A compelling new Greenpeace report has just been released in Thailand. "The Lost Markets of Genetic Engineering" provides a global digest of the lost and declining markets resulting from the introduction of GE crops. Full report - second item below. Deserves widest circulation.
1. Bangkok Post on the new report
2. New report: the lost markets of genetic engineering
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1. Greenpeace urges strict organic policy
Bangkok Post on new report:
Bangkok Post
Kultida Samabuddhi
Thursday -- April 5, 2001
Thailand will lose out in the world market if it embraces a pro-genetically modified organisms policy, Greenpeace campaigners said yesterday. ``More than 30 countries strongly oppose GM products. Some have already issued a law on labelling imported materials,`` said Jim Thomas, campaigner from the Greenpeace`s British office.
``Among these are Thailand`s big markets for food product exports.``He said GM food not only is bad for the environment and public health, but would also cause Thailand to lose its share of exports.
He cited the case of Thai canned tuna, which was rejected and embargoed by Saudi Arabia last year,fearing the tuna was packed in GM soya oil. Thai tuna has been turned back by Egypt, Greece and the Netherlands because of similar concerns.
Greenpeace yesterday released its report ``The Lost Markets of Genetic Engineering`` while pointing out that the US has lost its entire soya export market to Norway due to public opposition to GM products.
Japan, the world leading corn importer, has also refused to buy US corn because of doubts about possible GM contamination.
Mr Thomas added that GM-free countries stand to benefit more in the world food market. ``For example, Carrefour and a number of big supermarkets in Europe are now paying premium prices to GM-free food producers.``However, Mr Thomas said government policy on GM products is not as important as consumer demand.
``It doesn`t matter what the government says. If the consumers reject it, the country could become GM-free.``Auaiporn Suthonthanyakorn, of Greenpeace Southeast Asia, expressed support for the Agriculture Ministry`s plan on organic farming.
She said the policy could lead Thailand to become GM-free.
Ms Auaiporn also revealed that, at the end of last year, Greenpeace had sent 30 food products, selling in Thai supermarkets, to test for GM contamination at an independent laboratory in Hong Kong. The organisation will announce the results next week.
Copyright Bangkok Post
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2. The Lost Markets of Genetic Engineering
Digest prepared by Greenpeace 3rd April 2001
"Farmers are really starting to question the profit-enhancing ability of products that seem to be shutting them out of markets worldwide" -Cory Ollikka, Canada's National Farmers Union president calling for a moratorium on GM crops, December 2000
Proponents of Genetic Engineering such as the United States Government often attempt to depict GE foods and crops as an economic boon that will leave behind those countries and producers who fail to embrace this radical new technology. In fact the reality is quite different; GMOÃs are losing world markets hand over fist.
Trawling through the official reports of the United States Department of Agriculture (USDA) and other trade reports it is abundantly clear that far from boosting economies the cheerleader GE crops - especially soya and corn are running into trouble and losing markets for the handful of nations who have been foolish enough to grow GE crops.11 See USDA Attache reports at www.fas.usda.gov/scrptsw/attacherep/default.asp.
In 1998 analysts from the Deutsche Bank published two farsighted report entitled ëGMOÃs are Deadà and ëAgbiotech ? thanks but no thanksà which described the beginnings of a ëtwo tier marketà where GE crops are shunned and GE-free crops command large rewards and premiums. 22 Reports prepared by Alex Brown, Deutsche Bank. July 12 1999
Below is a partial digest of markets lost and gained in Asia and Europe due to the decision to plant or avoid GE crops. It illustrates how the Deutsche Bank prediction was entirely correct - that rather than benefit global agricultural producers, embracing GE varieties costs trade and money.
European Markets
Corn - US imports at a standstill
According to the United States Department of Agriculture (USDA) ì US corn shipments to the EU have come to a standstill in 1999/2000 . Given that GMO approvals are currently suspended in the EU it is very unlikely that EU corn imports from the US will resume in 2001 other than negligible quantities of speciality corn." 33 USDA Gain report #E21034 3/16/2001Indeed EU countries have this year imported just 1,300 tons of U.S. corn out of a total 11 million tons of corn imports , mostly from South America where non-GE corn is available.44 Chicago Sun Times, Mar 26 2001 ‘Ailment not opening market for corn’
Even amongst the South American corn the balance is clearly tipping. On Jan 15th Brazil’s leading grain co- operative announced it had just won its first contract to supply 150,000 tonnes of corn to Spain. Reuters reported that Argentina was hoping to win the contract ìbut Brazil won the contract to supply the European nation with animal-food grade corn because it can offer grain that is not genetically alteredî. According to reports Spain paid well over the market price and is expected to buy more.55 Sao Pablo, jan 15 2001, Reuters ‘Argentina loses trade due to GM’
Soy - Markets either declined dramatically or lost entirely..
