ADM Warns Suppliers To Begin Crop Segregation
RTos 04.09.99 10:27
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DECATUR, Ill. (Reuters) - Agribusiness giant Archer Daniels Midland Co. Thursday warned its grain suppliers to begin segregating genetically modified (GM) corn, soybeans and other crops from conventional crops.
In a statement that drew a sharp response from U.S. corn farmers, ADM released a notice it sent this week to grain elevators that supply crops to its many processing plants.
"As your trading partner, we want to alert you to a change we are experiencing in consumer demand," the company said.
"Some of our customers are requesting and making purchases based on the genetic origin of the crops used to manufacture their products. If we are unable to satisfy their requests, they do have alternative sources for their ingredients.
"We encourage you as our supplier to segregate non-genetically enhanced crops to preserve their identity," the ADM statement said.
The ADM position echoed statements last spring by U.S. corn refiners and other processors that farmers who planted GM crops were responsible for keeping them separate.
But the latest statement injected fresh concern among U.S. farmers, who are already facing low crop prices, about how they will market the harvest of corn and soybeans that will begin in a few weeks in the Midwestern Corn Belt.
"A corn grower's paycheck is the harvested grain they sell," National Corn Growers Association president-elect Lynn Jensen said in a statement. "This change in ADM's policy could mean for some growers that the 'Supermarket to the World' is now backing away from cashing that check."
Crops genetically altered to resist pests or herbicides debuted three years ago in the United States, and their use has skyrocketed. Grain industry sources estimate that 35 percent of this year's U.S. corn crop and 55 percent of soybeans derive from GM seeds. Potatoes, cotton and sugarbeets are among the other crops produced with GM seeds.
In Europe, however, a storm of protests has grown this year centered on concerns about the health and environmental effects of GM crops and foods. European consumer groups, food makers and supermarkets have increasingly demanded segregation and labeling of GM food substances, a concern cited by ADM.
ADM said that while the company "remains supportive of the science and safety of both biotech development and traditional plant breeding methods," in the end "we must produce products that our customers will purchase."
In Europe, the food industry and anti-GM campaigners generally welcomed ADM's statement.
"It's excellent that they're doing this finally after having said for years that it was impossible to segregate," said a spokeswoman for Greenpeace, a leading GM opponent.
Jensen said U.S. corn growers would do everything possible to accommodate ADM's request but he also questioned the ability of the U.S. grain handling system to succeed at separating all GM crops from non-GM crops.
"If ADM and their processor customers are serious about segregating conventional and genetically enhanced grain, then they should be willing to pay incentives to growers and elevators in order to get it," Jensen said.