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Current Segregation Taking Place for Exports of Corn to Japan

News From the American Corn Growers Association

Contact: Gary Goldberg, 918-488-1829, David Senter, 202-331-4348

WASHINGTON, DC..April 10, 2000-If American corn growers want to keep corn
supplies moving to Japan, producers will have to segregate their
genetically modified (GMO) crops from non-GMOs. That message was delivered
by the largest Japanese corn buyer to those attending the American Corn
Growers Association (ACGA) workshop on GMOs held in Spokane, Washington
last week.

Mr. Fugi Seyama, Department Manager of Feed Grain Department for Murubeni
America Corporation told the gathering of farmers that Japan buys over 16
million tons of corn a year, of which 95% or around 15.891 million tons
comes from the United States. Because Japanese consumers continue to grow
increasingly concerned about genetically modified food products, Japan
demands that portions of their non-GMO corn imports, earmarked for human
food consumption, be kept separate from those that are GMO. These imports
that must be non-GMO amounted to 1.2 million metric tons last year with the
numbers growing dramatically this year and in the future.

To meet the new labeling requirements of Japan, identity preserved handling
will be necessary in order to label products as "identity preserved non-GMO
product." And processed foods made from GMOs will have to be labeled as
"genetically modified" or "not segregated from GM product."

To meet strict segregation requirements and to receive a premium from
American elevators, U.S. farmers must sign a certificate that states they
have grown, harvested, segregated and delivered in an Identity Preserved
manner production varieties of non-GMO corn. In addition, the certificate will state that farmers did not
knowingly co-mingle or mix in GMO crops and that if they did, any premiums
being offered for non-GMOs would be lost.

"The demands of Japan and mandatory segregation are additional burdens
falling on U.S. farmers over the issue of genetically modified crops," said
Gary Goldberg, Chief Executive Officer of the American Corn Growers
Association. "With Japan being the largest single buyer of American corn,
any requirements to meet this important and vital market will have to be met."

The segregation and labeling requirements by the Japanese government and
the continued rejection of GMO exports to Europe, have made it difficult
for U.S. farmers to keep planting GMO crops. Recent surveys conducted by
the ACGA and the USDA shows a sizable reduction in GMO planted acres for
2000 compared to 1999.

"The ACGA is concerned that the responsibility for segregation of GMO from
non-GMO crops will fall squarely on the shoulders of U.S. farmers. Since
most grain elevators are not physically equipped to handle segregation,
farmers will have to achieve that requirement on their own individual
farms. This will add substantially higher costs for segregation, testing,
and certification. Costs that American farmers will have to pay
themselves," added Goldberg.

"Many farmers would like to have GMOs as part of their planting options for
the future. However, the questions of marketability, the additional burdens
and costs of segregation, testing and certification, and the concerns over
legal liability are making farmers take a second look at this technology,
as evidence by the increase in conventional seed planting for this growing
season," concluded Goldberg.

(posted without permission)