Hard Times Hit Biotech Agriculture 
 
 Growing Opposition To Engineered
 Plants, Poor Economy Hurt Growers Of Genetically Altered Food Products
 
 Source: Augusta Chronicle

The companies that genetically engineer crops are bringing fewer new
varieties to market amid a slumping farm economy and growing public
resistance to biotech food.

Seed companies sought government approval for six genetically
engineered varieties in 1999, the fewest applications since 1993, and
withdrew four of them by year's end. One application has been filed this
year.

By comparison, businesses filed 14 applications with the Agriculture
Department in 1997 and nine in 1998. All but four were approved.

"Getting a new biotech crop approved is probably high on the dumb
things to do for your stock  price right now," said Alex Hittle, an
industry analyst with A.G. Edwards and Sons Inc.

Seed companies contend the slowdown has nothing to do with the
controversy over biotech food. Rather, they say, agricultural
biotechnology has reached a natural lull as companies near the end of
the first wave of development, which focused on altering crops to make
them toxic to insect  pests or tolerant of herbicides.

Commercialization will pick up again as scientists develop new
varieties attractive to consumers,  companies say. Examples they cite
include potatoes that can make low-fat french fries, and higher-
protein corn and soybeans.

"We are full bore ahead," said Michael Phillips, executive director of
food and agriculture for the  Biotechnology Industry Organization.

"We're continuing to develop products and working them through the
system," said Doyle Karr, a   spokesman for Pioneer Hi-Bred
International Inc. The crops now on the market "are bringing value  and
doing what they're supposed to be doing."

Biotech crops have become widely popular with farmers because of
increased yields. But Wall  Street has grown nervous about the future of
genetically engineered food, and small companies  are likely to find it
harder during the next few years to finance their development, analysts
say.

Unlike conventional plant breeding, genetic engineering involves
splicing a single gene or a handful of genes from one organism into
another to transfer certain traits. The most popular variety of biotech
corn carries a bacteria gene that kills insect larvae.

New crops must go through a two-stage approval process at the
Agriculture Department before they can be put on the market. Companies
have to get permission to conduct field tests and then seek permission
for commercial sales. Insect-resistant crops also must be approved by
the Environmental Protection Agency.

Publication date: Feb 13, 2000