P1253037238RCbBK - PowerPoint PPT Presentation

Title: P1253037238RCbBK


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GM CropsBenefits AlternativesRisks Risk
Management
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GM Legislation
Federal Assesses health environment
Result withdrew GM-free guarantee
State Assesses economics
Result imposed state moratoriums
Where to next?
Ban? Trial exemptions? Moratorium expiry?
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Feed the world? Save farmers? Benefit
consumers? GM A decade later ONLY 2
traits commercialised Bt the plant produces
insecticideHt the plant is resistant to
herbicides
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The debate in Australia is about GM canola 2
Herbicide tolerant varieties approved Bayer
Cropscience Invigor canola Monsanto Roundup
Ready canola
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Globally only 1.4 of agricultural land is
GM
Will GM canola be good for Australia?
Australia does not grow much Soybean or Corn
already grows GM cotton
Canola same
ABARE
2003 68 of Canadian canola is GM
reported by PG economics Canada Snow No
summer weeds. Very short rapid growing season.
Very narrow spraying window 2-3 weeks versus 2-3
months, no wild radish, no blackleg.
"Net on-farm benefits of GM crops" reported by
Federal Productivity Commission after research in
Canada "small yield results for
herbicide-tolerant canola, averaging only about
1 per cent, and little evidence of cost
reductions.
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Bayer CropscienceInvigor canola
GM Benefit Higher Yields? Compared to what? OGTR
"It is important to note that the hybrid
vigour displayed is NOT a function of the
genetic modification but is a result of the
breeding of the two genetically distinct
parents."

• Hybrid resistant to glufosinate ammonium
• New Group N herbicide
• Expensive and Limited weed control
• (eg. Does not control radish)
• Alternative
• Non-GM chemical resistant varieties
• Non-GM hybrids
• Register glufosinate ammonium for
  pre-emergent knockdown

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Invigor Seed 16/kg Non-GM Replant or 3.00
11.00 /kg Liberty herbicide 200gm/litre of
glufosinate ammonium) Price 18/litre Use
same pre-emergent as non-GM No residual Max
dose 2litres/ha 2litres/ha 7 to 14 days later
72 / ha Atrazine for Non-GM 2 x 2litres
28 / ha
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How Effective?
Liberty Weeds controlled _at_ 2l/ha Annual
ryegrass 2-4 leaf Weeds controlled _at_ 1.5L/ha
barley grass 2-4 leaf, capeweed 2-8 leaf,
chickpea, corn gromwell, doublegee, three
cornered jack, field pea, fumitory, lentil,
loosestrife, lupin, medic, prickly lettuce,
scotch thistle, silver grass _at_ 2-4leaf stage.
stone crop 2-8 leaf stage, subterranean clover
2-4 leaf stage, volunteer barley, wheat and oats
at 2 leaf to 3 tillers, wild oats at 2 leaf to 2
tillers, wireweed at 2-4 leaf stage, yellow
burrweed at 2-6 leaf stage. Note application
to weeds under stress (eg. due to continuous
severe frosts, dry or waterlogged conditions,
wind-blasted, insect damaged, nutrient deficient
or diseased conditions) should be avoided.
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Farmers need independent comparison
trials Trials? Refused independent trials in
NSW South Australia For commercial production of
seed to export to Canada (Bulking up off
season)
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MonsantoRoundup Ready Canola
GM Benefit

• 1 Gene Resistance to glyphosate ONLY
• Problem Yield penalty reported The
  Scientist
• weed resistance to glyphosate
• Spray drift issues post emergent glyphosate !?
• Volunteer control Registered tank mixes
• Alternative Non-GM glyphosate resistance?
• Non-GM alternative chemical resistant varieties

