April 1, 2003

Bayer CropScience news release

We have been working with Australian farmers now for a number of years to develop GM canola varieties suited to Australian conditions.

All environmental and human health and safety aspects of InVigor hybrid canola have been clearly identified to growers and the public and have been considered by the OGTR in its evaluation.

"As has been proven in Canada, InVigor hybrid canola offers growers higher yields compared to conventional canola, in the order of between 10 to 15%, and more flexible weed control using Liberty herbicide.

"Australian growers will also have the choice whether or not to apply Liberty®herbicide to InVigor hybrid canola for weed control. Liberty is a new herbicide group (N) that will be available in broadacre agriculture on Liberty tolerant crops. Liberty offers a new option for weed control that will be a real benefit for weed resistance management.

Ms O'Neill said InVigor will be available commercially in Victoria initially, and only a small area will be grown in 2003.

"This is largely due to the expected lateness of planting, and the final amount of InVigor planted will depend on how the season develops climatically."

Ms O'Neill said that Bayer CropScience would be working closely with a small number of growers who are keen to plant InVigor hybrid canola. This will ensure the smooth introduction of this commercial first in Australia.

"We have an agreed management plan for growers consistent with industry-wide protocols. This will ensure that all canola being grown, harvested and handled will fall within all market specifications agreed to by industry stakeholders and authorities - and also Australia's trading partners.

The environmental and economic benefits of InVigor hybrid canola are so far, best known to the farmers involved with GM field trials and the first commercial years will focus on demonstrating these benefits more widely to farmers.

Victorian grain grower, Greg Petrass, has been involved in the Bayer CropScience trial program for GM canola over the past three years and says,

"We have always found the Bayer CropScience team very professional in their trial program and have not experienced any environmental issues at all as a result of the GM canola.

"I have also been impressed with the yield and growth benefits of the GM canola trials, and believe that this technology offers real benefits and potential for Australian farmers.

"The key factor for me is that we need to be able to grow quality grain in the harsh Australian conditions. If genetically engineered crops can achieve that, and offer a higher yield, then it is a choice Australian farmers should have.

"We are working towards providing varieties that will be suited to all major Australian canola regions, and are confident that in time, all Australian farmers will have a choice to grow GM canola if they wish," Ms O'Neill said.

The risk assessment and risk management plan can be down loaded from http://www.ogtr.gov.au

Canola Risk Assessment Paper - Questions and Answers

Q1 What GM canola varieties will Bayer CropScience release upon approval for commercialisation by the Office of the Gene Technology Regulator (OGTR)?

One variety of InVigor® hybrid canola, InVigor 70, will be released in 2003. InVigor 70 is a medium to late season hybrid canola variety that has shown yield increases of 10 to 15% over the standard open pollinated canola varieties in this market.

Two new varieties, InVigor 40 - a mid season, and InVigor 90 - a late season variety will be available in 2004.

Q2 How much area, and where, will GM canola be grown in 2003?

It has always been intended that Bayer CropScience introduce its GM canola gradually to ensure the technology is correctly managed. By releasing InVigor hybrid canola into selected areas in the first two years of commercialisation, its benefits to Australian farming systems can be clearly demonstrated, raising the confidence of farmers, the grain supply chain and the general canola industry in this technology. A staged introduction will also ensure that farmers and grain handlers are aware of the protocols that have been put in place to manage its co-existence with other crops and farming systems. Bayer CropScience will facilitate this information flow to farmers growing InVigor hybrid canola and to the supply chain.

The area in 2003 will depend on timing of OGTR approval, and climatic conditions. Victoria will be the focus for commercialisation activities in 2003. InVigor 70 is best suited for mid to late season sowings in Western Victoria. Bayer CropScience estimate that 1,000 - 5,000 ha will be sown, although the final area will not be known until after OGTR approval is received.

Q3 Why should farmers grow InVigor hybrid canola?

