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Anti-biotech
groups warn investors against Monsanto, Kraft; Biotechnology |
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The advocacy groups Greenpeace and the Public Interest Research Group have adopted similar tactics in their ongoing efforts to discredit food biotechnology. In separate reports issued last month in advance of annual corporate meetings, the groups warned that companies involved in producing biotech crops (Monsanto) or using biotech ingredients (Kraft) are risky investments. Greenpeace said Monsanto had received the lowest possible environmental and strategic management rating of a triple-C from Innovest Strategic Value Advisors, a global environmental and social investment research firm. Commissioned by Greenpeace, Innovest's report, "Monsanto and Genetic Engineering: Risks to Investors," warned shareholders and potential investors of Monsanto's "above average risk exposure and less sophisticated management than peers." Innovest analysts predicted that the firm "will likely under-perform in the market over the mid to long-term." Greenpeace noted that Monsanto had suffered $ 1.7 billion in losses last year "and has failed to open new markets for its controversial genetic engineered products. Yet Monsanto continues to pursue its unsound business strategy of betting on a speedy and widespread global acceptance of GE foods. Next in the Monsanto pipeline is GE wheat, which is being boycotted in key markets by farmers and food industry even before its approval." "Monsanto's cash cow remains its agrochemical business, but last year's 24% drop in sales of Round-up and other non-selective herbicides has left the company vulnerable and increasingly desperate," commented Lindsay Keenan, a Greenpeace global markets strategist. "Monsanto appears to be digging its own grave with its GE strategy." Monsanto said
in a statement that the Innovest report "is highly biased and cherry-picks
information about plant biotechnology and Monsanto in order to further
a political agenda." Ralph Nader's Public Interest Research Group charged that Kraft Food's continued use of bioengineered foods "poses unnecessary financial risk to the company and its investors." The PIRG report, "Risky Business: Financial Risks that Genetically Engineered Foods Pose to Kraft Foods, Inc. and Shareholders," said the company's use of bioengineered ingredients poses the risk of product recalls and liability lawsuits, especially in light of possible future contamination from biopharm crops. Other financial risks include loss of competitive advantage, consumer rejection of Kraft's products, and damage to reputation resulting from increased controversy surrounding these foods, the report said. PIRG argued that bioengineered foods do not offer financial benefits to Kraft or marketable benefits to consumers. Bioengineered crops may even cost more to produce than conventional counterparts, the report said. "Kraft
has already removed genetically engineered ingredients from its products
in Europe," commented Rebecca O'Malley, program director for ecopledge.com.
"These financial risks can be avoided and Kraft knows how to avoid
them. The company needs to finish the job and remove these ingredients
from the rest of its products." Stephen Clapp, sclapp@crcpress.com
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