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Genetic Engineering Newsletter Nr. 19, February 2001

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Genetic Engineering Newsletter 19
February 2001


supported by
Zukunftsstiftung Landwirtschaft, Gerling Foundation, Triodos-Stichting,
Mahle Foundation and Hatzfeld Foundation


CONTENTS
Legal and political developments
   Europe
   USA and Canada
   Others
   International
Science News
Business News
   News from the Life Science Industry
Miscellaneous


LEGAL AND POLITICAL DEVELOPMENTS


Europe

European Parliament votes for new regulation for GMOS, but moratorium
remains

The European Parliament passed tighter regulations for the approval of
genetically modified organisms. In future all sites of commercial and
experimental planting have to be registered. Antibiotic-resistance genes are
prohibited for use and commercialising from 2005 onwards, though until 2008
they're still allowed for experimental use. The labelling of genetically
modified foods and the public registration of commercial and experimental
plantings is supposed to provide more transparency for consumers. Though the
new regulation has been approved by all necessary institutions, six EU
member states want to keep the moratorium for GM plants. France, Italy,
Denmark, Luxembourg, Greece and Austria noted this in a joint statement,
demanding the EU to implement further regulations concerning labelling,
liability and traceability of GMOs in the food production chain (Greenpeace
Germany, Homepage 15.02.2001, www.greenpeace.de/GP_SYSTEM/HOMEPAGE.HTM).


British environmentalists criticise isolation distances for GM crop trials

UK environmentalists have dismissed increases in recommended separation
distances from conventional crops for this spring's GM crop trials as
pathetic and inadequate. Current plans of the government foresee to sow up
to 96 sites with GM crops. The Agricultural Ministry asked the farming and
biotechnology industry body to apply increased distances in two instances
for the spring trials. In the case of some oilseed rape the separation
distances would be increased from 50 to 100 metres, and in the case of a
forage maize from 50 to 80 metres. The separation distances agreed should
reduce cross-pollination to a maximum of 1% for any crop. Environmentalists
said the changes are inadequate and pathetic (PA News, 07.02.2001, cited
from AGNET 07.02.2001).


German government reject talks with GM industry

German chancellor Schroeder recently rejected talks with Biotech-industry to
start a Genetic Engineering Programme. The programme initially proposed by
him should have started this spring and was intended as a three year
experiment to monitor possible effects of GM-maize on the environment.
Reasons given for the stop of the programme were scepticism by consumers
towards these plants and plans for reorientation of agriculture policies in
the context of the mad cow disease crisis (LifeScience, 30.01.2001,
www.lifescience.de/artikel/06223/index.html).

British supermarket chains replace GM feed

Two of the top three food retailers in the UK, Tesco and Asda, announced
that all their own-brand meat products will be produced only from farm
animals fed with non-GE feed, and that they are also committed to non-GE
dairy products. Whilst major food companies and retailers have been
eliminating GE ingredients in human food products, up till now GE crops have
continued to flood into Europe through animal feed. Over 80% of soya and
maize imports have gone into the food of animals that provide meat and diary
products. The three largest food retailers have now all committed to the
non-GE standard in their meat and dairy products. Sainsbury also is removing
GE from the feed of farm animals. Recently, other multinational food
companies such as Carrefour in Belgium, Wiesenhof in Germany, and McDonalds
(for its chicken) across Europe, have announced their intention to sell or
use only animals fed with non-GE feed (Greenpeace International Press
Release, 26.01.2001).


USA and Canada

Almost a third of American farmers broke with Bt-maize regulations

Almost a third of US farmers broke government rules for planting GM maize
last year, a survey has found. The rules are designed to stop larvae of the
European corn borer developing resistance to Bt. The survey found that only
71% of farmers complied fully with the requirements. 90% of the farmers
thought they had complied, but had misapplied the rules, introduced a year
ago by the Environmental Protection Agency (New Scientist, 05.02.2001).


