$50 premium for non-GM canola
08 March 2011A surge in market premiums for non-GM canola has left many wondering why West Australian Agriculture Minister Terry Redman encourages farmers to plant GM canola, GM-free advocacy groups said today.
"The WA Government is promoting GM canola, even though Australia's key export markets don't want it," said Gene Ethics Director Bob Phelps.
Major grain purchaser Co-operative Bulk Handlers (CBH) has confirmed that strong demand for non-GM canola has resulted in premiums of $50/tonne over the price for GM canola (See MR attached). The co-operative's March 3 Grain Weekly says: "By far and away the biggest development this marketing season has been the increased demand for Australian non-GM sustainable canola.
"A $50 a tonne premium is a strong signal from local and overseas markets that most shoppers reject Genetically Manipulated (GM) foods and will pay higher prices to avoid them," says Gene Ethics Director Bob Phelps.
"The European Union is the strongest buyer at a $50/tonne premium and over 90% of last seasons West Australian canola crop went to Europe as only 8% of the crop was GM.
"The GM regulatory system requires the government to back this bonanza for WA growers but it is failing totally to do so.
"There is no market demand for GM crops anywhere in the world but markets for conventional and organic non-GM canola and other grains are strong and growing. GM is a ripoff as the seed costs more, costly branded Roundup herbicide must be used, and growers pay an end point royalty on their GM harvest when delivered to the silo.
"South Australia remains GM-free and Kangaroo Island Pure Grain http://www.kipuregrain.com/ is reaping the benefits of selling GM-free canola, honey and other grains at premium prices under guaranteed long term contracts.
CBH also confirms: "we expect a premium (for GM-free) to be maintained".
"Gene Ethics calls on all state governments to meet their obligations to protect the livelihoods and markets of Australian farmers, by reimposing the bans on GM canola," Mr Phelps says.
Greenpeace says increased commercial links between the West Australian Government and the GM industry are to blame for the government's extreme misjudgement in promoting GM crops to farmers. (2)
"Agriculture Minister Terry Redman's position on GM is fiscally irresponsible and also leads to questions whether government/industry links are clouding his judgement," says Greenpeace Food and Agriculture campaigner, Laura Kelly.
Minister Redman encouraged farmers to grow GM canola when he lifted the ban on GM canola in March 2010 and the WA Department of Agriculture fact-sheet reassured farmers that: "While there are clients who specify 'non-GM' or 'GM-free' canola, the demand is small, declining, and usually does not offer a significant premium." (1)
"It's as if Minister Redman has forced a shot-gun wedding between West Australian farmers and multinational GM companies without considering the long-term interests of farmers."
"Redman's sales pitch for GM canola has already cost GM farmers at least the premium prices being won by their non-GM peers," Ms Kelly concludes.
Further information or interviews:
Bob Phelps, Gene Ethics: 0449 769 066
Laura Kelly, Greenpeace: (02) 9263 0320, 0407 414 572
References
(1) http://www.agric.wa.gov.au/objtwr/imported_assets/content/fcp/gmcrops/misconceptionsjan2010-web.pdf
(2) http://www.abc.net.au/unleashed/30102.html