Scats GM seed

NGIN press release: for immediate release [1 March 1999]

US corporate link up with UK co-op rings GM alarm bells

Opening the door to seed-market control

• One of the UK’s largest agricultural co-operatives has announced
agreement 'in principle' for a joint venture with a major American
agrochemical and seed distributor. The projected new company will supply
seed to farmers in the south of England, the West Country and the south
Midlands. It is feared that the new venture could pose a threat to the
long term availability of GM-free seed in the UK.

• Multinational agrochemical businesses are now investing heavily in the
genetic engineering ('biotechnology') of agricultural crops, and as a
result need access to existing seed businesses across the globe both to
apply their techniques to existing agricultural plant varieties[1] and
to facilitate the aggressive marketing and distribution of their biotech
products to farmers worldwide.

• The new venture in the UK will be known simply as SCATS Agriseeds
Ltd[2]. It involves a 50-50 deal between Southern Counties Agricultural
Trading Society (SCATS) and United Agri Products (UAP). UAP is the 'crop
protection' business of the worryingly named 'ConAgra',
(http://www.conagra.com/) a publicly quoted US multinational
agribusiness with a turnover of $24 billion in 1997.

ConAgra, together with Monsanto/Cargill and Novartis, was recently
identified, in a University of Missouri study on behalf of the National
Farmers Union in America, as an “agribusiness goliath” - one of the big
alliances, formed through links such as joint ventures, which are
positioning themselves to dominate world food production at the expense
of both farmers and consumers.[3]

• In announcing the deal in a letter to its customers SCATS explain
their decision by saying: "Technological changes in seed production are
being driven by the agro-chemical manufacturers who now own many of the
plant breeders."[4]

• ConAgra lists UAP's agricultural distribution services as including,
along with seeds and agrochemicals: “Advanced biotechnology products and
services” [5]

• UAP (http://www.uap.com) says it "works cooperatively with ConAgra to
aggressively develop global agricultural business relationships,
focusing efforts in nations where our expertise and business
relationships facilitate entry into new markets."

• The fact that an important UK seed business is now becoming involved
in a direct relationship with a major distributor for large agricultural
genetic engineering companies is a matter of considerable concern, as it
could jeopardise the long-term availability of non-genetically modified
seeds.

• Whether or not SCATS (http://www.scats.co.uk/) are aware of them, the
reasons why their non-GM seed supplies could be under threat are as
follows:

1. Biotechnology companies prefer to issue GM seeds because they are
subject to patent, enabling them to apply additional contractual
obligations on farmers (such as insisting on the purchase of only their
chemicals for use on the crop).

2. Farmers are not allowed to save their own seed from GM crops, and so
have to go back to the seed house for on-going supplies whether they
want to or not. This gives the biotechnology companies much greater
control over seed prices.

3. Independent trials in both the US and the UK show that genetically
engineered crops are in fact often producing lower yields than
conventional varieties (more information available at our web site
http://members.tripod.com/~ngin/farming.htm).

Biotechnology companies, therefore, do not like having these crops
compared with superior performing traditional varieties. Control of
existing seed houses enables such comparisons to be hidden by halting or
slowing development of non-engineered varieties.

• Agribusiness giant Novartis has already threatened to withdraw the
supply of non-GM sugar beet seed to the Republic of Ireland in the face
of resistance to the development of GM varieties, warning: "Given the
importance of Novartis on the Irish market, this would have serious
implications for the Irish sugar beet industry." (see
http://www.xs4all.nl/~ceo/observer1/blackmail.html)

• Ironically, SCATS was formed in 1907 by a small group of farmers to
combat price rings in local livestock markets. Jonathan Matthews of
NGIN commented, “It’s quite extraordinary that a co-operative that was
formed to protect farmers from sharp practice, could now unwittingly
serve as a conduit for seed-market control. As far as farmers are
concerned, it looks like David just teamed up with Goliath!”

Media contact:

• Jonathan Matthews - Tel: 01603 624021/01603 625188 (home)
NGIN - Norfolk Genetic Information Network
26 Pottergate Norwich NR2 1DX
Fax: 01603 766552
E-mail: mail@icsenglish.com
Website: http://members.tripod.com/~ngin/

• SCATS can be contacted on 01962 875200. More information on the new
SCATS deal is also available at http://www.scats.co.uk/News/scatuap.html

Notes

[1] In 1998 the biotechnology giant Monsanto spent $6 billion dollars on
seed businesses around the world including the purchase of the UK's
Plant Breeding International Cambridge Ltd. from Unilever.

[2] It will operate from SCATS' existing Larkwhistle Arable Centre and
seed plant at Micheldever, Hampshire. It will commence trading in spring
‘99.

[3] In the University of Missouri study on behalf of America’s National
Farmers Union, ConAgra was identified as being one of three food
"clusters' which will dominate world food production in the future,
“deciding who eats and reducing farmers to day laborers.” According to
a Reuters report (WASHINGTON, Feb 11th 1999), the NFU say their study
shows these clusters are expected to “grow ever-bigger and intertwine to
direct each step of the food chain from seed to the grocery shelf.”
Such “clusters” according to the report are formed through joint
ventures, partnerships, acquisitions, contracts and side agreements.
These links can involve even comparatively small operations. The other
two “clusters” identified in the report, in addition to Conagra, are
centered on Cargill/Monsanto and Novartis. Copies of the Reuters report
available.

[4] Copies available. In the letter SCATS' chairman Andrew
Christie-Miller goes on to say: "It is therefore essential that SCATS
has a joint venture with an international agrochemical distributor such
as UAP, which has proven and established relationships with all the key
manufacturers."

[5] The full lists is as follows:
*Crop protection chemicals
*Fertilizer products
*Seeds
*Pesticides
*Advanced biotechnology products and services

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