Bank predicts gm failure - farmers weekly

24 December 1999 Bank predicts GM failure _BY FWI STAFF_ A TOP investment bank is reported to have warned that the biotech revolution faces failure, with consumers around the world turning

against genetically modified food. _The Express_ claims Credit Suisse First Boston believes the development of genetically modified organisms is suffering from “negative momentum”. After

surveying consumer reaction to GM foods, the bank concludes: “The march of progress with GM crops no longer appears inevitable to us.” Briefings by bank analysts say food manufacturers are

afraid of the technology, and environmental groups are setting the agenda. They warn: “If anyone is in control, it appears to be environmental groups.” These revelations are the latest of a

series of blows to hit the biotech industry. A number of biotechnology are currently facing multibillion-dollar litigation in the USA. A collection of farming and environmental groups

bringing the case claims GM technology has been rushed into commercial use without adequate testing. Several days ago sciences giant Monsanto merged with pharmaceutical company Pharmacia and

Upjohn. In the deal part of Monsantos controversial agricultural unit, which has which has been a strong advocate of GM crops, will be spun off. Many observers see this as a crushing

verdict on biotechnology. While resistance in Europe and Japan to GM crops has been strong for some time, opposition has recently grown in North America, where GM technology had been more

readily accepted. The Credit Suisse warning follows a similar report by the influential Deutsche Bank earlier this year. Credit Suisse does believe GM technology will have along-term future

if it can offer consumers proven benefits. In its editorial , which has long called for GM foods to be removed from shops, claims the report is “a shoppers victory.” It adds: “It is

irresponsible for any company to promote GM foods until the long-term effects of this technology are known.” The newspaper says at the very least GM foods must be properly labelled.