1. Coexistence of organic and GM crops: Should the “zero tolerance” policy on presence of GM material in organic crops be changed? Sanja Ilic, Valeria C. Netto, Mehrnaz Roudsari, Majid Hassas Roudsari Arrow pic

2. We’ll talk about… Concept of Coexistence Canadian Organic Standard Consumers’ Choice Market Demand Future Developments Sources of Problem How to Reduce The Risk Standards in Other Countries Discussion & Recommendations

3. The Concept Coexistence generally refers to the ability of farmers to make a practical choice between conventional, organic and GM-crop production, in compliance with the legal obligations for labelling and/or purity standards. equal choice for farmers regardless of which type of product they decide to cultivate.

4. Coexistence Economic, Environmental & Health Aspect Can be addressed through Regulation: legal implication Mutual consent and respect: attitudes changes

5. Stakeholders Biotech Industry Regulatory Agencies Producers Grain Handlers Food Manufacturers Consumers

6. We’re talking about… Concept of Coexistence Canadian Organic Standard Consumers’ Choice Market Demand Future Developments Sources of Problem How to Reduce The Risk Standards in Other Countries Discussion & Recommendations

7. Organic Standard for Presence of GMOs

8. What does it say? “Organic agricultural foods, and their ingredients, additives and processing aids, are produced, processed, manufactured and handled in accordance with the principles of the organic system of production and processing. Genetically engineered and/or modified organisms (GEO/GMO), or their products, are not compatible with the principles of organic production and are prohibited from use in any aspect of organic production, processing or manufacturing. Furthermore, the use of ionizing radiation on organic food products (i.e. food irradiation) or their inputs is not compatible with the principles of organic processing and is prohibited.” CAN/CGSB-32.310-99 “Plant varieties, seed, seed inoculants, germ plasm, scions, rootstocks or other propagules developed through the use or incorporation of genetically engineered and/or modified organisms (GEO/GMO), or related technology, are prohibited from use under this standard.”

9. Why is it important to create an environment that will encourage both organic and biotech agricultural modes? Consumers’ Choice Market Demand Future Developments

10. Consumers increased awareness: food for health improvement, family nutrition, weight control, environmental concern What do consumers understand “organic” to mean? “Pesticide free” “GMO free”

11. Consumers Want zero tolerance? Would organic producers loose good marketing tool allowing limited presence of GMO?

12. What makes the world go ‘round? Ag Biotech Market in North America Pic from Van…slide Increased 18% in 2003 (Ernst & Young 2004)

13. What makes the world go ‘round? YearOrganic Food Sales (USD Million) % Chg. Vs. Prior Yr. 2003$ 10,38120.4% 2002$ 8,62417.2% 2001$ 7,35920.6% 2000$ 6,10421.0% 1999$ 5,04318.1% 1998$ 4,27219.8 % 1997$ 3,566N/A Organic Market ORGANIC FOOD SALES – 2003 Source: Organic Trade Association 20% growth in 2003 Total sales $10.8 billion

14. Organic Market Year2003 Sales (USD Million) % Chg. Vs. Prior Yr. Bread & Grains$ 96622.9% Snack Food$ 48429.6% SALES BY COMODITY – 2003 Source: Organic Trade Association Organic production in Canada makes for about 1-1.5% of total agricultural product and 2% in US

15. Future Biodevelopment Biopharmaceuticals drugs whose active pharmaceutical ingredient is a complex molecule produced, from DNA, by genetically transformed living factories. Biopharming experimental application of biotechnology in which plants are genetically engineered to produce pharmaceutical proteins and chemicals. Contraceptives, growth hormones, industrial enzymes, and vaccines could be produced in this way. Corn is by far the most popular biopharm plant, followed by soya beans, tobacco and rice.

16. Input from Dr. Sparling It is essential to have regulations in place because of potential important markets such as biopharmaceuticals. Interview “…we’ll get some pharmaceutical and industrial products, then we will really need to be able to trace because …to separate (them) from the food chain…”

17. StarLink TM Case StarLink TM: GM maize hybrid containing Cry9c protein from Bacillus thurginesis Potential human allergen Approved for use only in animal feed 2000 found in the food chain US government decided no longer to permit split registrations Genetic contamination can effect GMO, Non GMO, and organic crop StarLink TM: never received Health Canada nor CFIA’s approval for use as livestock feed or for confined or unconfined environmental release as seed

18. Mission Impossible? Prospects of Contamination –Purchased of home-saved seeds contaminated with GM material –Cross-pollination from neighboring GM crop. –Volunteer seeds from previously grown GM crop. –GM crop pollinated wild plants, which in turn get to organic crop. Cross-pollination

19. Mission Impossible? Managing The Risk Cross-pollination –physical distances, natural and man made barriers –differences in flowering time –Case-specific

20. Commingling –mechanical mixing of crops during the production process –residues in equipment during planting & harvesting, at the grain –storage and transportation Mission Impossible? –equipment for segregation –handling systems modifications identity preservation needs. Managing The Risk Identity Preservation System

21. Identity Preservation System of production, handling and marketing practices to maintain the integrity and purity of agricultural commodity; to channel varieties with unique quality traits (organic) in order to capture the added value. standards, records, and auditing throughout the production process

22. The IP process scheme Identity Preservation Seed purity of the seed stock must equal or exceed the purity standards of the final product zero tolerance rule for final product) Seed 100% pure from GM contaminants virtually impossible to achieve from start Mission Impossible?

23. Economics A direct correlation between increased product purity requirements and higher IP costs. burden of maintaining purity falls entirely on the producer and marketer of organic crops IP leads to increased cost of end organic product & higher farm profitability Higher cost acceptance by consumers? Enough for everyone to share?

24. Policies in Other Countries USA: just changed zero tolerance Europe has set thresholds for presence of GM material in non-GM food at 0.5%

25. CountryStatus of labelingAdventitious Presence threshold Notes ArgentinaNone requiredNo specific figureNo coexistence arrangements AustraliaMandatory1 %Cotton is the only GM plant cultivated commercially in Australia to date. BrazilMandatory4 %GMOs banned but with recent one season waive on ban; However illegal import of seed has already led to growing GM crops in parts of the country. JapanMandatory (selected products) 5 %24 products so far identified from maize and soya beans Non-GM labeling thresholds in other countries

26. Discussion Can adventitious presence of GM crops in organic or conventional crops be reduced below certain policy-relevant thresholds with changed farming practices? Should zero tolerance policy be changed? Strengths & Weaknesses

27. SWOT ANALYSIS STRENGHTS Minimizes the risk of contamination with GM Helps differentiate and market organic crops Facilitates traceability for trace-back food safety quality control Improves side-management Raises the profitability Increases consumers’ trust WEAKNESSES Increases the cost of production Must be developed case-by- case Cannot prevent contamination completely Requires professional expertise

28. DISCUSSION Should zero tolerance policy be changed? YES SO WHY ?. NO SO WHY ?

29. Interview with Shane Morris National Biotechnology Operations Coordinator NABC 16 Canadian Food Inspection Agency June 16, 2004