Posted May 8, 2014
Kraft Foods Group Inc. and other food companies are
facing the prospect of a state law requiring labeling for products containing
genetically modified organisms (GMOs), according to an article by Bloomberg
available here.
Vermont’s Governor, Peter Shumlin, has vowed to sign a
GMO food labeling bill today, May 8, saying that residents deserve to know
what‘s in their food.
The
legislation would make Vermont the first state to enact mandatory labeling of
foods made with GMO ingredients.
Other states have passed similar laws, but they will not take effect until
neighboring states also pass laws requiring labeling. Vermont’s bill is the first of its kind with
no trigger clause.
“This is a big deal for the industry,” Nicholas
Fereday, an analyst at Rabobank International in New York said in a note this
week. “This issue has started to move
center-stage and will continue to gain momentum and prominence.”
The law would take effect in July 2016 and could trigger
the laws in neighboring states like Connecticut and Maine.
Kraft, Monsanto, DuPont, and others have argued against
labeling laws, saying they would increase food manufacturing and retail costs
for processors and grocers. Hillshire
Brands Co. Chief Executive Officer Sean Connolly says that if the labels are
going to be required, he would prefer federal regulations.
“If you put yourself in the shoes of a manufacturer,
it’s not a practical concept,” said Connolly.
“You can’t have customized labels state by state. That would dramatically drive up the cost to
consumers even higher, which is certainly not in their best interest when
there’s nothing wrong with the ingredients to begin with.”
For more information on food labeling, please visit the
National Agricultural Law Center’s website here
