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Feed and grain organizations warn growers of limited export markets

By JANE HOUIN
Ohio Correspondent

MARION, Ohio — With the corn-planting season underway, two trade associations representing the feed and grain processing industries are urging Syngenta Seed, Inc. to reconsider and reverse plans.

The National Grain and Feed Assoc. (NGFA) and North American Export Grain Assoc. (NAEGA) contend that what they call Syngenta’s “ill-conceived” plan to commercialize its Agrisure biotechnology-enhanced corn seed risks endangering U.S. corn and corn-product exports. Agrisure has not obtained regulatory approval for food and feed use in Japan and other U.S. export markets.

Further, they said Syngenta’s action plan could set a dangerous precedent concerning the suture introduction of biotechnology-enhanced traits before they are approved in countries, like Japan, that have a fully functioning, science-based regulatory approval process for such products.

“We already are aware that Japanese buyers are developing contingency plans to purchase corn and corn products from non-U.S. origins if Syngenta releases this seed for planting, and Japanese government approval is not forthcoming prior to harvest,” said NGFA President Kendell W. Keith and NAEGA Presidents and Chief Executive Officer Gary C. Martin in a joint statement.

“Given the painful lessons learned in the past, we urge Syngenta to join with us in protecting the marketability of U.S. corn and corn products by delaying the introduction of Agrisure RW corn seed until it received full regulatory approval in Japan and other important U.S. corn export markets.”

The Ohio Corn Growers Assoc. (OCGA) wants growers to be aware that Syngenta’s Agrisure Rootworm trait (MIR 604) has not received full approval anywhere in the world, most notably Japan, the United States largest customer.

“As a unified national organization, we have requested Syngenta not release hybrids containing this trait this planting season,” said OCGA President Mark Drewes. “Growers planting the Agrisure Rootworm trait should be aware that if Japanese regulatory approvals are not granted by harvest, there will be serious restrictions on the marketability of the grain.”

The OCGA’s and National Corn Growers Assoc.’s biotechnology policy supports events that have received full regulatory approval in the United States and throughout the world; NCGA’s request that Syngenta withhold the release of the Agrisure Rootworm trait was solely based on the current lack of full Japanese approvals.

“Our request is consistent with our policy, which addresses customer concerns and protects our traditional markets,” Drewes said. “OCGA supports commercial release of biotech corn events or combination of events that have received full approval by U.S., Japanese and other foreign regulatory agencies.”

Syngenta announced its intent to begin selling its new Agrisure RW corn seed immediately after the March 16 decision by the USDA’s Animal and Plant Health Inspection Service to deregulate the product after finding no adverse plant health or environmental concerns.

The biotechnology-enhanced trait, which contains modified protein MIR604 to control rootworm insects, previously received authorizations from the U.S. Food and Drug Administration and U.S. Environmental Protection Agency.

“Given the U.S. government’s deregulation of Agrisure RW corn, we have no reason to question its safety for food or feed,” said Keith and Martin. “But we do have important reasons for opposing its commercialization at this time because of its marketability.”

NGFA and NAEGA noted that the Japan Feed Trade Assoc., representing major buyers of U.S. corn, also has urged Syngenta to delay introduction of Agrisure RW corn or any other biotech-enhanced strain until full Japanese government approval has been granted.

OCGA strongly encourages farmers planting the trait to develop alternative marketing plans for this grain. For those who plant Agrisure RW MIR 604, every kernel of the product must be used domestically at this time. The safest market available is to feed on-farm livestock or market to a feed mill that will accept it for domestic use.

“Growers planting the Agrisure Rootworm trait should be aware that if Japanese regulatory approvals are not granted by harvest, there will be serious restrictions on the marketability of the grain,” said NCGA President Ken McCauley.

The NCGA also warns that harvested corn containing the MIR604 protein will not be eligible to be marketed under its Market Choices label that seeks to direct biotech traits away from corn product shipments destined for Europe.

The NGFA and NAEGA say the same will be true for processed and co-products from Agrisure RW corn, such as corn gluten and distillers dried grains with solubles (DDGS), which would also not be able to be marketed for export.

OCGA is currently investigating what feed mills or elevators in Ohio are willing to take Agrisure MIR 604. Should Agrisure MIR 604 be found in the export channels, it has the potential to cause a major market disruption.

NGFA and NAEGA officials say it is misguided and naïve to believe that Syngenta’s efforts to channel Agrisure RW corn away from export markets would be 100 percent successful.

“It is impossible to completely segregate this specific biotech variety from the rest of the commodity stream because of pollen drift, inadvertent commingling and human error,” Keith and Martin said. “Yet, export markets will require ironclad guarantees if this biotech trait is not approved overseas, since Japan and other foreign governments impose a zero-tolerance policy on unapproved biotech products.”

Further, NAEGA noted that Syngenta has failed to provide commercial assurances that exporters would be compensated for damages that may result if Agrisure RW corn is present in commodity export shipments.

Syngenta is requiring producers to sign a “comprehensive grain use/marketing commitment” agreement prior to obtaining Agrisure RW seed. In this deal, producers pledge to deliver Agrisure RW corn only to non-export locations and to sign a stewardship agreement “confirming that they understand their obligations to market the grain appropriately.”

NAEGA and NGFA urge any growers signing such agreement to be fully cognizant of their potential legal liabilities and market implications of subsequently delivering corn that may test positive for the Agrisure RW trait in general market channels.

“The potential for extremely costly rejections and export destinations is very real and remains a threat to our country’s ability to provide commodities that comply with customer requirement,” Martin and Keith warned.

Agrisure RW is not yet approved in Mexico, Southeast Asia, Japan, Europe, Canada, Korea, and Taiwan, all of which are essential to the long-term economic success of Ohio farmers and the state’s economy as a whole. Japan is the leading U.S. corn export market and accounts for nearly 5 percent of total U.S. production. Agrisure
Rootworm and stacks will be carried by NK Brand, Garst and Golden Harvest hybrids.

4/25/2007