Jim Long Pork Commentary, EU Court rules Gene Editing = GMO, July 30th 2018

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Jim Long, President and CEO Genesus Genetics

 

A couple weeks ago we wrote about McDonalds executive Ernie Meier speaking at the National Pork Industry Conference explaining that Gene Edited Pigs will be a tough sell to consumers who will equate Gene Edited as GMO (Genetically Modified Organisms). Without saying it explicitly he was warning that McDonalds with 69 million customers globally per day wasn’t really interested in trying to explain or sell Gene Edited or GMO Pork.

Last week the European Court of Justice in a landmark ruling stated “Genetically edited organisms that were until now excluded from GMO regulation will now be subject to European Union GMO law.”

This will affect crops and livestock. The most relevant piece for swine producer is the Gene Edited research that has been ongoing for Prrs resistance. Now Gene Edited research will be subject to all GMO regulations in Europe. This will definitely slow if not kill investments in the GMO work in swine. The compounding effect is now the huge market base in Europe will have product labeled as GMO. We believe packers, retailers or food service will want to lead a fight to explain GMO pork to consumers. We expect fairly soon some Packers, Retailers or foodservice will insist on Non-GMO pork as a certification and for them as a branding and marketing opportunity. This in itself will pressure other pork supplies to follow the Non-GMO Pork label. Its an easy play since there is no GMO pork currently, but in itself will kill the concept of Gene Edited = GMO Pigs and Pork.

We expect the European Union Court ruling will move to all countries with Gene Editing falling under the rule of Genetic Modified Organisms. Europe is a huge market and a global trendsetter.

As producers we have always had the concern of pork demand. Demand can be affected by many things, product quality, taste, market access (tariffs, trade barriers), disease (swine flu cut US demand). Now throw in the GMO story, we don’t think it’s a battle we can win at consumer level. We want more customers not less in the Pork Industry. Nothing is more important then customers. Each one makes there own buying decision.

We believe that Gene Editing = GMO as a panacea for the swine industry is a misguided path that will only destroy markets and demand. Its not the science we are against, we are against losing customers.

Following is the position of Genus PIC in regards to the ruling taken from an article within Feedstuffs.

Genus PIC, a leading swine genetics company that touts non-GMO breeding stock, also expressed disappointment in the ruling but said it is hopeful that the decision will bring to the forefront the debate about how to best manage the risks and harness the undeniable benefits of the technology.

“Genus is committed to continued engagement with regulators in Europe and other geographies as well as with consumers as we realize the benefits of this technology in a responsible manner,” the company said.

Following is an article in The Guardian.

https://www.theguardian.com/environment/2018/jul/25/gene-editing-is-gm-europes-highest-court-rules?CMP=share_btn_link

Announcement

Genesus and Chang Rong 

Genesus is proud to announce a new long term agreement with Chang Rong, of Yancheng City, Shanxi Province, China.

Chang Rong operates feed and pig production, including but not limited to an integrated pig production model that partners with many independent producers.

Genesus and Chang Rong have entered into a full cooperation agreement including full genetic and marketing support and cooperation from Genesus. The new production system will include a 2400 sow GGP unit and large-scale GP production to help support growing demand for Genesus F1’s in China

Genesus has the world’s largest registered purebred herd and is the largest exporter of purebred swine in North America. The establishment of this nucleus herd in central China again increases Genesus’ footprint in China, where we have been the largest importer in 3 of the past 5 years. The focus of Genesus on meat quality and highly prolific, high appetite females is very well suited for all markets and very well received in the developing Asian market.

Signing ceremony – Genesus and Chan Rong

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Jim Long Pork Commentary

www.genesus.com

 

1 COMMENT

  1. Look forward to reading your commentary each week as you seem to have a pulse on the industry that others do not.
    My question to you this morning is “Of the increase in production that is showing up in the market place in 2018 do you have any ideas what percent is directly packer owned or contract grown for the packer and what percentage would be from non packer interests?”
    Yours truly
    Murray Markert

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