Roundtable Are the markets ready for GM wheat?
  Markets are wary of GM wheat

March, 2003
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Are the Markets Ready for GM Wheat?
Preparing the Market for GM Wheat

John Bloomer
Global Cereals Crop Manager,
Syngenta Seeds

When Syngenta's John Bloomer contemplates whether the markets and consumers are ready for GM wheat, his answer is pretty simple. "No, not all markets are ready for GM wheat just yet," Bloomer says. "There is still a job to do to prepare markets for these products."

However, by the time Syngenta introduces a GM wheat resistant to Fusarium head blight, Bloomer says that he believes that the markets will be ready to embrace the product. "Syngenta is working to improve wheat quality for the benefit of growers, consumers and the wheat
value chain. In sharing these benefits with consumers, we hope to ultimately garner consumer acceptance," said Bloomer.

"Market preparation is a fundamental aspect of developing this product," Bloomer says. Currently, we are in late stage research and early stage development of this GM wheat product. We don't expect our product to be on the market until the latter part of this decade. We're going to use this time to familiarize the whole wheat chain with the benefits of this product and begin building acceptance."

Fusarium head blight (FHB), also known as head scab or tombstone, is a fungus that can destroy wheat and barley crops. The incidence of FHB has been increasing in the U.S. and worldwide. When a crop becomes infected with FHB, wheat yields plummet and any grain that does make it to harvest is of poor quality and may not meet the strict standards required by food processors. Bloomer says the
economic impact of FHB is devastating for farmers. And, the loss of wheat yield and quality ultimately
means the consumers pay more for wheat products such as bread and cereals. If successful, Bloomer notes the Syngenta GM product would be another tool in the hands of wheat growers to help assure the continued supply of wholesome, safe and high quality grain for the wheat chain, and ultimately to consumers.

"Traditional breeding methods have only had limited success in breeding wheat resistant to [FHB]," says Bloomer. "And, effective chemical control of head blight is very difficult. We had farmers coming to us saying they wanted us to work on this problem. This is exactly what we want when developing a product from new technology." Syngenta plans to engage with all key stakeholders in the wheat chain before marketing any GM wheat product. Bloomer notes the first stakeholders are the farmers, but he also points out that millers and bakers and ultimately the end consumer also need to be comfortable with this product. The grain quality benefits will help with this. Also, because wheat is such an important export commodity for the U.S. and Canada, Bloomer says the strategy of engaging with stakeholders in the wheat chain must be undertaken in a number of different countries including Japan, the Middle East and Europe.

"It's critical that we don't disrupt the grain trade — we are very, very aware of that," says Bloomer. "We have to have sufficient acceptance across the key export markets. It's not about fancy advertising. It's about listening and taking on board people's concerns. We've got to be operating responsibly and openly. At the end of the day, we've got to make sure we get regulatory approval in all key export markets before we proceed."


Markets Are Wary of GM Wheat

Kendell Keith
President
National Grain and Feed Association


With balky export markets and wheat producers dependent on those markets, the National Grain and  Feed Association's Kendell Keith believes there is a lot of work that needs to be done before GM wheat is accepted.

"The policy that our organization has adopted for all biotechnology products is that we want there to be
international acceptance in place for important products and markets," Keith says. "Currently, there's not even regulatory approval for any biotech wheat — yet alone consumer acceptance. The markets aren't ready, at least not now."

The situation for seed producers and developers of biotechnology is complicated by the fact that the
technology doesn't need to meet just food safety and environmental regulatory standards, but be
acceptable to consumers too, Keith notes.

For biotech wheat, Keith notes that because the grain self-pollinates, it doesn't raise concerns of
cross-pollination like GM corn does. However, he also notes that current methods of handling wheat don't provide for pure segregation of GM and conventional varieties of wheat. They were designed instead for speed and efficiency, Keith notes.

"Wheat is the closest grain to the consumer," Keith says. And, concerns about U.S. wheat could
devastate U.S. farmers' ability to export their crops. In a world where U.S. farmers face competition from Australia, Argentina, Canada, Europe and now even the former Soviet Union, a whiff of a question about U.S. wheat could severely affect exports, Keith notes. The U.S. exports only about 25 percent of the global wheat trade, a much lower percentage than a crop like corn. This makes the U.S. wheat supply into global markets more susceptible to competition, with the U.S. supply more readily replaceable by other countries. But, Keith sees the concern over GM wheat as an even bigger
problem for the biotechnology industry.

"The very large benefits of the technology certainly make it worthwhile to consider the long-run ramifications of any new introduction of the technology," Keith says. "That's what we would advise —
companies have to view biotechnology as a long-term development project. Otherwise, you really risk other important ongoing research if you market a product without wide acceptance, and it is ultimately rejected by markets."

"We would sure like to see some pretty broad acceptance, and the ability for the market to segregate
grain flows confirmed for these products, before they are marketed," Keith says. "The problem is the U.S. is really pushing the envelope with this technology and may be out in front of the export markets."

That's a problem Keith sees as greater for wheat because wheat exports are so important to the overall U.S. wheat industry. "We export half the wheat produced in the U.S., but it's pretty easy to invite competition in wheat and we don't want to give other countries more reason to plant," Keith says. "This is a case where the technology may be great but the timing may be wrong."

 

A Pew Initiative for Food and Biotechnology news item
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