November 6,  2001

The government of New Zealand has reached the crossroads. One path leads to Genetic Engineering (GE), and to take the other path is to preserve the ‘green-and-clean’ image of the
country. The route that it takes will largely determine the future of the organic food industry.

New Zealand, like may other countries, is contemplating the adoption of GE in the agricultural
sector to improve production yields and limit agricultural inputs. It received the findings from an
official report on August 1st from the Royal Commission on Genetic Modification, which
recommends approval be granted to field trials of GE crops. The report also suggests new
proposals for the conditional release of GE organisms into the food chain.

The government put a one-year moratorium on GE research in September 2000, and this is due to
expire next month. A decision has to be made as to which route to take, and time is now almost up.

The cost of embracing GE is likely to be high, not only to the organic food industry, but also in
economic terms and to the position of New Zealand in the international community. An Environment ministry report this week stated that the country could lose billions in lost business from agricultural exports and tourism if the current ‘green-and-clean’ image is tarnished.

The organic food industry is worried about the threat of organic crops being contaminated by
cross-pollination from GE crops. The adoption of GE would erode international confidence in New
Zealand exports, which currently account for 65 percent of all organic food production.

Production of organic foods was valued at US $53.8 million in 2000, and exports are projected to
rise to US $256.4 million in 2006 according to the New Zealand Organic Products Exporters
Group (OPEG).

The adoption of GE technology is likely to severely affect the development of the organic food
industry. With much consumer demand for organic foods stemming from opposition to GE, and
other countries stepping up production of organic foods, New Zealand is certain to lose a key
competitive advantage in the export arena.

The decision could prove a precarious one for the New Zealand government. The Green Party, part
of the coalition government, has made it clear what path it sees for the way forward and has made a veiled threat that it may withdraw support. At the crossroads it is, but the government may find that waiting at the juncture is sometimes more attractive than turning in either direction.?

Organic Monitor news release
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