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Monsantos spiralling costs
Feb 05 Monsanto increases US soy technology fee
from 9.65 to 13.65 per bag for 2005. Jul 03
US Farmers find GM fees rise steadily from
2.50/acre, to 4.50, to 6, to 7.50 to
10/acre Aug 03 Farmers angry with Monsanto
raising GM seed prices up another 10 Oct 04
Brazil soy growers reject double cost rise in
Monsanto royalty Jan 05 Indian farmers pay
cotton input costs of 6,813 rupees per acre for
GM compared to 580 Rs per acre for non-GM Dec 04
Canadian farmers concerned they may be forced to
grow GM crops as Monsanto buys up seed companies
and forms alliances with others Oct 04 Canadian
seed review claim no farmers should have right
to save seed Nov 04 Monsanto invests heavily in
seed industry in US Oct 04 Monsanto gets green
light to collect royalties from Brazilian
farmers Feb 04 Argentina's government plan to tax
all soybean and wheat farmers to pay Monsanto
43m/yr. Government alliances in collection of
royalties. Sep 04 Monsanto, Paraguay farmers
negotiate over soy royalties Jun 04 Blame for GM
problems given to biotech industry for trying to
outprice opposition - GM companies wanted
excessive regulatory requirements to make biotech
RD too expensive for possible competitors.
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Monsanto aggressively sues farmers
Jan 05 Monsanto spends US10 million/ yr and has
75 full time staff investigating farmers Nov 04
US Monsanto sues 147 farmers in 25 states Oct
03 Non-GM farmers pay Nelson 200,000 to prove
innocence, Wiley's 10,000 on lost contract from
GM contamination Jan 05 Monsanto Investigations
reveal around 100 Lawsuits and Numerous
Bankruptcies for US farmers over GM patents May
04 Supreme court rules Monsanto 2, Schmeiser
1 Apr 04 Monsanto sues farmer for 780,000 -
court awards only 10,000 May 03 US farmer sent
to prison for saving Monsanto's GM cotton
seed Jan 03 Farmer fears 1.7m fine for patent
breach Dec 02 US farmer sued by Monsanto Farmers
fight back Nov 04 US farmers push for
legislation to manage GM liability Sep 04 Farmer
class action for loss of GM-free status against
Monsanto delayed Nov 04 Monsanto official and 8
staff taken hostage by Indian farmers seeking
compensation
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Monsanto bribery influence
Jan 05 Indonesian bribery scandal Monsanto pays
700,000 to official Jan 05 Monsanto Fined 2m
for Bribe Jan 05 Whistleblower journalists
challenge TV license over distortion and unfair
dismissal. Monsanto offered 6 figure bribe to cut
story Jan 05 More on Monsanto bribes and lobby
efforts Jan 05 Monsanto pays pro-GM
protestors Mar 03 Monsanto and Cargill corrupt
survey Jan 05 GM propaganda from GM promotion
company misleading Oct 04 Monsanto poses as
farmer to protest against GM ban in
California Jul 04 Collusion and corruption in UK
GM policy July 04 Monsanto's government ties Jun
04 Monsanto RR canola health problems ignored by
Australian regulatory body Aug 04 Vic government
will not bow to Monsanto sponsored VFF Nov 04
Farmers told Professors in the pockets of biotech
giants Oct 04 RD direction influenced by
Corporate investment Oct 04 Monsanto's wheat
patent withdrawn in Europe following legal claims
of Biopiracy Sep 04 Report highlights corporate
control at US Department of Ag Sep 04 FSANZ
trusted Monsanto summary - did not review hard
data Jun 04 Monsantos patented chemical mix only
registered control for unwanted GM plants Jan 04
Bias issue faces judge in Monsanto price fixing
case Jan 04 Monsanto and Pioneer questioned
regarding price fixing claim Dec 03 GM industry
take legal action to prevent debate on GM-free
proposal Dec 03 Monsanto launch A2m GM promotion
campaign for Brazil Aug 03 Corporate interests in
biotech come before producer viability in the
Federal agenda Aug 03 Book released to expose
links between scientists, corporations and
governments
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GM-Corporate control of the food chain?? How
ridiculous!? Or is it? Patent and promote GM crop
1 Remove scientific opposition in development
1 Government assistance to collect increasing
royalties 1 Attract scientists and farm lobby
groups to be involved 1 Introduce contracts
1 Remove Non-GM opposition Purchase or form
alliances with all seed companies 1 Form
alliances with researchers 1 Remove public plant
breeding opposition 1 Threaten farmers who do
not grow GM 1 Remove rights to replant own seed 1
a
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Added benefit Sale of chemicals GM plant
resistant to specific herbicide Extension of
chemical patents through tank-mix label
recommendations for control of unwanted
volunteers Future option Rather than a trait (eg
frost tolerance) being bred by Non-GM means, GM
technology could integrate trait to be activated
by a specific chemical
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Feed the poor? Or Feed the Hungry Corporate
Demands?
Shareholders
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Australian GM GROWER Decreased/Improved
Productivity ? - 17 to 1 Identity
Preservation Segregation 0-10 Technology
User Fee ?10 Estimated loss of premiums for
non-GM ?10 Legal liability insurance ? Other
compliance conditions ? Total Loss ? 47
Not Viable
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Cost benefit analysis comparison (prepared by
Twynhams Pastoral Co) With / Without GM CROPS
comparison without GM
IF INTRODUCED UNDER EXISTING PROTOCOLS Conventio
nal non-GM canola additional segregation
costs Loss of 83.25/tonne (- 35) Price
370/t, Yield 1.8tonne/ha Market Risk
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• Economic reports
• Based on increase in yield of 10 (maximum
  reported)
• Ignores costs
• Ignores market loss
• Ignores need to coexist
• Ignores farmers already using chemicals/minimum
  till
• Uses assumption that GM concerns will abate
• Need accurate unbiased economic reports

