Fire Sale on GM Canola Seeds (and why the EU wants our GM-free variety)
22 April 2012 Farmers and shoppers reject Monsanto's herbicide tolerant genetically manipulated (GM) canola so emphatically that the company now gives away GM canola seed in a desperate bid for farmers to grow it.
In NSW the Monsanto promises to limit direct farmer losses to only $10/tonne and in WA it offers a one for three freebie to sweeten its deal.
Read consumer affairs reporter Natasha Bita's report in today's The Australian.
Gene Ethics director Bob Phelps says: "Monsanto's WA advertisement does not even disclose that its offer is for free GM seed, describing it as an offer for FREE BAGS of hybrid canola seed. This misleading description should also interest the ACCC which seeks to prevent deceptive ads.
"The Terms and Conditions of the one for three offer attached to this email include: 'Free bag only applies to the seed component supplied by Canola Breeders and does not include stewardship fees on the seed as applied by Monsanto. Other applicable fees are the responsibility of and payable by the grower on the free bag/s.' See:http://www.cbwa.net.au/CBWA/varieties/pdf/CBEclipseRRpromotion.pdf
"Like Monsanto promises for the performance of its GM seed, this offer is not what it seems and should be refused by all sensible farmers."
Mr Phelps says grain traders have been paying up to $50/tonne premium in response to strong local and overseas demand for GM-free grain and, for instance, Viterra's quote for April 19 is $30 per tonne discount for GM canola at its silos in Melbourne and Adelaide. Values are similar throughout the country.
"In response to farmers reluctance to buy, Monsanto has offered NSW growers a price support that guarantees they will receive a maximum of $10/tonne less for GM, provided they forward sell their crop and deliver the GM canola harvest to Cargill in Newcastle. We question whether such a price support scheme that encourages farmers to 'fix the price' is legal under ACCC rules against price fixing.
A Birchip Cropping Group report has also found that GM canola seed yields no more than top alternative varieties and has similar oil content.
"Birchip's gross margin analysis {reported in the Australian Farm Journal April 2012, Pp 20 & 21} also found that due to GM's sale price discount, GM seed royalties, brand-name chemicals required to be used, and extra transport costs to distant silos, GM canola is over $150 per hectare less profitable than other canola options," Mr Phelps concludes.
Our information & news in the Oz was followed up widely in the media:
Growers clash over GM canola The West Australian
Farmers lured by golden canola ABC Radio PM program
Mixed results from GM canola trials ABC Radio
GM canola deals with eye to Asia Weekly Times
Price gap for GM canola widens ABC Radio
CBH not copying GM canola price guarantee ABC Online
East coast GM price gap cut Countryman