1.Flap Over Modified Rice Weighs on Food Importers - WALL STREET JOURNAL
2.Rice farming: Grains of doubt - THE ECONOMIST
3.More farmers sue over release of altered rice - SOUTHEAST MISSOURIAN
4.Farmers from Missouri, Arkansas sue Bayer over rice prices - KWMU
GM WATCH COMMENT: The painful economic impact of the illegal GM rice crisis - described below as "a catastrophe" for rice farmers - is only the latest instance of major economic damage being inflicted by the GM industry.
Thanks to GM, American farmers have already suffered the loss of their corn export market to the EU, worth hundreds of millions of dollars a year. US soybean exports to the EU, historically America's most lucrative overseas market, have also now "dropped to almost economically insignificant levels".
http://www.lobbywatch.org/archive2.asp?arcid=6994
The Wall Street Journal reports that the latest GM contamination scandal is not just hitting farmers. It's also proving a major headache for importers and the food industry: "Companies are struggling to find reliable suppliers and to avoid legal suits by testing their product lines." On top of that, "food importers may face costly legal challenges..."
We're reaching a point where all food out of the US is going to be regarded as a potential liability. And China looks in danger of gaining an equally damaging reputation.
EXCERPTS: "The rice scare underlines problems facing food companies and biotech firms world-wide... techniques for stopping biotech crops crossing into the food chain by accident are imperfect. Companies are struggling to find reliable suppliers and to avoid legal suits by testing their product lines... Farmers, importers and biotech firms are beginning to feel the sting." - THE WALL STREET JOURNAL (item 1)
"This is bad news for Arkansas, where rice paddies cover around 1.5m acres. It is the state's main farm export, adding about $1.55 billion yearly to the economy and generating an estimated 20,000 jobs: quite a few of them at Riceland Rice, the world's largest miller and marketer of the stuff." - THE ECONOMIST (item 2)
"This is a catastrophe for Missouri rice farmers" - ST LOUIS ATTORNEY DON DOWNING (item 3)
"Prices farmers can expect for their rice dropped more than $1 per 100
pounds after discovery of the modified rice in late August." - THE SOUTH EAST MISSOURIAN
"The Missouri and Arkansas farmers that I represent are very concerned that this fifteen percent loss in the price of rice will be permanent." - ST LOUIS ATTORNEY DON DOWNING (item 4)
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1.Flap Over Modified Rice Weighs on Food Importers
by Julianne von Reppert-Bismarck
Wall Street Journal, 7 September 2006
http://www.truthabouttrade.org/article.asp?id=6284
Now, Associated British Foods PLC -- a food empire with sales of £5.6 billion ($10.6 billion) last year -- may have to change suppliers again, this time to replace some of the foods it buys from China.
Environmental groups Greenpeace and Friends of the Earth this week said they found an illegal genetically engineered strain in rice-based products sold in Asian supermarkets in the U.K., France and Germany. European Union officials responded with strong language, telling food importers they could be sued if they failed to keep unauthorized foods out of Europe. The EU has yet to confirm the findings of Greenpeace and Friends of the Earth.
The rice scare underlines problems facing food companies and biotech firms world-wide. Many genetically modified strains are banned in Europe. But techniques for stopping biotech crops crossing into the food chain by accident are imperfect. Companies are struggling to find reliable suppliers and to avoid legal suits by testing their product lines.
"We'll comply with European food law as best we can," Associated British Foods spokesman Geoff Lancaster said. Hours after the environmental groups announced their findings, Mr. Lancaster's company started isolating and testing several goods it suspected of containing Chinese rice ingredients that might include the illegal strain.
Farmers, importers and biotech firms are beginning to feel the sting. The U.S. Agriculture Department said on Aug. 18 that Arkansas and Missouri commercial-rice stocks had turned up traces of Liberty Link rice, an experimental and unauthorized modified strain. After the announcement, September rice-futures prices on the Chicago Board of Trade sank 14% to $8.47 a hundredweight. Japan banned U.S. long-grain rice. American farmers say Europe's strict screening rules on all long-grain-rice imports from the U.S. are pinching profits.
Looking for compensation, U.S. farmers have filed at least three legal actions against German chemicals company Bayer AG, which owns the patent to Liberty Link rice. Such court cases can be costly: Swiss agrochemicals company Syngenta AG last year put aside about $50 million to fund tests of U.S. corn-gluten exports to the EU following the discovery that Syngenta accidentally had sold an unauthorized corn strain to farmers exporting to Europe.
At the same time, food importers may face costly legal challenges in Europe. The European Commission has written to governments reminding them to take a hard line against companies that allow biotech crops to be sold on their territory. While no suits yet have been filed, the commission believes companies "are not doing enough" to comply, according to EU spokesman Philip Tod.
But testing is expensive and difficult. Swiss food empire Nestlé AG says it spends a "significant part" of its $1.2 billion research-and-development budget on in-house safety testing.
The amount of the illegal Liberty Link strain found in Arkansas and Missouri was equivalent to six rice grains out of 10,000. Companies without in-house labs are competing for the services of a handful of European labs capable of testing such small quantities.
Large companies say they can follow their ingredients back to their source. But the Confederation of the Food and Drink Industries this week said importers were unsure which rice-based products, such as vermicelli, sauce mixes or rice starch, came from China. Several Chinese regions were found to be using an illegal biotech strain in 2004, and importers say the problem hasn't been rooted out.
