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The discovery of an unapproved genetically modified rice in the food supply has depressed rice prices, damaged US rice export markets, spurred farmer lawsuits against the rice’s developer, Bayer CropScience, and raised new questions about the US’s ability to control GM crops.
In late August, the US Department of Agriculture announced that unapproved GM rice, Liberty Link 601, was found contaminating commercial long-grain rice supplies. According to Riceland Foods, a farmer-owned rice cooperative, the GM rice was first discovered in conventional rice supplies by one of its export customers last January. In May, Riceland collected rice samples from several grain storage facilities, which tested positive for LL601. Bayer confirmed the findings and said the rice was present at levels equivalent to 6 of every 10,000 grains. Bayer reported the problem to the USDA at the end of July. It is not known how the contamination occurred.
LL601 is a long-grain rice variety that is genetically engineered to tolerate sprays of Liberty herbicide. The GM rice never received USDA approval though two similar herbicide-resistant varieties have been approved. LL601 was grown in field tests between 1998 and 2001.
According to a New York Times report, the GM rice has been detected in trace amounts in commercial supplies throughout the US southern rice-growing region, including Arkansas, Missouri, Mississippi, Louisiana, and Texas.
The incident involving Bayer’s unapproved GM rice recalls a similar contamination incident in 2001 when unapproved Starlink GM corn was discovered in food products. The discovery led to a recall of hundreds of food products and caused billions of dollars in losses to the US food and grain industries.
Negative market impact: The contamination problem caused a swift, negative reaction from US rice markets. Rice prices fell 5% to the lowest level in nearly two months, and September rice-futures prices on the Chicago Board of Trade dropped 14% to $8.47 a hundredweight. Japan suspended imports of US long-grain rice and may begin testing US rice exports for LL601. The move does not affect Japan's imports of short and medium grain rice, which account for the majority of the country's imports from the US.
The US rice crop is worth an estimated $1.88 billion with about one-half of that sold to export markets. Long-grain rice accounts for about 80% of US rice exports.
In Europe, the European Commission adopted emergency measures requiring that all long-grain rice imports from the US be tested by an accredited laboratory using a validated test method and be certified as free of LL601.
"There is no flexibility for unauthorized GMs - these cannot enter the EU food and feed chain under any circumstances," said Markos Kyprianou, European commissioner for health and consumer protection in an interview with FoodNavigator.com.
LL601 was discovered in a rice shipment sent to The Netherlands and in US longgrain rice sold in Aldi Nord supermarkets in Germany. Migros, Switzerland’s largest food retailer, also found LL601 in US rice shipments.
The European Federation of Rice Millers recently conducted testing and found LL601 in 33 of 162 rice samples.
The EU is a major importer of long-grain rice from the US, purchasing 198,000 tons worth $67 million in 2005.
Farmer lawsuits: The contamination led more than 200 rice farmers in Arkansas and Missouri to sue Bayer CropScience. The farmers say that Bayer failed to prevent LL601 from entering the food chain, causing market losses in Japan and Europe and depressing rice prices. Farmers in Mississippi, Louisiana, Texas, and California have also sued Bayer. To date, six lawsuits have been filed against Bayer over LL601.
Global ban on US rice imports: EU environmental groups Greenpeace and Friends of the Earth have called for a global ban on US rice imports. Adrian Bebb, GM Food Campaigner for Friends of the Earth Europe said, "This is a complete scandal. The biotech industry has failed once again to control its experiments and lax regulations in the US have allowed consumers worldwide to be put at risk. The European Union must immediately suspend US rice imports until consumers can be guaranteed protection from untested and illegal foods."
The GM rice contamination incident raises new questions about the US’s ability to control GM crops. "Once again, USDA has demonstrated its inability to keep experimental and potentially hazardous genetically engineered crops out of the food supply," said Bill Freese, science policy analyst at the Center for Food Safety. "Until USDA gets its act together, we recommend a moratorium on all new permits for open-air field testing of genetically engineered crops not permitted in the food supply."
Approval as a solution? Bayer CropScience’s 'solution' to the crisis is to seek retroactive USDA approval to sell LL601. The company has petitioned the USDA to 'de-regulate' the GM rice
The move sparked criticism from environmental groups. "Illegal, potentially hazardous rice in grain bins, on supermarket shelves, in cereal, beer, baby foods, and all rice products. It should be a no-brainer – recall this stuff to make sure no one eats it," said Joseph Mendelson, legal director of the Center for Food Safety. "Instead, USDA plans to rush through 'market approval' of a genetically engineered rice that Bayer itself decided was unfit for commerce. Why? To free Bayer from liability.
An editorial in the Minneapolis Star Tribune said, "That may be of some help to American rice producers, who have seen prices plummet... But it won't do much to boost their credibility, or the USDA's, with foreign customers."