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[1] American Corn Growers Association press release, 13/3/00, 'Corn growers question need to sacrifice export markets due to genetically modified crops', www.acga.org/news/2000/031300.htm
[2] for excellent reading on those subjects, see: Brewster Kneen, 1995, Invisible Giant, pub. Pluto Press (London); UK Food Group (London), 1999, Hungry for Power; Research Foundation for Science, Technology & Ecology (New Delhi), 1998 - Cargill, the Giant Among Grain Merchants; Lucy Michaels, Devlin Kuyek & Helena Paul, 2000, Feeding the Hungry Transnationals, pub. Econexus (Brighton) [3] NOP poll commissioned by Friends of the Earth, interviewed 1996 people between 20th and 25th June 2000, see FoE press release, 5/10/00, 'Iceland's livestock goes GM-free', www.foe.co.uk/pubsinfo/infoteam/pressrel/2000/20001005000259.html; and NOP poll commissioned by Greenpeace, telephone interviews with 1001 adults between 1st and 3rd September 2000, see Greenpeace press release, 25/9/00, 'British public reject meat, eggs and dairy products from animals fed on GM crops', on www.greenpeace.org.uk - GM foods section [4] The 'finishing phase', lasting 70 days for beef, 60 days for pork and 45 days for lamb. Iceland's next priority is to switch to non-GM feed for production of processed meats, such as minces, dices and ready meals, and then to move animals onto non-GM diets for their entire lifetime, by 2001 for pork, 2002 for lamb and 2003 for beef. [5] Iceland plc press release, 5/10/00, 'Iceland hits non-GM feed target [6] quoted by Paul Marsden MP, 30/11/99, when cross-examining Cargill representatives, in minutes of evidence, House of Commons Agriculture Select Committee, for its 3rd Report, 'The Segregation of Genetically Modified Foods', www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmagric/71/9113013.htm [7] reported in Greenpeace UK, Media briefing, 31/1/00, 'Sun Valley goes GM-free in animal feed', www.greenpeace.org/Multimedia/Live/FullReport/898.PDF [8] all except Tesco (Aug 2000) from survey by Greenpeace UK, 25/9/00, reported in news release, 'Survey shows supermarkets stampeding out of GM-fed animal products', www.greenpeace.org/Multimedia/Live/FullReport/2358.PDF [9] Martin Cooke (Strategic Technical Development Manager Fresh Food Division, Tesco Stores), 10/12/99, letter to Cargill, ADM, National Farmers Union and UKASTA [10] Karen McDermott (Customer Service Manager, Tesco Stores Ltd), 12/10/00, pers.comm. [11] 72% - C James, 1999, 'Global Review of Commercialized Transgenic Crops: 1999', ISAAA Briefs No.12: Preview, pub. ISAAA (International Service for the Acquisition of Agri-biotech Applications) (Ithaca, NY), www.isaaa.org/Global%20Review%201999/briefs12cj.htm [12] US Department of Agriculture (USDA) statistics, cited in United Soybean Board, SoyStats 1999 - soybean production, www.unitedsoybean.org/99soystats/page_34.htm; and USDA Foreign Agricultural Service, Feb 2000, World coarse grain production, consumption and stocks, www.fas.usda.gov/grain/circular/2000/00-02/cgra_tbl.pdf [13] James, 1999, op.cit.11 [14] based on FAPRI 1999 World Agricultural Outlook, cited in Bruce Babcock & John Beghin (Iowa State University economics department), 30/9/99, 'Potential market for non-GMO corn and soybeans', in Economic Perspectives on GMO Market Segregation, www.econ.iastate.edu/research/webpapers/NDN0060.pdf . We have ignored the change in stocks and seed saving, and looked just at the proportions of beans in use. [15] FAPRI 1999 World Agricultural Outlook, ibid. That gives: domestic [ie US] meal 37%; domestic oil 10% (14.6% of this is exported); exported beans 27%; exported meal 10%; exported oil 2%; seed 6%; change in stocks 8%. Soya consists of 79% meal, 18% oil, 3% by-products [source: Allan Buckley (Wye College), Dec'98, 'Economics of identity preservation of GM crops', pub Food Biotechnology Communication Initiative]. However, these aren't exactly the proportions created in processing, as there are other products along the way, such as soya flour (which comes out before separation of oil and meal). You can certainly assume (from the export figures above) that most of the exported beans are milled, and at least 2/3 of this will make meal - so meal will be at least 37 + 10 + 18 = 65%. [16] Robert Wisner (Dept of Economics, Iowa State University), 15/9/99, 'Evolution of the demand for non-GMO corn and soybeans', www.econ.iastate.edu/faculty/wisner/Wisner/Pages/gmomarci.pdf [17] Nikkei newswire (Dow Jones), 31/10/99, 'Japan label rule to cause switch to non-GMO food' [18] the