Posted on 12-6-2002

General Orders - No Mill GM Corn

The American Corn Growers Association (ACGA) warned today that the future
marketing of genetically modified (GMO) grains has taken a major setback
due to the recent announcement by General Mills, the second largest cereal
maker, that it plans to introduce a new line of organic cereals. "Food
items must be free of GMO materials in order to be labeled organic," says
Larry Mitchell, CEO of the ACGA. "That means that the issue of raising pure
organic grains, uncontaminated from genetically modified crops, must be
addressed. "Since ACGA introduced its Farmer Choice - Customer First
educational program, we have consistently cautioned that American farmers
should seriously consider growing the crops that the market dictates. The
growth in demand for organic and natural foods suggests positive market
opportunities for non-GMO commodities will grow into the future," said
Mitchell. "While the growth trend in demand for organic foods presents
exciting potential for American farmers, it also presents some major
challenges regarding issues of pollen contamination, commodity segregation,
and identity- preservation on the marketing side and compliance with
tighter traceability, labeling, and liability regulations on the legal
side," says Dan McGuire, ACGA Program Director. "Recent action by the
European Parliament calling for the labeling of food and fodder processed
from GMOs and for keeping GMO-derived food and fodder separate from non-GMO
varieties, along with a reduction from 1 percent to 0.5 percent in the
threshold for accidental contamination and the level at which mandatory
labeling would kick in, is just one example of the more restrictive trend."

General Mills is not the only major food company getting into organics.
Other companies including Kraft, Kellogg, H.J. Heinz, Coca-Cola and Adolph
Coors, are becoming players in the organic market. PepsiCo recognized this
consumer-driven market potential by announcing two years ago that Frito-Lay
snacks would be non-GMO. "Market prices for corn and other U.S. commodities
remain near historic lows while U.S. grain export markets have suffered
severely since the introduction of GMOs. The recent growth in demand for
organic products offers positive news for American agricultural producers,
but only if farmers are able to meet market and customer demand. The
biotechnology industry seems unconcerned about what pollen drift from its
GMO varieties will do to consumer choice and market demand, either for
organic or for non-GMO commodities (about 80 percent of the U.S. corn crop
is non-GMO varieties) and products It also appears to lack concern for the
loss of U.S. export sales, not to mention the various liability issues that
could develop. Add in the fact that the loss of export markets increases
domestic grain inventories, lowers grain prices, and raises the cost of the
farm program, U.S. farm program expenditures move closer to being
non-compliant with World Trade Organization (WTO) spending limitations,
potentially causing U.S. farmers even more public relations problems well
into the future," concluded McGuire.