"You have to look at the various forms that the rice takes. It takes time for our members to know exactly what rice starch or flour they are using," said Nathalie Lecoq, from the confederation's commercial department.
Environmentalists want to ban all Chinese rice goods or at least require countries farming with genetically engineered grains to label exports according to their biotech content. European experts meet again Monday to assess the biotech situation and may well discuss the question of Chinese rice goods.
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2.Rice farming: Grains of doubt
The Economist, 16 September 2006 [via Agnet]
GENETICALLY altered crops slipping into the food chain; foreign countries placing restrictions on imports; farmers in rural America panicking. It has happened before, with corn. Now America's rice-farmers are facing a similar drama.
In late July, American agriculture officials and food safety authorities
learned that unapproved rice had been found in commercial bins in Arkansas and Missouri. The rice--known as LLRICE601--had been genetically modified to resist certain herbicides by Bayer CropScience, which is based in Germany.
As a result, the European Union is demanding proof that long-grain imports are not contaminated with LLRICE601, which was tested between 1998 and 2001 in the United States but never marketed. The EU now wants rice tested by an accredited laboratory using "a validated testing method" and accompanied by a certificate. Japan has banned all imports of American long-grain rice.
This is bad news for Arkansas, where rice paddies cover around 1.5m acres. It is the state's main farm export, adding about $1.55 billion yearly to the economy and generating an estimated 20,000 jobs: quite a few of them at Riceland Rice, the world's largest miller and marketer of the stuff. Riceland became aware of the genetically altered rice in January, when a customer alerted the 9,000 farmer-member co-operative about possible contamination. Riceland sent a sample for testing to a laboratory; it tested positive for the herbicide-resistant trait. Further tests confirmed it, and in June Riceland contacted Bayer.
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3.More farmers sue over release of altered rice
RUDI KELLER
Southeast Missourian, Sunday, September 17, 2006
http://www.semissourian.com/story/1168623.html
The unapproved rice somehow escaped test plots and made it into the food supply.
More than 200 Missouri and Arkansas rice farmers have joined forces to sue Bayer Cropscience over the release of a genetically altered rice variety into the food supply.
The lawsuit, filed Wednesday in St. Louis, brings together 229 farmers who will harvest more than 125,000 acres of rice this year. The lawsuit charges that the North Carolina-based agricultural company failed to control field tests of a variety designed to resist a Bayer-produced herbicide.
The lawsuit will seek to discover how the rice variety, which has not been approved for crop production, escaped test plots, said Don Downing, a St. Louis attorney with Gray, Ritter and Graham.
"This is a catastrophe for Missouri rice farmers," Downing said. "To the extent that Missouri and Arkansas rice farmers lost money, we intend to hold Bayer accountable."
Bayer has maintained that the rice poses no threat to health, is similar to varieties that have been approved for crop use and promised to cooperate with investigations by the U.S. Department of Agriculture.
The lawsuit is the second filed in Missouri and the sixth filed nationwide against Bayer. After the modified rice was discovered in shipments to overseas purchasers from Riceland, a farmer cooperative, Japan suspended imports of U.S. long-grain rice and the European Union started requiring expensive testing of every shipment.
Bayer has declined to comment on any of the lawsuits.
Prices farmers can expect for their rice dropped more than $1 per 100 pounds after discovery of the modified rice in late August.
The lawsuit seeks to recover both the lost income from rice sales due to lower prices and any expenses farmers incur to test their rice to certify it as free from any of the modified strain of rice, Downing said.
Missouri is one of the smaller rice producing states. U.S. Department of Agriculture estimates indicate Missouri farmers expect to harvest about 1.5 billion pounds of rice this year.
The harvest is underway now in southern areas of the rice-growing region, which extends along the Mississippi River to Louisiana and into Texas.
The lawsuit mirrors one filed last week by Cape Girardeau attorney Michael Ponder on behalf of three area farmers. Downing said his lawsuit seeks compensation under 11 different Missouri laws.
The lawsuit also seeks to discover how extensive the release of modified rice has become.
"We don't know which farmers have contaminated crops and which ones don't," Downing said. "It will require segregation of the crops and that will cost a lot of money."
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4.Farmers from Missouri, Arkansas sue Bayer over rice prices
Robert Frederick, KWMU science reporter
KWMU, 15 September 2006
http://publicbroadcasting.net/kwmu/news.newsmain?action=article&ARTICLE_ID=968108§ionID=1
ST. LOUIS, MO (2006-09-14) A group of Missouri and Arkansas rice farmers filed a lawsuit this week against Bayer CropScience. They claim the company's actions led to the price of rice dropping fifteen percent since August.
During that month, the Department of Agriculture announced that the U.S. rice supply had been contaminated with genetically modified rice. While the Food and Drug Administration wasn't concerned, prices fell as many countries imposed import restrictions.
"The Missouri and Arkansas farmers that I represent are very concerned that this fifteen percent loss in the price of rice will be permanent," said St. Louis attorney Don Downing, who is representing the farmers. "And the only way to recoup these losses are from Bayer."
Bayer Cropscience, the defendant, acquired the genetically modified strain of rice when it bought Adventis Cropscience in 2002.
Representatives of Bayer Cropscience could not be reached for comment.