first generation of GM crops has focused on 'input traits' such as herbicide-tolerance and insect-resistance ie qualities of GM seed which make it beneficial for the farmer / producer. We contrast this with the second generation which will focus on 'output traits' such as lower fat content, longer shelf life, higher vitamin content ie qualities of the end-product which are beneficial to the consumer. The science of input trait modification is simpler than that of output traits, so it is this form of GM which is in our food now; it will be some years before the second generation hits the supermarket shelves in a big way. [19] note that these two terms are used differently by different people - so our introduction here serves as a definition for our purposes. [20] Continental Grain (now ContiGroup), press release, 8/7/99, 'Cargill to proceed with modified continental acquisition', www.contigroup.com/pr_1999_07_08.html [21] GIPSA (Grain Inspection, Packers and Stockyards Administration, part of USDA) data, cited in table 4, Marvin Hayenga and Robert Wisner, January 1999, 'Cargill's Acquisition of Continental Grain's Grain Merchandising Business', Staff paper #312, Department of Economics, Iowa State University, www.econ.iastate.edu/outreach/agriculture/marketing/hayenga/ (figures for fiscal year 1998) [22] Greenpeace UK, 31/1/00, op.cit.7 [23] Cargill plc, Oct '99, memorandum submitted to House of Commons Agriculture Select Committee (op.cit.6), para 27, www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmagric/71/9113012.htm [24] Speech by Dan Dye (Vice President North American Grain Group, Cargill Inc), 24/2/00, 'How grain shipping and processing firms are handling bioengineered products', www.cargill.com/today/speeches/00_02_14dye.htm [25] Brewster Kneen, 1995, op.cit.2 [26] Reuters, 30/9/99, the Hague, interview - 'Non-GM soy supply unlikely this season', by Eric Onstad. [27] Cargill plc, op.cit.23 [28] Graham Secker (Managing Director of Cargill plc), 30/11/99, comments in witness examination by House of Commons Agriculture Select Committee (op.cit.6), para 146, www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmagric/71/9113014.htm [29] PG Economics, Oct '99, memorandum submitted to House of Commons Agriculture Select Committee (op.cit.6), www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmagric/71/71ap08.htm [30] Cargill Inc, 7/12/99, position on biotechnology, posted on American Soybean Association website, www.oilseeds.org/asa/documents/cargill-1299.htm? [31] Decatur Herald & Review, 1/9/99, 'ADM asks suppliers to separate genetically altered crops', by Paul Brinkman, www.herald-review.com/03/adm0901-9.html [32] Reuters, 15/4/99, 'ADM to avoid non-EU approved modified corn' [33] Charles Hurburgh, 2000, 'The GMO controversy and grain handling for 2000', Iowa Grain Quality Initiative, Iowa State University, www.masoncitynet.com/farmexpo2000/pages/GMOGRAIN.HTM [34] ADM 3rd quarter '98/'99 results, reported in Prompt, 1/5/99, Industries In Transition [35] Its position is that farmers should warn Cargill elevators if they are going to deliver non-EU approved varieties, so that Cargill can find a domestic market for them. [Cargill Inc, 7/12/99, op.cit.30]? [36] Archer Daniels Midland Company, 31/8/99, 'ADM statement to suppliers regarding genetically enhanced crops', www.admworld.com/news/docs/137.htm [37] The economic advantages of GMOs for farmers have been questioned in some recent studies; however, the technology remains popular with farmers, suggesting that there are significant gains in most cases. Some of the studies suggest that herbicide-resistant crops actually require a greater volume of herbicide than conventional varieties. See note 144 [38] USDA, National Agricultural Statistics Service, 31/3/00, Prospective Plantings - Farmer Reported Biotechnology Varieties, http://jan.mannlib.cornell.edu/reports/nassr/field/pcp-bbp/pspl0300.txt [39] Reuters, Chicago, 27/4/00, 'Japan GMO ruling not seen hurting US exports', by Julie Ingwersen [40] Reuters, Tokyo, 15/7/99, 'Japan firms smell opportunity in non-GMO foods', by Aya Takada [41 ] Decatur Herald-Review, 5/2/00; and PR Week (US), 10/7/00, p.9, 'Archer Daniels Midland taps BSMG for multimillion-dollar PR push', by John Frank [42] Associated Press, 20/11/00, 'Farmers warned to be careful what type of corn they plant next season', by Jay Hughes [43] Company chairman G. Allen Andreas told the Chicago Tribune that the company had reconsidered its September warning, and said to Reuters that he thought "the pendulum is beginning to turn back" on the controversy