American soy-exports dropped contrary to assumptions

A report of the US Department of Agriculture increased the soybean carryout
by 25 million bushels, fooling the grain trade that expected higher exports
from Europe's concern over mad cow disease. The report upended trade
expectations from increased soy-meal exports in response to Europe's ban on
using meat and bone meal in animal feeds as a precaution against mad cow
disease. Europe's beef demand plummeted anyway, reducing the need for
soy-meal as an alternative feed. Across western Europe, meat consumption has
dropped by 30 percent (AgAnswers, 09.02.2001, cited from AGNET, 09.02.2001
II).


Canadian developing aid funds used in China for PR actions of Monsanto

A Canadian newspaper reported that Canadian taxpayers spent more than
280.000 $ to directly promote the use of genetically modified crops created
by Monsanto. Over objections from some officials, the Canadian International
Development Agency gave the money to a project in China aimed at encouraging
farmers there to grow Monsanto's GM corn and cotton. GM opponents now urge
for an investigation about the Agency and its priorities (The Toronto Star,
11.02.2001, cited from AGENET mail out, 11.02.2001).


Canadian Scientific Committee pledges for more stringent handling of GM food

An extensive investigation by the Royal Society of Canada has concluded that
the mere absence of evidence that genetic modification can damage human
health or the environment does not justify allowing GM products to reach the
food chain. The report says there has been insufficient research into
potential allergic effects or toxicity. Chief among the 53 recommendations
is that a fundamental testing standard should be abandoned immediately
because it offers inadequate protection to health. The chairman of the panel
said: "When it comes to human and environmental safety there should be clear
evidence of the absence of risks -- the mere absence of evidence is not
enough" (UK Independent, 09.02.2001, cited from AGNET, 10.02.2001).


Others

GM rapeseed in Australia from 2002

International biotech giants are pressing ahead strongly to introduce
commercial GM canola crops into Australia. Aventis and Monsanto both intend
to grow their first commercial GM canola crops in Australia next year, for
sale in 2003. Aventis, which plans to release its first commercial GM canola
by the end of 2002 or the beginning of 2003, will be producing a hybrid
which it says strengthens disease resistance and improves oil quality. The
size of Aventis' trial GM canola in Australia was extremly small. With a
total of 37 hectares planted to trial GM canola plants across the country
last year, Monsanto will be introducing a GM canola strain able to resist
the group's Roundup herbicide. Introduction of GM canola to Australia will
take away Australia's present marketing edge of being totally GM-free. One
trader told Reuters that part of Australia's GM canola crop would not find
acceptance on all world markets, with Europe particularly opposed to GM
food. This year 250.000-300.000 tonnes of Australian canola was shipped to
Europe (Reuters News, 12.01.2001, cited from GENET 2-Plants, 16.01.2001).


International

UN panel calls for allergy tests on GM food

The Codex Ad Hoc Intergovernmental Task Force on Foods Derived from
Biotechnology (CTFBT) plans to oblige all member countries to conduct strict
allergy tests on all GM foods, according to its draft guidelines on safety
assessment of food derived from plants through biotechnology. The draft was
quoted as saying "when the protein resulting from the inserted gene is
present in the food, it should be assessed for potential allergenicity in
all cases." UN sources said the committee hopes to implement the guideline
in 2003 after some 170 member states discuss the draft (Associated Press,
08.01.2001, cited from GENET 6-Regulation, 10.01.2001).


SCIENCE NEWS

Transgenic cotton more susceptible to nematodes

Scientists writing in the Journal of Cotton Science point out some potential
concerns with cotton that's genetically modified to resist the tobacco
budworm and the herbicide Roundup. Researchers found that the transgenic
cotton they studied was less resistant to root-not nematode, a serious
cotton pest. Farmers typically control nematode infestation by planting
different types of traditional hybrid seeds (CropChoice Article
#205,09.01.2001, www.cropchoice.com).