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FARM INCOME in US
Decreasing commodity prices
Profit declining
Increasing Subsidies
Increasing costs
Global farm subsidies US 600 billion /yr or US
1.64 billion/day (RIRDC)
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Increased costs
Australian farmers
Increased price
Decreasing commodity prices
?
Increased price
Farmer Profit declining
Farmer
Farmers can NOT pass costs to others. Farmers are
NOT price setters
Increasing costs
Already some Australian farmers are unable to
profit in an average year
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Grain prices falling while grain traders share
price rising
Prepared by Doug Clarke, Lake Grace WA
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Industry challenge
No market restriction Price premium opportunity
Decreasing commodity prices
Profit declining
Increasing costs
Cheaper alternatives
Farmers need to control direction If not, all
relying on agriculture will face economic loss If
farmers can not maintain viability, the
Agricultural Industry will collapse
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• Risk Management
• Farmers must be able to maintain independence
• Avoid imposing contractual agreements
• Retain ability to replant our own seeds
• Maintain non-GM plant breeding option

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GM Benefits

• Recombinant DNA
• Cross kingdom breeding
• Eg. Soil bacteria gene added to plant
• chemical resistance

Patent
Corporate Investment
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What is GM?
BBC
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?
Is GM Precise? 1 / 1,000,000 success rate What
impact on other genes their associations? Is
location important? Unforseen results? Effect
of viral promoter? Cross kingdom breeding? GM is
an unperfected science
?
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What problems? Arpad Puztai sacked After
intensive research found potentially
pre-cancerous cell growth, damaged immune
systems, liver atrophy, inhibited organ
development. UK140,000 paid to Rowett
University. Fox employees sacked documentary
not aired found GM hormone increased risk of
cancer by up to 7 times. Offered bribe (6 figure
sum) to keep quiet. Sacked. UK Minister Meacher
reshuffled reported doubling of soy allergies
since introduction of GM soy to UK , fought for
fair hearing for GM debate. L-Tryptophan -
Evidence burnt 36 people died, thousands
suffered permanent disability with
eosinophilia-myalgia syndrome . toxic
metabolites were created in GM batches of
tryptophan. versus increase in the impurity
resulted from a change in the purification
process . Japanese factory burnt. Chapella
tenure not reinstated found environmental
problem in Mexican corn, published in science
journal, uproar caused retraction by magazine.
Questioned independence of scientists. All
protestors slander campaign / public
ridicule Regulatory process does not address
concerns Mistrust the more consumers learn
about GM foods, the less they trust them
People afraid to speak up
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• Risk Management
• Consumers and scientists must have proof of
  safety
• Until then, there will be reluctance to be an
  unmonitored guinea pig
• What tests are needed to satisfy concerns?
• Undertake independent testing using scientists
  that consumers trust
• eg. Arpad Puztai should be commissioned to finish
  research he started and results available for
  public scrutiny
• Recall strategy must be implemented before
  permanently contaminating the worlds food supply

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GM-Free
Non GM
GM
Most consumers prefer Non-GM
Many supermarket chains have a GM-free policy or
will only stock the fastest moving item (not GM)
Labels allow choice
GM Consumer Rejection GM Market Rejection
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Demand for non-GM 30 is used in Australia
Export Canola Markets(based on a 5yr average
1997-2001 Bureau of Statistics) China 37
Japan 29 EU 13
GM used as Trade sanction / Soy cheaper using
less canola
Labels oils if GM
Consumer preference Non GM
Non-GM label gains premiums
Non-GM / 10 premium
Labels oils if GM
Serious risk if all canola sold as GM
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Export domestic markets demand no GM canola
in most produce

• Non-GM Canola
• Wheat over half wheat exports
• Barley/Lupins/Oats/Legumes
• Stock feed for dairy, pork, chicken, lamb,
  yabbies etc
• Honey
• Hay/pastures

Serious risk to agricultural industry
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GM Free a preferred market edge
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Non-GM chemical resistant canola is improving
constantly
Triazine review approved by APVMA
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Non-GM Alternatives

• NON-GM BIOTECHNOLOGY
• Molecular Marker
• Gene ID selection
• Genomics
• Cloning
• Cell Tissue Selection
• Colchicine
• Protoplast Fusion
• Grafting
• Plant regeneration
• Embryo rescue
• Tissue culture hybridisation
• Anther culture hybridisation
• Random mutagenesis

