GM ban may cause price rises

EUROPEAN animal feed producers have warned farmers that prices may increase significantly at very short notice, due to the EU’s zero tolerance of traces of unapproved genetically modified (GM) crops in imported feeds.

The EU depends on imports for more than 80% of vegetable proteins in animal feeds, mainly soybean, which has become increasingly difficult to import.

The EU’s lengthy procedure for approving new GM organisms has left much of the material available for import unapproved.

And if EU inspectors find even a trace of dust from an unapproved GM crop, an entire cargo is rejected.

These impurities or contamination in bulk feed commodities are difficult to avoid, and two international shippers to Ireland have withdrawn from the US market, according to the Irish Grain and Feed Association (IGFA), because of the risk their cargos would be rejected. This caused a recent soyameal price rise of €20 per tonne, says the IGFA.

Ninety percent of US soybeans are genetically modified, and the EU livestock industry depends heavily on them, at least until the next South American harvest in the spring of 2010. “It is our view that the upcoming autumn shipping campaign on soya meal is now at serious risk,” warned IGFA director Deirdre Webb.

US maize is more than 60% genetically modified. According to IGFA, no US maize byproduct is available in Ireland, due to GM zero tolerance. These products, such as maize gluten and distillers grain, are usually important feed constituents here.

The European feed manufacturers’ federation, FEFAC, has warned that soy prices could rise at least €20 per tonne, due to additional risk premiums for US origin.

In a letter to EU farm ministers, FEFAC president Pedro Correa de Barros said: “At a time when most EU livestock producers are facing economic hardship, the EU opposition to provide a practical threshold for trace levels of not yet EU-authorised GM plants in imported feed may drive EU livestock farmers and feed operators out of business.”

Deirdre Webb said IGFA members were shocked when Irish officials abstained from a June vote on EU approval of GM feed ingredients, and said they were endangering feed industry livelihoods. Abstaining was no longer credible, she said.

Meanwhile, animal feed shortages may be exacerbated in six member states which have banned growing of the only GM crop approved on EU farms, MON810 maize. However, the EU continues to import meat from animals legally fed with GM plants unapproved in the EU.