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Bio/Technology/Diversity Week
Produced by the Institute for Agriculture and Trade Policy
May 2, 1994
Volume 3, Number 9
CODE NUMBER: NL94028
File size: Text - 25K
No associated graphics
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HEADLINES
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- rBGH NEWS OF THE WEEK
- DNAP SIGNS AGREEMENT WITH ZENECA OVER TRANSWITCH
TECHNOLOGY
- MYCOGEN SEEKS TO FEED THE WORLD THROUGH BIOTECH
- DRUG PRICE REVIEWS PROPOSAL DROPPED
- CANADIAN BIOTECH COALITION SCORNFUL OF REGULATORY
CAPABILITY
- SUPREME COURT TO HEAR ASGROW SUIT
- MALAYSIAN GOVERNMENT CALLS FOR MEASURES TO PREVENT
GENE FLOW
- BIODIVERSITY CONVENTION IN SENATE COMMITTEE
S- HAMAN EXEC SAYS HIGH COST OF R& , PRICE CONTROL THREAT
NOT HELPING BIOTECH
- IN CASE YOU THOUGHT WE WERE RUNNING OUT OF SPECIES...
- WSJ ECHOES WISE USE ARGUMENTS
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NEWS SUMMARIES
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BIOTECHNOLOGY
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rBGH NEWS OF THE WEEK
filed by the International Dairy Foods Association (IFDA), the Grocery
Manufacturers of America (GMA), the Milk Industry Foundation
(MIF), the International Ice Cream Association (IICA), the National
Food Processors Association (NFPA) and the National Cheese Institute
(NCI), alleges that the Vermont law violates the U.S. Constitution on
two fronts: federal supremacy and interstate commerce. "The
Vermont law is bad news for consumers and (the food) industry. It
raises serious constitutional questions as well as setting the stage to
mislead and misinform consumers about the safety of dairy
products," said Jeff Nedelman of the GMA.
Supporters of the legislation countered that the Vermont law is both
enforceable and necessary. "Some very big corporations don't want
consumers to have the right to make their own decisions. They are
trying to take away a very basic right," said Joan Mulhern of the
Vermont Public Interest Group. "Vermonters are wondering 'who
are these guys who don't want us to know about BGH?'" said dairy
farmer Jenny Nelson. Vermont's attorney general said last week that
he did not know that the suit had been filed. "I am not surprised
that there is litigation over the BST issue," he said.
In addition to the lawsuit, national dairy industry groups also met
with state officials in both Wisconsin and Vermont in recent weeks to
try to head off attempts at passing labeling legislation. IFDA
President Connie Tipton cautioned that other states could follow
Vermont's lead. They warned Wisconsin Governor Tommy
Thompson that processors, dairy cooperatives and producers could
be hurt by labeling legislation. In response to the growing labeling
legislation movement, NFPA recently asked the Food and Drug
Administration (FDA) to clarify its voluntary labeling guidelines "to
assure national uniformity of any state labeling requirements."
Recently, Maine Governor John McKernan signed a voluntary labeling
bill into law. Labeling legislation is pending in Minnesota, Rhode
Island, Massachusetts, New York, Connecticut, Michigan, New
Hampshire, Missouri, West Virginia and New Mexico.
At a recent meeting of the American Society of Animal Science and
the American Dairy Science Association in Des Moines, Iowa, a
reporter for IOWA FARMER TODAY asked participants if they would
drink milk from cows treated with BST. Mike Hutjens said, "Yes, I
would ... The product is very safe and ... consequently would have no
biological impact at all." Don Otterby replied, "I have used BST-
treated milk. It's the same as milk from non-treated cows." William
Sandine told the reporter, "Absolutely. I have no problem with BST-
treated milk." And Barbara Glenn said, "Yes, I would drink BST-
treated milk. BST is a naturally occurring protein and milk contains
no more or no less of BST than it did before." The respondents are a
dairy specialist at the University of Illinois; a professor of animal
science at the University of Minnesota; the president of the American
Dairy Science Association; and the secretary of the American Society
of Animal Science, respectively.
