On the face of the development, it's just another corporate acquisition. But one particular aspect makes the whole episode all the more important and generates much public interest.
In a major development in the corporate world of billion-dollar agro-business, another big acquisition took place this month. French multinational Aventis S.A. sold out its crop science venture to another giant Bayer A.G. An Aventis press release issued on June 3, 2002, declared, "The acquisition of Aventis CropScience by Bayer was completed today after the relevant anti-trust authorities had approved the transaction."
Aventis, which had a big stake in global market of crop science, rationalised the divestment saying that the proceeds would substantially enhance the financial flexibility of Aventis to further strengthen its pharmaceutical business. On the face of the development, it's just another corporate acquisition. But one particular aspect makes the whole episode all the more important and generates much public interest.
Aventis CropScience was involved with StarLink, a genetically modified corn seed that shook the world of agro-biotechnology at the end of the last millennium, both because of the prospects it ushered and risks it involved for mankind as a whole. Aventis CropScience developed StarLink corn containing Cry9C protein derived from a strain of common soil bacteria, Bacillus thuringiensis (Bt), and licensed the technology to a number of corn seed companies. The genetic manoeuvering was justified as the StarLink apparently proved to be resistant to European stem-borer that has been causing havoc to overall corn production.
StarLink corn seed was registered and annually renewed for domestic animal feed and non-food, industrial use in the USA in 1998, 1999 and 2000.
The US registration was later withdrawn in mid-October, 2000, following public uproar over alleged health hazards of the corn. In November 2000, at least 44 Americans complained of illness after having food containing StarLink corn. Of the 44 people, 13 went to a doctor for treatment. In a letter to the then US President Bill Clinton, Congressman from Vermont, Bernard Sanders wrote on October 27, 2000 -- "I urge you to make certain that the EPA [Environmental Protection Agency] does not retreat under the latest assault from the biotechnology industry. Not only should StarLink corn not be approved retroactively for human consumption, but the companies who have violated the law should be held fully accountable for any losses suffered by farmers and food producers. This is an issue of enormous consequence, and one that the American people are deeply concerned about. The United States government must make certain that the food consumed in this country is absolutely safe."
In January 2001, Japan asked explanation from the USA for StarLink contamination in corns shipped to that country. After traces of StarLink corn varieties were detected in samples of US corn shipped for food use to Japan, the biggest importer of US corn, Aventis announced it would give compensation to the farmers. Because of contamination caused by pollen drift, Aventis had to compensate even the neighbouring corn farmers who did not necessarily plant the StarLink variety. This cost Aventis at least one billion US dollars. It was reported in the press that Chairman of Aventis CropScience world-wide, Alain Godard, asked Maurice Delage, President of Aventis CropScience USA, Ed Makowski, Vice President of market development, and Karen Weiner, General Counsel, to resign to "restore confidence" in the wake of the StarLink debacle.
The issue of much talked about genetically modified corn variety, StarLink, again comes into fore with the Bayer taking over Aventis CropScience. US State of Iowa, one of the largest producers of corn in the world, took most of the burn as the StarLink backlash saw a slump in US corn export over the last two years.
Of late care in managing genetically modified corn is paying off for Iowa's corn growers, and the Iowa Corn Growers Association (ICGA) is urging Iowa's corn producers to continue good stewardship efforts to manage biotechnology decisions during the upcoming growing season.
"Japan's corn processing industry is now talking about resuming purchases of U.S. corn this spring because of their renewed confidence in U.S. corn shipments," reports Rod Williamson, ICGA director of research and regulatory affairs. "That's a 140 million bushel market we lost in 2000 over the StarLink issue. Now that these important customers are coming back, we want to be sure Iowa keeps up its good stewardship of biotechnology." He noted that one of the biggest fears a year ago was that corn markets could see a repeat of StarLink problems: "That didn't happen, in part because many growers took steps to manage biotechnology well. There's more to be done, but this initial progress is very good news. "We care about our customers, and we are committed to maintaining our reputation for producing the best and most reliable corn crop in the world. That's why we're reminding everyone this year to continue improving their management of this technology. "
Genetically modified corns look exactly like the original ones.
To help growers manage biotechnology decisions, the ICGA and the Iowa Corn Promotion Board (ICPB) have published a practical reference guide that includes the approval status of corn hybrids, internet addresses for seed companies and major corn users in Iowa, a biotechnology management map, testing information and legal guidelines to help producers manage their decisions.
"Thousands of Iowa corn growers and every Iowa elevator have already received this booklet for free," said Williamson. "Whether you plant conventional or biotech corn hybrids is an individual decision, but we hope every Iowa grower who's considering biotech hybrids will review this information before putting seed in the ground," he concluded. People concerned by StarLink fallout, are now assured that with the Bayer acquiring the Aventis CropScience, all pending issues involving StarLink still remains with the Aventis S.A.
Soon after the official acquisition of the Aventis CropScience, The Daily Star tried to contact both the companies to know about the fate of StarLink. Responding to a query in this regard, John Abrams from Aventis Corporate Communications' New York Office wrote in an e-mail message, "the liability for StarLink remains with Aventis. It was not transferred to Bayer." In a separate e-mail message, Gunter Forneck from Bayer's Corporate Communications division wrote, "Referring to your question on StarLink I would like to point out that neither the product nor any potential liabilities were part of the acquisition."
When The Washington Post journalist Marc Kaufman wrote a piece describing how the StarLink, released for feed-use only, got into the food chain, the revelation jolted awake the US food safety regulators. StarLink is often referred as an issue that exposed weaknesses of the US regulatory system.
United States leads in GM (genetically modified) crop production representing two thirds of world GM acreage. Twenty-six percent of corn, 68 percent of soybean, 69 percent of cotton, 55 percent of canola in the US are genetically modified.
While US is advancing in great stride with GM research and expansion, one of the largest economic block on globe, Europe, prefers to maintain a conservative line stressing more on the need for mandatory labelling of foods derived from GM crops. On the other hand, third world developing economies have neither the money nor the technical know-how to invest in and pursue agro-biotechnology.
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