surrounding the crops. He also confirmed that ADM would not turn away GM grains [Reuters, Chicago, 28/1/00, 'ADM changes tack on genetically modified crops']. This was rather ambiguous, with no clear statement that it would not require separation - just that it had rethought its position. And the company had never suggested that it would not accept GMOs - only that it would keep them separate. The following month, ADM Vice President Lew Batchelder said, "ADM's export-oriented grain elevators will accept all commodities. ADM continues to believe in the segregation of grain in order to maximise its value" [Decatur Herald & Review, 'ADM still wants altered crops separated', 2/2/00, by Ron Ingram, www.herald-review.com/01/adm0202-0.html]. [44] Associated Press, 27/10/00, 'ADM votes to still take genetically modified crops' [45] Hayenga and Wisner, op. cit.21 (see Appendix 3) [46] ibid (see Appendix 3) [47] ibid, citing Milling & Baking News [48] DW Larson, PW Gallagher, RP Dahl (Ohio State University) (eds), Structural Change and Performance of the US Grain Marketing Industry, 1998; and Grain & Milling Annual 1999 (pub. Milling & Baking News), pp.21-22; both cited in Hayenga and Wisner, ibid [49] Financial Times 1/3/00, 'ADM to cut soybean crush on poor margins' [50] Forbes, 17/11/97, 'Vindication', by Bruce Upbin, www.forbes.com/forbes/1997/1117/6011052a_2.html [51] National Farmers Union, 20/10/99, Testimony prepared for the House Judiciary Committee Hearing on Concentration, www.house.gov/judiciary/nfu1020.htm [52] 1998/99 figures, Hoovers Online company capsules, www.hoovers.com/co/capsule/4/0,2163,10124,00.html (Archer Daniels Midland) and www.hoovers.com/co/capsule/9/0,2163,40079,00.html (Cargill) [53] www.renessen.com; and Monsanto Annual Report 1998, www.monsanto.com/monsanto/investor/report/98/build/default.htm [54] Information Systems for Biotechnology, August 2000, ISB News Report, ' "New" Cargill remains committed to biotech', by Tracey Sayler, www.nbiap.vt.edu/news/2000/news00.aug.html#aug0006 [55] see e.g. speech by Ernest Micek (then Cargill chairman), 18/5/99, 'Preserving the environment and raising living standards through an open food system', www.cargill.com/today/speeches/micek3.htm; and also Economist 25/3/00, 'SURVEY - Growing pains' [56] Cargill Inc, website, 'Management' - corporate officers and elected officers, www.cargill.com/about/manage.htm [57] Cargill News International, Genetic engineering pt.4, www.cargill.com/today/gmo4.htm [58] Cargill News International, Genetic engineering pt.1, www.cargill.com/today/comp1.htm [59] Cargill Inc, 8/12/99, position on biotechnology, www.cargill.com/today/releases/biotechnology2.htm [60] Cargill, op.cit.58 [61] AgWeek (www.agweek.com), 27/12/99, 'Genetically Enhanced Crops Give Food for Thought', by Brian Rustebakke. [62] Dan Dye, 24/2/00, speech to Agricultural Outlook Forum 2000, 'How grain shipping and processing firms are handling bioengineered products', www.cargill.com/today/speeches/00_02_14dye.htm [63] 'Promoting sustainable development', speech by FW Corrigan to Goldman Sachs investors conference, New York, 17/2/00, www.cargill.com/today/speeches/00_02_17corrigan.htm [64] American Corn Growers' Association, news release, 13/3/00, 'Corn growers question need to sacrifice export markets due to genetically modified crops', www.acga.org/news/2000/031300.htm [65] Associated Press, 22/9/00, 'Cargill exec to lead campaign for genetically modified foods' [66] Reuters, 16/5/00, 'Organic food may be more risky than biofoods - Cargill', by Julie Vorman, available on website of Western Crop Protection Association, www.wcpa.org/html/na60200n.htm [67] Archer Daniels Midland website, 'Technology', www.admworld.com/home/tech.htm [68] Archer Daniels Midland Annual Report, 1998, p.17 [69] ibid [70] Lakeland FS Inc, website, 'What's New - Biotech adds value to farm commodities', www.lakelandfs.com/WhatsNew/biotech.htm [71 ] Paul Caswell (Vice President - Technology), 1999. 