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S. K. HARLANDER, Pillsbury

It has been estimated that over half of all processed foods contain soy-derived ingredients such as soy oil and soy flour. A significant percentage of processed foods also contain corn-derived ingredients such as cornstarch, corn oil and high fructose corn syrup. Approximately 50% of the soybeans and 30% of the corn grown in the U.S. in 1999 were varieties that had been genetically modified (GM). In the U.S., there are no special labeling requirements for GM crops that are substantially equivalent to their traditional counterparts. Ensuring accurate segregation and labeling throughout the supply chain when there are no visible distinguishing characteristics between GM and traditional crops is logistically challenging and cost prohibitive on low margin commodity ingredients. This creates an issue for multinational ingredient suppliers and food processors, as GM labeling guidelines differ in Europe and other parts of the world. Although in the short term it may be possible to obtain corn and soy derived ingredients that have been certified as non-GM to avoid labeling in these countries, it will become increasingly difficult in the long term as more GM crops make their way into the food supply chain. This presentation will focus on the challenges facing multinational food companies, especially as the next generation of GM crops that deliver processing advantages and tangible consumer benefits are introduced into the food supply.