http://www.news.scotsman.com/latest.cfm?id=2056304

The Scotsman

Thu 16 Oct 2003 12:54am (UK)

Anti-GM Campaigners Scent Victory after Monsanto Pull-Out 

By Sherna Noah, PA News 

 
Anti-GM campaigners have welcomed a decision by biotechnology giant Monsanto 
to pull out of the European seed cereal business.
 
 The announcement came as the Government prepares to publish its report into 
GM crop trials and its effects on the environment and wildlife.
 
 Monsanto, the huge US company which has pioneered GM crops, issued a 
statement which announced its "intention to exit from its European cereal 
seed business".
 
 The closure of the firm's multimillion research operation in Trumpington, 
Cambridge, is expected to result in the loss of up to 80 highly skilled jobs.
 
 Friends of the Earth (FoE) hailed the announcement as a victory for anti-GM 
campaigners.
 
 The company blamed the failure in the growth of a market in hybrid wheat 
seeds for the decision, saying it had "failed to materialise".
 
 Operations in France, Germany and the Czech Republic will also be affected by 
the closure, and follows a broadside this week at GM companies by EU 
Environment Commissioner Margot Wallstrom.
 
 She accused US bio-tech companies of "trying to lie" and "force" unsuitable 
GM technology on to Europe.
 
 Monsanto said it will immediately begin to seek a buyer for all or parts of 
its cereal seed business and that the company had entered into a consolation 
process with trade unions, employee representatives and affected staff.
 
 It said it intended to move its crop protection and oilseed rape business to 
a new base in Cambridge.
 
 Monsanto UK's general manager Jeff Cox said: "Monsanto will remain in the UK 
as a streamlined crop protection and oilseed rape business, with our flagship 
plant protection product - Roundup - continuing to lead the market.
 
 "These changes, while always difficult, should position the company for 
success in the years ahead."
 
 The company said the move was a "strategic decision by Monsanto's corporate 
management to realign the company's core businesses" but anti-GM campaigners 
said they believed the decision was related to the GM controversy in Europe.
 
 FoE anti-GM campaigner Pete Riley said: "This means that Monsanto has no 
intention of introducing GM wheat or barley into Europe which is pretty good 
news.
 
 "It is a further sign that they have misjudged the market and are having to 
cut costs to keep their business afloat.
 
 "This is good news for the European population generally. They have tried to 
dress this up as corporate rationalisation, to cut costs, but the fact is 
they set up the operation in Cambridge five years ago with the clear 
intention of introducing GM wheat and barley into Europe. This has been a 
pretty abject failure."
 
 But Mr Cox said: "We've made great progress over the past few years in 
realigning the cereals business to make it more competitive in a much tougher 
European seed market.
 
 "While our lack of success in hybrids means this is no longer a good 
strategic fit for Monsanto, the changes we've made could make it a great 
addition to another company's portfolio."
 
 Only two companies - Syngenta and BayerLifeScience - are now involved in GM 
crops in Britain.