'New uses from existing crops', pp. 70-73. in: J. Janick (ed.), Perspectives on new crops and new uses, pub. ASHS Press (Alexandria, VA), www.hort.purdue.edu/newcrop/proceedings1999/v4-070.html [72] Chemical Business Newsbase, press releases, 31/7/00, 'Aventis CropScience, Archer Daniels Midland and SKW Trostberg invest in the Burrill Nutraceuticals Capital Fund' [73 ] New Uses Council Inc, website, 2000 Board of Directors, http://newuses.org/EG/EG-20/NUCBoard00.html [74] Caswell, 1999, op.cit.71 [75] Hoovers Online company capsule - Cargill, www.hoovers.com/co/capsule/9/0,2163,40079,00.html [76] Hoovers Online company capsule - Archer Daniels Midland, www.hoovers.com/co/capsule/4/0,2163,10124,00.html [77] Hoovers Online company capsule - ConAgra Foods, www.hoovers.com/co/capsule/8/0,2163,10388,00.html [78] Hayenga and Wisner, op.cit.21, citing Structural Change and Performance of the U.S. Grain Marketing Industry; Milling and Baking News Grain and Milling Annual, 1999, pp. 21-22; Cargill [79] GIPSA data, cited in table 5, Hayenga & Wisner, op.cit. 21 [80] ConAgra press release, 29/6/98, 'Agri-products leader to focus on international business and biotech' [81] ConAgra, Annual Report, 1998, business review [82] ConAgra, press release, 3/6/99, 'ConAgra to accept biotech corn' [83] FoEE (Friends of the Earth Europe) press release, 8/3/00, 'European food manufacturers shun GMOs but consumers urged to keep up the pressure', on M2 Presswire [84] UMI , Successful Farming (Iowa Edition), Jan 2000, 'Confronting the backlash' [85] Reuters, Omaha, 20/9/99, 'Conagra CEO sees brighter times ahead for ag' [86] CropChoice News, 6/6/99, 'ConAgra Hedges its Bet on Biotech', www.cropchoice.com/leadstry.asp?recid=116[ 87] Zen-Noh, Fact Book 1995-96, www1101.zennoh.or.jp/ENGLISH/ALACALTE/Fact3.htm Currency converted at interbank rate, 26/11/00 [88] ibid, www1101.zennoh.or.jp/ENGLISH/ALACALTE/Fact1.htm [89] GIPSA data, cited in table 4, Hayenga & Wisner, op.cit.21 [90] Reuters, Monterey (California), 15/2/00, 'US farmers need to segregate GM grains - Japan firm' [91] Australian Financial Review, 29/3/00, 'Export body allays fears over grain', by Ray Moynihan, p.9 [92] Japan Chemical Week, 26/10/00, 'Aventis CropScience Japan Targeting Y50 Bn in sales' [93] Farm Journal, September 1997, 'Consolidated cultures', by Pam Henderson, www.cgb.com/FarmJournal.html [94] Consolidated Grain and Barge Co, GMO statement, 20/10/00 update, www.cgb.com/gmo.htm [95] Reuters, Tokyo, 7/9/00, 'Itochu to segregate non-GM food soybeans', and Farm Industry News, vol.33 no.4, 8/2/00, 'GMO-free zone?', by Joan Olson, at www.homefarm.com/archives/2000/fin/000208.htm [96] Hoovers company capsule - Bunge, www.hoovers.com/co/capsule/8/0,2163,58878,00.html [97] Hayenga and Wisner, op.cit.78 [98] Hoovers, op.cit.96 [99] GIPSA-USDA figures, cited in table 5, Hayenga & Wisner, op.cit.21 [100] Hoovers, op.cit.96 [101 ] ibid [102 ] Bunge Corporation, 4/2/00, statement on GMOs, www.bunge.com/000204.htm [103] Bunge Corporation, press release, 21/10/98, 'Bunge and Zen-Noh Grain enter into joint export operating and marketing agreements', www.bungecorp.com/981021.htm [104] Hoovers company capsule - Cenex Harvest States, www.hoovers.com/co/capsule/8/0,2163,57218,00.html [105] Hoovers company capsule - Cenex Harvest States, www.hoovers.com/co/capsule/8/0,2163,57218,00.html [106] Hayenga and Wisner, op.cit.78 [107] GIPSA figures, cited in table 5, Hayenga & Wisner, op.cit.21 [108] Salt Lake Tribune, 27/2/00, 'Consumers wary of gene-altered crops, farmers told' [109] Cenex Harvest States, 1999 annual meeting, adopted resolutions on farm policy (www.cenexharveststates.com/aboutus/99res-16.html) and on agriculture and food trade (www.cenexharveststates.com/aboutus/99res-17.html) [110] Cenex Harvest States, Annual Report 1998 - Board and Management Report, 'Growing value - today and tomorrow', www.cenexharveststates.com/news/annualreport-bmr.html [111] Cenex Harvest States, website, 'About us', www.cenexharveststates.com/aboutus/factsheet2.html [112] Minneapolis Star Tribune, 18/1/00, 'Ag giant tries to calm market beset with GMO fears', on www.agweek.com/docs/0117/118cargill.htm [113] Farm Industry News, 8/2/00, op.cit.95 [114] For more on Sun Valley's position, see Greenpeace, op.cit.7 [115] Reuters, Amsterdam, 4/4/00, 'Interview-Cargill Europe gears up to crush non-GM soy', by Eric Onstad [116] Guardian, 2/2/00 (the longer original version of the same article appeared in January in the Chicago Tribune); and Merrill Lynch, 13/3/00, Monthly Fertilizer Focus [117] Reuters, 1/12/99, 'Cargill eyeing non-GM soy for European customers', at www.connectotel.com/gmfood/re011299.txt [118] ibid [119] Reuters, Washington, 16/11/00, 'USDA says US corn exports hurt by StarLink chaos' [120] Reuters, Buenos Aires, 27/10/00, 'StarLink debacle, Spain may hike Argentine corn sales', by Robert Elliott [121] Wall Street Journal, 30/10/00, 'Japan asks that imports of corn be StarLink-free', by Yumiko Ono & Scott Kilman [122] Des Moines Register, 15/11/00, 'StarLink raises concerns of corn export losses', by George Anthan [123] Associated Press, 20/11/00, 'Farmers warned to be careful what type of