The Express (UK) | December 24, 1999 | BY JOHN INGHAM AND LUCY JOHNSTON
THE biotech revolution is in danger of failure in the face of consumer power, one of the world's top investment banks has warned.
In a new body blow to the beleaguered industry, Credit Suisse First Boston says the commercial development of genetically modified organisms is suffering from "negative momentum". It says food manufacturers are running scared of GM crops, and that key questions about the technology may not be answered for several years.
Analysts warn in a series of briefings that the issue is out of control for big business and government. "If anyone is in control it appears to be environment and consumer groups."
The Express has been leading the campaign for public choice over GM foods and tighter controls on GM crops since summer 1998.
We have called for all food to be clearly labelled and for delays on commercial planting until independent research has proved they are safe for the environment.
Credit Suisse compares GM technology with nuclear power. It says both are scientifically sound but warns: "No one is building new nuclear plants today."
After surveying consumer reaction, it says: "The march of progress with GM crops no longer appears inevitable to us."
The bank's analysis will cause fresh alarm among investors who have already seen the share values of some biotech firms fall.
In the past year shoppers in Britain and Europe have overwhelmingly rejected GM food. Even US consumers are now beginning to rebel amid fears about the long-term consequences.
The reports are all the more damaging because Credit Suisse's clients have included some of the world's top biotech firms. They follow similar warnings by the influential Deutsche Bank earlier this year.
Friends of the Earth claimed last night that the City was turning its back on biotech firms.
Spokesman Adrian Bebb said: "Time is running out for the biotech industry. "One of the world's biggest financial advisers appears to have little faith in it."
The newly announced merger between biotech giant Monsanto and a Swedish firm is seen as further evidence that the GM revolution is running out of steam. In the past 14 months Monsanto shares have nearly halved in value.
