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News and comment on genetically modified foods and their associated pesticides    
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Premium for non-GM canola set to continue

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Published: 03 May 2011
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Premium for non-GM canola set to continue
ABC, 3 May 2011
http://www.abc.net.au/rural/news/content/201105/s3206216.htm

The premium for non-genetically modified canola looks set to continue at least into next season.

Tom Puddy, from Western Australia's largest grain handler, CBH, says European demand for 'sustainable' canola means the non-GM price is likely to remain $30-$40 higher than that of GM canola.

"It really comes down to customer preference to have a non-GM product in the food chain," he said.

"There's consumers that will demand that, so they'll pay a premium at a supermarket shelf for particular items that are certified non-GM.

"The other driver is from the by-product. That's fed to animals and they don't want to have a GM by-product in their food chain that's fed to their animals."

But Mr Puddy said the price for all types of canola is expected to remain strong, due to adverse weather conditions around the globe.

"That's obviously increasing the demand for countries that are producing canola in a sustainable agricultural environment."

Mr Puddy said it was difficult to tell how the prices would compare beyond this growing season.

[But CBH has previously said demand for the non GM canola crop should continue for at least five years, and that major end users, such as the EU, were looking for a stable non-GM supply for the medium to long term.]

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