Graincorp chief Alison Watkins slams anti-GM froups of ‘emotional response’

Arguing that the use of genetically modified (GM) crops was essential for raising farm yields, Graincorp chief executive, Alison Watkins has slammed the ''emotional response'' of those opposed to GM crops.

She was also critical of the latest political developments in Canberra which threatened to stall reforms that were essential for the country's future.

''Stop short-term point scoring and take up the cudgels of reform for our long term future,'' Watkins said at a business luncheon.

Graincorp is the target of a takeover bid by US major Archer Daniel Midland, with shareholders offered $13.20 a share. The Australian Competition and Consumer Commission cleared the offer this week but it has yet to be approved by the Foreign Investment Review Board (See: GrainCorp finally submits to ADM's $3.1-bn bid).

According to Watkins, with estimates that global population would expand by 2.7 billion by 2050, which was equal to twice the size of China's population, or 40 times that of France, pressure was mounting on farmers to increase yields by 50 per cent to keep abreast of global demand growth.

''Therefore yields have to double to around 3 tonne a hectare .. yet they've been flattening.''

She added, the increase would have to occur against the backdrop of climate change and declining soil quality ''which will make it more difficult to achieve this''.

GM crops in comparable countries to Australia had been able to achieve a 10-per cent increase in yield as also reduction in the usage of herbicide by a quarter.

Meanwhile, The National Party of Australia, traditionally representing graziers, farmers and rural voters, is calling on new treasurer Chris Bowen to reject the offer of the US company which is awaiting approval from Foreign Investments Review Board.

According to the Nationals, the takeover was not in the interest of grain growers or the nation.

According to Australian senator Fiona Nash, GrainCorp enjoyed a virtual monopoly on grain storage, handling and logistics on the eastern seaboard of Australia, holding almost all the ports and about 280 receiver sites.

"This is potentially going into the hands of an enormous grain giant multinational," she told reporters in Canberra. "Our system will become a tiny cog in that giant empire, so we're calling on the treasurer to reject any approval from the FIRB on this takeover."

The ACCC yesterday said it would not oppose the $3 billion-plus takeover. GrainCorp directors meanwhile, urged shareholders this week to accept the offer under a deal where shareholders would receive $13.20 per share.