Dr. Robert Wisner, University Professor of Economics at Iowa State University: "Consumer resistance remains strong in Europe and Asia, and consumers remain the driving force in countries where food labeling allows choice."
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Genetically Modified Wheat is Still a Market Risk
Western Organization of Resource Councils

BILLINGS, MT -- November 16 -- A leading grain market economist says commercial introduction of genetically modified (GM) wheat still risks the loss of up to half of U.S. wheat export markets and up to a one-third drop in price.

"No new policy changes or trends have significantly lowered the market risk of introducing genetically modified wheat," said Dr. Robert Wisner, University Professor of Economics at Iowa State University. "Consumer resistance remains strong in Europe and Asia, and consumers remain the driving force in countries where food labeling allows choice."

Dr. Wisner's conclusions are in an update released today of his October 2003 report, Market Risks of Genetically Modified Wheat, prepared for Western Organization of Resource Councils (WORC), a regional network representing farmers and ranchers in Wyoming, Montana, South Dakota, North Dakota, Colorado, Idaho, and Oregon.

A survey by EuroBarometer published in March 2003 found that most Europeans do not support GM foods or crops.

Food safety is the main concern of foreign consumers, said Wayne Fisher, a wheat grower near Dickinson, N.D., and WORC spokesperson. "They don't trust genetically modified crops because there is no independent testing by third parties or the U.S. government. We need mandatory, independent testing."

Fisher said farmers are in jeopardy because food policy has not kept up with the new environmental, legal, and economic developments arising from GM crops.

"The companies developing genetically modified seed have shielded themselves from risk, placing all liability on farmers if something goes wrong," Fisher said.

Montana wheat grower Helen Waller called for a time-out on GM crops.

"The biotech industry needs to slow down, and policy makers need to catch up," Waller said. "We've seen a drop in the U.S. share of soybean exports to the European Union since commercialization of GM soybeans and a loss of the EU corn market. We can't afford to jeopardize our wheat export markets. We need legislative solutions to protect our wheat farmers."

Waller and Fisher called on the Montana and North Dakota legislatures to address liability issues in the 2005 sessions.

Wisner reported these new findings:

· The European Union has lifted its blanket moratorium on approval of GM crops. It has also adopted a more restrictive GM food labeling program and traceability requirements for GM food and crops, to allow identification of the source of biotech ingredients.

· A survey of European supermarkets found very few foods with GM ingredients for sale, implying that marketing products made from GM wheat would present a major challenge to the European food industry at this time.

· With new GM food labeling in place, U.S. soybean product exports to the EU declined much more than exports to other countries in 2003-04. Drought cut U.S. supplies and worldwide exports.

· 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 the seed industry.

· The EU has approved the marketing, but not production, of a type of GM sweet corn. With strict labeling and present consumer attitudes, it will be difficult to market in the EU.

· There is no evidence of change in the overwhelming preference of Asian consumers for non-GM wheat.

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 Wisner’s original report.

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: Western Organization of Resource Councils
Dr. Robert Wisner, 515-294-7318; Helen Waller, 406-485-3490; Wayne Fisher, 701-225-2563; John Smillie or Kevin Dowling, WORC staff, 406-252-9672

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