HomeMy WebLinkAboutCOM 0271.379 2012-2014 Page 1 of 2
COUNTY CLERK
Murashige, Laura COUNTY 07 HAWAII
From: Merle Inouye [blackbird4aloha @hotmail.com] 2013 JUN 28 AN 9: 50
Sent: Saturday, June 15, 2013 5:42 AM
To: Eoff, Karen
Subject: Bill 79 - Economics
Aloha Councilmember:
Consumer rejection of GMO laden food, the growing number of counties passing GMO planting bans,
and the recent Connecticut GMO labeling law is driving a rush by food manufacturers to secure non-
GMO commodities.
Bill 79 has brought the GMO issue up for community discussion, and one of the pressing issues is
economics. The shift in demand for non-GMO commodities is growing fast and that means more
acreage will be devoted to meet this demand, and here, it means that if the bill levels the "growing"
field for papaya, there will be opportunities for more growers to earn premium prices for non-GMO
and organic papaya.
SEEKING FOOD INGREDIENTS THAT AREN'T GENE-ALTERED
By STEPHANIE STROM May, .2013 New York Times News Service
"We've had more calls from food processors wanting to know if we can arrange for
non-GMO supplies," said Lynn Clarkson, founder and president of Clarkson Grain,
which sells such conventional grains
Additionally, the livestock industry is increasing its demand for non-GMO crops to
meet growing demand among consumers for eggs and meats sourced from animals
that have never eaten genetically modified feeds.
In this country, roughly 90 percent or more of four major crops — corn, soybeans,
canola and sugar beets — are grown from genetically engineered seeds, creating a
challenge for companies seeking to swap to ingredients sourced from conventional
varieties. A portion of the conventional varieties of those crops is exported, and
much of the rest of those crops is already spoken for by organic and other
companies here.
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PAPAYA
With the rejection of GMO papaya, non-GMO Mexico Brazil and Guatemala papaya sales to US
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markets have picked up to replace the losses incurred by Hawaii's GMO papaya. Although a major
constraint to papaya production in Hawaii was eliminated with the introduction of PRSV-resistant GMO
papaya, it must be labeled in Japan and is not considered by consumers to be a high-value product. Local
papaya growers receive about 35 cents per pound for GMO papayas. KTA stores, Derek Kurisu, manager
of perishable products, has said that he is begging non-GMO growers for their papaya "seconds" because of
the price premium.
A Project Under the European Union —Funded Facilitating Agricultural Commodity Trade
Project (FACT).
This study of papaya reveals that non-GMO and organic is a large and growing market.
Organic food sales are anticipated to increase an average of 18% each year. Kumu Farms on
Molokai, an exporter of non-GMO and organic papaya, sees the US organic papaya market as
significantly undersupplied.
California produce distributors such as Exspan, Heath and Lejeune, Coast Tropical, and
Veritable Vegetable handle approximately 300,000 10-pound cartons of Hawaii non-GMO and
organic papaya, and could handle triple this quantity to fill market demand.
Wholesale price comparison Supplier Product Wholesale Price (from this FACT report)
EXSPAN International (Los Angeles)— Reports an average wholesale price of$18/10-1b. carton for
top quality conventional (non-GMO) papaya from Hawaii.
Hawaii (conventional non GMO) Solo sunrise -4.53 kg (10 Ib) carton -Air freighted $17.50
Hawaii (organic) Solo sunrise -4.53 kg (10 Ib) carton -Air freighted $22.
Bill 79 can level the field for all papaya growers, allowing the fulfillment of the demand for non-GMO
and organic papaya at premium prices. Farmers have learned to grow uncontaminated papaya that
passes the HDOA protocol for export. GMO buffer zones required in Bill 79 will make it easier for
these growers to increase non-GMO papaya production. Based on the demand and premium
pricing, rejecting Bill 79 only to protect GMO papaya growers would be to sideline the excellent
growth potential of non-GMO papaya.
Due to growing consumer resistance to GMO food, Hawaii has an opportunity with Bill 79, to be a
place that grows the kind of food more people are now demanding.
Thank you, mahalo,
Merle Inouye
6/28/2013