corn they plant next season', by Jay Hughes [124] Wall Street Journal, 3/11/00, 'Corn recall cost could reach into the hundreds of millions', by Sarah Lueck, Amy Merrick, Joel Millman & Stephen Moore [125] Financial Times, 23/8/96, 'Mexico City: News Digest [126] Des Moines Register, 4/11/00, 'StarLink tests costly', by Jerry Perkins [127 ] Wall Street Journal, 2/11/00, 'Biotech corn problems lead to recall of 300 products, disrupt farm belt', by Sarah Lueck & Scott Kilman [128] Reuters, 7/11/00, 'US corn going to Japan - StarLink tests under way', by Bob Burgdorfer [129] Reuters, Chicago, 3/11/00, 'Many Americans say stop planting gene-altered crops', by Brad Dorfman [130 ] Feedstuffs, 6/11/00, 'Grain elevators, handlers caught in middle of StarLink confusion', by Sarah Muirhead [131] ibid [132] From Appendix 2: spread opportunity costs range from $0.07 - 0.22; storage margin opportunity costs from $0.06 - 0.15; so total indirect costs (excluding grind margin opportunity costs) range from $0.13 - 0.37. Add these to direct costs of $0.14 - 0.24 for maize; and $0.38 - 0.57 for soya. [133] Hurburgh, op.cit.33 [134] Reuters, 4/4/00, op.cit.115 [135] Chicago Tribune, 31/10/99 'Farmers Face Harvest Headache Segregating Gene-Altered Crops', [136] Reuters, Washington, 12/11/99, 'USDA to set testing standards for biotech crops' [137] see eg Chemical Week, 15/12/99, 'Biotech battle - Waging a war for public approval' [138] PG Economics, Oct '99, op.cit.29 [139] Globe And Mail (Toronto) 10/01/00, 'Farmers face a growing problem', by Heather Scoffield [140] Survey of 1,200 elevators throughout the corn belt. Over 78% do not sell grain overseas. Pioneer Hi-Bred International, 'Elevator biotech grain acceptance survey - 2000', at www.pioneer.com/usa/biotech/asta/accept_survey.htm [141] Survey of 1100 elevators in 9 states. CropChoice, 5/10/00, 'Corn Growers: Elevators Demanding Segregation', www.cropchoice.com/leadstry.asp?recid=180 [142] Survey of 500 farmers in 15 states. Error margin +/- 4.5%. ACGA news release, 22/6/00, 'Corn growers commission new national survey on genetically modified crops', www.acga.org/news/2000/062200.htm [143] Timothy Ramey, 21/5/99, 'GMOs are dead', Deutsche Bank Alex Brownwww.leopold.iastate.edu/9-22-99gmorel.html]. (ii) Agricultural economist Charles Benbrook says that after analysing thousands of comparative soybean yield trials, there was an average 6 -7 % decrease in yield for fields planted with Monsanto's "Round-up Ready" GM seeds. This probably cost farmers 3-5 bushels per acre, "From a historical point of view, this has been the biggest step backwards in soybean production," he says. "When you combine the higher cost for Round-up Ready seed with losing these bushels per acre, this has really become a hidden tax on the income of the American farmer." [IPS Newsfeed, 27/9/99, 'US farmers rethink future of bio-tech crops', by Danielle Knight, Washington, Global Information Network] (iii) A 2-year study by researchers at the Nebraska University Institute of Agriculture and Natural Resources showed Roundup Ready soybeans yield 6% less than their closest relatives and 11% less than high-yielding soybean varieties - and this reduction is due to the gene insertion process. [Associated Press State & Local Wire, 17/5/00, 'Study shows genetically altered soybeans produce lower yields', www.connectotel.com/gmfood/ap170500.txt] (iv) According to the OECD's annual report on the state of world agriculture, confusion about whether transgenic crops offer a clear benefit to farmers is arguably the biggest factor in whether these novel products will really take off. The report says that no overall conclusion on profitability can be made. With the exception of cotton, which had a "positive and significant" impact on the bottom line, the profitability of herbicide-resistant crops has been mixed. This is because crops in some areas have required more spraying than expected and there have been differences, year to year and region to region, in the intensity of the pest problem. [Agence France Presse, 26/4/00, 'Uncertain Outlook for Genetic Food, Says OECD Report', Richard Ingham, www.connectotel.com/gmfood/af260400.txt] However, on balance most farmers seem to think that they're better off with. The rate of farmer uptake is a good indication that they expect better profitability. [144] 1) Better return ?: (i) Despite the premium farmers had to pay for GM seed and despite having to promise not to replant it from their harvest, they did benefit. According to a study by Greg Traxler and Jose Falck-Zepeda, of Auburn University