A Cloud Develops on the Biotech Phenomenon

September 7, 1999

Archer Daniels Midland has urged its suppliers to segregate non-genetically modified crops to preserve identity. ADM also says the marketplace will determine the size of premiums for identity preserved non-GM crops. The American Soybean Association supports the ADM position.

Last week ADM issued a statement alerting its "trading partners" of a "change we are experiencing in consumer demand." The statement implied that GM products were not being given the welcome mat by some ADM customers who are "making their purchases based upon the genetic origin of the crops used to manufacture their products."

If ADM can't satisfy customers' requests, "they do have alternative sources for their ingredients," the ADM statement said. "We encourage you as our supplier to segregate non-genetically enhanced crops to preserve their identity."

ASA expects there will be specialty markets this fall and in the future for soybeans grown from non-biotech seed stock. "Some consumers desire food products that do not contain ingredients derived from biotech crops, and ASA supports the marketing of identify preserved soybeans to meet that demand."

Identity-preserved, non-biotech soybean varieties will cost more, ASA says, because of extra costs incurred to maintain the identity of non-biotech soybeans. Farmers who want to supply non-biotech crops "almost certainly will incur additional handling, storage and transportation costs in order to preserve their identity," ASA says.

Consolidated Grain and Barge Company also announced last week it will continue to accept both GM and non-GM crops, but it will pay premium prices for non-GM crops. Producers should store GM products separately from non-GM crops. Premiums on non-GMs "will be volatile," said Consolidated.

ASA has advised soybean growers to calculate closely the additional costs as well as any potential liabilities they may incur in certifying the delivery of non-biotech varieties. "Knowing these additional costs and any potential liabilities is an important factor to be used by individual growers as they evaluate the adequacy of marketplace premiums."