U.S. soybean exports to Europe have declined from $2.1 billion in 1996 to $1.1 billion in 1999,66 see David Barboza, ‘In the heartland, genetic promises’, NY Times March 17, 2000 and will likely decline further as promises by livestock producers to avoid GE animal feed become reality. Below are a few national examples of European soya rejection:
France.
Between 1997 and 1999 U.S. shipments of soybeans and soybean meal to France ìdeclined dramaticallyî. The import share of U.S. soybeans and soybean meals in France decreased from 55 percent to 41 percent and from 8 percent to 0.7 percent, respectively. 'This was due to both GMO concerns in France and to the growing availability and competitiveness of South American products,' said the USDA. 77 USDA GAIN report #FR0016 2/17/2000
Since 1999 however the largest French supermarkets and poultry producers have pledged to stop feeding GE soya to livestock and US imports are likely to drop even further. In February 2001 a pool of French pork and poultry farmers and animal feed makers led by retailer Carrefour signed a deal to buy non-genetically modified soybeans from Brazil. The group will buy 180,000 tonnes of Brazilian soybeans this year in support of Carrefour's policy of removing GMOÃs from its products and will pay a premium of 125 francs per tonne over the current market to do so. Carrefour intends to extend this non-GE policy further explaining "Our potential with all our other order books, sheep and cattle, is for a total 300,000 tonnes," 88 Carrefour leads purchase of non-GMO Brazil Soy, Paris Feb 22 2001 - Reuters.
Italy
According to the USDA, Italian imports of US soy almost halved from 563,000 MT to just 284, 000 MT between 1996 and 1999. Argentina which exported 337,000 Mt in 1996 had by 1999 lost its place in the Italian soy market altogether.99 USDA GAIN report#IT0019 6/23/2000
Norway
The US which previous to 1996 provided sixty percent of soy to Norway has entirely lost all soya sales to Norway due to public opposition to GMOÃs. The USDA notes that ‘the import market annually denied U.S. suppliers currently stands at approximately US$ 60 million’. 110 USDA GAIN Report #NO0004 4/28/20000
Spain
While overall soybean imports remained unchanged in 1999 at about 3 million tons. The U.S. share of the market slipped to 42 percent, 16 percentage points less than in the preceding year. More dramtically while imports of Soybean meal increased to nearly 2.5 million tons from 1.9 million. 1999 U.S. soybean meal imports declined from 430,000 tons to only 6,000 tons.111 USDA GAIN Report #SP0022 5/31/2000 1
Sweden
The United States Department of Agriculture notes that although the Swedish feed industry is dependent on imported protein and oilseeds ‘The U.S. share of import is nonexistent since 1996 due to sensitivities to GMO products. Among the feed industry and the dairies there is a certain determination to maintain the policy "to do as much as possible to ascertain GMO-free-feed" and it is not likely that U.S. products will gain access any time soon.’ 112 USDA GAIN Report #SW00022
UK
In 1996 the UK baking industry (worth £2 billion) stopped using GE soya flour in favour of identity preserved Canadian flour because of GE concerns.113 Press release April 1999 ì1999 Annual report reaffirms the federation of bakers commitment to GM-free breadî3
Subsequent surveys have shown an almost total rejection of other GE soy ingredients (including oils and lecithins) by every major supermarket and food producer. 2000/2001 also saw commitments by the largest poultry and pig companies on behalf of leading supermarkets to avoid feeding GE soy to livestock.114 see ìThe shoppers guide to GMî www.greenpeace.org.uk4
Even before the latest moves on animal feed U.S. exports of soybeans to the UK had declined from 459,500 MT in 1998 to 232,300 MT in 1999, a decline of almost 50 percent. The USDA noted that ì U.S. soybean exports to the UK have suffered because of the hysteria surrounding genetically engineered (GE) food. The United Kingdom has been at the forefront of hostility to agricultural biotechnology in Europe.î115 USDA GAIN Report #UK0019 5 June 20005
Canola (Rapeseed) - Canada loses a market. Australia gains a market.
