Australian Financial Review
http://www.afr.com.au/content/990618/news/news7.html
June 18, 1999

Agriculture's genetic revolution could become a rotten apple

By Cathy Bolt 

Australia's small but expanding organic food industry has warned that
farmers who grow genetically-engineered crops may face legal action from
their neighbours, adding to the bitter debate which is unfolding over the
looming gene technology revolution in agriculture.

The president of the Organic Federation of Australia, Mr Scott Kinnear,
yesterday likened genetic contamination to chemical spray drift, and said
it had the potential to inflict significant financial damage on organic
farmers and conventional farmers who chose not to use genetically-modified
crop varieties.

He said an organic farmer whose crops were found to have been contaminated
with genetically-modified material, for example through insect transfer of
pollen, would lose their organic certification, as would a GM-free property.

The latter was set to become more significant as more food manufacturers
and retailers sought out and paid premiums for produce which farmers could
guarantee was not derived from genetically-engineered plants. Japan and
Europe were particularly sensitive markets.

"There is going to be a huge push for people to certify their crops
GE-free," Mr Kinnear said.

While the genetic contamination issue had not yet arisen in Australia, he
said there had been an incident in Europe where 87,000 packets of organic
corn chips had been destroyed after being randomly tested for
genetically-modified ingredients. The cause had been identified as pollen
transfer to an organic farm in Texas.

But the warning coincided with a strong endorsement of gene technology by
AWB Ltd, Australia's biggest grain exporter.

AWB's chairman, Mr Trevor Flugge, told an International Grain Council
conference in London that biotechnology would lift seed breeding programs
to a new level and provided the opportunity to "produce more with less, to
produce more of better quality and produce more with less impact on the
environment".

Mr Flugge predicted the issue would have a high profile at the forthcoming
World Trade Organisation negotiations and said it should not be allowed to
become an unjustified barrier to trade. 

"We have to move past sensational headline grabbing and consider the real
benefits, not just the perceived costs. The debate must be rational," he said.

Mr Kinnear said farmers faced with contamination could seek an injunction
to stop a GE crop being grown nearby, or they could claim damages for any
losses they suffered.

But he acknowledged proving the source of the contamination could be
difficult. Further, there would be questions over who would be liable: the
farmer who grew the transgenic crop, the company which owned the patent or
the government which approved its release.

Mr Kinnear called for a five-year freeze on the growing of GE crops while
careful consideration was given to the potential damage from genetic
"pollution" and the issue of liability.

In other developments, the Australian New Zealand Food Authority said it
had received around 500 submissions from Australia and 5,000 from New
Zealand on plans to extend compulsory labelling to genetically-modified
foods which are otherwise the same as their conventional counterparts.

In a surprise move condemned by major food manufacturers, health ministers
last December directed ANZFA to widen the compulsory labelling requirement,
which currently applies only to foods which are significantly different in
taste, nutritional value, appearance or chemical make-up.

In its discussion paper on the issue, ANZFA asked respondents to address a
number of questions, including which type of foods should be labelled,
whether they would find a "may contain" label of any use, whether they
would be prepared to pay higher food prices because of the costs associated
with such labelling, and whether the regime should be reviewed within three
years.

The deadline for submissions was last Friday.

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