InVigor hybrid canola offers economic, agronomic and environmental benefits to Australian farmers. It will provide new choices for farmers who grow canola as part of their crop rotation with yield increases of 10 to 15% being achieved over conventional open pollinated canola varieties (>20% over Triazine Tolerant (TT) varieties).

Easier, more convenient weed control options are also possible with Liberty® Herbicide, a broad-spectrum product that introduces a new herbicide group to broadacre farmers. Liberty herbicide has a more favourable environmental profile than many of the herbicide products currently used in canola production, eg. the triazine products.

Agronomic practices, such as direct drilling are possible with InVigor hybrid canola as the herbicide is applied after sowing, so no time is wasted with soil preparation and pre-emergent herbicides. This can allow earlier sowing, taking advantage of seasonal conditions, and contribute further to higher yields. Direct drilling and reducing total number of herbicide applications, also leads to savings in fuel consumption.

In the canola oil market there is no premium currently being offered for non-GM oil, so growers who can improve their net return will be more competitive. InVigor hybrid canola will help Australian growers to compete by decreasing the cost per tonne to produce canola.

InVigor hybrid canola is another step to allowing Australian farmers to improve their returns and increase their sustainability.

Q4 How much will InVigor hybrid canola cost?

InVigor hybrid canola will be priced to compete with existing hybrid canola seed in the market. As hybrids typically yield significantly more than conventional open pollinated varieties, a price premium for hybrid seed is usual.

Q5 Will growers be forced to use Bayer CropScience herbicide Liberty for weed control on InVigor hybrid canola?

No. Farmers have the choice to use Liberty herbicide, or they can use their conventional weed control programs on InVigor hybrid canola. However, the benefits of using Liberty on InVigor hybrid canola have been clearly demonstrated in trials as offering effective and environmentally beneficial results in some weed management situations.

Q6 Will growing InVigor hybrid canola increase herbicide use?

No. InVigor hybrid canola has the potential to reduce total herbicide use, especially of some of the currently used herbicides, such as the triazines, which have been associated with environmental concerns. InVigor 70's hybrid vigour will also assist in weed control by out competing some weed species during the establishment phase of the crop.

Q7 Who will be growing InVigor hybrid canola for Bayer CropScience in 2003?

In the first year, potential growers will include farmers who have previously participated in Bayer's InVigor hybrid canola trials and farmers who have good experience in growing canola. Farmers who choose to grow InVigor hybrid canola in 2003 will be guided through every aspect of their on-farm responsibilities in accordance with the Bayer CropScience Crop Management Plan and the canola industry stewardship protocols for coexistence of GM canola with other canola or farming systems. Farmers who are interested in growing InVigor hybrid canola should contact Bayer CropScience or their local rural distributor.

Q8 Will those farmers growing GM canola have to sign an agreement as to how they grow and handle GM canola?

Yes. Growers who plant InVigor hybrid canola in 2003 will be required to grow it under an agreed management plan, and will sign a licence agreement with Bayer CropScience to ensure they are aware of their responsibilities.

Q9 Will the public be able to know where the GM canola is being grown?

Growers will be required to discuss their GM canola cropping plans (including the growing of InVigor hybrid canola) with their neighbours and relevant industry authorities. Similar to GM cotton, and other herbicide tolerant canola grown elsewhere in Australia, it is not expected that a list of farmers growing InVigor hybrid canola will be made public. Relevant canola supply chain participants will have access to the identity of the InVigor hybrid canola growers.

Q10 What safeguards will be in place to ensure cross-pollination of non-GM canola crops will fall within acceptable limits?

Bayer CropScience requires a minimum five metre buffer zone surrounding InVigor hybrid canola crops when adjacent to non GM canola fields, as part of the Crop Management Plan.

Research conducted by independent Australian scientists has demonstrated that a buffer of 5 metres would minimise geneflow to levels that are acceptable to all of Australia's major canola markets. Where farmers are growing seed crops, or planning to use other canola crops for saving as planting seed, a buffer zone of 400 m will be required.

