Monsanto to Quit Europe

In the wake of hundreds of public meetings at which a majority of UK citizens said 'No' to genetically modified crops, the American pioneer of GM foods announced it is pulling out of the European cereal business. Monsanto, the largest GM seed company in the world, said it no longer sees "a good strategic fit" for the company’s hybrid seed research in Europe. Anti-GM campaigners are calling the pull-out a victory for their cause. In recent years, GM foods and crops have been a strong point of contention for American companies wanting to do business in Europe, where the general population is generally suspicious of genetically modified foods. – YaleGlobal

Mark Oliver

Thursday, October 16, 2003

Monsanto, the world's largest GM seed company, is pulling out of the European cereal business in a surprise move that raised hopes of victory among anti-GM campaigners.

The firm, the American pioneer of GM, confirmed yesterday that it is to close European cereal business headquarters at Trumpington, Cambridgeshire, which employs 125 people.

The decision follows the failure to introduce genetically modified hybrid wheat to Europe, and the company has decided to cut costs.

Monsanto bought the business from Unilever in 1998 at a time of high optimism for GM, when wheat was considered the big money spinner.

The company said yesterday that the growth in hybrid wheat had "failed to materialise".

Jeff Cox, Monsanto's general manager, said: "We've made great progress over the past few years in realigning the cereals business to make it more competitive in a much tougher European seed market.

"Our lack of success in hybrids means this is no longer a good strategic fit for Monsanto."

The company is reorganising its UK herbicide oil seed rape operations. Breeding stations in France, Germany and the Czech Republic will also be affected.

Monsanto announced its decision on the eve of today's publication of the results of the government's farm-scale evaluations of GM crops.

A mixed verdict on the technology is anticipated in what is being seen as a crucial part of the government's research into whether to allow commercial GM crops.

It also follows last month's confirmation of unease among the public when the widest formal public debate ever conducted in Britain found that an overwhelming percentage of people were uneasy, suspicious or hostile to GM crops.

More than 650 public meetings were held around the country and about 37,000 people responded to questionnaires, with 54% saying they never want to see GM crops grown in the UK.

Pete Riley, of Friends of the Earth, said the firm was "pulling out after five years with no products to show and no test sites for Monsanto GM cereals in Britain this year."

http://www.guardian.co.uk/gmdebate/Story/0,2763,1064024,00.html