Summary

Because of the severe drought which cut South American soybean production this year by over 20 mmt the EU will need to import large amounts of soybeans and soymeal from the U.S.  However, that will not be possible unless the EU changes its policies quickly to allow imports containing trace amounts of unapproved corn events.

Analysis

 
The European Union (EU) has for many years been skeptical of biotech crops. Despite overwhelming scientific evidence that approved biotech crops are safe for human consumption and positive for the environment the EU has been spooked by anti-biotech opponents into denying the availability of biotech crops to EU farmers. It also has been slow to approve the importation and consumption of biotech crops for use by its import-dependent livestock and poultry sectors. It also has required all food manufacturers to label their products if they contain any biotech ingredient. Fortunately the EU has not required meat, eggs, and dairy products to be labeled if they were produced with biotech feed ingredients.
 
The EU also has a policy of denying the importation and consumption of any product containing any biotech product not approved for consumption in the EU. This zero tolerance policy for unapproved events has prevented EU feeders from importing U.S. corn since the EU has lagged behind the U.S. in approving biotech corn events. However, the EU feed sector has been able to meet its feed ingredient requirements by using EU-origin grains or by importing corn from Brazil. Up until now the EU has not had a problem with soybeans because it has approved all biotech soybean events produced in the U.S.
 
The EU now has run into a major problem because of its zero tolerance policy for biotech events. That is because government inspectors in Germany and other countries have analyzed samples of soymeal made from U.S. soybeans and found minute amounts of unapproved biotech events. This has forced a stoppage of approximately 200,000 mt of U.S. soybeans and soymeal that was found to contain the traces of unapproved biotech events. Ironically one of the unapproved biotech corn events found in the soymeal was one which has been found to be safe by the European Food Authority, but has not yet been approved by the EU Council or Commission.  
 
In most years the EU could get by sourcing its soybean and soymeal requirements from Argentina and Brazil which are not growing biotech corn events not approved in Europe. However, this year that is not possible because of the devastating drought which reduced Argentina’s and Paraguay’s combined soybean production by about 20 mmt below that expected. Brazil’s crop also was about 3 mmt less than the year before. Therefore, this year the EU will have to source as much as 8 mmt of soybeans and soymeal from the U.S. if its animal sector is to have the feed protein it will require. There are no other alternatives for the EU other than to substantially shrink its livestock and poultry sector.
 
The EU’s food and feed industry associations are urging the EU to alter its tolerance for unapproved biotech events by establishing a tolerance level of 0.1% or greater. Yet, despite the dire consequences the EU animal feeding industry faces if it cannot source U.S. soybeans EU politicians continue to resist taking steps to solve the problem. EU Agriculture Commissioner Mariann Fischer Boel is pressing the Commission and member countries to address the problem by eliminating the zero tolerance policy, but thus far the issue has not been put on the agenda for the next EU Council meeting on September 7. Evidently some countries are prepared to let EU animals go hungry rather than be seen as in any way soft on biotechnology.
 
Most likely the EU will find a way to somehow allow the importation of U.S. soybeans and soy meal. The consequences of not doing so are just too great. However, what the EU needs to do is accept the reality that biotech crops are safe and environmentally positive and here to stay. The EU’s farmers already are losing out by not being able to grow biotech crops and it is time for the EU to join the real world and embrace biotechnology as a solution rather than a threat.

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