ConAgra to Market Genetically Engineered Corn From Monsanto
Bloomberg News
June 3, 1999, 1:19 p.m. ET
ConAgra to Market Genetically Engineered Corn From Monsanto
Washington, June 3 (Bloomberg) -- ConAgra Inc., the producer
of Armour meats and Peter Pan peanut butter, said it will market
genetically altered Monsanto Co. corn, separating out varieties
that are banned from sale in some countries.
The move by ConAgra and Monsanto will allow bioengineered
corn to be sold in countries where it's legal, such as the U.S.,
while limiting exports to approved varieties in countries --
notably European Union nations -- which have placed stricter
limits on the sale of the products.
In April, two of the largest corn processors, Archer Daniels
Midland Co. and A.E. Staley Manufacturing Co. said they wouldn't
accept corn that isn't approved in the EU. In the wake of that
announcement, ConAgra's decision ensures American farmers will
have a market for the crops, according to Cathryn Streeter, an
analyst at BioScience Securities Inc.
''ConAgra is saying, 'We'll be a broker. We'll find a
market,''' Streeter said, adding it would ease the minds of
farmers who are afraid they'll be unable to sell their
genetically modified harvest.
In the past, genetically modified corn has been mixed with
unmodified corn and then exported. But because of limits on the
sale of bioengineered food, it has become more difficult to
market the mixed product in some overseas markets.
Approval of genetically engineered food has become
increasingly difficult outside the U.S., and the increased
pressure in Europe to avoid the foods helped prompt the move,
ConAgra spokeswoman Lynn Phares said.
''This wasn't the issue last year that it is now,'' she
said.
Rather than avoid the crops altogether as ADM and Staley
have done, Omaha, Nebraska-based ConAgra has opted instead to
identify bioengineered products with labels. Labeling the corn
allows ConAgra to sell approved products to European countries
and sell other varieties in countries without the restrictions.
ConAgra shares rose 3/16 to 26 1/2 in early afternoon
trading. Monsanto shares rose 1/2 to 40 3/4.
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