NEWS for North Dakotans
Agriculture Communication, North Dakota State University
7 Morrill Hall, Fargo, ND 58105-5665
February 10, 2000
Biotechnology is making it possible for scientists to take a gene or even a portion of a gene from one organism and insert it into a chromosome of another unrelated organism and create a genetically modified organism (GMO). For production agriculture, this new technology has already produced genetically modified (transgenic) crops that can resist certain insects or tolerate select herbicides and thus alter a farmer's pest-control strategies.
But this new technology has opponents along with its proponents, within the scientific and business communities as well as the general public. As the GMO debate continues, North Dakota producers should be following the developments and deciding if the technology has a place in their operations, says a specialist with the North Dakota State University Extension Service.
"Two simple questions will basically determine whether a producer will adopt a new technology," says Duane Berglund, extension agronomist at NDSU. "First, does the technology work? And second, will it make money? From a farmer's perspective, technology is successful only if it is profitable."
Input traits designed to protect and enhance crop yields represented the first wave of biotechnology. The second wave of biotechnology involves output traits, Berglund says.
Research is under way to create transgenic crops that will serve as renewable energy sources or be capable of supplying products with other industrial applications, Berglund explains. In addition, genetic engineering is producing "nutraceuticals"--plants blending conventional nutritional features with a health-enhancing attribute. Carotene-enriched rice is one such example.
"Some see biotechnology as a way to use plants to produce vaccines and other medicines," Berglund adds.
On the other hand, some opponents view GMOs as proof that science has taken a step too far, and they have dubbed some of the GMO products "Frankenfoods." In Europe, opponents such as the international environmental group Greenpeace have succeeded in getting consumer labels placed on foods with more than 1 percent GMO content, Berglund says. Discussions on similar proposals are under way in Japan, Korea, Australia and New Zealand. And in Montreal at the end of January, UN-sponsored negotiations resulted in an international trade agreement that requires labeling export shipments containing GMO commodities.
"The GMO issue has been driving some interest in the organic market, but it's a little early to see how all this will shake out," says Brad Brummond, NDSU extension agent in Walsh County. In addition to his job with the NDSU Extension Service, Brummond is an advisor to organic farmers and has done some organic gardening. In general, certified organic products must be grown on farmland that has been free of commercial pesticides and fertilizers for at least three years.
Consumers are turning to organic products because of the commingling of GMO and non-GMO crops, Brummond says. Commingling is unlikely to stop unless a market develops for non-GMO products, and the only way a market will develop is if those products begin fetching a premium, compared to prices for GMO products.
"Is there going to be a non-GMO niche there? At this point, no one really has a definitive answer to that question," Brummond says. "The interest in non-GMO products could just be a passing fad, and we might just end up having it the way it's always been, with two markets, one for organic foods and one for foods produced with the aid of commercial inputs. One thing is for sure, though, and that is that producers are going to need to stay on top of this issue to see what type of marketing opportunities develop."
There are some U.S. grain traders bidding on non-GMO products, Brummond says, but most of those commodities are destined for overseas markets. Meanwhile, another reason the U.S. market for organic products is growing is because of the strength of the domestic economy, he says. Organic products typically sell for a premium compared to non-organic foods.
N.D. Pasta Processor Expanding Line with Organic Products
Dakota Growers Pasta Company in Carrington, N.D., is a producer-owned cooperative that began operations in the mid-1990s. Initially, Dakota Growers produced a line of organic pasta products but gave it up due to its low sales volume, says Tim Dodd, the company's president and general manager.
But now the organic market is showing more promise, enough so that the co-op is looking to its membership and to non-members for organic durum. In recent weeks, the co-op has been seeking non-members willing to produce certified organic durum under contract. Dodd says the company will initially focus only on organic certification and not require specific varieties. In other words, the co-op has no plans at present to begin an identity-preserved (IP) program for its organic durum purchases.
"As a market trend, we're seeing more concerns from our customers, and they're hearing it from the consumers, about GMOs not really having a healthy reputation," Dodd says. "What we plan to do is to introduce organic product into the private-label sector--the store brands--and then also down the road, we'll probably introduce it in our own label."
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Sources: Duane Berglund (701) 231-8135
Brad Brummond (701) 284-6248
Editor: Dean Hulse (701) 231-6136