in Alabama, gains from planting Bt cotton amounted to $200m in 1997, of which 42% went to farmers, 35% to Monsanto and 7% to consumers. [Economist, 25/3/00, Survey - 'Growing pains'. (ii) Nicholas Kalaitzandonakes, a professor of agribusiness at the University of Missouri reckons that the benefits to farmers of GM soyabean technology alone were in the order of $400m-$1 billion in 1999. [Economist, 15/1/00, 'Genetically modified crops - To plant or not to plant'] (iii) According to USDA's Economic Research Service's survey of 1997 crops, increases in adoption of herbicide-tolerant cotton were associated with significant increases in yields and variable profits, and unchanged herbicide use. Increases in adoption of herbicide-tolerant soybeans were associated with small increases in yields and variable profits, and significant decreases in herbicide use. Increases in adoption of Bt cotton were associated with significant increases in yields and profits and decreased insecticide use. [www.econ.ag.gov/whatsnew/issues/gmo] [NB returns from the new technology will improve in later years, as farmers learn how best to use it] 2) Worse return ?: (i) A survey of Iowa farmers' 1998 crops by the Leopold Center for Sustainable at Iowa State University found that GM soyabeans gave lower yields (of 49.26 bushels per acre, compared to 51.21 for non-GM); herbicide costs were 30% cheaper, but this was mostly absorbed by higher seed costs. Bt corn did have higher yields than non-GM (160.4 bushels per acre, compared to 147.7), and fewer farmers used insecticides (12% of fields, compared to 18%); however Bt seed cost $39.62 per acre, while conventional seed cost $29.96; the result was an extra $3.97 of earnings per acre for Bt, which is not considered statistically significant. The survey included interviews with about 800 farmers. [Leopold Centre news release, 22/9/99, '1998 crop survey shows equal returns for GMO, non-GMO crops', [145] David Bullock, Marion Desquilbet & Elizavet Nitsi, 21/10/00, 'The economics of non-GMO segregation and identity preservation', University of Illinois, Department of Agricultural and Consumer Economics, http://w3.aces.uiuc.edu/ACE/faculty/dallasbu.PDF [146] Hurburgh, op.cit.33 [147] Bullock et al, op.cit 145, citing pers.comm. with David Langer of Pioneer Hi-Bred International [148] PG Economics, Oct '99, op.cit.29; Cargill plc, 12/1/00, supplementary memorandum to House of Commons Agriculture Select Committee (op.cit.6), www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmagric/71/71ap28.htm; St. Louis Post Dispatch, 13/5/99, 'ADM (Archer Daniels Midland Co) pays more to non-biotech bean growers', by Robert Steyer, http://home.intekom.com/tm_info/rw90521.htm#01; GrainNet, 22/9/99, 'ADM Reportedly Paying Premium for Non-GMO Corn', www.grainnet.com/ArticleLibrary/articles.html?ID=4819 [149] PG Economics, Oct '99, op.cit.29 [150] Information Systems for Biotechnology, August 2000, op.cit.54 [151] Bullock et al, op.cit 145, citing pers.comm. with David Young of DuPont, 8/6/00, USDA National Agricultural Statistics Service, prospective plantings, 31/3/00 [152] Cargill Inc, 7/12/99, op.cit.30 [153] Survey covered 100 elevators across the corn belt. Monsanto news release, 23/9/99, 'Few grain handlers are segregating non-biotech crops', www.monsanto.com/monsanto/investor/news/99/99sep23_grain.html [154] Survey of 1,200 elevators throughout the corn belt. Over 78% do not sell grain overseas. Pioneer Hi-Bred International, 'Elevator biotech grain acceptance survey - 2000', at www.pioneer.com/usa/biotech/asta/accept_survey.htm [155] Survey of 1100 elevators in 9 states, CropChoice, 5/10/00, op.cit.141 [156] Bullock et al, op.cit.145; William W. Lin, William Chambers, and Joy Harwood, April 2000, 'Biotechnology: U.S. Grain Handlers Look Ahead', in Agricultural Outlook, pub. USDA Economic Research Service, http://151.121.66.126/epubs/pdf/agout/apr2000/ao270h.pdf; Karen Bender, Lowell Hill, Benjamin Wenzel & Robert Hornbaker, Feb '99, 'Alternative market channels for specialty corn and soybeans, Dept of Agricultural & Consumer Economics, University of Illinois at Urbana-Champaign, www.ngfa.org/specialtybk.html; Richard Maltsbarger & Nicholas Kalaitzandonakes (of Economics & Management of Agrobiotechnology Centre, University of Missouri-Columbia), 28/8/00, 'Study reveals hidden costs in IP supply chain', in Feedstuffs; available at www.biotech-info.net/hidden_costs.html; House of Commons Agriculture Select Committee hearing (op.cit.6), especially submissions of Cargill (+ supplementary memo), Strategic Diagnostics