January 29, 2010

Biotech wheat could devastate US prices

 

US wheat prices could crumble by 40% or more if industry efforts to develop biotech wheat succeed.

There is persistent opposition to GM wheat in Europe, Japan and other Asian countries. But if biotech wheat was commercialised in the US, buyers in those countries could shift purchases away from the US, said a report by the Western Organisation of Resource Councils (WORC), a farmer and rancher group.

The price of US hard red spring wheat would fall 40% and the price of durum wheat would drop 57%, said the report.

But the commercialisation of GM wheat is still years away as biotech companies continue to research on various improvements to the crop through genetic modification and other means.

Monsanto, a leading developer of GM corn and soy that are tolerant to herbicide treatments and resist pests, backed off a plan to commercialise herbicide-tolerant Roundup Ready spring wheat in 2004. At the time, the industry feared the new wheat would hurt US export business.

Monsanto said last year it was starting a new biotech effort focused on making wheat plants more drought-tolerant, more efficient in the use of nitrogen and higher yielding.

US wheat acres have been declining in recent years as farmers shift to more profitable crops. Several wheat industry groups have asked biotech companies to develop better wheat seed.

No biotech wheat is grown on a commercial scale anywhere in the world due to strong opposition from consumers and food industry stakeholders.

The EU and Japan are strongly against GM wheat, and labelling and traceability requirements would make it difficult to sell GM wheat there. South Korea and Taiwan are also wary of biotech wheat, the report said.