December 23, 2004

 

 

Brazil's Government Approves Planting Of GMO Soy

 

Brazil's Senate approved a government decision to allow the planting and sale of genetically modified soybeans of the 2004-05 season (October-September) late Wednesday.

 

The ratification of a government decree released in November allows farmers to continue planting GMOs, which were ruled legal for the first time in 2003.

 

The text must now be signed by President Luiz Inacio Lula da Silva.

 

Under the rules, farmers must sign a code of conduct before planting and is only allowed to use GMO seeds produced on their own farm.

 

Brazil is the world's No. 2 soybean producer and the only major agricultural exporter yet to pass permanent legislation for the technology. GMOs account for up to a third of the country's crop.

 

The Senate approved changes in the decree made by the lower house, including a demand that soybean seed firms must produce an invoice of sale to charge royalties from producers. In effect, this makes it impossible for the U.S. crop science company Monsanto to charge royalties on its Roundup Ready soybeans as their commercial sale remains illegal. Seeds used in Brazil are either smuggled in from Argentina or produced on the farm.

 

Last year, Monsanto charged 0.60 Brazilian reals ($1=BRL2.70) per 60- kilogram bag of GMO soy when the product was sold on to exporters and crushers.

 

However, farm leaders are concerned that Monsanto may now resort to legal action against farmers to obtain royalties.

 

In addition, the Senate approved the extension of the deadline for the sale of GMO soybeans from the current season from January 2006 to July 2006.

 

The Senate also deleted a clause in the decree that said only farmers who planted GMOs last year were allowed to plant this year.

 

The government hopes the decree is a temporary measure that will be superceded by the a biosecurity bill that will regulate GMOs and other crop technologies. However, this bill has been stuck in the lower house for some months.