Food firms launch Brazil GMO-free grain group

Reuters

Tue Sep 9, 2008

SAO PAULO, Sept 9 (Reuters) - Brazilian soy producers and processors launched an association on Tuesday that will guarantee grains and feeds free of genetically modified organisms to meet demand in Europe, the firms said.

Abrange, which stands for the Brazilian Association of Non-genetically Modified Grains, aims to become the world's premier supplier of GMO-free soy and avoid a repeat of last year's shortfall of supplies to Europe.

The European Union imports a total 36 million tonnes of soy and meal each year sourced from both GMO-free and transgenic grain and Brazil alone supplies more than half of its needs.

"A few years ago we spotted a gap (in the market) to work with non-transgenics, and with the association we want to make it clear as long as Europe wants to buy them, we're here to grow them," said Abrange President Cesar Borges da Sousa.

Andre Maggi -- the world's largest soy producing group, the local grain crushing group Caramuru, Imcopa, Vanguarda and Brejeiro make up association.

Abrange estimates European Union demand for unmodified soy and meal at 20 percent of the bloc's total imports, equivalent to 7 million or 8 million tonnes annually. Between them the five firms handle around 6 million tonnes of unmodified grain a year.

Some of the firms also work with genetically modified varieties of the grains but say unmodified produce must be sold at a premium to cover additional costs of keeping it separate during transportation and storage and to motivate growers. (Reporting by Roberto Samora; Translation by Peter Murphy; Editing Reese Ewing)

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