GMW: Europeans and Asians Still Not Round-up Ready

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GMW: Europeans and Asians Still Not Round-up Ready

" GM WATCH " <info

Fri, 13 May 2005 13:13:37 +0100

 

 

 

 

GM WATCH daily

http://www.gmwatch.org

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An updated report from a leading grain market economist and Professor

of Economics at Iowa State University says the introduction of

genetically modified wheat in the U.S. still risks the loss of

one-third to

one-half of U.S. wheat export markets and up to a one-third drop in price.

 

And the problem is not just with GM crops in the pipeline, as the

American Corn Growers Association noted this week. " Last Friday corn

prices

were only $1.63 per bu. in both Utica, S.D. and Wayne, Neb., a

disastrous price, due largely to the failure of the current 'export

oriented'

farm policy to deliver on corn exports as promised, " said Larry

Mitchell, ACGA CEO. " If the crafters of the current U.S. farm policy

still

believe it is 'export oriented' they should require the biotech companies

to get onboard. Biotech arrogance is losing U.S. exports. Maybe those

same biotech companies should be sent the bill for lost corn markets, low

corn prices and the resulting high cost of the farm program. "

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http://www.worc.org/issues/art_issues/gmwheat.html

 

In May 2004, Monsanto announced that it was shelving research and

development on genetically modified (GM) wheat. The announcement followed

five years of opposition by wheat farmers, consumers, and food safety

activists to the commercial introduction of Roundup Ready wheat.

 

May 2005:

 

Prospects for introducing genetically modified (GM) wheat in the U.S.

haven't improved since Monsanto shelved its research and development

plans one year ago, according to Dr. Robert Wisner, a leading grain

market

economist [and University Professor of Economics at Iowa State

University].

 

Introduction of genetically modified wheat in the U.S. still risks the

loss of one-third to one-half of U.S. hard red spring and durum wheat

export markets and up to a one-third drop in price, according to the

latest update of an October 2003 report, Market Risks of Genetically

Modified Wheat.

 

Read WORC's press release (see below)

http://www.worc.org/media/worc_news_articles/pr_wisner05-10.html

Read summary of Dr. Wisner's update [pdf-33k]

http://www.worc.org/pdfs/wisnersummary-05-05.pdf

Read Dr. Wisner's latest update of report [pdf-48k]

http://www.worc.org/pdfs/Final Updated GMO wheat report.pdf

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Genetically Modified Wheat Still Risky One Year after Monsanto Shelves

Plan

Update Says European and Asian Consumers Still Not Round-up Ready

Western Organization of Resource Councils, USA

http://www.worc.org/media/worc_news_articles/pr_wisner05-10.html

 

BILLINGS, MONT. - Prospects for introducing genetically modified (GM)

wheat in the U.S. haven't improved since Monsanto shelved its research

and development plans one year ago, according to Dr. Robert Wisner, a

leading grain market economist.

 

Introduction of genetically modified wheat in the U.S. still risks the

loss of up to half U.S. wheat export markets and a one-third drop in

price, according to the latest update of an October 2003 report, Market

Risks of Genetically Modified Wheat, released today by the Western

Organization of Resource Councils (WORC). Dr. Wisner is the University

Professor of Economics at Iowa State University.

 

" One year after Monsanto's decision, consumers in Europe and Asia

remain resistant to GM crops, " said Todd Leake, a wheat grower from Grand

Forks, N.D., and WORC spokesperson. " Introducing GM wheat would open the

door for our competitors to take more of the export market and depress

prices paid to U.S. wheat growers. "

 

The report covers policy changes, trends, and other developments that

may affect market risk, including:

 

*Some European Union (EU) policies on GM crops and food are changing,

but so far, consumer attitudes have not.

 

*Ten central and eastern European nations joined the EU, increasing the

number of countries with food labeling programs.

 

*Labeling allows consumers in these countries to show their preferences

about GM food to food companies, wheat producers and to the seed

industry.

 

Monsanto developed GM hard red spring wheat to resist the commonly used

Round-Up® herbicide. The company indefinitely postponed release of its

GM wheat in May 2004, compelled by the market resistance documented by

Dr. Wisner's original report. In that report, Dr. Wisner found:

 

*A large majority of foreign consumers and wheat buyers do not want GM

wheat. At least 37 countries

had mandatory labeling programs for food with GM ingredients as of

October 2003.

 

*Commercialization of GM wheat in the U.S. now or in the next few years

would create a high risk of loss of one-third to one-half of U.S. hard

red spring and durum wheat exports.

 

*The European market for U.S. hard red spring and durum wheat likely

would be lost completely.

 

*Hard red spring and durum wheat prices could fall by one-third, to

feed wheat levels.

 

*Increased government program payments would only partially offset

lower wheat prices.

 

*Plummeting prices would lead to lost wheat acreage, loss of revenue to

farm-related and rural non-farm businesses, and falling local and state

tax revenues.

 

*Market risks for GM wheat are substantially greater than for GM corn

and soybeans.

 

Unlike wheat, most corn and soybeans are fed to livestock or processed

into oils and sweeteners. The U.S. share of world exports is much

smaller for wheat than corn or soybeans, and domestic demand for corn

(unlike wheat) is growing rapidly.

 

The issue is consumer acceptance. Consumers are the driving force in

countries where food labeling allows choice. Governmental approval does

not guarantee consumer acceptance.

 

WORC is a network of grassroots organizations from seven states that

include 8,750 members and 50 local community groups. WORC helps its

members succeed by providing training and by coordinating regional issue

campaigns.

 

CONTACT:

Dr. Robert Wisner, 515-294-7318; Todd Leake, 701-594-4275; or John

Smillie or Kevin Dowling, WORC staff, 406-252-9672

 

Western Organization of Resource Councils

2401 Montana Avenue, #301 Billings, Montana 59101 406.252.9672

billings

 

 

 

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