Across much of the world, people have overwhelmingly opposed the genetic modification of crops for food production. Yet production and use of genetically-modified (GM) crops continue to expand. Two little-known companies - Cargill and Archer Daniels Midland (ADM) - have been instrumental in the introduction of the technology. These two companies, principally involved in distribution and primary processing of commodities, are responsible for around two thirds of US soya and maize exports.

In some countries the food industry has succeeded in sourcing non-GM ingredients (such as soya and maize) in the relatively small quantities used in food manufacture. Now public concern is spreading to the use of GM crops to feed animals for meat and dairy production. In the UK, food retailers are trying to obtain animal products not reared on GM crops, but have found supply unavailable - this is largely due to the exercise of market power by Cargill and ADM, both of which stand to benefit from the technology.

One of the most disturbing threats from genetic modification of crops is the trend toward greater corporate control of the food supply. Yet these two corporations have controlled the food supply for years. Both haove clear corporate strategies for taking advantage of the technology, and in the process consolidating their dominance.

Two supplements come with this report, giving general, background information on the two companies, their cultures and activities, and their UK presences:

• Cargill - Arrogance, Incorporated

• ADM - Supermarkup to the World

CONTENTS

I - BACKGROUND
Who wants it? - Demand for GM and non-GM crops
From field to factory - Production, consumption and distribution of GM crops
Force-feeding - Cargill + ADM control the market

II - THE COMPANIES' RESPONSE
Arrogance Incorporated - Cargill refuses to segregate
Credible Bulk? - Is Cargill's description of supply chain economics convincing?
Profits and PR - ADM calls for separation

III - CORPORATE GOALS AND STRATEGIES
Scale vs specialism - Cargill's and ADM's differing strategies
The longer game - Second generation GM crops
Soy story - Cargill's vision of a GM future
The giant and its bean talk - Cargill's GM spin
Brain vs brawn - ADM's interest in GMOs
Enter the supporting cast - Smaller grain companies

IV - FUTURE OUTLOOK
Think again - Will the grain traders extend their non-GM supply?
The worm turns - The impact of the StarLink fiasco
How to do it - Options for non-GM supply
Where next? - Moving towards segregation
What? You mean we could win? - The end of GM crops

APPENDICES
Appendix 1 - Economics of GMO segregation on the farm
Appendix 2 - Supply chain economics of segregation and identity preservation
Appendix 3 - Cargill and ADM's share of the market

Footnotes
This report examines the role of these companies in the biotech 'revolution'. It begins by looking at the agricultural distribution system, from farmer to consumer, and how supply of non-GM crops falls short of demand for them. It goes on to document the responses of Cargill and ADM - and their smaller competitors - to growing demand for non-GM foods. To explain these responses, and place them in the context of the companies' longer-term aims for GM technology, the report then analyses the companies' cultures and strategies. Finally it projects possible future developments, and how campaigners might influence these. In three appendices, more detail is given on supply-chain economics, in relation to supply of non-GM crops.

This report deals with the ways in which Cargill and ADM control the supply of GM vs non-GM crops, largely in industrialised countries (in North America, Europe and East Asia). It does not attempt to address the impacts of their operations on food supply or agriculture in the global South. [2]

The study focuses on soya and maize, the two largest GM cash crops, although many of the considerations are transferable to the smaller GM crops cotton and oilseed rape, and others. It also deals mainly with production and distribution in the USA, which is by far the world's biggest producer of GM crops.