First field trials with genetically modified insects in the USA

The first release of a genetically modified insect is expected to take place
in the United States this summer. A moth has been engineered to contain a
gene from a jellyfish in the first stage of a genetic experiment designed to
eradicate the cotton-destroying pest from the wild. A total of 3.600 moths
will be set free under a cage within a one-hectare cotton field in Arizona.
Researchers who are planning the release say there is a minimal risk of the
GM insects escaping, adding that insects additionally have been sterilised.
Ultimate plans for the research programme is to insert conditional lethal
genes into the pink bollworm moths. In the first stage of the experiment,
the scientists plan to release the moths under a long cage in a small test
side remote from commercial cotton fields. Although the laboratory insects
are confined to a cage, they will be able to mate with native insects
already present on the cotton at the time of the release, allowing the
scientists to track the spread of the gene through the population (BBC News,
09.02.2001, cited from AGNET, 10.02.2001).

Tests with non-transgenic rice in Madagascar successful

When small farmers in Madagascar employed a new way of growing rice in the
late 1980s, the results were so startling that agricultural scientists could
hardly believe they were possible. Yields of about two tonnes per hectare
had shot up to about 8-10 tonnes per hectare, without chemical fertilisers,
pesticides or expensive seed varieties, and by breaking some of the
conventional rules of rice management. For years the new technique, known as
the System of Rice Intesification (SRI), was virtually ignored. The system
was developed in Madagascar by an agronomist priest working with a small
farmers group. Recently, a representative of the group presented its work to
a conference in London. Traditionally rice is transplanted into fields at
about eight weeks, and three or more seedlings are planted in clumps in the
hope that one will fully mature. But with SRI, seedlings are transplanted at
about six days and planted individually, enabling farmers to use less seed.
For thousands of years lowland rice has been grown under flooded conditions
to ensure water supply and reduce weed problems. But while rice can survive
in water, it is not an aquatic plant. Farmers in Madagascar noted that root
growth was far greater if the plant was not kept continually submerged in
water. Using the SRI system the soil is only kept continually wet during the
reproductive stage when the plant is producing grain. During the rest of the
growth cycle the fields are irrigated in the evening and dry during the day.
Using their own seed, some 20.000 farmers have now adopted the method in
Madagascar, and the yields have proved sustainable (Financial Times,
23.01.2001, cited from GENET 2-Plants, 28.01.2001).


Spider genes in potatoes and tobacco

Scientists of the German Leibnitz Institute for plant genetics inserted
certain spider genes into the DNA of tobacco and potatoes. According to the
Institute, the scientists transferred genes coding for proteins that are
building the load-bearing threads of spider-webs. The genetically modified
plants are supposed to produce raw material for high-tech fabrics which
scientists hope to be as solid as steel and lithely as nylon (Berliner
Zeitung, Science supplement, 31.01.2001).


New method to delete marker genes

Scientists have developed a new method to generate marker-free transgenic
plants. Zuo et al. developed a chemical-inducible DNA excision system in
transgenic Arabidopsis plants. they introduced into the Arabidopsis plants a
certain recombinase gene and a marker gene flanked by certain other
recombination sites. They then induced the recombinase gene with a compound
to eliminate both itself and the linked marker from the genome. The
induction system shows tight control and high recombination efficiency (Zuo
et al., 2001, Nature Biotechnology, 157-161).


High insecticide exposure affects mental capacity

Canadian and Latin American researchers have found that potato farmers of
the Carchi Province of Ecuador suffer from decreased mental capacity as a
result of their high exposure to chemical insecticides. Their research
documents how this exposure affects the farmers' decision-making abilities,
leading to lower productivity. Exposure to insecticides and fungicides has
harmful neurological and skin-related effects on the health of the rural
population and health disorders undermine farmers' ability to make efficient
farming decisions. Farmers in Carchi Province, where 8000 commercial growers
account for 40% of the national potato production, are among the country's
heaviest pesticide consumers. They apply pesticides an average over seven
times during the crop growth period, using up to 43 active ingredients.
Direct skin contact with pesticides, leaky sprayers and a lack of protective
clothing contribute to the farmers' health problems (AGENT, 06.02.2001 II).