By 1998 Canada had entirely lost its $300-400 million sales in canola sales to Europe. By contrast Australian trade authorities announced Jan. 8, 1999 the largest shipment of canola (rapeseed) ever exported from Australia. The $16.5 million dollar shipment was bound for oilseed crushing plants in Europe. According to Graham Lawrence, managing director of the New South Wales Grains Board, "Europe has moved to become a major buyer this year because Australia is the only country to guarantee non-GM canola."10100,0100,0100Arial Unicode MS16 Food bytes #17 March 2nd 1999 www.purefood.orgArial6 By August 2000 Australia was boasting 150,000 tonne exports of canola and receiving a premium of $5 per tonne over the price of Canadian canola ? enjoying a market that was non- existent before GE crops destroyed the opposition. Reuters, Aug 18 2000 ‘Non GM Canola scores first premiums’ 7
Planting Seeds - seed market reduced through contamination.
In the wake of a series of GE seed contamination scandals throughout 2000, sales of all US seeds to Europe are down from 81.7 million MT in 1999 to just over 55 million MT amounting to a loss of 44.2 million dollars.118 USDA FAS seed circular: Country exports ?N US planting Seed trade 27/3/20018
In 1999 Imports of US planting seeds to France, the most important European seed market fell by 25 percent, losing over 12 million dollars of US trade. Meanwhile imports of corn seeds plummeted by 34% partially as a result of ìthe controversy on GMOÃsî. In November 2000 the USDA noted that ìadventitious contamination of conventional seeds by genetically modified seeds may further hamper US seed exports to France, especially for corn and soybeans’ 119 USDA GAIN Report #FR0097 11/22/20009
Following the discovery of 847 tons of contaminated cotton seed, the Greek agricultural minister decided that 560 hectares of Greek cotton had to be harvested separately and excluded from any food use. The contaminated seed lots had been imported from the United States and the government subsequently required importers to provide GE-free certificates. The US currently supplies 75% of Greek cotton seed. Given the widespread GE contamination of US seed major seed houses are moving to 100% national production and cutting out import.220 Personal communication with Nikos Charambides of Greenpeace Greece 1st April 20010
Zeneca Tomato - squashed.
In 1995 the Zeneca company (now Syngenta) introduced a GE tomato to the UK market sold as a tinned tomato paste. It was the first GE product to be sold in Europe and was clearly labelled. In 1999 enquiries by Greenpeace confirmed that both supermarkets had discontinued sales of the GE paste because consumers were refusing to buy it. The tomato paste was last sighted in June 1999 when Monsanto was trying to give away out-of-date tins to children at a German Youth festival.221 personal Communication with Greenpeace Germany June 1999. the Youth fair was You 99 in Dortmund.1
Thai processed products rejected in Europe.
Tuna: Thai Tuna was stopped from entering both the Netherlands and Greece because it was canned in soy oil that may have been genetically engineered. These countries need GMO free certificate. 222 (report from export facilitate committee 6/1999)2
Flour: ìDoi Kham, a food processing company under the royal project, conceded yesterday its shipment of flour was rejected by a German importer who charged that the soybean was genetically-modified, but the company denied the charge.î223 (See: Bangkok Post, 29 Sep 1999, "Shipment of local soybean sent back; Firm denies charge of GMOs in flour", by Ploenpote Atthakor) 3
Markets
Japan.
Japan is the single most important market for US corn, soybeans and also consumer products. Like Europe there is also growing Japanese consumer resistance to genetically engineered food with major companies such as Nissin foods, Kirin brewery and Mitsubishi declaring GE free policies.
Soy:
On April 1st 2001 mandatory labelling of GE foods came into effect and according to the USDA ìmany food manufactures started seeking non-GMO soybeans from North America and South America with a notable shift already being evidenced in the trade figures. Both Canada and Brazil are reportedly promoting non-GMO soybeans to Japan with CanadaÃs share in volume terms increasing from 2 percent in 1998 to 3 percent in 1999. Brazil's share grew from 11 percent to 12 percent in 1999.î.224 USDA GAIN report #JA0050 4/25/20004
In fact since March 2000 the day to day rejection of GE soya has been very evident on the Tokyo grain exchange which now operates a separate futures market for non-GMO soybeans. For March 2001 just under 300,000 non-GMO soybean contracts were traded as against only 201,000 GMO soybean contracts. 225 (see http://www.tge.or.jp/english/em300.html
http://www.tge.or.jp/english/em300.html0100,0100,0100).5The future is of the Japanese soya market is clear; non-GMO.
