American Corn Growers Warn US Losing Markets

Press Release
SOURCE: American Corn Growers Association

Corn Growers Challenge Logic of Promoting Biotechnology in Foreign Markets

WASHINGTON, June 5 /PRNewswire/ -- The American Corn Growers
Association (ACGA), watching foreign export markets continue to fade away
and seeing corn prices paid to U.S. farmers continue to drop, is questioning the
wisdom of promoting biotechnology (GMOs) to foreign customers.

``The ACGA believes an explanation is owed to the thousands of American
farmers who were told to trust this technology, yet now see their prices
fall to historically low levels while other countries exploit U.S.
vulnerability and pick off our export customers one by one,'' said Larry
Mitchell, Chief Executive Officer of the ACGA. ``An explanation is also
owed our foreign customers on why the United States isn't leading the effort
to promote and sell the type of commodities and products they want and
demand.''

ACGA's Farmer Choice -- Customer First program continues to provide
information to U.S. farmers concerning the GMO-driven loss of export
markets, legal liability created by cross-pollination contamination and the
limitations inherent in on-farm segregation. The program provides objective
information and encourages farmers to make informed planting decisions about
what seed varieties to plant. The ACGA program urges farmers to study the
pros and cons of agricultural biotechnology and its potential market
impacts.

``Brazil's current marketing year corn exports have risen to 1.7 million
metric tons (67 million bushels), which competes directly with U.S. corn
producers,'' said Dan McGuire, ACGA Program Director. ``Meanwhile,
just last week, a news report stated that Cargill is breaking ground to set up
a new port terminal on the banks of the Tapajos river at Sanatarem, Para
state (Brazil) to be completed within ten months, with a turnover of 120,000
metric tons per month. The Sanatarem facility is expected to result in a
freight savings of US$60 million on the 3 million metric ton volume of
soybeans to be transported to the facility from northern Mato Grosso state
via the BR 163 roadway. Brazil is a Non-GMO soybean producer. The same
news report says that Mato Grosso and Mato Grosso do Sul states produce
3.5 million metric tons of soybeans, which should grow to 10 million metric tons
within five years as transportation problems are tackled. Now Brazil is also
a corn exporter, competing directly with U.S. farmers. With this new export
facility, we can expect Brazil to expedite a soybean/corn crop rotation
program which will increase competition for U.S. farmers over the long
term,'' added McGuire.

More recent developments should also concern U.S. farmers. The May 28,
2001 edition of Feedstuffs reported that Australia's Industrial Supplies Office
``has identified the non-genetically modified (non-GM) status of Australia
as a possible advantage over other soybean producers, such as the U.S.,
which has more than half its soybean crop sown to GM varieties.'' A May 21,
2001 news report out of London stated that a delegation from India,
sponsored by the Soybean Processors Association of India met trade officials
in Italy, Spain, France, Germany, The Netherlands and Britain to persuade
buyers that their soybean meal is non-GM, unlike other producers. India has
already carved a niche for its non-GM soy products in Asia, with exports
from 2.5 to 3 million metric tons per year. According to a May 18, 2001 news
report from Quito, Ecuador, the Ecuadorian government suspended a United
Nations-sponsored nutritional program that provides food for poor children
and mothers due to the possibility that genetically engineered soybeans were
among some of the food products. And, China continues to be an aggressive
corn exporter, also exploiting the U.S. vulnerability in Japan and other
large U.S. corn markets, that results from GMOs in general and StarLink corn
specifically. ``Even in the face of all these negative market signals, it
appears that some in the U.S. are willing to promote biotechnology no matter
how negative the impact is on U.S. exports and commodity prices. That
arrogant strategy is turning out to be a 'market development in reverse'
program,'' concluded McGuire.

SOURCE: American Corn Growers Association