Monsanto Australia is very disappointed with the Victorian government decision to implement a four-year moratorium on a biotech product that the Federal government recently approved as safe, under Australia's strict regulatory process.

"This decision ignores the recommendations and process set out in the study commissioned by the Victorian government," said Terry Bunn, managing director of Monsanto Australia. "Monsanto is disappointed with the government's decision to deny Victorian canola farmers the chance to use a proven and successful technology."

This decision represents an economic blow for Victorian farmers; Melbourne University reported last year that GM canola would add a minimum of $25 million per year to the Victorian grain industry. This decision deprives Victoria's canola growers of the choice of using a leading technology already adopted by Australia's key competitors in Canada. It also ignores eight years successful use of gene technology in the Australian cotton industry, which has seen benefits including a 75% reduction in pesticide use.

GM canola has a history of safe and successful use in Canada and the USA of almost a decade; the first crops were planted in 1995. Roundup Ready canola has allowed Canadian growers to use smaller quantities of herbicides, save fuel and boost farm bottom lines. Monsanto's Roundup Ready canola is the most popular type of canola in Canada with a 50% market share.

Monsanto and others in private industry have invested millions of dollars in collaborative canola research with the Victorian government. Yesterday's sudden change of policy undermines the future of those partnerships. The Victorian government must provide a greater level of confidence and certainty for investors and participants in the grain industry and in biotechnology.