May 29, 2001 -- Growing demand for meat products produced without livestock feed containing genetically modified organisms (GMOs) has pushed demand for soybean meal certified as GMO-free to between 20 and 25
percent of the European Union (EU) market. However, according to the U.S. Department of Agriculture's Foreign Agricultural Service (FAS), U.S. soybean sales remain largely unaffected by this
situation as European imports of soybeans and soybean meal from Brazil - which currently bans planting of Roundup Ready soybeans - continue to exceed demand for certified non-GMO soybean meal.

Sources in the compound feed industry say the present demand for certified non-GMO soybean meal has grown from nearly zero in only 12 months, with the expectation of further increases in the coming
year. Most of the demand is for poultry and pork feed.

Nearly 50 percent of all soybean meal consumed in the EU is obtained from regions where planting of Roundup Ready soybeans is prohibited - 44 percent from Brazil alone. Since the demand for certified
non-GMO soybean meal accounts for only half is what is readily available in the EU, no additional imports of certified meal are required.

Premiums for certified non-GMO soybean meal remain low - between US $1.50 and $4 per ton and generally only cover the cost of testing the meal for genetically modified proteins, says William George
of FAS. Despite assertions that consumer preference is driving the trend toward GMO-free meat products, European consumers appear reluctant to pay premiums for such products. As long as there are
plenty of competitively priced soybeans and soybean meal from South America, European livestock producers seem willing to absorb the cost of feeding non-GMO meal, which runs less than 1 percent
higher than conventional feeds.

"However, continued growth in demand for non-biotech soybeans could eventually have a negative impact on U.S. soybean sales to the EU," George says. "Already we are beginning to see interest by
some exporters to meet this growing demand. As an example, India, which does not allow planting of biotech soybeans, has recently sent a delegation to the EU in order to promote its non-biotech
soybean meal."