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NEWS FLASH May 20, 1999

Is Genetically Engineered Corn a Butterfly Killer?
Alarming results from a new study could pose big headaches for transgenic crops

Researchers at Cornell University have found that monarch butterfly larvae die at alarming rates when exposed in lab tests to pollen from genetically engineered corn. For Monsanto, Novartis, and Pioneer Hi-Bred International, which have collectively invested billions in creating and promoting genetically engineered agricultural products, this could be the first major scientific blow against their assertions that genetically engineered crops are safe for the environment.

Published this week in the scientific journal Nature, the Cornell study examined a hybrid strain called Bt corn in which plant genes from the bacterium Bacillus thuringiensis are spliced into the corn genes. Bt bacteria produce potent natural pesticides often used by organic farmers. Equipped with the gene to manufacture these pesticides, hybrid corn varieties easily fend off the European corn borer, a pest that eats about $1.2 billion in corn crops each year in the U.S. Extensive studies have shown that genetically altered corn doesn't kill other field insects like honeybees and ladybugs, and is safe for humans to eat.

But in the Cornell study, researchers sprinkled milkweed leaves with pollen from the hybrid. Milkweed is the primary meal of monarch butterfly larvae. According to John E. Losey, one of the study's co-authors, milkweed tends to grow around the edges of cornfields, and corn pollen can be blown as far as 60 yards away from corn plants. In the study, monarch larvae that ate leaves sprinkled with Bt pollen grew more slowly, ate less, and suffered a mortality rate of nearly 50% as compared to monarchs in the same lab that were fed unsprinkled milkweed. None of the butterflies in the second perished after eating their meal.

"BROADER ISSUES." The study is sure to raise the ire of environmentalist groups, which have long warned that transgenic crops would harm benign insects. "It's really easy to look at things that just eat your corn plant. Those studies all came back negative. Now people are looking at broader issues and herbivores that would never even eat corn," says Losey, who cautions that these results are preliminary and more study of the issue is needed. "Pollen from Bt-corn could represent a serious risk to populations of monarchs and other butterflies, but we can't predict how serious the risk is until we have a lot more data."

Monsanto, Novartis, and Pioneer Hi-Bred all say they are already following up on the Cornell study with additional research, but they caution that Losey's results were in the lab, not in the field, and that more data must be collected. "These results are very serious, and they are something that needs to be examined and followed up. But we don't believe that it is necessary at this time to stop selling or making the corn," says Randy Krotz, director of industrial relations for Monsanto.

Bt corn is just one of hundreds of new genetically engineered products from the giant life-sciences companies. Pioneer Hi-Bred is in a pending merger with DuPont, which had 20% of Pioneer but purchased the remaining 80% in March for $7.7 billion. Other transgenic crops include soybeans resistant to Monsanto's Roundup pesticide as well as genetically altered cotton and potato crops. This trio of companies has literally bet the farm on the power of agricultural genetics, pouring billions into R&D and marketing efforts to establish what they view as their future revenue growth engines.

TRANSGENIC BENEFITS. The companies note that genetically engineered corn and other products reduce the need to use pesticides (many of which are sold by these same companies) that kill far more indiscriminately and pose more potential damage to humans and the environment. Furthermore, these transgenic crops improve yields, which reduces the need for more farmland to feed the growing world population. "The Bt technology itself has been approved for import for around the world. It's a good technology. It's specific and effective. There is lots of information that tells us it's safe and environmentally friendly," says Pioneer spokesperson Doyle Karr.

The companies have no plans to suspend or cut back on sales of Bt corn while further field trials are conducted on how the pollen affects butterflies and moths in the wild. But the Cornell study is sure to add fuel to the fire in Europe, where genetically engineered products have sparked a consumer rebellion that has caused big food conglomerates Nestle and Unilever to pledge not to use genetically engineered food in any of their products.

The European Union is also becoming increasingly resistant to transgenic U.S. agricultural products. "Lately, the EU has significantly slowed down their approval of the [genetically engineered] products," says Don Carson, an analyst with J.P.Morgan Securities. The controversy in Europe, plus rock-bottom commodity prices, have conspired to hammer the share prices for Monsanto and Novartis -- although Pioneer has been less affected due to the DuPont merger. Novartis is floating near a 52-week low of 71, and Monsanto is near 47, well below its 52-week high of 64. But according to Carson, the real worry is the commodity glut. "The genetic engineering issue should not be underestimated," he says, "but I think it is more the tough agricultural market right now. The world is awash in grain."

By Alex Salkever in Honolulu

EDITED BY DOUGLAS HARBRECHT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

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