[news] Monsanto Suspends Biotech Wheat Program

[sharai]

Reuters <http://news.moneycentral.msn.com/inc/images/reuters.gif>
Monsanto Suspends Biotech Wheat Program
May 10, 2004 1:56:00 PM ET


By Carey Gillam

KANSAS CITY, Mo (Reuters) - Biotech crop pioneer Monsanto Co. (MON
<http://news.moneycentral.msn.com/inc/news/quoteredir.asp?symbol=US:MON> )
on Monday suspended plans to introduce what would be the world's first
biotech wheat, bowing to a storm of protest from around the world over the
company's scientific tinkering with a key food crop.

Monsanto said it had reached the decision after ``extensive consultation''
with customers in the wheat industry and would continue to monitor the
desire for crop improvements to determine ``if and when'' it might be
practical to move forward.

``It was a lot of things coming together at once,'' said Monsanto spokesman
Chris Horner, who cited declining spring wheat acreage as well as dissent
among wheat growers and buyers as factors in the decision.

St. Louis-based Monsanto has been doing field tests of Roundup Ready wheat,
which has been genetically modified to tolerate applications of Monsanto's
Roundup herbicide, for six years at a cost of hundreds of millions of
dollars.

The company already has commercialized Roundup Ready corn and soybeans, key
feedgrains and had hoped to spread its herbicide-resistant technology into
the vast wheat-growing industry, starting in the United States and Canadian
markets.

But the company's efforts have ignited an outpouring of opposition by
environmentalists, farmers, consumers and religious groups, as well as
foreign wheat buyers. Concerns include worries about possible human health
hazards, increased weed resistance and fears Monsanto is gaining control
over key world crops.

Opponents heralded Monsanto's decision.

``Monsanto haso correctly read the winds f public opinion and farmers and
consumers,'' said Ronnie Cummins, national director of the U.S. Organic
Consumers Association. ``The crops that are in the pipeline are not going to
be able to be introduced without a tremendous amount of debate and civil
strife.''

Wheat industry leaders, who said biotechnology could lead to improved
profitability for struggling wheat growers, warned Roundup Ready wheat could
devastate exports of all U.S. and Canadian wheat.

Foreign buyers, including top U.S. spring wheat buyer Japan, said they were
unwilling to risk alienating their own customers by accepting biotech wheat
supplies.

``This is a major acknowledgment by Monsanto ... it will be very hard to
market in the near future biotech products designed for human consumption,''
said Greg Jaffe, of the Center for Science in the Public Interest. ``All the
other products have primarily gone to animal feed.''

Monsanto's decision to back away from biotech wheat came as opposition was
mounting, particularly in Canada, where an anti-biotech wheat ad campaign
was launched in March and the Canadian Wheat Board has opposed the product.

Monsanto had asked the U.S. wheat industry to consider letting it out of its
pledge not to introduce biotech wheat in the United States without a
simultaneous release in Canada. But that proposal was flatly rejected.

In the meantime, several U.S. groups had sought to derail the project,
including groups in North Dakota, the top U.S. spring wheat-growing state
and Monsanto's planned launching pad for the biotech wheat product.

``I think it is a very wise decision,'' said Louis Kuster, a North Dakota
wheat farmer.

Monsanto shares were down 64 cents, or 1.94 percent, at $32.35 in early
afternoon trading on the New York Stock Exchange.