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European farmers will lose out to US growers if consumer sentiment changes
and the public backs genetically modified crops, according to the head of
BASF's agrochemical and biotechnology businesses, August 2004 by David Firn
and John Mason .


Peter Oakley said entrenched opposition in Europe to genetically modified
crops could rapidly evaporate once products with clear benefits to the
consumer were developed. But the crops would be grown elsewhere because of
prohibitive rules being drafted that would make farmers and the industry
liable for any economic damage to non-GM farming caused by GM crops, he said
in an interview with the FT.

The rules - being proposed in countries such as Germany and the UK - would
put farmers off planting the seeds, leaving the market open for US and Asian
producers.

Mr Oakley cited a recent German survey showing that most consumers would
welcome GM products designed to reduce cancer risks. Such products are
largely theoretical now but are being researched with other products
offering health benefits.

One product range close to the market are oils containing Omega-3 fatty
acids, which reduce the risk of heart disease.

"I think people will jump on something like that really quickly, but
(demand) will be fulfilled by US growers," Mr Oakley said.

Farmers' acceptance of GM is important to European agrochemical companies
because it is one of the few growth areas in a stagnating market. But Mr
Oakley says it is also important for the future of European research.

"Biotech is an area where Europe can have a competitive advantage. I have a
problem when this issue is abused to win votes. I see it as our assignment
to make the public more aware of the benefits," he said.

Mr Oakley said green politicians and environmental groups had used
consumers' lack of scientific knowledge to create an unrealistic fear of the
dangers of GM crops. But surveys showed consumers would buy products if they
had direct benefits.

Mr Oakley said that the German agriculture-biotechnology industry could go
the way of the pharmaceuticals industry, which has been losing importance
since the 1980s, when companies wishing to use genetic manipulation had to
set up abroad because of a ban at home. "German companies created a
tremendous amount of jobs in Massachusetts, California and New Jersey."

BASF, the last of the main agrochemical companies to begin developing GM
seeds, has deliberately avoided so-called input traits such as herbicide
resistance. Instead it is focusing on crops that will have direct benefits
for consumers such as better nutrition, and less environmental impact than
non-GM crops, and developing plants that can tolerate harsh conditions such
as heat, drought and salt.

[news.ft.com]

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