1. U.S. GENE-ALTERED CROPS REJECTED OVERSEAS
2. US farm exports losing acceptance
3. GM-wary buyers shun soyoil and favour OSR
4. Aventis to sell CropSciences to BASF
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1. U.S. GENE-ALTERED CROPS REJECTED OVERSEAS
U.S. exports of crops with a biotech component are facing restrictions in foreign markets, says a new report by the General Accounting Office, the research arm of the U.S. Congress. The report was requested by Iowa Sen. Charles Grassley, now senior Republican on the Senate Finance Committee. In many parts of the world, consumer concerns are growing about the safety of biotech foods, which have led key market countries to implement or consider regulations that may restrict U.S. biotech exports. As the single major producer of biotech food crops, the United States has been relatively isolated in its efforts to maintain access to markets for these products.
Source: Environmental News Network http://enn.com/news/enn-stories/2001/06/06272001/croprejection_44074.asp
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2. TRADE-US-BIOTECH EXPORTS: US biotech food exports facing restrictions in foreign markets
New Delhi, Jun 21 (UNI) With growing concerns about the safety of biotech foods, the United States' farm exports are increasingly losing their acceptance in world markets with importing countries insisting upon a clear segregation of biotech foods from conventional ones.
Exports of surplus US corn and soybean are 'most threatened'as a major portion of these crops are grown from genetically engineeredseeds.
The latest report of the US General Accounting Office (GAO), Congress's investigating agency admitted that a number of countries have implemented or considering restrictive import regulations to block US agricultural biotech products.
Since US crop-handling system mixes multiple varieties of a produce and US Industry finds segregating of biotech and conventional crops a costly affair, the entire farm exports from the country, thus, "faces significant challenges in international markets".
India does not allow import of biotech products -- also known as genetically modified (GM) organisms- under Environment Protection Act of 1972 and recently enacted a regulation for labeling imported food products. About two years ago, the proposed import of US soybean in India was not effected following several official and other objections including a controversy over the US soybean stocks containing biotech components.
The US report particularly focusses on the Europeon Union (EU) which have been 'effectively blocking approval' for the import of new agricultural biotech products.
The EU, Japan and Korea have enacted mandatory labeling requirements on foods containing or derived from biotech products, the report notes while underlining that new regulations and guidelines "may further restrict exports of biotech products" from the US.
The report says "because United States is the only major producer of biotech products it has been 'relatively isolated' in trying to maintain markets for these products".
But mutlilateral discussions affecting biotech trade are taking place in Codex Alimentarius, which sets international food safety standards, and the Bio-safety Protocol, a UN environmental agreement.
And US officials, reports says, are working to ensure that measures adopted by other countries and international guidelines are consistent with the countries' obligations under the various agreements of the World Trade Organisation (WTO). UNI
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3. German rapeseed firm as GM-wary buyers shun soy oil
By Jeremy Smith LONDON, June 29 (Reuters)
German rapeseed prices pushed higher this week as food and biodiesel crushing plants competed for old-crop stocks, and ongoing European concern about GM crops boosted oil demand for rape over soy, traders said on Friday. Solid demand from Europe's biodiesel industry, where extra capacity is being built in Germany and some other countries, has been keeping demand strong for rapeseed oil and ensuring that it continues to command a wide premium over soyoil. Biodiesel is a cheap local alternative to petrol. This week, the rape/soy oil premium was holding steady at around 33 euros a tonne for August/October deliveries basis Rotterdam and more than 60 euros for November/January -- sharply higher than the average premium seen over the last five years.
Analysts say continuing concerns over the consumer safety of genetically modified (GM) crops have hastened the switch to rape oil from soyoil due to the difficulty of guaranteeing the GM-free status of some soybean imports into European countries. But the price difference is now reaching the point where some German biodiesel producers are reconsidering their options and several margarine manufacturers are said to be considering the feasibility of using edible oils other than rape. "This (GM concern) has pushed up farm rape oil by quite a percentage and the premium has been going up and up, which is causing some margarine producers -- particularly in Germany -- to look at using alternatives to rape oil," said Joshua Dadd, analyst at Britain's Home Grown Cereals Authority (HGCA).
"If rapeseed oil continues to increase, I doubt that there's much possibility to make biodiesel. There is an upper limit somewhere," said one German oilseeds trader.
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4. Aventis to sell CropSciences to BASF
UPDATE 1-Aventis to sell CropSciences to BASF,Bayer-source PARIS, June 29 (Reuters) - Franco-German life sciences firm Aventis is close to selling its CropScience unit in two parts to German chemical firms Bayer and BASF, a source close to the deal said on Friday. The source said Aventis is negotiating to sell Aventis CropSciences' insecticide business to BASF, and with Bayer to take over the rest. No deal has yet been signed. Aventis has been seeking to sell off CropSciences, the world's second-biggest agrochemical business, to focus more closely on pharmaceuticals, in line with its sector peers. U.S. firms Dow Chemical, Monsanto and DuPont were also initially interested in CropSciences, but pulled out of the running. Aventis CropSciences' insecticide operations had 2000 turnover of 1.041 billion euros ($882.2 million). The world leader in its field, it had 14 percent of market share, compared with 12 percent for Bayer and seven percent for BASF.
CropSciences also has interests in herbicides, with a 10 percent market share, against 14 percent for BASF and three percent for Bayer. It also has fungicide, environmental sciences and seed businesses. In Germany, BASF and Bayer declined to comment on the news. Analysts value Aventis CropScience, in which Germany's Schering AG owns 24 percent, at 7 billion-8 billion euros. Aventis's exit from its agrochemical business, announced about five months ago, will allow Aventis to refocus on its pharmaceutical business, as Novartis and AstraZeneca are doing. Aventis CropSciences turnover slipped to 4.034 billion euros in 2000, down from 4.060 billion in 1999, hurt by poor market conditions and climatic factors. Its gross margin, however, improved by 3.5 points to 50.4 percent.