Dow Jones | October 31, 1999
TOKYO - About two-thirds of major food producers polled by The Nihon Keizai Shimbun are, according to this story, considering a switch to non-genetically modified ingredients because labeling of GM foods will be required from April 2001, The Nihon Keizai Shimbun reported in its Monday morning edition.
The story says that more than 30% plan to raise product prices because the change will add to costs. Higher prices are likely for a number of foods, including tofu and other soybean-based items, as well as corn-based snack food, experts say.
Some 14.6% of respondents said they have already switched to non-GM ingredients, while 66.9% claimed they plan to do so in the near future or are considering such a move. About 80% of companies either using GM ingredients now or unsure whether they are using them are considering a shift to non-GM varieties.
Of those planning to switch to non-GM foods, the highest percentage, or 44.9%, said they are doing so because of pressure from retailers.
Only 5.1% said the switch to non-GM foods won't add to costs, while 77.3% expect cost increases. Nearly 50% said costs would rise by 20% or more. More than 40% of companies are planning to pass at least some part of the increase in costs on to consumers.
A total of 32.3% plan to raise retail prices on their end products. Some 10.6% plan a hike of around 10%, and 1.4% estimate price increases of 30% or more. Many respondents say consumers will tolerate some price increase as long as GM ingredients are not used.
Nikkei surveyed 323 major food producers that it assumed were using GM foods.
