000146 Labels On Biotech Foods Would Raise Prices

Washington - U.S. food prices would rise if Congress follows the lead of the European Union and passes legislation requiring labels on products made with bioengineered crops, industry groups told the House Agriculture Committee.

The politically powerful U.S. Chamber of Commerce and the National Association of Manufacturers joined 33 food and farm organizations in urging Texas Rep. Larry Combest, the Republican head of the committee, to oppose any labelling legislation.

Rep. Dennis Kucinich, an Ohio Democrat, late last year introduced a bill that would mandate labels on all gene-spliced altered food, food ingredients, dietary supplements, animal feed, and products made from animals given biotech feeds.

The legislation has alarmed food industry groups, who contend that biotech foods are safe and thoroughly tested before given government approval.

“This would require segregation from farm to supermarket, and would result in higher food costs and lower farm prices,” said the letter to Combest. The industry letter did not give any estimates of how much food prices might increase at the grocery store or in restaurants.

Mandatory labels would also “send the misleading message that the government is not confident of the safety of the U.S. food supply,” the letter added.

Consumer and green groups have stepped up pressure on the government in recent months to require labels, or a moratorium on sales of biotech foods. They contend that not enough is yet known about long-term safety and environmental effects.

The European Union, Japan, South Korea and other nations also are planning to require special labels on genetically altered foods. Some 140 nations sent delegates to Montreal this week to negotiate a United Nations pact to regulate trade in genetically modified seeds, crops and other organisms.

The U.S. Food and Drug Administration is currently mulling whether it should tighten regulations for the approval of new biotech foods.

Some U.S. food organizations have said they would support stricter rules forcing companies to turn over studies and tests about the safety of new products. But the industry is adamantly opposed to labelling requirements.

The industry is “actively working to educate America's consumers about the benefits of biotechnology,” the letter said. “We believe that these methods are much more effective in communicating complex information than are food labels.”

Other groups signing the letter included the American Farm Bureau, Grocery Manufacturers of America, American Soybean Association, American Meat Institute, Biotechnology Industry Organization, and the National Restaurant Association.

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