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Biotech / Medical : Monsanto Co.
MTC 2.870+2.1%Jan 26 3:59 PM EST

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To: Anthony Wong who wrote (1812)3/25/1999 3:29:00 PM
From: Anthony Wong  Read Replies (1) of 2539
 
Go green, organic growers say, and be the envy of the world
Clean, green: organic peas on their way to market.
March 25, 1999
The Press, New Zealand

If you are going to bet the farm, go for a proven
system that's already found a market and is earning a
healthy premium -- organic farming.

That's the message from organic farmers, according to
Charles Merfield, who speaks for the Canterbury
Commercial Organics Group.

"The answer when you're on a treadmill is not to run
faster. It's to get off and find an alternative," said Mr
Merfield.

His group believed there was a huge potential for organics,
especially in wake of the public reaction to genetically
modified food.

It was possible for a whole country, or area, to be totally
organic if it had the support of research. Denmark was
considering turning its agricultural production to organics,
he said.

Under the bio gro and demeter international certification
schemes, producing genetically modified animals and plants
was prohibited.

"This could be a tremendous selling point for New Zealand
and would give real substance to New Zealand's claim of
being clean and green."

Demand for organic produce in key markets -- Europe, the
United States, and Japan, was very strong. "Organic
produce has seen growth of between 20 and 30 per cent
for several years."

The Organic Products Export Group, begun by Tradenz,
recorded exports worth about $29m last year. This was up
47 per cent from 1997.

Heinz-Watties along with Zespri and the Kiwifruit
Marketing Board, were part of the group. "Heinz Wattie is
almost desperate for organic producers. They can't get
enough supply to satisfy their markets."

Mr Merfield said organic meat exports from New Zealand
were beginning, but some producers believed that if they
started selling organic meat, it inferred the other produce
was substandard.

Research had shown, however, that companies selling
organic produce also got a quality rating for the rest of
their output: consumers believed the rest of their produce
was also of better quality, Mr Merfield said.

Heinz-Watties had used organics to open markets in Japan
which may not have been open to it without its organic
produce, he said.

Genetically modified organisms had advantages -- they
offered benefits such as higher yields, lower cost of
production, and crops free of chemicals. However, New
Zealand's commodity returns were falling.

If New Zealand did embrace GMO technology it would be
in a similar position a few years down the track, he said,
and organics was the only sustainable alternative.

Organic production needed more inputs, but demand for it
was strong. That meant premium prices for organic
produce, especially if the produce had been processed
further, he said.

"Organics is a viable to very viable alternative for New
Zealand."

On average organic produce was selling at 25 per cent
above market rates for conventional produce, and for short
periods in new markets as much as 50 per cent.

The unknown of GMO food was another negative, he said.

The Green movement would like a moratorium on genetic
modification until these risks could be quantified, he said.

"Scientists tell us genetically modified food is safe and the
risks are small, but risks are still risks."

There may be pressure from United States companies
which have invested heavily in gene technology to accept
GMO foods here, but New Zealand had said no nuclear
warships, and it could say no to GMOs, he said. "We have
an alternative."

The backlash in Britain against GMO crops had been
strong. The number of GMO crops grown in Britain had
been halved over the last few years.

"We think the group that ripped up the genetically modified
potatoes here were radicals. In Britain it's not extremist
ripping up crops, it's people from middle England."

This showed the height of feeling there, and the market
opportunity.

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