Monsanto biotech corn wins regulatory approval
Date: 26-Feb-03
Country: USA
Author: Carey Gillam
Both Monsanto and members of the U.S. corn growing industry have been eagerly awaiting the regulatory approval, with Monsanto seeing the new product as a significant addition to its growing stable of biotech crops.
"This is a very important product for Monsanto," said Bryan Hurley, a spokesman for Monsanto, which has been working to offset lagging revenues in its herbicide business with increased sales of biotech seeds and traits.
The genetically modified corn, called YieldGard Rootworm corn, contains a protein from a common soil microbe that targets the larvae of corn rootworm, a devastating pest that eats into yields and farmer profits. The corn is able to naturally protect its roots against the corn rootworm.
The U.S. Department of Agriculture has estimated that rootworm costs U.S. corn growers about $1 billion annually.
"This is very good news, this would really help our farmers," said Sue Schulte, spokeswoman for Kansas Corn Growers Association.
Monsanto is the first company to commercialize a biotech corn aimed at combating corn rootworm, though Dow AgroSciences has one in the pipeline.
The new corn will be available in corn hybrids sold through Monsanto's branded seed businesses as well as through licensed, independent seed companies. There will be only enough seed for slightly under a million acres this year, out of a potential estimated market of more than 12-15 million acres where rootworm is treated with insecticides, said Hurley.
"It is logical we could probably capture that market longterm," he said.
Monsanto will price the seed to be competitive with the estimated $150-$200 million a year farmers spend on insecticides to fight corn rootworm, Hurley said.
The initial release will focus on areas of eastern Colorado, and western Kansas and western Nebraska, where the problems are most severe. Monsanto hopes to ramp up seed production to have supplies for 5-6 million acres by 2005.
Gregory Jaffe, biotech project director for the Center for Science in the Public Interest, said the new biotech corn should reduce use of insecticides while still helping farmers protect their crops.
But, he said the benefits may be short-lived because regulators are only requiring a 20 percent refuge area - acres not planted to biotech corn - to protect against resistance.
"The EPA decided to put short-term profits ahead of the long-term public good by agreeing to Monsanto's refuge plan of 20 percent," said Jaffe. A 50 percent refuge was preferred by scientists to reduce the chance that strains will become less resistant to insects over time.
"We wanted to see this product succeed because we think it will have the potential for tremendous environmental benefits, but as a society it will only realize those benefits if it is used in a safe manner. And our view is that 20 percent refuge is not a safe manner at this point," said Jaffe.
An EPA spokesman defended the agency's review of the new biotech corn. Dave Deegan said the EPA found a 20 percent refuge zone was still effective, and was consistent with similar requirements for other biotech crops.
"We do think we are actually being very protective," said Deegan. "But (insect resistance) is something we are continuing to look at and require additional study."
The EPA said it expected resistance of the corn to develop no sooner than seven years, similar to what occurs with traditional pesticides.
Shares in Monsanto were down 7 cents a share at $16.75 in trading on the New York Stock Exchange. (Additional reporting by Christopher Doering in Washington).