Softly, softly, on cell technology

By SIMON COLLINS

A leading dairy expert has warned New Zealand not to rush into genetically modified dairy products.

Dr Adrie Zwanenberg, the world dairy analyst for Rabobank in Holland, told the Herald that European consumers were deserting GM products and companies.

"The American companies have made big mistakes in terms of consumer applications," he said.

"They thought, 'Oh, they will accept it.' And it's not true."

He said Fonterra's recent threat to move its research overseas if the NZ Government extended the current ban on field trials of genetically modified organisms (GMOs) "was widely broadcast over the world".

"In a way, they are saying not too much," he said.

"But their competitors will see it. That is more or less the atmosphere around GMO, especially in Europe. We here mistrust it, wouldn't trust it. We are very scary about it, we as European consumers.

"Having said that, I think that if companies come up with very good applications of GMO in terms of, for example, healthy products or medicines and so on, then consumers will accept it - but that's the condition.

"They have to come up with consumer advantages. You can't say to the consumer anywhere, at least not in Europe, 'It's a bit different, but don't care, it's the same product.' Consumers do not accept that."

His warning contrasts with dairy industry submissions to the Royal Commission on Genetic Modification, which argued strongly for GM as the key to maintaining New Zealand's international competitiveness.

"There are already ominous international productivity trends which are the result, in large measure, of gains in biotechnology, including GM," said the Dairy Board submission.

"NZ unit cash costs of milk production are rising at more than 2 per cent per annum.

"By contrast, the unit costs in the United States are falling at close to 2 per cent per annum.

"If the NZ dairy industry is unable to fully adopt biotechnology by researching and possibly using GM, at the same rate as its competitors, the already ominous international productivity trends will accelerate. That could threaten the viability of dairy farming in New Zealand in the long term."