ACGA Says Biotech Causing Shrinking Markets

February 1, 2001

Recent announcements that two of the top three grocery store chains in the United Kingdom will only sell meat products from livestock fed non-genetically modified feeds underscores how export markets for U.S. farmers continue to diminish, according to the American Corn Growers Association.

"The mad cow scare generated market optimism that the U.K. and Europe would buy more livestock and livestock feed from the United States. However, that optimism has dimmed with the challenge of segregating GMO corn and soybeans. Export opportunity doors are closing and corn prices are dropping. Last week, the price of corn in South Dakota dropped another 8 cents from the previous week, to a low of $1.50 per bushel. Yet U.S. corn exports are about 12% behind a year ago," said Dan McGuire, program director of the ACGA.

Grocery store chains Tesco and Asda announced they would be demanding 100% non-GM fed livestock for all their meat and dairy products. Those two grocers hold 42% of the UK grocery market. In addition, most other chains are following suit, including Marks and Spencer and Safeway.

U.S. soybean exports to the EU declined substantially between 1995 and 1999 while EU imports of Brazilian soybeans greatly increased. The ACGA is concerned that the EU and UK decision to feed only non-GMO feeds may also have a negative effect on the U.S. ethanol industry and limit export opportunities for corn gluten, a high protein by-product of ethanol production.

"While U.S. export customers are demanding non-GM commodities, U.S. biotechnology companies are continuing to encourage farmers to plant their genetically modified products. That ‘ignore-the-customer' approach is foolhardy. It's drying up U.S. export opportunities and throwing away billions of dollars in exports. Of course, farmers, not biotech companies, get the final bill through low corn and soybean prices," said McGuire.