September 11, 2008

GMO-free grain group launched by food firms in Brazil

Brazilian soy producers and processors launched an association on Tuesday (Sep 10, 2008) that will guarantee grains and feeds free of genetically modified organisms to meet demands in Europe.

Brazilian Association of Non-genetically Modified Grains (Abrange) aims to become the world's premier supplier of GMO-free soy and avoid a repeat of last year's shortfall of supplies to Europe.

EU imports a total 36 million tonnes of soy and meal each year sourced from both GMO-free and transgenic grain and Brazil alone supplies more than half of its needs.

Abrange estimates EU demand for unmodified soy and meal at 20 percent of the bloc's total imports, equivalent to 7 million or 8 million tonnes annually. Between them, the five firms handle around 6 million tonnes of unmodified grain a year.

Some of the firms also work with genetically modified varieties of the grains but their unmodified produce must be sold at a premium price to cover additional costs of keeping it separate during transportation and storage and to motivate growers.

Andre Maggi - The world's largest soy producing group, the local grain crushing group Caramuru, Imcopa, Vanguarda and Brejeiro make up association.