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WORC in the News |
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Western Organization of Resource Councils
Biotechnology Won't Fix Declining Wheat Markets Release Date:
Tuesday, September 5, 2006 BILLINGS, MONT. – Introduction of genetically modified wheat will not reverse the declining market share of U.S. wheat exports, nor will it reverse the downward trend of wheat acres planted, according to a grain market analysts' report released today. In fact, introduction would still risk the loss of one-fourth to one-half of U.S. hard red spring and durum wheat export markets and up to a one-third drop in price, as earlier reports have found. The report released today is the latest update of an October 2003 report, Market Risks of Genetically Modified Wheat, by Iowa State University Economics Professor, Dr. Robert Wisner. The report was released by the Western Organization of Resource Councils (WORC) and the Dakota Resource Council. "This week Japan suspended imports of U.S. Rice, and the European Union imposed mandatory testing of all rice entering the E.U. after Bayer Corporation announced that traces of GMO Liberty Link rice were detected in commercial supplies. This demonstrates the resolve of Japan and the E.U. to keep food grains like rice and wheat GM free. This is a warning to U.S. wheat producers - this easily could have been wheat," states Todd Leake, farmer from Emerado, North Dakota, and member of Dakota Resource Council. The study responds to recent claims made by some U.S. wheat growers that wheat acres are being shifted to genetically modified corn and soybeans, because they are cheaper to plant than wheat and thus, more appealing to farmers. These growers say that commercializing a biotech variety of wheat would increase wheat acres lost to corn and soybean production. Wisner's report refutes this argument, finding that crop acreage is declining because of changing U.S. agricultural policy and increased production of crops suitable for ethanol and biodiesel production (corn and soybeans). In May 2004, the Monsanto Co. shelved plans to commercialize the first biotech wheat, genetically modified to resist applications of its broad-spectrum herbicide, Roundup. A statement released by the company said the basis for its decision was the lack of farmer and consumer acceptance. The only variety of genetically modified wheat currently being developed for possible commercial release is being modified to increase resistance to fusarium head blight. Dr. Wisner's report says that consumer rejection of this genetically modified wheat is likely to be just as strong as to Monsanto's Roundup Ready wheat. "We have not seen evidence, either from WTO policies or other developments, that consumers in major foreign markets are significantly changing their views toward GM Round-UpR Ready wheat from those of two years ago...It appears to apply to either herbicide-resistant or fusarium-resistant GM wheat," states Dr. Wisner's update. "Fusarium head blight is yesterday's problem - it started back in '93 and '94. In 2000, North Dakota State University's Alsen wheat variety - with excellent fusarium resistance, was released and quickly became the most widely planted wheat variety in North Dakota. Since then several more varieties with excellent fusarium head blight resistance have been released, and proponents of GMO fusarium resistant wheat publicly ignore this fact. Fusarium head blight is not an important enough issue anymore to warrant the market risks of a GMO wheat introduction," says Leake. Market Risks of Genetically Modified Wheat and its updates were prepared for WORC by Dr. Robert Wisner, Professor of Economics at Iowa State University. WORC is a regional network representing farmers and ranchers in Montana, North and South Dakota, Wyoming, Idaho, Colorado and Oregon.09/05/06 te |
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