Inc, PG Economics [157] Bender et al, ibid. They also surveyed speciality grain firms, which we don't use here. It is not clear what tolerance of GM contamination this relates to. Standards are far more stringent for STS soyabeans than for high-oil corn. Some handlers allow a few per cent contamination of high-oil corn (as it is the measured oil content in the final product which determines price, and eg a 5% contamination may have a greater proportional impact on the handling costs than on selling price). However this isn't always the case - Consolidated Grain and Barge company claims to export high-oil corn at 99.2 - 99.3% purity, and STS soyabeans at 99.97% [Bullock et al, op.cit.145, citing pers. comm. with John Haas of Consolidated Grain and Barge] [158] Lin, Chambers & Harwood, op.cit.156 [159 ] the original study (Bender et al) included a mixture of country and terminal elevators, but did not state the proportions of each, not differentiate between them in terms of costs [160] Maltsbarger & Kalaitzandonakes, op.cit.156 [161] see Bullock et al, op.cit.145 [162] Reuters, 4/4/00, op.cit.115 [163] Strategic Diagnostics Inc, 9/12/99, memorandum to House of Commons Agriculture Select Committee (op.cit.6), www.parliament.the-stationery-office.co.uk/pa/cm199900/cmselect/cmagric/71/71ap19.htm [164] pers.comm., cited in Bullock, op.cit.145 [165] Cargill plc, 12/1/00, op.cit.148 [166] Greenpeace UK, 31/1/00, op.cit.7 [167 ] Seedquest press releases, 29/6/98, 'Monsanto Agrees to Purchase Cargill International Seed Operations In Central and Latin America, Europe, Asia, Africa', www.seedquest.com/News/Press%20releases/Monsanto/N1119.htm [168] Financial Times, 17/5/00, 'Cargill settles with Pioneer' [169] Cargill News International, Genetic engineering pt.2, www.cargill.com/today/gmo2.htm [170] Farm Central, Seed Variety Update, www.farmcentral.com/s/rr/seed/s4rcvzzzz.htm [171] Cargill News International, Genetic engineering pt.3, www.cargill.com/today/comp3.htm [172] Cargill News International, op.cit.169 [173] Cargill's 243 facilities + 73 new locations from Continental Grain (+ 10 CG facilities at the same locations as Cargill ones). [Source: Hayenga and Wisner, op. cit.21] 5 facilities had to be divested in the merger [source: National Farmers Organisation, 14/7/99, 'Merger adds to grain producer uncertainty', www.nfo.org/carg799.htm] [174] This is sum of Cargill's 463 and Continental Grain's 169 [Hayenga and Wisner, op.cit.78]. The actual figure will be slightly less than this, due to divestitures forced by the merger regulators. [175] This excludes joint ventures and partnerships. [176] Hayenga and Wisner, op. cit.21 [177] Hayenga and Wisner, op. cit.21 [178] Hayenga and Wisner, op. cit.78 [179] G Allen Andreas (CEO of ADM), 18/1/00, interview with the Wall Street Transcript, www.twst.com/notes/articles/jae603.html [180] ADM Annual Report 1998, p.5 [181] Hoovers Online company capsule - Growmark Inc, www.hoovers.com/cp/capsule/9/0,2163,40189,00.html [182] Andreas, 18/1/00, op.cit.179 [183] Feedstuffs, Sept '95, cited in Dr W Heffernan (Dept of Rural Sociology, Uni of Missouri), 5/2/99, 'Consolidation in the food and agriculture system', report to National Farmers Union, www.calfu.org/whstudy.html [184] ADM Annual Report 1998, pp.11, 17 [185] Archer Daniels Midland, website, 'ADM / Countrymark', http://grain.admworld.com/countrymark/ [186] Feedstuffs 9/6/97, cited in Heffernan, 5/2/99, op cit.183 [187] Feedstuffs 22/9/97, cited in Dr W Heffernan , 5/2/99, op cit.183 [188] Cargill press release 13/2/97, 'Salzgitter Vegetable Oil Refinery Earns ISO 9002 Certificate', www.cargill.com/today/releases/e02131997.htm [189] Euro PA, Food & Drink Statistics 1998, Table 2.41: Summary of UK Oilseed Company Results, www.euro-pa.co.uk/files/guide/CH2TAB.HTM [190] European Commission, 3/2/99, decision on Cargill and Continental Case, No. IV/M.1376 [191] Financial Times 1/3/00, 'ADM to cut soybean crush on poor margins' [192] Forbes, 17/11/97, op.cit.50 [193] Feedstuffs 22/9/97, cited in Heffernan, 5/2/99, op cit.183 [194] Directory of Multinationals 1999 [195] ADM Annual Report 1998, p.5 [196] Caswell, 1999, op.cit.71 [197] National Farmers Union, 20/10/99, Testimony prepared for the House Judiciary Committee Hearing on Concentration, www.house.gov/judiciary/nfu1020.htm [198] Caswell, 1999, op cit.71 199] ADM Annual Report 1998, p. 6 [200] letter from Dan Glickman (US Secretary of Agriculture) to Department of Justice, based on USDA inspections, cited in Hayenga & Wisner, op cit.21 NB These percentages do not necessarily refer to the quantity