Mid-November 1996... This update is to provide you with the latest information on regulatory and market acceptance of genetically modified (GMO) soybeans. Special emphasis is placed on the current situation in the European Union, one of our key export markets.
BACKGROUND:
The first commercially available variety of GMO soybeans, Roundup® Ready Soybeans, have been approved for importation and processing by government regulatory agencies in the United States, Europe, Canada, Mexico, Argentina and Japan. Regulatory bodies in these countries have declared these soybeans safe and the same as conventional soybeans in composition, nutritional profile and functionality. Because these GMO soybeans have been determined equivalent to conventional soybeans in safety and nutrition, government agencies have not required that they be segregated or labeled, either in the U.S. or abroad.
Last spring regulatory approval was granted by the European Union allowing the importation and processing of Roundup® Ready soybeans into food and feed. However, despite these approvals, consumer acceptance issues regarding biotechnology and GMO soybeans exist in parts of Europe which could affect U.S. soybeans exports to certain European markets. No significant consumer or market acceptance issues regarding GMO soybeans have surfaced outside Europe.
PRESENT SITUATION:
Greenpeace and other activist groups have mounted strident opposition to the introduction of GMO soybeans into Europe. Their efforts have raised concern among consumers and segments of the food industry in several European markets, including Germany, Austria, the United Kingdom, Switzerland and Scandinavia. Based on a consumer "right to know" platform, these groups are advocating segregation of the GMO soybeans and the labeling of all products containing GMO soybeans. They are threatening a possible boycott of all U.S. soybeans and derivative products if their demands for segregation and labeling of GMO soybeans are not met.
This campaign is particularly strong in Germany. Large-scale consumer research in Germany indicates that a significant percentage of the population currently is uncertain about the application of modern biotechnology. Greenpeace is exploiting this situation and has launched, with a few other organizations, a campaign attacking genetically modified crops in general and GMO soybeans in particular. The German media response has been strong, but even-handed, and German consumers' direct response has yet to be determined.
As a result of the continued pressure by Greenpeace and other activists, Unilever-Germany, the largest consumer food company in Germany, recently announced that, while it supports biotechnology in general, it will not use soybean oil in their margarine and vegetable oil brands until Unilever-Germany is more confident of positive consumer attitudes. Nestle-Germany has announced a similar position.
Because of this situation, some European purchasers are looking for supplies of soybeans guaranteed to be GMO free. At the current time, traditional exporters in the U.S. are not guaranteeing shipments of non-GMO soybeans. Greenpeace has identified some small and non-traditional suppliers who are reportedly offering supplies of non-GMO soybeans for export at "modest" premiums. The grain trade knows little or nothing about these suppliers; it is believed that they could offer only limited supplies, and it is not clear how they would execute shipments.
ASA's ACTIONS
The American Soybean Association anticipated this controversy in Germany and, along with the United Soybean Board (USB) and industry stakeholders, has been monitoring and attempting to positively influence the situation since the beginning. ASA staff in Germany and Brussels are involved on a daily basis. We are listening to consumers and are working with industry partners in Germany and other European countries to address questions and help share information. We are also keeping close tabs on the possible spillover of the issue into other European countries.
Since March, when regulatory approval was announced, ASA has carried out extensive industry educational programs in Germany and the European Union with market development funding provided by the U.S. Department of Agriculture and USB. These programs include the publication and distribution of written materials targeted at the food industry, a visit to Germany by ASA CEO Steve Censky and ASA and USB farmer leaders for discussions on the subject at top industry levels, and the support of videos and consumer magazine inserts developed to explain the safety and benefits of biotechnology and GMO soybeans. ASA is working closely with a coalition of German food processors, oilseed crushers, and others to disseminate factual, science-based information to retailers and consumers.
In discussions with the trade and the press, ASA has maintained that segregation of GMO soybeans and non-genetically modified varieties is impractical and unnecessary, since they are no different in composition or safety.
ASA supports modern biotechnology efforts and believes that farmers, consumers, the environment, and the entire ag-industry will benefit from biotechnology. We will continue to work to educate our customers on the benefits and safety of biotechnology.
As marketers of U.S. soybeans, ASA and our members also must be responsive to our customers. Consumer attitude surveys indicate that German consumers are concerned about the inclusion of genetically modified ingredients in their food products. Whether real or imagined, their concerns are a reality. ASA will continue to work with industry partners to develop strategies and messages that protect the German market (7% of total U.S. soybean exports) and the European Union market at large (over 40% of total U.S. soybean exports).
For more information, contact Jim Hershey or Bob Callanan, ASA/St. Louis at (314) 576 1770 or bcallanan@soy.org