• Chemical resistance
• Hybrids
• Higher yields
• Tolerance to conditional variations (eg. frost,
  drought, salt, boron toxicity)
• Tolerance to disease insects
• Better quality
• Consumer traits

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Farmers will not be left behind !! The race is
for scientists and investors
Global gold-rush to stake a claim in intellectual
property Race to gain international prestige as a
pioneer for a new technology
Governments see an opportunity to withdraw
funding for research and development
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GM rejection
GM promotion
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Farmer support
GM promotion
GM rejection
Non-GM !
GM !
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Coexistence?

• What is Non-GM or GM-free?
• NO DETECTABLE GM CONTAMINATION
• NOT DERIVED FROM GM CROPS
• ACCC / Federal / Legal confirmation
• Legal precedent NZ 0.0088 contamination
  Prosecuted

Not 2- same as other grains
"NON-GM" NO GM
Not 1 - label for GM
Not 5 - same as U.S.
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US experience with zero tolerance Starlink corn
banned for human consumption Thousands of
farmers affected Farmers claimed against Aventis
CropScience US 110m awarded (Only 8,000 of
25,000 affected corn growers in Nebraska filed
claim) Claim did not cover losses 3 years
laterover 1 of samples still contaminated Market
loss still occurring
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Gene Technology Grains Committee Coexistence
principles CMP Definition Canola GM canola
or contaminated canola GM canola may be grown
without the risk that the non-GM canola will
exceed the 1 threshold level...Where an
alternate standard (ie. lower threshold for
non-GM canola) is required in response to market
requirements and product specifications,
appropriate management strategies applicable to
the growing and processing of the crop should be
incorporated as deemed and communicated by the
supply chain for the specified product.
GM-free thats your problem mate!!
Good neighbours for how long??
? 3KM BUFFER ZONE
GM
NON-GM
Boundary Fence
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Contamination will occur

• Pollen
• Wind
• Flood
• Farm operations
• Animals
• Storage Handler
• Transport
• Seed cleaning
• Contaminated Seed

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Pollen
Reiger et al. 2002 - 3km
Bentgrass 21 km Lidia S. Watrud et al / Oregon
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ABC Rural- Susie ONeil Bayer CropScience has
confirmed that none of the small amount of honey
produced by pollinating bees leaves the site and
there is no evidence of any concern from the
honey industry, or others, about these trials."
Hives left the site a few days later. Honey
industry have 5km exclusion on contractual
agreements.
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Contamination will occur

• Pollen
• Wind
• Flood
• Animals
• Farm operations
• Storage Handling
• Transport
• Seed cleaning
• Contaminated Seed

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Swathed canola like a paddock full of newspapers
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Swaths full of seed are picked up and dropped
long distances
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2001 Winds of 100 km/hr or more across Australia
at harvest
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Contamination will occur

• Pollen
• Wind
• Flood
• Animals
• Farm operations
• Storage Handling
• Transport
• Seed cleaning
• Contaminated Seed

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Canola seed and pods washed from canola paddock
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SA Trial site flooded
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Seed can travel downstream and germinate
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Contamination will occur

• Pollen
• Wind
• Flood
• Animals
• Farm operations
• Storage Handling
• Transport
• Seed cleaning
• Contaminated Seed

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No Buffer zone for SA trials ? 50m requirement -
Warrnambaal Cheese Butter Factory
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Contamination will occur

• Pollen
• Wind
• Flood
• Animals
• Farm operations
• Storage Handling
• Transport
• Seed cleaning
• Contaminated Seed

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Buffer zone for Non-GM grower? Stop and clean
machinery?
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Harvest
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Volunteers after 1 year with weed control
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Volunteers after 2 years without weed control
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Contamination will occur

• Pollen
• Wind
• Flood
• Animals
• Farm operations
• Storage Handling
• Transport
• Seed cleaning
• Contaminated Seed

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Shared grids
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Press the wrong button? Eg. GM corn in wheat
caused rejection of wheat
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Contamination will occur

• Pollen
• Wind
• Flood
• Animals
• Farm operations
• Storage Handling
• Transport
• Seed cleaning
• Contaminated Seed

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A common site canola on roadsides
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Contamination will occur

• Pollen
• Wind
• Flood
• Animals
• Farm operations
• Storage Handling
• Transport
• Seed cleaning
• Contaminated Seed

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Unloading
Ready to load
Most grain is graded prior to replanting at a
centralised seed processing plant. Contamination
could spread hundreds of km.
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No test no chance to avoid some contamination
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Contamination will occur

