Author: Kylie Smith
Publication: Sunday Herald Sun
Date: Sunday, December 09, 2001

FOOD prices are tipped to rise under new labelling laws, but consumers may be no better informed about what they are buying.
The new rules, which come into effect this week, mean genetically modified ingredients must be listed on labels.

But, under a loophole, foods already produced with GM ingredients can remain on sale without being so labelled until December next year. The food industry says the cost of complying with the rules -- estimated at more than $170 million -- may have already pushed prices up.

Australian Consumer Association food policy officer Rebecca Smith said food producers would try to exploit the rules to avoid their products being labelled GM.

``Manufacturers realise it is not a positive label,`` Ms Smith said.

Products are exempt from the labelling if GM ingredients are used in the manufacturing process but do not appear in the final product.

Foods may also contain one per cent GM ingredients from accidental contamination or up to 0.1 per cent GM flavouring without requiring a label.

But Australian Food and Grocery Council chief executive Mitch Hooke denied manufacturers had stockpiled unlabelled GM foods to take advantage of the one year grace period.

Mr Hooke said companies had worked hard to check and audit ingredients to identify what was genetically modified.

He said many had replaced GM ingredients to avoid the GM label.

``A lot of companies have sought alternative suppliers or asked suppliers to provide them with alternative crops,`` he said.

A report compiled last year by accountants KPMG put the cost of implementing the laws at $176 million, plus $100 million a year for compliance.

Mr Hooke said it was impossible to quantify the cost to producers, but it was ``not insignificant`` and costs would be passed on to consumers.

Six types of genetically modified crops are permitted for use in Australia -- soybean, canola, corn, potato, sugar beet and cotton.

Ms Smith said an estimated 60 per cent of food products on Australian supermarket shelves contained some GM ingredients, such as soy protein, commonly used as a thickening agent.

But the GM label is expected to appear on only about five per cent of foods.

A survey conducted for government agency Biotechnology Australia showed 35 per cent of people would stop buying a familiar product if it was labelled GM, until they were able to find out more about it.

People surveyed said they would be more willing to buy a GM product if they knew it had tangible benefits, such as improved nutrition or fewer pesticides being used.