Canada may have become the next country to approve the sale of genetically-modified salmon fish, following a similar approval from the Food and Drug Administration in neighbouring United States, but it seems that GE is facing a setback in the fisheries sector.
Just days after Bayer (ETR:BAYN) made an improved $62bn cash offer for genetically-engineered pioneer Monsanto (NYSE:MON) - the biggest cash offer ever - the GE industry is grappling with negative news about salmon.
It may not sink the Monsanto bid, but it focuses investors' minds on the oft-controversial and delicate existence of the GE industry. Whatever benefits and gains are demonstrated by their deployment, whatever safety assurances sought, manufacturers are only successful if retailers buy into the crusade.
That isn't happening with GMO salmon, according to a news release on Wednesday from environmental pressure group Friends of the Earth (FoE).
Friends of the Earth US and a coalition of more than 30 consumer, health, food safety and fishing groups released updated numbers on Wednesday showing that nearly 80 food retailers have committed to not sell genetically engineered salmon, despite FDA’s approval last November.
"Despite irresponsible approvals, the growing number of commitments from retailers demonstrates there is no market for GMO salmon,” said Dana Perls, Senior food and technology campaigner with Friends of the Earth. “Retailers and restaurants are wisely listening to their customers and rejecting GMO salmon."
Albertsons Companies, owner of Albertsons, Safeway, Vons, ACME, Shaw’s and others, stated its commitment to not sell GMO salmon.
In an emailed statement, Albertsons Companies confirmed that:
"Albertsons Companies and its family of stores have no plans to carry GE salmon. The seafood products we offer will continue to be selected consistent with our Responsible Seafood Policy and our partnership with FishWise," said Albertsons Companies Senior Vice President, Jonathan Mayes.
Albertsons Companies, which acquired Safeway in January 2015, continued Safeway’s policy on sustainable seafood and GMO salmon for all of its banner stores.
With Albertsons Companies banner stores, a total of more than 79 grocery retailers with over 11,000 stores have now made commitments to not sell the GMO salmon, including Albertsons, Safeway, Costco (NASDAQ:COST), Kroger (NYSE:KR), Target (NYSE:TGT), Trader Joe’s and Whole Foods (NASDAQ:WFM), along with restaurant chains including Red Lobster and Legal Sea Foods.
The cliffhanger is yet to come. Walmart (NYSE:WMT), the world’s largest retailer, and Publix are among the last remaining large retail grocers in the US that have not said publicly whether or not they will sell GMO salmon. A decision to join other retailers could result in the death knell for GMO salmon - but might raise the questions of potential lawsuits if producers are able to satisfy a judge that their produce is safe as well as FDA-approved.
Countering that, a growing body of science suggests that GMO salmon may pose serious environmental and public health risks, including potentially irreversible damage to wild salmon populations, according to the FoE release.
In the wake of controversy over the US approval, the United States has put in place an import ban on GMO salmon until labeling standards are established. The day after Canada’s announcement, Provincial Fisheries Minister of Nova Scotia announced the province will ban the farming of GMO fish.