Two processors said they will not accept milk from cows treated with
rBGH despite a decision by Agri-Mark, one of the largest dairy
cooperatives in the Northeast, to allow its producers to use the
hormone if they choose. Cabot Creamery said it will continue its
policy of not accepting rBGH milk even though Agri-Mark is its
parent company. "From the get-go, our whole tact has been we can't
afford, nor will we risk consumer concern to Cabot products," said
company Vice President Roberta MacDonald.
In addition, the Boston-based H.P. Hood company also said it refuses
to accept milk from cows treated with the drug. Hood is one of Agri-
Mark's biggest companies and is insisting Agri-Mark allow its
customers who do not want milk derived from the drug to have that
option. "We still expect them to meet that agreement," said Hood
marketing director Peter Minasian, referring to a letter sent out
earlier this year by Agri-Mark which assured customers of an rBGH-
free milk supply. "We've been in business for 140 years ... We hear
that the most outstanding feature of Hood is consumer confidence in
the brand. I will do nothing to jeopardize that trust," he added.
In Boston, purchasing groups for 32 school districts say they will not
buy milk from processors who are accepting milk from farmers
treating their cows with rBGH. "We're asking dairies to certify and
give us a price for milk that does not have the hormone," said Bette
Thompson of an 18-district food service directors group. The Tri-
County Cooperative, which covers an additional 134 districts, said it
has made similar bid requests for the 1994-95 school year.
Ernestine Hooper, a food service director, said, "Whenever anything
is added to anything, we find out about five years down the road
that, oops, something's wrong. You've got a good product ... why not
leave it alone?"
And hot off the press is an announcement by two Minnesota-based
processors that they will begin marketing a new rBGH-free fluid milk
product this week. Land O'Lakes and Kemp's Marigold said they will
be certifying their producers through a signed affidavit system. The
Marigold product will bear a label on the carton which contains the
FDA contextual language; Land O'Lakes will be placing signs in the
dairy sections where their product is sold. A Monsanto spokesperson
said the company was "disappointed" about the move.
When questioned recently about the two pending lawsuits against
Swiss Valley and the Pure Milk and Ice cream Company by
Monsanto, a Monsanto spokesperson said the two dairies "falsely
imply to consumers that labeled products are safer, more wholesome
and in other ways superior to milk from BST-supplemented cows."
The Land O'Lakes product is called Superior; the Marigold product is
called Select.
Source: Wilson Ring, "Suit Challenges BST Labeling," BURLINGTON
FREE PRESS, April 26, 1994; "BGH labeling Law Supporters Respond to
Lawsuit," VPIRG PRESS RELEASE, April 28, 1994; Joel McNair,
"Lawsuit Likely Over Vermont BGH Labeling Rule," AGRI VIEW, April
22, 1994; "Washington Report," DAIRY PROFIT WEEKLY, April 18,
1994; "States Weigh BST Labeling, Industry Seeks FDA Guidance,"
NUTRITION LABELING WATCH, April 25, 1994; "Ag Scene," IOWA
FARMER TODAY, April 22, 1994; Rose Sneyd, "Cabot Shuns Bovine
Hormone," BURLINGTON FREE PRESS, April 20, 1994; John Dillon, "H.P.
Hood Says No BGH Milk," RUTLAND DAILY HERALD, April 20, 1994;
Laura Pappano, "Schools Balking at Use of Hormone in Milk," BOSTON
GLOBE, April 17, 1994; Scott Kilman, "Dairy Food Concerns Launch
Products From Cows Not Treated With Hormone," WALL STREET
Journal 1994; Anne O'Connor, "Marigold, Land O'Lakes Offer Hormone
Free Milk," MINNEAPOLIS STAR TRIBUNE, April 30, 1994; Land
O'Lakes Press Release, April 29, 1994; Paul Adams, "NFU Calls for
Monsanto Product Boycott," AGRI WEEK, April 28, 1994.
