Dow Jones Newswires | November 18, 1999 | By Jerry Guidera, 202-862-9275
WASHINGTON - Monsanto Co. said for the first time that consumer rejection of its gene-modified foods in Europe could impact demand at home.
In a quarterly filing with the Securities and Exchange Commission earlier this week, the St. Louis agribusiness and pharmaceuticals giant said it is trying to work with consumers, public interest groups and government regulators to encourage acceptance and approval of agricultural and food products developed through biotechnology.
Consumer groups - especially in Europe and Latin America - have been raising a storm about the engineered foods and some government officials have been following their lead. In Brazil last month, the government barred the distribution of Monsanto's popular RoundupReady herbicide used in soybeans, cotton and other plants, insisting that the company perform a solid environmental impact report. In Europe, the company's food products are threatened by a wave of popular revolt against bioengineered foods.
Although analysts have warned that worldwide biotech fears could slow growth in the market, the company has generally remained mum on possible impact, saying it is working with interest groups to educate the public.
Now, however, the company is afraid that rejection of its genetically modified seeds and products abroad could haunt sales and distribution at home. In the filing, Monsanto warned that "delays in import approvals and continuing public acceptance issues may affect the market for these seeds in the United States and in other countries where planting is permitted."
A company spokeswoman was not available to comment further on the filing.
Monsanto relies heavily on its agribusiness. The "life sciences" company reaped some $4 billion in sales of seeds and products from its agricultural division, helping power a 15% jump in total sales of $8.6 billion for 1998.
The SEC filing is not the only evidence that the agribusiness company and its competitors are beginning to take seriously the threat of consumer and regulatory rejection. Monsanto and its rival in the market for engineered foods have recently mounted a major lobbying and marketing push to counter their critics and combat what they fear is a rising wave of anti-biotech hysteria.