• Pollen
• Wind
• Flood
• Animals
• Farm operations
• Storage Handling
• Transport
• Seed cleaning
• Contaminated Seed

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Non-GM farmers must buy new seed every
year Non-GM Seed can have a tolerance of 0.5
GM contamination tolerance ???
95 of Canadian non-GM canola seed stock
contaminated
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Contractual agreement

• "1. Growers declaration
• I/We hereby represent and warrant that...
• (d) the Grain does not include any genetically
  modified grain
• 2. Growers indemnity
• I/We
• (a) to indemnify and keep indemnified CBH
  indemnified against...
• ii) all actions, claims and demands which may be
  made or instituted against CBH,
• Arising howsoever out of or as a consequence of
  any of the representations or warranties
  contained in this form being false, misleading or
  deceptive"

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• Do you have GM?
• Field Seed Testing not accurate
• Yes/No deduction of royalties?
• How will farmers know?
• Need tests that are
• Accurate
• Quick
• Robust
• consistently reliable
• cheap.
• quantitative ( rather than Yes/No)

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GM will impact negatively on others

• Non-GM growers
• Costs at least 10 value of product
• Liabilities Non-GM growers liable?
• Market risk Non-GM growers are expected to market
  as GM

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Main Risks to be resolved

• Markets
• Contamination
• Coexistence is impossible
• GM will impact negatively on others
• No restrictions on the GM industry
• Legislation - No liability regime
• No Industry preparedness

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Can States quarantine? 3-4m/shire/yr for GM -
free zone?
Why give away our Non-GM status?
Why should non-GM farmers be expected to keep GM
out?
GM
No GM
No GM
GM-free zone?
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GM Free Zones can not work long term
All GM
GM-Free Zone?
GM-free Zones will only delay contamination, not
prevent it
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GM-growers should contain their product
GM-Free
GM-Zones
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Risk Management The principle of Coexistence
must be based on GM growers containing their
product NOT on Non-GM growers avoiding their
product
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Future GM crops range of crops for GM Food
wheat etc GM Pharmaceuticals GM Industrial
fuel, plastics
Zero tolerance of contamination
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US experience with zero tolerance for PRODIGENE
PHARMACEUTICAL TRIALS banned for human food
consumption Trial contaminated food
crops Government paid US 3.5million for
recall ProdiGene fined US250,000 paid US
3million for recall of 500,000 bushels of
contaminated soybeans
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Valueless when mixed
In demand when isolated
Farmers could lose the ability to market crops
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Grains Council of Australia Single Vision
strategic direction for the Australian
agricultural industry to be a world leader in
pharmaceutical crops Promoting closed loop
contracts low tonnage but very high value
?
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Who will lose? Who will profit?
INVESTOR PROFITS
Even if grain is higher value, will individual
farmers profit? What of the costs to the rest of
the industry?
FARMER PROFITS
Grain value
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• Contamination will occur, economic loss will
  occur
• Who should be liable?
• Non-GM grower (as proposed) NO!
• GM grower (legal avenue for defence) farmer vs
  farmer NO!
• State governments (role to assess economics) YES
  UNLESS LIABILITY ADDRESSED
• GM companies? YES!

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Non-GM farmers refuse to accept economic loss for
a product we do not want
LEGAL RECOURSE Against GM farmer as
recommended? Against government for neglecting
duty of care? Against GM companies _at_
300,000 Farmers must write to neighbours and GM
companies requesting trespassing GM products to
be removed
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• Warning
• For farmers considering planting GM crops
• DO NOT SIGN CONTRACTS TO ACCEPT LIABILITY FOR
  HEALTH, ENVIRONMENTAL OR ECONOMIC DAMAGE
  ASSOCIATED WITH GM CROPS AND FOODS
• FARMERS MUST BE SURE INSURANCE IS OBTAINABLE AND
  WILL COVER ALL RISKS INCLUDING LEGAL DEFENCE
• IF SELLING LAND, FARMERS MUST NOTIFY AGENTS AS
  GM CROPS COULD AFFECT LAND VALUES
• BANKS MUST BE NOTIFIED OF INTENTION TO PLANT GM
  CROPS AS EQUITY AND LOANING CAPACITY COULD BE
  AFFECTED

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Risk Management trials release

• Legislative protection needed
• State Conditional exemption from moratorium to
  include liability clause
• Federal strict liability regime
• (as adopted in Germany and recommended by US
  Canada)

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If risks are not managed
GM Crops could be the biggest threat to the
Australian agricultural industry that we have
ever faced.
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