DNAP SIGNS AGREEMENT WITH ZENECA OVER TRANSWITCH
TECHNOLOGY
In April, the DNA Plant Technology (DNAP) company announced it
reached an agreement to license its transwitch technology to Zeneca,
formerly the agriculture and pharmaceutical operation of Imperial
Chemical Industries (ICI). The transwitch technology is used to turn
off the genes responsible for certain functions, such as softening and
taste in plants. Zeneca can now use the technology in creating new
plant varieties. In return, DNAP will receive an undisclosed amount
of cash plus non-exclusive global rights to Zeneca's ethylene control
technology for plants. The two technologies in tandem are
considered a formidable force in future plant biotechnology
applications.
Source: "DNA Plant Technology Signs Letter of Understanding," PR
NEWSWIRE, April 12, 1994.
MYCOGEN SEEKS TO FEED THE WORLD THROUGH BIOTECH
Citing the challenge of feeding the world's growing population,
Mycogen Corporation said the products it is developing provide one
of the solutions to world hunger. "Tapping into the diversity and
reproductive energy of nature" provides agriculture with one of its
greatest opportunities, said Mycogen executive Jerry Caulder. The
company will test market its first corn variety, which is genetically
engineered to resist the European corn borer, this year. In addition,
Mycogen will conduct large-scale trials of crop varieties which
contain the Bacillus thuringiensis (Bt) gene. Caulder said his
company will play "an important part" in the Clinton administration's
goal to have 75% of the nation's farms using Integrated Pest
Management (IPM) techniques to reduce the use of chemical
pesticides by the year 2000.
Source: Rod Smith, "Mycogen Cites 'Enormousness' of Challenge to
Feed the World," FEEDSTUFFS, April 18, 1994.
DRUG PRICE REVIEWS PROPOSAL DROPPED
In a move seen as a concession to the biotechnology industry,
Representative John Dingell (D-MI) announced last week that his
Energy and Commerce Committee is dropping a proposal to review
drug prices. The announcement apparently came in response to
pressure by Representative Lynn Schenk (D-CA), whose legislative
district contains 100 biotechnology companies. The Clinton proposal
would have established an Advisory Council on Breakthrough Drugs
to review charges of pharmaceutical price gouging. Schenk said, "The
proposal has already panicked financial markets and forced cutbacks
on research and development in the biotechnology industry." Carl
Feldbaum, president of the Biotechnology Industry Organization
(BIO), said, "Ms. Schenk has exercised extraordinary influence for a
freshman member of Congress. The ultimate winners will be the
people suffering from diseases that have no treatment or cure." A
Clinton spokesperson responded, "The administration wants to
protect consumers. We want to provide prescription drug coverage
at affordable prices to all Americans. We feel that we put forth a
good proposal to achieve this objective."
Source: Robert Pear, New in Congress, but a Powerful Friend of Drug
Companies," NEW YORK TIMES, April 21, 1994.
CANADIAN BIOTECH COALITION SCORNFUL OF REGULATORY
CAPABILITY
A coalition of Canadian organizations involved in biotechnology
issues is skeptical of the Canadian government's ability to regulate
the release of genetically engineered organisms into the
environment. The Canadian Environmental Network's biotechnology
caucus said the release of genetically engineered organisms is largely
unregulated in Canada and the group is concerned about proposed
new regulations put forth by the government.
Burkhard Mausberg of the Canadian Environmental Law Association,
which is part of the coalition, said his organization is concerned about
what they see as a conventional approach to new and radically
different technologies. The government proposal, which has been in
the works for four years, assumes that it knows the potential
dangers of some products of biotechnology. The new proposal adds
to existing legislation by attempting to fill in the biotech gaps.
