New report calls for end to GM moratoriums

The non-GM chickens may be coming home to roost for Australian states that have imposed moratoriums on the commercialisation of biotech crops, with a new report commissioned by the federal government warning of the consequences for Australian agriculture if the bans continue.

An industry taskforce has called on the states -- including NSW, Victoria, South Australia and Western Australia -- to lift their moratoriums immediately, or risk the loss of traditional markets for its agricultural products to lower-cost competitors that have embraced GM technology.

The report, Changing our Future -- agricultural and food policy for the next generation, was prepared by the Agriculture and Food Policy Reference Group for the federal agriculture minister, Peter McGauran.

In the report, the expert group, which was headed by National Farmers Federation (NFF) president Peter Cornish, said the agricultural sector and its individual businesses must continue to innovate, evolve and adapt. "Not doing so would mean a rapid decline in profitability, sustainability and the sector's contribution to the well-being of country communities and the nation at large," it said.

In a section on agricultural biotechnology, and international trends in the adoption of GM crops, the report noted that genetic modification was one of a spectrum of modern biotechnologies.

"Commercial use of GM crops is increasingly rapidly, with 81 million hectares cultivated globally in 2004, a 20 per cent rise from 2003.

"Most traits commercialised to date cover insect resistance and herbicide tolerance. However, many more are under development, including crops to withstand salinity and drought, more nutritious feed crops and foods that contain specific nutrients that are important for human health, such as vitamin A and omega-3 fatty acids.

"The National Biotechnology Strategy has identified the importance of capturing the potential benefits to Australia of agricultural biotechnology. Unfortunately, the lack of informed public debate has stalled progress in GM technology in Australia and hampered the development and application of agricultural biotechnology more broadly."

National policy undermined

The report noted that Australia has one of the strictest regulatory regimes in the world for agricultural biotechnology, yet the only GM crops currently grown in Australia are cotton and carnations.

It said state and territory governments, by legislating to varying degrees against growing GM crops, had undermined the national approach to gene technology regulation, and imposed substantial costs on farmers.

It estimated that if the moratoriums continued, while Australia's agricultural competitors continued to adopt GM crops, Australia would forfeit potential gains of between $1.5 billion and $5.8 billion by 2015. "Although proponents of GM crop moratoriums claim there are marketing advantages in being GM free, there is little evidence that price premiums can be gained from segregating GM and non-GM canola, and GM products appear to be finding ready markets.

"The United States, Canada and Argentina -- major competitors of Australia in the global grain market and substantial producers of GM crops -- have all maintained their global market shares."

The report said the capacity of Australian farmers to remain globally competitive was "unquestionably threatened by continued bans and restrictions on cultivating GM crops. "For example, the prospect of new North American developed wheat varieties could threaten Australia's historically strong position in Asian markets."

Investment in vital agricultural R&D had been withdrawn from Australia, and researchers had moved overseas, further benefiting Australia's competitors.

"Because of the long lead time required to adopt innovations to local conditions, Australia cannot simply import GM technology at some later stage," it said. "Australia will need to design GM crop varieties that reflect our unique environmental factors, pest and disease challenges, and market requirements."

Benefits

The report recommended that governments give higher priority to communicating the benefits of current and emerging agrifood biotechnology, and to publicising the robustness of the regulatory regime.

It recommended that agriculture and food business work with governments to facilitate rapid uptake of agrifood biotechnologies that would contribute to better health, a cleaner environment and more globally competitive industries.

And it recommended that the states should lift their moratoriums on the commercial use of GM crops immediately, work with the Australian government, industry and researchers to achieve national traceability systems and tolerance protocols, and to clarify legal liability over the use of GM organisms in agriculture and food products.