July 12, 2007

EU ban on GMO may spur corn price increase

The ban by EU on genetically modified (GM) corn to be used as animal feed in Ireland may cost 40 million euros (US$54.99 million) yearly and may force up price on the grain, according to an Irish feed group.

Deirdre Webb, director of the Irish Grain and Feed Association, said the rejection of the EU Standing Committee on Food Chain and Animal Health to GM imports of corn variety Herculex will have a major impact on the supply of corn by-products from the US.

Webb said corn gluten and distillers' grains make up 30 percent of feed rations for beef cattle and dairy cows. She added the industry will be forced to source 800,000 tonnes of GM-free corn as replacement at an additional cost of 40 million euros.

Webb stressed the sector will face a massive disruption of supply of important feed ingredients and Ireland, being a major exporter of beef and dairy products, will be the biggest loser. She said the government's last minute decision to abstain in the crucial EU vote was opposite to the commitment given days earlier that the Irish delegation that it would favour allowing imports of Herculex in the EU.

She said Minister of State for Food Trevor Sargent must realise that GM corn imports were not a feed safety issue.

In response, Sargent said he disagreed that alternative supplies of GM-free corn were not available but Irish farmers should look at import substitution opportunities.

He said the country's biggest competitors in the food markets are using GM-free products which have been their major selling point and Ireland should do the same thing.