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Increasing Worries Expressed about Public Health
and Financial Risks of Genetically Engineered Foods
East Hanover, NJ - Investors in Kraft Foods, Inc. (KFT-NYSE)
expressed concern at the annual shareholder meeting over Kraft's continued
use of genetically engineered ingredients. They cited the company's
failure to properly address the financial, health, and environmental
risks that engineered crops pose.
"Continued use of genetically engineered ingredients is a mistake for
Kraft on many levels," stated Richard Caplan, food safety advocate for
the state Public Interest Research Groups. "Many food companies have
already removed these ingredients from their products to protect consumers
and investors. Kraft should do the same."
A scientist present at the meeting discussed recent research on the
possible allergenicity of certain genetically engineered crops. Several
articles published over the past few years indicate that crops known
as Bt crops have immunogenic and allergenic properties. One paper by
the head of FDA's own biotechnology studies branch indicates a Bt protein
has amino acid sequence homology with a known allergen, one of the key
indicators of allergenicity. Several other scientists have published
papers on other newly discovered allergenic properties of the Bt protein.
Kraft continues to subject itself to financial risks from using genetically
engineered ingredients while the company appears to receive no benefits
and has acknowledged in SEC filings that genetically engineered ingredients
are a liability, according to Green Century Capital Management's Michael
Leone.
"If consumers do not want genetically engineered ingredients, and Kraft
recognizes them as a financial liability, why not take the prudent move
and remove them from Kraft products?" asked Leone at Kraft's annual
shareholder meeting on Tuesday.
Many financial risks of genetically engineered foods became evident
with contamination of the food supply by StarLink corn in 2000. Since
that time other contamination episodes have occurred, including the
contamination of conventional soybeans with a variety of genetically
engineered corn that was designed to produce a drug not intended for
human consumption. The incident led to the quarantine and destruction
of 500,000 bushels of soybeans. A recent report from the Union of Concerned
Scientists revealed low levels of contamination of conventional seeds
that were thought to be free of genetically engineered material. The
report calls into question the ability of Kraft to provide consumers
organic and other natural products here and abroad, as they recently
pledged to do with the launch of their Back to Nature brand.
"Kraft has made it clear that the company receives no benefit from using
genetically engineered ingredients, and in fact may be risking its new
ventures into natural and organic foods," stated Friends of the Earth's
Health and Environment Program campaigns coordinator Lisa Archer. "Thus
genetically engineered crops seem like a lose-lose proposition for the
company."
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The State Public Interest Research Groups (PIRGs) are a nationwide network
of non-profit public interest advocacy groups. www.pirg.org/ge
Friends of the Earth is the U.S. voice of the world's largest network
of environmental groups. www.foe.org/safefood
Green Century Capital Management, Inc. is the investment adviser to
the Green Century Balanced Fund and the administrator of the Green Century
Funds. The Green Century Funds are the first family of no-load, environmentally
responsible mutual funds and were founded by a partnership of non-profit
environmental advocacy organizations
Contact:
Richard Caplan, U.S. PIRG, 202-427-4587
Lisa Archer, Friends of the Earth, 301-379-9629
Michael Leone,
Green Century Capital Management, 617-482-0800
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