of grain owned by Cargill: it may have just provided loading facilities for another company. [201] Cargill originally had 6 [AV Krebs, 12/11/98, 'It is plain, Cargill's reign in the grain has become profane', in Agribusiness Examiner #9, www.ea1.com/CARP/agbiz/agex-09.html]; Continental Grain had 6, but had to divest 4 of these as ordered by merger regulators [National Farmers Organisation, 14/7/99, op.cit.173] [202] Grain & Milling Annual 1997, cited in Heffernan, op cit.183 [203] US Commodity Futures Trading Commission, report, cited in European Commission, 3/2/99, op.cit.190. NB The delivery points are being changed in 2000, to exclude Toledo (Ohio), and instead have all delivery points on the Illinois River. Some say this will decrease the concentration of ownership, as there will be a greater number of delivery points [eg EC]; others say it could increase concentration, as Cargill was especially strong in the Illinois River area [eg Krebs] [204] USDA data, analysed in Hayenga & Wisner, op cit.21 [205] Cargill Argentina press release, cited in Haynega & Wisner, op cit.21 [206] European Commission, 3/2/99, op.cit.190 [207] Hohenberg Bros Company, website, www.hohenbergbros.com/ [208] ADM Annual Report 1998, p. 6 [209] Andreas, 18/1/00, op.cit.179 [210] ADM Annual Report 1998 [211] Arkady's parent, A.C. Toepfer, is owned equally by ADM and INTRADE holding company. ADM now owns a 50% interest in INTRADE. (ADM news release, 1999, 'ADM increases interest in AC Toepfer International Group', www.admworld.com/financial/docs/21.htm) [212] GIPSA data, cited in Hayenga & Wisner, op cit.21 NB These percentages do not necessarily refer to the quantity of grain owned by the companies: it may have just provided loading facilities for another company. [213] Grain & Milling Annual 1997, cited in Heffernan, op cit.183 [214] US Commodity Futures Trading Commission, op.cit.203 [215] USDA data, analysed in Hayenga & Wisner, op cit.21 [216] ADM Investor Services Inc, website, www.admisi.com/admisusa.html [217] ADM Annual Report 1998, p.5 [218] Feedstuffs, 28/10/91 and 21/2/94, cited in Heffernan, op cit.183 [219] Hoovers Handbook of Private Companies 1998, p.84 [220] European Commission, 3/2/99, op.cit.190 [221] Feedstuffs 28/10/91 and 21/2/94, cited in Heffernan, op cit.183 [222] European Commission, 9/11/99, Case No COMP/M.1348 - Archer Daniels Midland / Alfred C Toepfer International / Intrade, pp.4-5, http://europa.eu.int/comm/dg04/merger/closed/m13/en/m1348.pdf [223] Key Note report, Animal feedstuffs, 1999, p.24 [224] European Commission, 3/2/99, op.cit.90. The other major oilseeds are soya and sunflower. [225] USDA Agricultural Trade Reports, 15/6/98, UK - Oilseeds and Products Report, ASIA Intelligence Wire [226] European Commission, op cit.190 [227] USDA Agricultural Trade Reports, 15/6/98, op.cit.225 [228] Renewable Fuels Association, 'Ethanol industry outlook, 1999 and beyond', www.ethanolrfa.org/outlook99/99industryoutlook.html#capacity [229] Hoovers company profile - Cargill, 1/11/00 [230] Renewable Fuels Association, op.cit.228 [231] Mother Jones, 1995, 'Dwayne's world', by Dan Carney, www.motherjones.com/mother_jones/JA95/carney.html [232] Directory of Multinationals, 1999 [233] Mother Jones, 1995, op.cit.231 [234] Forbes, 17/11/97, op.cit.50 [235] ADM Annual Report 1998; Caswell, 1999, op.cit.71 [236] ibid [237] ADM Annual Report 1998; Daily Mail 27/2/99, cited on www.connectotel.com/gmfood/gmwho.html [238] Mother Jones, 1995, op.cit.231 [239] National Hog Farmer, March 1998, and Turkey World, Jan / Feb 1999, both cited in Heffernan, op cit.183 [240] Beef Today, Nov / Dec '98, cited in Heffernan, op cit.183 [241] www.hereford.uk.com/youth/sponsors/sunvalley/youth, cited in Greenpeace UK, 'Smuggling GM in through the back door', www.greenpeace.org.uk/Multimedia/Live/FullReport/1226.PDF [242] Beef Today, Nov / Dec '98; National Hog Farmer, Mar '98; IBP Annual Report; all cited in Heffernan, op cit.183 |
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All of these publications can be seen on the website: www.gm-info.org.uk along with interactive maps of where GM crops and foods are handled in the UK, ? plus campaign contacts and ideas for action. Alternatively, order the publications from: Corporate Watch 16b Cherwell Street, Oxford OX4 1BG. UK Tel +44 (0)1865 791391 mail@corporatewatch.org www.corporatewatch.org Corporate Watch is an independent research and campaign group which challenges the power of corporations, striving for a society which is ecologically sustainable, democratic, equitable and non-exploitative. |