Corn:
The future of the Japanese corn market is also clear. Following the discovery in October 2000 of unapproved Starlink corn in the Japanese food system, Japan turned back shiploads of US corn refusing to import any more corn until the US could gaurantee there was no Starlink contamination. The USDA recently noted that ìDue to JapanÃs detection of StarLink food corn last fall, imports of U.S. corn between November 2000 and January 2001 declined 10.7 percentî. 20100,0100,0100Arial Unicode MS26 USDA GAIN Report #JA1026 6
While the US is now implementing checks for Starlink on all corn exports to Japan, many market players are nonetheless looking to avoid GMOÃs altogether. In February 2001 Japan announced plans to buy corn from China instead of the United States and also to buy some from Europe.20100,0100,0100Arial Unicode MS27 Reuters Feb 27th 2001
‘Japanese Grain-Corn buyers turn back on US, eye china’ 7
On Feb 14th French grain co- operatives announced that for the first time ever Japan was starting to buy corn from France beginning with an 8000 tonnes shipment to the Mitsubishi corporation. As Reuters reported ìIn effect Japan, the world leading corn importer, is being unfaithful to the United States, the world leading exporter, in favour of GE-free guarantee of French products even though the price of the French grains was 30% higher than that of the Americans.'
Reuters, 14th Feb 2001 'Japan buys maize for the first time from France'
Papaya
In 1998 Hawaiin papaya growers first planted ëSunupà a genetically engineered papaya. Unfortunately for them the Japanese accounts for 40% of their market and are unwilling to buy GE papayas. According to reports non- GE papaya growers are getting 300%-700% premium for avoiding the GE variety. Meanwhile non-GE farmers in Mindanao Philippines are benefiting from HawaiiÃs reduced ability to offer conventional papaya.229 27th April 2000 ìUphill struggle for HawaiiÃs Biotech Papayaî Cropchoice News www.cropchoice.com9 A similar variety of GE papaya is ready for commercial growing here in Thailand.
Republic of Korea
Soy -Tofu firm loses billions.
Pulmuone, South KoreaÃs largest maker of tofu and soybean products, announced in July 2000 that it would stop using GE beans. Pulmuone suffered a significant drop in sales after the Korea Consumer Protection Board disclosed last November that the company used GM beans in the majority of its tofu products produced and sold in Korea.330 Pulmouone to stop using GM beans ? the Korea Herald, 28th July 20000 Korean state importer buys only non-GE Soy
The Korean state trading company, Agricultural and Fisheries Marketing Corporation (AFMC) that is authorized by law to import food-grade soybeans notes that it intends to continue buying non GE soybeans for food processing in 2001. At present the US is the lead supplier with exports of 260,000 mt and unusually American countries have said that they will be able to provide segregated non-GE soybean. However according to the USDA ìsoybeans from Canada and China have been gaining market share in the food soybean market since biotechnology became an issueî331 USDA Gain report #KS1007 2/28/20011
Corn - Korea gets Starlinked.
Like Japan, South Korea also detected Starlink corn in US imports and last year detained over 55,000 tons of Starlink contaminated imports - so much that the Korea Corn Processing Industry Association (KCPIA) has said it will file a damage claim against Aventis,. 332 Asia Pulse March 26th 2001 'US GM corn makes up 99% of imports refused entry to Korea'2 The Government of Korea now requires that all US corn imports are accompanied by certification that they are Starlink-free - a criteria that is going to be difficult to meet given the widespread contamination of US corn seed. In reality corn buying is likely to shift to other non- GE markets. American corn growers are also sueing Aventis claiming that they have lost all Korean sales.333 The Kansas City Star, March 27 2001 ìMissourians jump into Starlink disputeî3
Saudi Arabia
According to a 1994 study Saudi Arabia is the 12th most important market for US processed foods3 'Globalisation of the processed food market' USDA ERS 19944 and is also important for Thai exports. It also has some of the strictest GMO labelling in the world as well as a ban on GE animal products. As labelling policies have come into effect a number of exporters have had products refused entry. Below are 2 examples.
Thai Tuna:
Almost 70% of Tuna sold in Saudi Arabia comes from Thailand in a market worth about one billion bath a year. In march 2000 the Saudi government seized imports of Thai tuna that it believed were packed in GE soya oil and embargoed further imports. In one case the Saudis rejected a US $2.6 million dollar shipment from a major Thai tuna packer because of GMO soy oil contamination. On April 2nd 2000 it was reported that the Saudi government had ìlaunched a nationwide campaign to confiscate 15 kinds of Thai Tuna believed to contain GE soyî, expecting to confiscate millions of packages of tuna. Currently Thai tuna exporters to Saudi Arabia are expected to provide certification that their products are GE-free and many are switching to sunflower oil to provide this assurance. Thai Tuna has also been turned back from Egypt, Greece and the Netherlands because of concerns over GE oil. Many EU supermarkets have also pledged to avoid GE oil.335 XINHUA NEWS AGENCY. April 2, 2000, : Saudi Arabia Launches Campaign To Confiscate Thai Tuna Products.
