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May 22 1999

BUSINESS NEWS

 

 

 

 

 

Zeneca makes GM crop promise to

farmers

 

BY PAUL DURMAN

ZENECA Agrochemicals yesterday gave an assurance

that it would not commercialise technology that threatens

the livelihoods of farmers in the developing world.

 

Michael Pragnell, chief executive of AstraZeneca's

agrochemicals business, said his company would not

produce seeds that were genetically modified to force

farmers to buy fertilisers. He said: "We are not engaged in

the business of preventing farmers from storing their seeds

or developing their livelihoods. We believe that farmers

should be free to practice traditional methods of farming."

 

His comments did not satisfy ActionAid and the World

Development Movement, the concerns of which

dominated questions at the first annual meeting of the

newly merged group. Barry Coates, the WDM's director,

said: "The existence of patents in many of these areas calls

into question whether AstraZeneca intends to

commercialise them."

 

ActionAid, which has produced a study of AstraZeneca's

genetic patents called Feeding the world or fuelling

hunger?, is worried by the possibility of producing crops

and seeds that will rely on chemicals to switch on their

resistance to disease. Its report says 400 Indian cotton

farmers committed suicide last year "because of

indebtness linked, among other things, to new hybrid

seeds and the expensive pesticides needed to grow them".

 

Discussion at the London meeting was well-mannered

until Isabelle Graillet, a 26-year-old member of a group

called the DNA Collective, rushed the directors' platform

and was forcibly ejected. Earlier, another member of the

group was arrested as he attempted to enter the meeting.

Later Ms Graillet said: "The company is failing to listen to

the wishes of the people. People don't want [genetically

engineered food]. They were not answering the questions,

they were coming up with PR answers."

 

Mr Pragnell said AstraZeneca welcomed the broadest

possible debate on the issue but added: "We do believe

that this technology does offer potential significant

long-term benefits to farmers and to consumers. Above

all, AstraZeneca is a responsible company which operates

to the highest ethical and scientific standards." Sir David

Barnes, deputy chairman, said: "We do seek to operate in

an open, honest and responsible way, consulting very

widely."

 

Tom McKillop, chief executive, gave an upbeat

assessment of the rapid progress in integrating Britain's

Zeneca with Astra of Sweden. He said the combined

group lifted sales by 18 per cent in the first quarter, with

24 per cent growth in sales of Losec, the Astra ulcer drug

that is the world's biggest selling medicine.

 

Percy Barnevik, chairman, said: "This merger has very

good conditions - the sales increase, the stronger

research, the promised reductions in costs, the fast start."

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