Mausberg said this patchwork approach is inadequate and does not
address the real question: what is a new organism's ability to
disrupt the natural environment? Dr. Des Mahon of Environment
Canada defended the rule-making process. "All biotechnology
products will be subject to appropriate notification and assessment
processes, either under the new regulations, or through regulations
under other acts." He said if existing legislation proves to be
inadequate for regulating genetically engineered organisms, it can be
changed. Mausberg said this ignores the fundamental problem, and
that is "we just don't have the knowledge to regulate this new
technology."
Greg Cento, "Coalition Claims Biotechnology Regulations Are
Inadequate," ALTERNATIVES, Vol. 20 No. 2, 1994.
DANISH COMPANY SAYS IT HAS SOLUTION TO BIOENGINEERED
BACTERIA WORRIES
A Danish company claims it has developed a solution that will
supposedly lessen people's fears about bioengineered bacteria. The
company, GX Bio Systems, said it has developed a "death gene," which
is inserted into bacteria and tells them when to die once their job is
done. The U.S. Environmental Protection Agency (EPA) is working
with the company to develop bacteria to break down solvents. The
company is also working with the Dutch government on GX-gene
bugs, which have been detrimental to potato plants.
Source: "Bioengineering," TOMORROW, April 1994.
SUPREME COURT TO HEAR ASGROW SUIT
The Supreme Court has decided to hear the Asgrow seed company
lawsuit. Asgrow, a subsidiary of Upjohn, filed a suit against two
Iowa farmers, Dennis and Becky Winterboer, alleging they were
illegally "brown bagging," by selling more seeds derived from their
soybean crops than allowed by law. A federal appeals court ruled
last year that a legal exemption allows farmers to sell up to half of
their crops for seeds, even if the rights to the original seed are
owned by a corporation. Asgrow attorneys interpret the law as
limiting farmers to sell no more seed in any year than they had
originally purchased. Attorneys for the Winterboers characterized
the seed company as seeking a virtual monopoly on the seed market.
The Justice Department was asked by the court for its views. In
response, the department sided with Asgrow, saying the lower court
ruling "is likely to discourage the development of novel varieties of
seed to the detriment of the American public and the
competitiveness of American agriculture in world markets."
Source: "Seed Patent Lawsuit Involving Asgrow Co. To Be Heard By
Court," AGRI NEWS, April 21, 1994.
MALAYSIAN GOVERNMENT CALLS FOR MEASURES TO PREVENT GENE
FLOW
The Malaysian government recently called on developing countries to
formulate strategies to prevent the exploitation of genetic resources
by the industrialized North. In an address to the Intergovernmental
Working Group on Global Forces in Kuala Lampur last month, deputy
prime minister Anwar Ibrahim recommended that developing
countries develop strategies aimed at protecting their genetic
resources from those countries with an advanced biotechnology
sector. "Countries with advanced biotechnology have exploited the
biodiversity or range of genes of developing countries into billions of
dollars of profits without sharing them with the sovereign owners of
the genetic resources," he said. "It is ironic that the same advanced
countries which are vocal on biodiversity are highly protective of
access to biotechnology," he added.
Source: "Calls for Joint South Strategy to Prevent Genes Outflow,"
SOUTH-NORTH DEVELOPMENT MONITOR (SUNS), April 20, 1994.
BIODIVERSITY
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BIODIVERSITY CONVENTION IN SENATE COMMITTEE
Ratification of the Biodiversity Convention by the United States is
currently in the hands of the Senate Foreign Relations committee,
which is still working on the issue. Earlier this month, President
Clinton encouraged the committee to pass the convention out of
committee and on to the Senate floor. Tim Wirth, state department
counselor, said the convention "marks an unprecedented worldwide
commitment to stem the loss of the earth's species, their habitats and
ecosystems."
In testimony before the senate committee in April, Wirth said,
"Biological materials are fundamental in our industrial processes and
enable development of new products from the rapidly expanding
field of biotechnology." Wirth's statements echo the beliefs of BIO,
which sent a letter to every member of the Senate Foreign Relations
Committee in March asking them to abide by the Clinton
administration's interpretive statement. Many grassroots
organizations perceive the interpretive statement to be in the
interests of industry as opposed to indigenous communities and
endangered species. BIO asks the U.S. government to withdraw from
the convention when other nation's reach conclusions that counter
the national interests of the U.S. and it opposes the establishment of
an international biosafety protocol.
