Thomas Horne
In Western Europe, the issue of genetically modified organisms (GMO) is among the most contentious of the past decade. Eight European Union countries joined a moratorium to effectively ban any further permits for GMO trials or imports until the subject is further researched, proven safe and satisfactory legislation has been passed to monitor and control GMOs' growth, sales and use. Yet in Poland, the issue has failed to cause much commotion, and the average Pole is still unaware of what genetically modified organisms are. Nevertheless, as part of the country's bid to join the EU in 2004, Poland has adopted the bloc's restrictive laws, effectively shutting down biotech companies' local GMO projects and ending all field trials. U.S.-based Monsanto, a worldwide biotech leader, has operated on the Polish market for about 20 years. The WBJ's Izabella Kamińska talked to the company's country director, Thomas Horne, about the future of biotech in Poland.
Q: What percentage of your business in Poland is focused on GMOs? A: Zero. Because we may not grow GMOs in Poland yet. We are in the same situation here as in the EU, so we're concentrating our activities a bit on public acceptance. As for business, we have none.
Q: How strong is the anti-GMO movement here? A: We have growing activities of opponents, but it's still in a moderate phase, and we're trying to be proactive with information. Monsanto has changed its policy here over the past three or four years. We used to not care enough about public acceptance and public information. Now we're doing this worldwide.
Q: How does public opinion differ here compared to the rest of Europe? A: It's not such a big topic as in the rest of Europe, but opposition is growing. We try to address opponents and communicate with them and supply scientific texts, and that's the way we're attracting them. In general, we have to attract public opinion. That's important. So opponents always challenge us, and we feel challenged to convince people that the food is safe and that's what we do.
Q: What is your best-selling product? A: As in the rest of the world, it's Roundup (a weed killer). It's growing in sales year after year, and in Poland we already have a big market, but we're still in the growing phase. We cooperate with farmers to make them aware of all the technical possibilities that the product has.
Q: But Monsanto's share price dived on June 12, with reports suggesting this was because of a decrease in Roundup sales. A: Less to do with sales of Roundup. It's true that because a lot of generics have entered the market all over the world we are under price pressure, so the overall profitability of the product goes slightly down. We tried to compensate with better costs, but the major reason for this (share-price drop) was an announcement by our chief officer to the investment community. He revised our income per share statement for the full year significantly down, so we had a reaction on our stock, which is normal. Roundup is our sales product, but our investors invest in the future and they believe in biotech.
Q: What is the future for the biotech industry in Poland? A: We do not have any business in biotech because simply the legal framework does not allow us, and we do not have anything in trials today. Most of the ones we had were in sugar beets a couple of years ago, but we also stopped this project. And basically as long as the legal framework doesn't change, we won't start new investments in that area. But as soon as we see light at the end of the tunnel in the EU and in Poland, we will start new registration trials and try to bring products to the market. And in Poland this could include corn, cereal, sugar beets and potatoes.
Q: How do you think GMOs can help Polish agriculture? A: Farmers are mainly struggling with their income statements and profitability, so farmers must have the means to get their costs down. Reduced costs means reduced risks - we all know how high risks are in agriculture - and biotech puts them in the position to significantly reduce their costs.
Q: Do you see interest from Polish farmers and demand for biotech? A: As in every country where biotech is accepted, farmers adapt to the technology very, very fast because the advantages are so significant. In soybeans and corn in South America and North America, farmers accepted the technology faster than we expected. I don't see why this should be different in Poland.
Q: What other effects will EU accession have on Monsanto's future GMO operations in Poland? A: Poland already follows EU guidelines very closely, so we will follow them (too). In the EU we see a slightly changing trend, as the more information people get, the more positive they become toward biotech.
Q: Don't you already import GM soy to Poland? A: Not exactly. We help the importers of soybeans get the licenses to import, so already there are GMOs in the food chain. And it's already more normal than people think.