BANGKOK POST November 21, 2000 Sunflowers are a blossoming industry.
BANGKOK POST March 14, 2001 Clarification sought over GM presence in our food
BANGKOK POST April 14, 2000 Tuna firms say certification could help end ban by Saudi Arabia
BANGKOK POST October 2, 2000 Thais seek talks with Egypt on tuna ban 5
Greek olives:
In December 2000 Greek exports of olives to Saudi Arabia came under scrutiny for also using soy oil. The Chamber of Commerce and Industry asked the exporting companies to either stop the import of any food product containing GE ingredients such as soybean oil, corn oil, rapeseed oil or else provide GE free certificates.
1 See USDA Attache reports at www.fas.usda.gov/scrptsw/attacherep/default.asp.
2 Reports prepared by Alex Brown, Deutsche Bank. July 12 1999
3 USDA Gain report #E21034 3/16/2001
4 Chicago Sun Times, Mar 26 2001 ‘Ailment not opening market for corn’
5 Sao Pablo, jan 15 2001, Reuters ? ‘Argentina loses trade due to GM’
6 see David Barboza, ‘In the heartland, genetic promises’, NY Times March 17, 2000
7 USDA GAIN report #FR0016 2/17/2000
8 Carrefour leads purchase of non-GMO Brazil Soy, Paris Feb 22 2001 Reuters.
9 USDA GAIN report#IT0019 6/23/2000
10 USDA GAIN Report #NO0004 4/28/2000
11 USDA GAIN Report #SP0022 5/31/2000
12 USDA GAIN Report #SW0002
13 Press release April 1999 ì1999 Annual report reaffirms the federation of bakers commitment to GM-free breadî
14 see ‘The shoppers guide to GM’ www.greenpeace.org.uk
15 USDA GAIN Report #UK0019 5 June 2000
16 Food bytes #17 March 2nd 1999 www.purefood.org
17 Reuters, Aug 18 2000 ‘Non GM Canola scores first premiums’
18 USDA FAS seed circular: Country exports ?N US planting Seed trade 27/3/2001
19 USDA GAIN Report #FR0097 11/22/2000
20 Personal communication with Nikos Charambides of Greenpeace Greece 1st April 2001
21 personal Communication with Greenpeace Germany June 1999. the Youth fair was You 99 in Dortmund. (report from export facilitate committee 6/1999)
23 (See: Bangkok Post, 29 Sep 1999, "Shipment of local soybean sent back; Firm denies charge of GMOs in flour", by Ploenpote Atthakor) USDA GAIN report #JA0050 4/25/2000
25 (see {"http://www.tge.or.jp/english/em300.html" Times New Roman}0000,0000,FF00Arialhttp://www.tge.or.jp/english/em300.html0100,0100,0 100).
26 USDA GAIN Report #JA1026
27 Reuters Feb 27th 2001 ìJapanese Grain-Corn buyers turn back on US, eye chinaî
28 Reuters, 14th Feb 2001 ‘Japan buys maize for the first time from France’
29 27th April 2000 ‘Uphill struggle for Hawaii’s Biotech Papaya’ Cropchoice News www.cropchoice.com
30 Pulmouone to stop using GM beans ? the Korea Herald, 28th July 2000
31 USDA Gain report #KS1007 2/28/2001
32 Asia Pulse March 26th 2001 ìUS GM corn makes up 99% of imports refused entry to Koreaî
33 The Kansas City Star, March 27 2001 ‘Missourians jump into Starlink dispute’
34 ‘Globalisation of the processed food market’ USDA ERS 1994
35 XINHUA NEWS AGENCY. April 2, 2000, : Saudi Arabia Launches Campaign To Confiscate Thai Tuna Products.
BANGKOK POST November 21, 2000 Sunflowers are a blossoming industry.
BANGKOK POST March 14, 2001 Clarification sought over GM presence in our food
BANGKOK POST April 14, 2000 Tuna firms say certification could help end ban by Saudi Arabia
BANGKOK POST October 2, 2000 Thais seek talks with Egypt on tuna ban