From: Laurel Hopwood <[log in to unmask]>
Date: Fri, 17 May 2002
To: [log in to unmask]
Subject: GM crops 'may cost farmers more'

Financial Times (London) May 17, 2002

GM crops 'may cost farmers more'
By MICHAEL MANN and JOHN MASON (edited)

According to this story, widespread cultivation of genetically modified
(GM) crops in Europe could impose extra costs on conventional farmers and
have far-reaching consequences for farming practices, according to a draft
report prepared by the European Commission's research arm.

In the worst-case scenario, farmers could face additional costs of up to 41
per cent if they are to meet European Union norms for labelling
conventional products as GM-free. However, the report stresses that the
picture varies depending on the type of crop. Maize and potato crops would
be less effected. The report, based on computer simulations by the
Commission's Joint Research Centre, is part of Commission efforts to
quantify the costs and benefits of GM crops. Its findings are one of the
first attempts to put a cost on GM and non-GM crops co-existing.

Under EU rules products must be labelled if they contain more than 1 per
cent GM material. Organic produce must be totally GM-free if it is to enjoy
a price premium.

Changes to avoid contamination of non-GM or organic crops through seed
impurities, cross-pollination, harvesting and storage practices may include
different sowing dates for GM and non-GM crops or region-wide border
management.

Compliance with the thresholds would increase costs by up to 10 per cent of
the product price in most cases, but by 41 per cent in the case of oilseed
rape seed, the report said.

A Commission spokesman said: "It is clear that the widespread use of GM
crops will have an effect on organic farming and will mean changes in
farming practices. We need a public discussion on what to do to safeguard
the interests of organic and conventional farmers."

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