Nestle: Lobbying the EU for Change

[S.Annadana]

Nestle: Lobbying the EU for Change
Posted on: Wednesday, 25 June 2008, 06:03 CDT

Nestle has appealed to the EU to reconsider its opposition to genetically modified crops, claiming that rising food prices are preventing some of the world's poorest consumers from buying basic food. The company claims that the EU's disapproval stems from consumer concerns over the safety of such crops, which despite rising food prices, Europeans are still reluctant to eat.

In an interview with the Financial Times, Peter Brabeck, chairman of Nestle, stated that is not possible to feed the world without genetically modified (GM) organisms. Although rising food prices in poor regions such as West Africa have led to raised concerns from local governments and charity organizations, Peter Mandelson, the EU trade commissioner, has rejected claims that the EU has pressured Africa not to grow GM crops.

However, although Mr Mandelson has claimed that Africa is free to grow whatever crops it wants, according to the Financial Times, he did add that, as the majority of West Africa's agricultural exports are bought by the EU, it is in the country's interests to meet the demands of that market, which is currently unreceptive to GM food. Indeed, despite the significant attention paid to the supposed benefits of GM crops, it appears that European consumers are still reluctant to try these foodstuffs because of the health fears that are associated with GM ingredients.

In 2006, a survey conducted by Eurobarometer on behalf of the European Commission revealed that 25% of EU citizens are 'very worried' about 'genetically modified products in food or drinks', while 37% are 'fairly worried'. In comparison, only 10% of EU consumers claim that they are 'not at all worried' about GM ingredients.

Furthermore, the growing trend towards natural and organic food and drink shows no sign of slowing down in the near future. European consumers have a general distrust of GM food, and are showing a willingness to pay extra for natural food and drink which is perceived to be fresher and healthier. This is driving sales in the food market, with Datamonitor forecasting that the total European natural food market will more than double between 2000 and 2010, rising from $17.7 billion to $37.6 billion.

Essentially, although rising food prices are also beginning to affect Europe, consumers are still reluctant to buy GM crops, and even though certain regions in Africa are currently struggling to buy food, this situation will worsen if export trade with the EU is lost.



Source: Datamonitor