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APPROVAL: In Brazil, Bayer's GMO corn has one more political hurdle

                                 PART I
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TITLE:  In Brazil, Bayer's GMO corn has one more political hurdle
SOURCE: MarketWatch, USA
AUTHOR: Kenneth Rapoza
DATE:   17.05.2007

In Brazil, Bayer's GMO corn has one more political hurdle

SAO PAULO (MarketWatch) -- German multinational Bayer CropScience got
the green light to sell its LibertyLink transgenic corn in Brazil, but
the company faces one more hurdle before the country's farmers are
allowed to plant the product.

"We said the technical part of LibertyLink is okay, but the product
still has to go through 11 different ministries who will have the final
say on the political viability of GMO corn in Brazil," said Rachel
Mortari, a press agent for the country's biosafety commission, CTNBio.

CTNBio approved the use of LibertyLink Wednesday by a vote of 17-4.
Officials from the environmental ministry, agrarian reform, and fishing
and wildlife departments voted against.

"We are very much against the CTNBio decision," said Gabriela Vuolo, a
Greenpeace coordinator in Brasilia. Greenpeace in Brazil has been
lobbying against transgenic corn since last year. Greenpeace says CTNBio
doesn't do environmental impact studies. CTNBio was unavailable for
comment regarding Greenpeace's allegations.

According to Edilson Paiva of Brazil crop science institute, Embrapa,
corn is an exotic plant to Brazil and has only survived because of science.

"Brazil's native corn, the kind we had from the 1950s, doesn't exist
anymore," he said. "Scientifically speaking, there is no pure native
corn in Brazil."

Bayer has been waiting roughly 9 years to gain access to Brazil's
lucrative and new genetically modified seeds market. To date, only
Monsanto's Roundup Ready soybeans and Bollgard cotton is allowed in
Brazil. A handful of companies produce their own varieties of Roundup
Ready soy. This season marked the first time Brazil soygrowers were able
to legally plant transgenic soybeans. Roughly half of this year's crop
was transgenic.

If the National Biosafety Commission, composed of top officials from 11
different government departments - from Agriculture to Science &
Technology - does not argue against LibertyLink over the next 90 days,
Bayer will be permitted to sell transgenic corn in the 2007-08 season.

Farmers say that transgenic plants allow them to control weeds, thus
reducing the necessity to spray costly herbicides on the crop.

Corn is Brazil's No. 2 crop behind soybeans. The country should harvest
a record 51 million metric tons of corn this year.

Brazil farmers plant corn in October.

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                                 PART II
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TITLE:  Bayer corn seed wins approval from Brazil regulator
SOURCE: Bloomberg, USA
AUTHOR: Carlos Caminada
DATE:   16.05.2007

Bayer corn seed wins approval from Brazil regulator

May 16 (Bloomberg) -- Bayer AG, Germany's largest drugmaker, got
approval from Brazil's biotechnology regulator to sell a genetically
modified corn seed in the country, moving one step closer to final
government clearance.

The regulatory council voted 17 to 4 to give Bayer the first license to
sell a gene-modified corn seed in Brazil, which already allows the sale
of soybeans altered to better resist pesticides, council spokeswoman
Rachel Mortari said.

Bayer's license paves the way for Monsanto Co. and DuPont Co., the
world's leading developers of genetically modified seeds, to also win
licenses for their corn strains. The two companies have requests waiting
for clearance from the council, which has delayed votes for months
because of court injunctions and protests by environmental activists.

Greenpeace International protesters stormed a meeting of the council in
March, leading the regulators to postpone the vote on seeds. Last month,
the council focused its meeting on approving research licenses.

Today, one member of the regulatory council asked that the Bayer request
be reviewed by another government board, Mortari said. A panel of 11
ministers will decide within 60 days whether to give final government
approval, she said.

Brazil Output

Brazil is the world's third-biggest corn grower, trailing the U.S. and
China. The country's farmers will harvest a record 51.1 million metric
tons of the grain in the crop year ending Sept. 30, up from 42.5 million
tons a year earlier, after rains boosted yields, the agriculture
ministry said on May 8.

Corn futures for July delivery rose 4.5 cents, or 1.2 percent, to $3.76
a bushel on the Chicago Board of Trade today. The price has risen 45
percent in the past year.

Shares of Bayer fell 38 cents, or 0.8 percent, to 49.73 euros in
Frankfurt. They are up 41 percent from a year ago.

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