BUSINESS NEWS


News from the Life Science Industry

Syngenta announced complete sequencing of rice genome

The genomic research center of Syngenta announced that it has completed the
rice genome map in collaboration with Myriad Genetics. This is the first
project of its kind in a crop plant to be completed. In addition to finding
the DNA sequence of the genes, Syngenta has undertaken analysis of gene
expression and of rice proteins. The company plans to use the rice genomics
information for new commercial applications in the agribusiness industry. It
will also be made available to the academic scientific community through
collaboration agreements (Syngenta Press Release, 26.01.2001).

Monsantos management presents strategy

Monsanto's Chief Executive Officer Verfaillie expressed his confidence that
a combination of a strong core business, great upside from biotechnology and
genomics, and focused management will produce steadily increasing revenue
and income growth for the company. Monsanto has a unique business model that
combines herbicides, biotechnology traits, seeds and genomics into
integrated solutions, and thereby gains a competitive advantage that allows
it to sell seeds, biotech and herbicides as an integrated solution on more
crops, on more acres, Verfaillie said. Monsanto's management is focused in
three areas in 2001: One, growing sales of Roundup herbicide through brand
leadership and volume growth world-wide Two, gaining approvals for
biotechnology traits and commercialising them globally and Three, realising
the full value of the company's research and new product pipeline (Monsanto
Press Release, 06.02.2001 www.monsanto.com ).

Aventis

- fires three top officials of US division: The head of the US crop science
division and two other top managers were fired because of the StarLink
crisis which stared last year when the GM maize not approved for human
consumption was found in several food products. The chairman of Aventis
CropScience world-wide asked for their resignations to restore confidence in
the wake of debacle. Once considered a potential blockbuster for Aventis,
StarLink has become an embarrassing lesson in how difficult it is to
regulate genetically modified products. It is said that the blunder already
has cost Aventis 91,9 million US Dollars (Wall Street Journal, A 17,
12.02.2001; cited from AGNET mail out 12.02.2001 II).

- keeps on spinning of product lines: Avenits keeps on tightening its'
product portfolio: the insecticide compound chlormephos with the brand name
Dotan has been sold to the French company Calliope. France, Spain, Greece
and Italy are the main markets for the product which generated a turnover of
200 million Euro. Furthermore, the fungicide dodine which is mainly used in
fruit-grow and known under the brand name Syllit has been sold to the
Belgian company Chimic Agriphar. The fungicide is mainly used in the United
States (AgroOnline, 31.01.2001, www.agroonline.de/nachrichten).


MISCELLANEOUS

WHO and FAO warn of second-class pesticides in developing countries

In a joint statement FAO and WHO said that about one third of pesticides
sold in developing countries and representing a market value of 900 million
dollars do not comply with international regulations. Those pesticides pose
risks to human health and the environment. Those low-quality pesticides
often contain hazardous compounds or are impure. In many countries these
pesticides are prohibited or strongly regulated. Last year pesticide sales
are estimated for 32 billion dollars world-wide with a market share of 3
billion dollars in developing countries (@grar.de Aktuell, 01.02.2001).

German Organic Farming Organisation presents figures for plantings in 2000

The German umbrella organisation for organic farming recently released
figures for organic farms and organically farmed area of their member
organisations. In comparison 2000 to 2001, the number of organic farms
increased by 7,5% and the organically farmed area by 10,5%. According to the
Organisation, the increase shows an accelerating interest in organic
farming. Reasons given for the increase were a raised demand and the
declaration of the German government to support in total a more ecological
friendly way of agriculture and to particularly support organic farming as
an consumer- and environmental friendly way of agriculture (@grar.de
Aktuell, 09.02.2001).

Remark: Just after the release of the data, the two main organic farming
organisations Bioland and Demeter declared their resignation from the
umbrella organisation.


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