Q: But you've also recently applied to import GMO corn to Poland, which was approved by the Environmental Ministry's GMO advisory committee. A: We hope the application will be accepted by the minister. I think it will because we have to take care of the whole agricultural industry in Poland, and there is no reason why importers should not be in the position to import GMO corn.
Q: What's your current strategy for informing people about GMOs? A: We've tried to intensify our efforts to provide scientific information through the press and through specialists to the public because the consumer has the right to know that his food is safe, and if he demands information he should be able to get it. That's basically the way we think. Before, we looked very strongly at the economics of farming and the advantages biotech brings. We were very happy with the technology - we worked scientifically on the safety side but we were not communicating this. This changed when we saw the first problems coming up in Europe.
Q: Are GMOs safe? A: Yes. From the consumption point of view I am convinced, but there are issues arising from GMOs. Anyone who would say there are no issues and that everything is safe, is blind. Still, I see more and more articles that are really very well balanced. There are issues around it, but already I feel confident about marketing the product because, from the safety point of view for people, I don't see any problems. It's more on the farming side where we still have to solve certain problems for the future.
Q: How much do Poles know about GMOs? A: Our market research shows that the majority of people are neutral, and it's only really a very small group that is against GMOs. But looking at all the food scandals we have in Germany, and we've had BSE (Bovine Spongiform Encephalopathy, or mad cow disease), people will become far more sensitive in Poland about what they eat, which is their right. And that's why we have to make a lot of effort to give the customers the opportunity to know what they're eating. Where does my food come from? Where was it grown? Ideally, they should know when buying bread which farmers produced it and how the grain was made. As an industry we have to work in this direction.
Q: So you're in favor of GMO labeling? A: I'm not pro labeling. But I think we should work toward preserving the identity of food. So if you buy bread, you should have an Internet (URL) on it and be able to follow the whole food chain. That's something I would see as positive and something as an industry we should make an effort toward - a controllable food chain.
Q: Will Bayer's acquisition of Aventis CropScience this month threaten Monsanto's market share? A: The industry is consolidating. I have been working in the industry now in Poland for eight or nine years and when I started, there were 12-14 major international companies, a number that has shrunk dramatically. That's the global tendency, and we have to work with it. Monsanto is still Monsanto. We are the only international player that has yet to merge, and I hope it stays this way because we're different. As a company we have three major points of focus - chemicals, biotech and seeds. Most of the other players are concentrated in chemicals. (Bayer CropScience) will for sure be even stronger on the distribution level, and its portfolio will be very strong. But I don't think it affects directly what we are doing.
Q: Have you achieved brand recognition in Poland? A: Monsanto is not as well known as our products. If you asked a farmer about Roundup, I think we would be 90% recognized; if you asked about Monsanto, it would be much less.
Q: Why did you stop GMO field trials? A: Because of the legislation and because we didn't want to invest in the registration of products where we wouldn't know if there would be prospects for bringing them to the market. We need to get the legislation right, and we'll start again.
Q: Are you confident that the world is becoming more pro-GMO and that the legislation has a chance of being overturned? A: Sure, because the benefits of the technology for the farmer and the consumer are so significant that I don't think it will be kept on hold for long. Politicians often make their decisions on the basis of public opinion and that's why we have the obligation to work on public opinion - that they know the technology and food is safe. I can say that if I had a choice for food I would choose biotech - GMO food - because it is far more analyzed, researched and scientifically safe than food that is produced normally, which is why if I had the choice for me and my kids, I would choose biotech.
Q: Do you think GMO production could threaten Poland's organic food industry? A: In Poland, the amount of pesticides and fertilizers used per hectare is much less than in Western Europe. But to call this organic food is a mistake. I think organic food has its place on the market. There are customers that want it, so there have to be producers who deliver it. On the other hand, organic food should be defined. What is organic food? In Western Europe this has been developed and really defined, so if there is a market it should be produced. But to say we have an organic food movement and a lot of organic food in Poland is not really true. It's not really a controlled way to produce organic food. It's more by accident that we use fewer (pesticides) and then we call it organic.
