Economic Calendar

Wednesday, February 11, 2009

West Australia May Allow GM Canola Production After Trials

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By Madelene Pearson and Jason Scott

Feb. 11 (Bloomberg) -- Western Australia, the nation’s largest grain growing state, may start commercial production of genetically modified canola as long as trials are successful, state Premier Colin Barnett said.

The state approved its first commercial trials of so-called GM canola last year and will allow them to go ahead on 1,000 hectares (2,470 acres), involving 20 farms in 2009.

“If the trials are conducted successfully and show that you can stop contamination for those that want to remain GM-free, and I think that will be demonstrated that it can be done, then I would expect GM canola would be in production,” Barnett said in an interview in Perth. The likelihood of commercial scale development in the state is “very strong”, he said.

Australia, the world’s third-largest canola exporter, began growing GM canola in the most recent harvest after bans on the crop were lifted in Victoria and New South Wales. An easing of state bans on GM canola paves the way for Monsanto Co. and Bayer AG to expand seed sales.

The bulk of local farmers are supportive, Barnett said.

“There are some concerns and there will always be a group that will object to GM products,” he said. “West Australians are basically large farmers, broad-acre farmers, and to remain competitive they will need to use GM strains.”

To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net; Madelene Pearson in Melbourne on mpearson1@bloomberg.net




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