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Reuters Survey says grain elevators prefer GMO segregation

Date: 20-Dec-01
Country: USA

The American Corn Growers Association (ACGA), who conducted the survey,
questioned 1,149 elevators in 11 Midwestern states in fall 2001 about
their policies on GMOs. More than 200 said they offered premiums of 5 to
35 cents for non-GMO corn or soybeans, and nearly 600 respondents said
they required segregation of GMO corn and soybeans either at delivery or
on farms.

The ACGA said the results suggest U.S. grain dealers are becoming wary
of the risks related to growing genetically modified crops. Some
European and Asian countries have remained skeptical of GMOs, limiting
their export value.

"The results of our survey clearly show the increasing level of concern
that grain elevators have regarding the ability to meet the needs of
foreign buyers," Larry Mitchell, CEO of the ACGA, said in a statement.

The European Union froze approval of new GMOs three years ago and has
proposed labeling foods in which they make up more than one percent. And
Japan and South Korea's refusal to accept StarLink corn - a genetically
modified grain which sparked widespread food recalls in the United
States because of fears of allergic reactions - has reduced sales of
U.S. corn to those buyers.

Plantings of genetically modified corn and soybeans have remained
popular with American farmers because of reduced overhead costs for fuel
and herbicides. But ACGA officials said the shrinking market for GMOs is
a major reason for low grain prices in the U.S., which have fallen in
recent years.

"You've got some major markets that are very significant that aren't
importing GMOs, and when you lose markets overseas that adds to the
total grain inventories. Prices are in the tank already, and there's no
way to get the prices up unless the inventories are down," said Dan
McGuire of the ACGA.

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