The buffer zones may be cropped with another species or a 5 metre strip (header width) of non GM canola, which should be harvested and treated as GM canola. Alternatively the 5 metre buffer strip can be slashed or cultivated as part of standard firebreak management. This area should be treated as per the GM field for subsequent volunteer control.

Q11 Will Bayer CropScience have buffer zones in place for GM canola crops given the OGTR has not recommended any buffer zones?

The InVigor Crop Management Plan will contain recommendations for buffer zones (see above) irrespective of the OGTR recommendation.

Q12 What are the proposed specific licence conditions for InVigor hybrid canola?

Under the proposed licence, Bayer CropScience are required to supply the OGTR with the testing methodology for detecting the genetic modification contained in InVigor hybrid canola. An annual report is also required, and will include reporting on any adverse events, and the total area planted each year. These conditions are routine requirements to support the licence for InVigor hybrid canola.

13 Will InVigor hybrid canola become a superweed, create superweeds through gene transfer to weeds, or through the use of Liberty herbicide?

No. Weediness is a result of many different characteristics especially the ability of the plant to survive traditional cropping techniques. As InVigor hybrid canola can be controlled using the same techniques as used for controlling conventional canola, it is considered to be no weedier than current canola varieties.

Independent research shows that gene transfer of canola herbicide tolerant genes to related weed species is highly unlikely, and if it were to occur at extremely low frequencies, those weeds could be controlled by current methods used by farmers to control weeds in conventional canola crops.

Liberty herbicide has not previously been used in broad acre cropping situations, and no resistance by weeds has been detected. Liberty herbicide will only be used during the canola cycle of the cropping rotation (typically 1 year in 4), and, due to the low selection pressure and its novel mode of action, the likely development of resistant weeds is considered extremely low. Like all herbicides, a weed resistance management statement is included on the Liberty label.

Q14 How will harvested GM canola be managed before and after it leaves the farm?

Under the agreed industry protocols and the Crop management plan InVigor hybrid canola will be kept separate from Non GM canola during harvesting, transport, delivery and accumulation stages. All grain will be sold through nominated grain marketers who will ensure it meets the market specifications of their customers' destination markets. GM grain will be labelled as such throughout the grain supply chain.

Growers will be responsible for carrying out, or instructing their contract harvester to carry out, clean down of equipment between GM and non-GM canola crops to minimise movement of GM seed. Transporters and marketers are also responsible for adequate clean down procedures following GM canola, in accordance with the industry protocols for coexistence of GM and other canola.

Q15 Will Australia's trading partners accept GM and non-GM canola from Australia?

Yes. Australia's main canola trading partners - China and Japan - continue to accept Canadian canola exports that contain GM canola in accordance with their regulatory and market needs. InVigor hybrid canola has achieved all regulatory approvals required for import to Japan. InVigor hybrid canola is currently being assessed by Chinese regulatory authorities, however, in the meantime Canadian GM canola continues to be accepted by China under an import certificate.

Q16 Is Bayer CropScience continuing trial work in other states?

Bayer CropScience will continue to conduct breeding and development trials in all canola growing regions of Australia in 2003. Trial work will be carried out in full consultation with the relevant State Government bodies. This will ensure Bayer CropScience can develop varieties that are suitable for all Australian canola production areas to allow Australian farmers to benefit from this technology.

Q17 Where can I get more information?

Growers, agronomists, and canola industry representatives will have many opportunities to see InVigor hybrid canola growing this year. Field walks and field days will be arranged to demonstrate the technology at available sites.

Information will also be available on the Bayer CropScience website www.bayercropscience.com.au in the coming weeks.

Information on InVigor hybrid canola can also be obtained by calling 1800 804 479.

InVigor® and Liberty® are Registered Trademarks of Bayer Germany