock.

Pharmacia and Monsanto announced in December their plans to merge and combine their medium-sized drug companies. At that time, the deal was valued at about $27 billion.

The newly merged company will be based at Pharmacia & Upjohn's headquarters in Peapack, N.J. Pharmacia & Upjohn's chief executive, Fred Hassan, is to run the combined company.

The two companies talked with customers, physicians and others around the world before deciding on the Pharmacia name, Hurley said. They considered, but rejected, the possibility of creating and getting the legal rights to a new name.

Although Pharmacia won the name game, company officials are making a gesture of goodwill to the Monsanto folks. 

Pharmacia's new "visual identity" will be similar to the all-capital, blue-and-white block letters used in the logo of Monsanto's G.D. Searle & Co. drug subsidiary.

Pharmacia & Upjohn was formed in a 1995 merger between Upjohn Co. and Pharmacia Aktiebolag of Sweden. The Upjohn, Searle and Pharmacia names will continue to be used within sales divisions of the new company.

Thais resisting Monsanto's Bt cotton

January 28
Reuters

Bangkok - Monsanto Thailand said on Friday it faced resistance to its plan to introduce biotechnology (BT) cotton commercially in Thailand.

"It's one of the toughest tasks we have ever been through, attempting to convince the government on the safety standards of BT cotton. I think Thailand has set very tough rules on genetically modified organism (GMO) products," general manager for the agricultural sector, Sanya Bhumichitra, told Reuters.

"It would take some more time, perhaps a year or two, to go on with the BT cotton plan. Anyway, it totally depends on the authorities," he said in an interview.

Monsanto Thailand, a unit of the New York-listed Monsanto Co , wants to bring in pest resistant BT cotton seeds to try to help boost Thai cotton yields and cut expensive imports.

But the move has been roundly opposed by environmentalists claiming the introduction of BT cotton into the market would affect local varieties and possibly public health.

Opposition to GMO products in Thailand, a leading world commodities exporter, has led to import bans on over 40 BT agricultural items.

Sanya said Thailand imported about 95 percent of cotton worth about 16 billion baht consumed locally. It was paradoxical that Thailand, a leading world textile producer still had to rely largely on imported raw materials. 

"Thailand is losing its competitive edge to China and Indonesia, where labor costs are much cheaper. Moreover, China has started planting BT cotton and will soon have an edge over us in term of material sourcing," he added.

"The environmentalists have never looked at the other side of the coin. This BT cotton is going to do more good than harm. Why do we keep on with cotton that returns lower yield?" he said.

Sanya said Monsanto also had plans to import seeds for BT corn, which is drought-resistant and requires small amounts of pesticide.

"Considering the lengthy process of screening BT cotton, I believe it would take years for the government to deregulate its existing ban on BT corn," he said.

Monsanto said it has 30 percent of Thailand's corn seed market, the second largest market share.

The Charoen Pokphand Group dominates about half of the market where demand was about 18,000 tons of corn seeds, worth 1.2 billion baht, last year.

Monsanto's seed sales in 1999 were worth about two billion baht, rising 10 percent from the previous year. The company has projected sales growth of about 15 percent this year. $1 = 37.5 baht

Corn growers believe farmers are being deceived over the issue of genetically modified crops

January 28
American Corn Growers Association press release

In an attempt to protect the economic interests of America's agricultural producers, the American Corn Growers Association (ACGA) is alerting farmers to the effort to deceive farmers into planting genetically modified (GMO) crops. This deception concerns the availability of  foreign and domestic markets for GMOs.

A recent statement by a spokesman for one of the commodity associations stated that there is no clear indication of a cutback in planned GMO planted acres for this coming season. This same person went on to say that farmers whose grain is targeted for export may cut back on planting GMOs while those growing for the domestic market will more than likely increase their GMO planted acres.

"Farmers deserve better than to be misled by organizations that supposedly work on their behalf. Everyone knows that unless you are selling grain directly to an ethanol plant, feed lot, or feeding the grain yourself, there is no way to determine whether grain will wind up for export or be used domestically once it is delivered to a local elevator," said Gary Goldberg, Chief Executive Officer of the American Corn Growers Association (ACGA). "Giving farmers the suggestion that they should plant more GMOs for the domestic market is a cruel hoax that will continue to cost corn growers hundreds of millions of dollars in lost sales."

It is very clear that farmers are turning their backs on genetically modified seeds. A recent survey conducted at the American Farm Bureau Federation convention showed a 24% drop in Bt corn acres for this growing season. Other forecasts have consistently shown a sizable drop in GMO planted acres.

The uncertainty over market availability, both foreign and domestic, is driving agricultural producers away from GMOs. In addition, the questions over legal liability are weighing on farmers' minds, as they want to protect themselves from potential lawsuits stemming from contamination brought about by cross-pollination. 

"Under its current structure, the grain market is unable to have the level of identity preservation for a typical farmer to know whether his or her grain will go into export channels or be utilized domestically. To suggest otherwise while farmers are making their seed purchases is geared to unduly influencing their planting intentions. Producers need to make their farming decisions on their own without false hopes and empty promises," concluded Goldberg.

Latin America divided on trade rules for genetically altered products

January 27
Agence France Presse

Latin America would like to speak with one voice on the international stage, but at UN-sponsored talks here on global trade rules for genetically altered products, the region is sharply split.

The differences are largely between the European Union, the developing world and the world's six major grain exporters. That alignment puts Argentina, Chile and Uruguay on the same team as Australia, Canada and the United States -- together known here as the Miami Group.

But most Latin American countries are importers, and they and the rest of the developing world are concerned about the large and growing amount of genetically altered corn and soybeans that they receive.

"In these negotiations the countries of the world have grouped themselves according to their shared interests, which are based on each country's reality," said Damaso Luna, head of the Mexican delegation.

"We have a group of countries in South America that are important exporters of grains, and obviously they are working to ensure that their products remain on the market," he said.

Mexico has worked with countries like to Japan, New Zealand and Switzerland to try to facilitate a compromise.

Most Latin American countries have joined an large group of more than 70 developing countries that has called for strict protections for their biodiversity. They worry that genetically altered products could irreversibly affect the environment.

Argentina, Chile and Uruguay have joined Canada in taking leadership of the Miami Group, since the United States can only formally participate in the conference as an observer.

The US Senate never ratified the Convention on Biological Diversity, through which these talks are being held, so the United States cannot speak for itself in formal meetings.

"But beyond the immediate goal and divisions, what unites us as a region is the idea that we should have common regulations that, in the future, will allow the flow of commerce in a secure way, respecting environmental protections and the food supply," said Luna.

For Jose Rodriguez, of the Cuban delegation, "safety must come before all other issues."

Genetically modified products should be subject to international regulations, so that countries which are unsure of a product's safety can reject it without facing penalties, Rodriguez said.

Developing countries and the European Union have pushed to have genetically altered products labeled, so that countries can reject if needed.

But Rodriguez said the negotiations were marked by "a spirit of problem-solving and mutual understanding."

"We are very close to an accord," said Luna, adding that a deal will be crucial for Latin America and for the protection of its environment."