Brazilian soya and maize exporters gain markets – biggest wins yet to come if non-GE status secured

Press release - 10 June, 2002

No to GE Corn - safe food now

A Greenpeace report released today indicates that Brazil has a golden opportunity to further capitalise

on its current market advantage of being the only one of the world´s top three soya producers not allowing genetically engineered (GE) crops.

Brazil has already gained market shares and premiums as a result of the increased demand for non-GE food. Providing that the country´s non-GE

status remains, the anticipated market shift to non-GE animal feed in Europe and the rapid increase of the non-GE share of the Asian food market

will impact Brazilian exporters even more significantly, because of the sheer volume of the trade involved. The report was launched as a delegation

of European meat producers arrived in Brazil to secure their non- GE supplies for the future following the news that Brazil might reconsider its

non-GE status. (1-2)

The European soyameal imports and Chinese and Japanese soyabean imports together amount to 40 million metric tonnes - compared to Brazil´s

exports of 15 MMT of soyabeans and 10 MMT of soyameal. The European food market is already virtually non-GE, and its animal feed market,

capturing the vast majority of soya imports, is estimated to be 20-25% non-GE and rapidly increasing. Japan is also significantly non-GE, and China

has recently introduced GE labelling and safety regulations.

"Brazil has a great opportunity now to dominate a multimillion dollar market by exporting only non-GE soya, maize and meat", said Mariana Paoli,

Greenpeace Brazil. "It would be contrary to good business sense to quit the game while being ahead. Brazil is the forerunner in a non-GE market

that is booming."

Since the introduction of GE soya in the US, the volume of US soyabean exports to Europe has dropped from 9.2 million tonnes in 1996 to 6.8 million

tonnes in 2000 while Brazilian non- GE soyabean exports to Europe have increased from 3.1 million tonnes to 6.3 million tonnes (3). US maize and

Canadian canola/rapeseed have suffered even more dramatic market losses (4).

"A number of world trade factors have affected the volume of soybean and meal exports from the US, Argentina and Brazil. However, as the

company statements and markets analysis quoted in this report clearly demonstrate, the fact that international rejection of GE crops has increased

demand for Brazilian soya cannot be disputed", said Jean-François Fauconnier, markets specialist at Greenpeace International.

Some in Brazil believe that the country can grow both GE and non-GE varieties of crops, and allow producers to supply whichever their customers

ask for. Experience in the US and Canada shows that such an approach is extremely expensive. Even companies that go to the cost of keeping

commodities separate still risk that the segregation systems will go wrong (5). "You can´t do both: GE crops contaminate conventional crops and

handling systems and drive up the costs of production throughout the sector", added Fauconnier.

Worried that Brazil might approve GE crops in the future, European companies are gradually moving towards buying certified, fully traceable

non-GE soya and also purchasing from alternative sources, e.g. India, in order to avoid the risk of contamination and comply with upcoming European

legislation on traceability of genetically modified organisms (GMOs). At the same time, US, Canadian and Argentinean exporters have already

started to set up segregation systems to meet the increasing non-GE demand from Europe and Asia and regain their lost export markets. "The use of

GE crops in Brazil would be an environmental and commercial suicide caused by political and foreign companies´ influence rather than by market

demand and the interests of the Brazilian consumers and industry," concluded Paoli.