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EU Demand for GE Free Animal Feed Soars

EU Demand for GE Free Animal Feed Soars

"As long as there are plenty of competitively priced soybeans and soybean
meal from South America, European livestock
producers seem willing to absorb the cost of feeding non-GMO meal, which
runs less than 1 percent higher than conventional feeds". AgJournal, May 30,
2001

EUROPEAN DEMAND FOR NON-GMO SOYBEAN MEAL SOARS
May 30, 2001
AgJournal (UK)

Growing demand for meat products produced without livestock feed
containing genetically modified organisms (GMOs) has pushed demand for
soybean meal certified as GMO-free to between 20 and 25 percent of the
European Union (EU) market.

...Sources in the compound feed industry say the present demand for
certified non-GMO soybean meal has grown from nearly zero in
only 12 months, with the expectation of further increases in the coming
year. Most of the demand is for poultry and pork feed.

Nearly 50 percent of all soybean meal consumed in the EU is obtained from
regions where planting of Roundup Ready soybeans is prohibited - 44 percent
from Brazil alone. Since the demand for certified non-GMO soybean meal
accounts for only half is what is readily available in the EU, no additional
imports of certified meal are required. Premiums for certified non-GMO
soybean meal remain low - between US $1.50 and $4 per ton and generally
only cover the cost of testing the meal for genetically modified proteins, says
William George of FAS. Despite assertions that consumer preference is driving
the trend toward GMO-free meat products, European consumers appear reluctant
to pay premiums for such products. As long as there are plenty of competitively
priced soybeans and soybean meal from South America, European livestock
producers seem willing to absorb the cost of feeding non-GMO meal, which
runs less than 1 percent higher than conventional feeds.

"However, continued growth in demand for non-biotech soybeans could
eventually have a negative impact on U.S. soybean sales to the EU," George
says. "Already we are beginning to see interest by some exporters to meet
this growing demand. As an example, India, which does not allow planting of
biotech soybeans, has recently sent a delegation to the EU in order to
promote its non-biotech soybean meal."

AgJournal reports on how weather, government policy and cultural
dynamics around the world affect agricultural trade.

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