Date: 19 August 2002 10:51
Subject: ngin: Monsanto admits "numerous problems" with transgenic pest control/Monsanto scales down GM food hopes

Norfolk Genetic Information Network (ngin),
http://www.ngin.org.uk
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Monsanto's patents admit transgenic pest control (as in Bt corn and Bt
cotton) "may not be desirable in the long term" because it produces
resistant strains and "numerous problems remain...under actual field
conditions". (quotes from item 1)

1. GM plants no panacea
2. Monsanto scales down GM food hopes
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1. New Scientist August 17, 2002 Vol. 175; Pg. 22
GM plants no panacea
Barry Fox

Opponents of GM technology will surely pounce on new patents from the US
agrichemicals company Monsanto which admits that genetically engineering
plants to resist pests is not a panacea. Novartis has already had doubts
(New Scientist, 18 December 1999, p 5) and now Monsanto's patents (W0
02/28184/5) admit even more frankly that transgenic pest control "may
not be desirable in the long term" because it produces resistant strains
and "numerous problems remain...under actual field conditions". So
they're going for a belt-and-braces approach. Monsanto will now
bioengineer maize to release endotoxins, but also treat the maize seed
with the pesticides clothianidin and thiamethoxam. This, says Monsanto,
has a synergistic effect with the endotoxin, giving increased resistance
to corn rootworm.
---
Monsanto scales down GM food hopes

LONDON, Aug 19 (Reuters) - U.S. biotechnology company Monsanto (MON)
accepted it could take until at least 2005 to gain regulatory approval
in Europe or Brazil for its genetically modified products, the Financial
Times said on Monday.

Chief Executive Hendrik Verfaillie told the paper Monsanto needed to be
more transparent about its growth assumptions.

"We are assuming no progress in Europe until 2005...We are trying to be
conservative. It is better to under-promise than under-deliver, I have
learned. I don't like earnings revisions, they are painful," he said.

The paper said Monsanto's difficulties in the face of hostility from
environmental groups to GM foods and the pressures on governments to
stop their production could prompt rivals such as DuPont (DD) and
Syngenta (SYNZN) to rethink plans for expansion outside the U.S.

More than a dozen genetically modified crop varieties have been in
regulatory limbo in Europe since 1998 when six European Union
governments, led by France, said they would not allow any new
genetically modified organisms into the 15-nation EU until tough rules
on testing, labeling and tracing were put in place.

Companies such as Monsanto have been waiting for years to know whether
their new strains of modified maize, soy and cotton can be sold in the
EU.

Separately, the chief executive addressed fears of a further writedown
of its Latin American operations.

"We have taken very aggressive actions and believe these will be
sufficient," he said.

Monsanto is also trying to manage the decline of its flagship product,
RoundUp herbicide. It warned that if the falls in price or volume of
RoundUp "deviate significantly from our previous experience, we will
need to consider additional changes to our business model".

Monsanto's parent Pharmacia, the U.S. drugs company, last week spun off
its 84 per cent stake in the group to its shareholders.

©2002 Reuters Limited.