Anheuser-Busch Gives the Green Light to Biopharm Frankenrice After All

Anheuser-Busch drops threat to boycott Missouri rice Saturday, April 16, 2005

WASHINGTON (AP) -- Anheuser-Busch Cos. has dropped its threat to boycott Missouri's rice crop after a biotechnology firm agreed to grow its genetically engineered rice farther away from commercial rice farms in the state.

The agreement reached Friday ends a dispute between the beer giant, the state and California-based Ventria Biosciences, which wants to grow about 200 acres of genetically modified rice to produce human proteins used in drugs.

"I am pleased that Anheuser-Busch and Ventria have reached a fair compromise that furthers cutting-edge life-sciences technology while protecting current markets for Missouri rice farmers," Missouri Gov. Matt Blunt said in a statement.

Earlier this week, Anheuser-Busch said it was concerned the genetically modified crops could contaminate rice grown in the southeastern part of the state. Under the agreement, Ventria's rice would be planted at least 120 miles away from commercial growing areas.

It was not clear whether the agreement with Anheuser-Busch would resolve similar safety concerns raised by Arkansas-based Riceland Foods Inc., the world's largest rice miller and marketer and the largest purchaser of Missouri rice. Both companies had urged federal regulators to deny a permit for Ventria's project.

Riceland did not return repeated calls from The Associated Press.

The practice of growing engineered crops to produce drugs -- known as "biopharming" -- has angered environmental groups, the food industry and farmers, who fear modified crops could contaminate soil or food and crossbreed with other plants.

Ventria's request to plant rice enhanced with synthetic human genes to produce the proteins lactoferrin and lysozyme is pending with the Agriculture Department. The company hopes to harvest and refine the proteins for use in medicines to fight diarrhea and dehydration.

The USDA can either deny Ventria's permit or issue a permit with additional
conditions.