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BASF has announced it will halt all GM operations in Europe due to a lack of acceptance.
Ingredients and chemicals giant BASF has announced it will pull the plug on its European operations in genetically modified plant development due to a lack of acceptance in the market.
The German chemical and biotechnology company said it would relocate the headquarters of its BASF Plant Science group from Limburgerhof in Germany, to Raleigh in the USA. The company added that it will be concentrating its plant biotechnology activities on its main markets in North and South America in the future.
The company added that its development and commercialisation of all GM products targeted solely at cultivation in the European market will be halted – these include four varieties of potato and one of wheat.
“We are convinced that plant biotechnology is a key technology for the 21st century. However, there is still a lack of acceptance for this technology in many parts of Europe – from the majority of consumers, farmers and politicians,” said Dr. Stefan Marcinowski, a member of the BASF board of executive directors, responsible for plant biotechnology.
“It does not make business sense to continue investing in products exclusively for cultivation in this market,” he said. “We will therefore concentrate on the attractive markets for plant biotechnology in North and South America and the growth markets in Asia.”
Acceptance for innovation?
BASF cited a lack of consumer and industry acceptance as the main reason for its decision to halt European operations in GM products. It added that the decision to relocate to the USA was taken because there is “less resistance” to the technology.
The announcement was celebrated by environmental campaign groups Greenpeace and Friends of the Earth: “This is another nail in the coffin for genetically modified foods in Europe,” said Adrian Bebb of Friends of the Earth.
Whilst Greenpeace EU agriculture policy director Marco Contiero said the announcement shows that “BASF admits Europeans don’t want GM crops.”
“Europeans are not alone in rejecting GM food,” he added. “BASF’s retreat to the Americas follows a string of defeats for the industry over the last two years in China, India, the Philippines, Thailand and elsewhere. Over 90% of GM food crops are grown in just four countries in the Americas.”
However, the move by BASF has also been also been seen a major blow for science and innovation in the European market. Professor Denis Murphy of the University of Glamorgan, UK, warned that Europe “is now in danger of becoming a scientific backwater and will be unable to assist developing countries the address food insecurity.”
“There is now a danger that we will lose, not only companies like BASF, but also academic researchers and students – as well as any influence that we have had previously in developing countries where we used to be major providers of assistance and expertise,” argued Murphy – an expert in biotechnology.
Relocation
BASF said it will adjust the portfolio and site footprint of its plant science to reflect the move. The chemical giant said the move to new headquarters for activities in the area of plant biotechnology at Raleigh in North Carolina will see the current HQ site in Limburgerhof, Germany retain 11 positions in some functions, such as regulatory experts for Europe.
The division employees 157 people in Limburgerhof, plus another 63 at facilities elsewhere in Europe. BASF said it would relocate 123 of those jobs to the North Carolina facility. The company plans to close its sites in Gatersleben, Germany, and in Svalöv, Sweden.
The announcement will mean a reduction of 140 jobs in BASF’s European operations. The company said it aims to offer the affected employees other positions within the BASF wherever possible.
“Our employees have done excellent work over the past years. We regret that we are losing these high-quality jobs in Germany and Sweden,” said Marcinowski.
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What do you think of BASF's decision to pull out ofthe European GM market? Does the move add further stagnation to innovation in the EU? Get in touch with us by emailing: nathan.gray<at>wrbm.com or tweeting @nathanrgray
8 comments (Comments are now closed)
Good for you!
I agree GMOsRcool and should be labelled so people can choose them. Roundup is the least dangerous of all herbicides, and engineering Roundup resistance in crops has led to a replacement of atrazine and paraquat which are millions times worse. No increase, replacement by something better. But all that campaigning protected the worst of the herbicides from being taken from the market, instead anti-GM fanatics have made sure that they continue to kill people worldwide and accumulate in the biosphere, mainly in the third world.
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Posted by Martina
25 January 2012 | 12h29
What about greed?
What's this story about greed? If a supermarket sells a broad range of products close to where you live then they are greedy because they sell for a little more than the original producer? Where is this anti-business crap coming from? Must be from someone who is too lazy to work and thinks all people with a job owe them? Greed? Hey wakey wakey friends of the earth, where does greed come in when scientists produce golden rice for the starving people on the planet? Do your homework or plant at least all your crops yourself before you complain coz you ain't informed enough otherwise.
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Posted by Andreas
22 January 2012 | 23h38
A voice in the wilderness
Glad to see one such comment, but beware, having 'stuck your neck out', if the Luddites find out where you live they may come and rip up all the plants in your garden-- just in case you are secretly growing some GM plants.
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Posted by john
18 January 2012 | 17h42
Hurrah
Small but very important step in banning the the GMO system . Harmfull for everybody including the greedy scientist and investors . After putting GMO in USA and another countries the scheme was the same : there was huge increse in chemicals use , lower crops and higher food prices . Bankruptcy of farmers , new different diseases by people , animals and normal plants as an added value. Wake up people before it would be to late.
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Posted by Leszek
17 January 2012 | 21h52
Stop GMO/Transgenic/genomic etc.
All investments to modify (what is natually good and wholesome) for greed, not only will fail, but those in the chain will pay severe unthinkable penalties in the broadest terms.
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Posted by Stella H Howell
17 January 2012 | 16h40
GM labelling
I have always been in favour of labelling GM products.
Peanut butter containing GM soybean should have been labelled with:"Good for you, soybean fields were treated with RoundUP, which is biodegradable and harmless."
or perhaps:
"Good for you because this product is guaranteed to be free of Paraquat"
It was a business blunder to campaign against a GM labelling law as it looks as if GM had something to hide. If it had been better advertised by companies like Monsanto, people would not have been so against this technology.
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Posted by Prof. Jurgen Denecke
17 January 2012 | 16h18
Leaving the sinking ship
Although it is indeed a terrible blow to biotechnology and fundamental science funding, it is logical for a company to pull out of the European GM disaster. It sends a clear political message: What's the point of investing in a community that cares more about risk assessments and health and safety procedures than about true innovation and the creation of added value? High time for top-scientists to find other countries where their research is more appreciated.
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Posted by Prof. Jurgen Denecke
17 January 2012 | 16h11
what makes BASF think??
I suggest they actually ASK the usa public about their acceprance.
Majority do NOT want GMO foods and they DO want CLEAR Labelling...something the GMO corps paid lots to kill off.
because IF it's labelled it won't be bought, and they know it. processed or plain if it's GMO we want to know so we can refuse to buy it.
My only means to avoid it is to avoid ALL suspect imported ingredients, all corn soy beets etc. and I am not the only one doing this.
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Posted by Laurel
17 January 2012 | 15h16
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