Source: "Senate Urged to Approve Biodiversity Treaty," REUTER,
April 12, 1994; Letter from BIO to Senate Foreign Relations
Committee, March 9, 1994; "Testimony of the Honorable Timothy
Wirth ...," Email communication, April 12, 1994.
SHAMAN EXEC SAYS HIGH COST OF R& , PRICE CONTROL THREAT NOT
HELPING BIOTECH
Lisa Conte, chief executive officer of Shaman Pharmaceuticals, said
the high costs associated with developing a drug and getting it to
market is certainly not helping her struggling company. Shaman is
one of the many company's now involved in bioprospecting --
seeking out and using plants known for centuries to be beneficial by
indigenous populations in the development of high-tech, expensive,
modern drugs. Currently, the company's only revenue is from a
four-year research contract with Eli Lilly. Promising clinical trials for
two antiviral drugs have Conte hopeful that her company will be able
to remain competitive. But uncertainty over whether or not the
Clinton administration will institute price controls as part of its
health care reform plan has left the stock market feeling shaky.
"I've had a lot of investors mad at me over the price of the stock, but
when we get the product to market, they'll see that this was all just a
lot of noise," she said.
Source: Richard Phalon, "Keep Your Eye on the Ball," FORBES, April
11, 1994.
IN CASE YOU THOUGHT WE WERE RUNNING OUT OF SPECIES...
The World Wildlife Fund reported recently that scientists have
discovered a new giant deer species in Vietnam. The deer weighs
90-110 pounds -- almost twice the size of any other known species
of deer. The deer was discovered in the Vu Quong Nature Reserve,
where a new species of ox was discovered in 1992. WWF said
genetic tests completed recently confirmed the deer was indeed a
new species.
Source: "Tests Show Giant Deer is a New Species," NEW YORK TIMES,
April 26, 1994.
WSJ ECHOES WISE USE ARGUMENTS
Echoing the sentiments of the so-called wise use movement, a recent
article in the Wall Street Journal criticized environmental regulation
in the form of the Endangered Species Act for protecting endangered
and threatened species at the expensive of private property. "We
are hard put to see how the species act can itself survive politically
operating as an environmentalist land grab of other people's
property," the article concludes.
Source: "Endangered Species Protection Leaves Property Rights Easy
Prey," THE LAND from the Wall street Journal, April 22, 1994.
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RESOURCES
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The Financial Times recently announced that it would publish a
survey on the BIOTECHNOLOGY REVOLUTION in the Monday, May 9
edition. The Financial Times of London can be picked up at most
major newsstands.
The March/April issue of LANDMARK, a publication of the Farmer
World Network in the U.K., examines the issue of biodiversity.
Articles of interest include "Biodiversity: A Slight Misunderstanding"
about the Green Revolution; "A Heritage Seed Program for Farmers?,"
and "Diversity in Peril." For more information about the publication,
contact Farmers World Network, Arthur Rank Centre, National
Agricultural Centre, Stoneligh, Warwickshire CV8 2LZ, Tel: (44) 0203
696969, Fax: (44) 0203 696900.
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CALENDAR OF EVENTS
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INTERNATIONAL SYMPOSIUM ON CROP PROTECTION, May 3, 1994,
Gent, Belgium. FFI, contact: Dr. L. Tirry, Faculty of Agriculture and
Applied Biological Sciences, Coupure Links 653, B-900 Gent, Belgium,
Tel: (32 09) 264-6152, Fax: (32 09) 264-6239.
18TH INTERNATIONAL SYMPOSIUM ON HIGH PERFORMANCE LIQUID
CHROMATOGRAPHY, May 13-18, 1994, Minneapolis, MO. FFI, contact:
Barr Enterprises, P.O. Box 279, Walkersville, MD 21793.
TWELFTH ANNUAL ATCC BIOTECHNOLOGY PATENT CONFERENCE, May
9-10, 1994, Arlington, VA. FFI, contact: ATCC Workshop Coordinator,
12301 Parklawn Drive, Rockville, MD 20852, Tel: (301) 231-5566,
Fax: (301) 770-1805.
BIOTECHNOLOGY AND FOOD: A PUBLIC ISSUE FOR EXTENSION
EDUCATION, May 12, 1994 (nationwide video conference). FFI,
contact: Gene Schriefer, University of Wisconsin-Madison, Tel: (608)
262-8065.
AMERICAN SOCIETY FOR BIOCHEMISTRY AND MOLECULAR BIOLOGY,
Annual Meeting, May 21-25, 1994, Washington, DC. FFI, contact:
Meeting Management by the Federation of American Societies For
Experimental Biology, 9650 Rockville Pike, Bethesda, MD 20814-
3998, Tel: (301) 530-7010, Fax: (301) 530-7014.
BIOTECHNOLOGY AND AGRICULTURE IMPROVEMENT IN DEVELOPING
COUNTRIES (theoretical course), May 21-June 2, 1994, Marrakech,
Morocco. FFI, contact: Dr. Z. Abdelouahhab, Dept. of Biology, Faculty
of Sciences, B.P.S. 15 Marrakech, Morocco, Tel: +212-4-434649, FAX:
+212-4-436769.
BIO INTERNATIONAL 8TH ANNUAL BIOTECHNOLOGY MEETING &
EXPO AND 6TH ANNUAL COUNCIL OF BIOTECHNOLOGY CENTERS
MEETING, May 22-27, 1994, Toronto, Canada. FFI, contact: BIO
International, 1625 K Street, NW, Suite 1100, Washington, DC 20006,
Tel: (202) 857-0244, Fax: (202) 857-0237.
AGRICULTURAL BIOTECHNOLOGY AND THE PUBLIC GOOD, May 23-24,
1994, East Lansing, MI. FFI, contact: NABC, 159 Biotechnology Bldg.,
Cornell University, Ithaca, NY 14850, Tel: (517) 355-0123, Fax: (517)
353-5406, Email: 18215emh@ibm.cl.msu.edu.
PRACTICAL METHODS FOR ASSESSMENT AND REMEDIATION OF
HYDROCARBON SPILLS, May 23-26, 1994, San Diego, CA. FFI, contact:
Tel: (800) 926-5923.
FIFTH GATLINBURG SYMPOSIUM: TECHNOLOGY TRANSFER OF PLANT
BIOTECHNOLOGY, May 25-28, 1994, Knoxville, TN. FFI, contact: Peter
M. Gresshof, Plant Molecular Genetics, University of Tennessee, P.O.
Box 1071, Knoxville, TN 37901, Tel: (615) 974-8841, Fax: (615) 974-
2765.
ENVIRONMENTAL BIOTECHNOLOGY, Advanced Course, May 25-June
3, 1994, Delft, The Netherlands. FFI, contact: Dr. I.L.A. van der Meer-
Lerk, Institute for Biotechnology Studies, Delft Leiden (BODL),
Kluyver Laboratory, Julianalaan 67, Delft, 2628 BC, Netherlands, Tel:
31 (15) 785 140, Fax: 31 (15) 782 355.
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Produced by: Michelle Thom, Institute for Agriculture and Trade
Policy, 1313 5th Street SE Suite 303, Minneapolis, MN 55414, Tel:
(612) 379-5980 Fax: (612) 379-5982 EMail: mthom@igc.apc.org or
mmthom@alex.stkate.edu. In addition to this news bulletin, the
Institute publishes a variety of news bulletins on agriculture, the
environment and international trade. All bulletins may be
reproduced and distributed freely without prior permission as long
as proper attribution is included. A copy of any publication in which
an IATP bulletin is cited would be appreciated.
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