Legislation is pending before the state Legislature to require GMO labeling on all food products. Sound reasonable? Maybe, but not as proposed.
First, what is GMO? Genetically Modified Organisms are plants enhanced by biotechnology to produce higher yields and be grown using fewer fertilizers and pesticides.
As grocers, we believe that consumers should have access to consistent, accurate and relevant information about the food products they buy. Our goal is to offer consumers the widest variety of products at the lowest possible prices. This can only be done under a uniform, national system of labeling.
Federal labelling standards are set by the U.S. Food and Drug Administration and the U.S. Department of Agriculture. It is our belief that consumers are best served if these agencies adopt a single, national labeling standard for GMO and non-GMO food products. State-specific labeling will lead to higher food costs and product unavailability. Let me give you some examples.
Supermarkets are restocked from multistate warehouses. If New York requires GMO labeling that is different from the rest of the country, then food warehouses will have to double-slot items: One slot for New York and another for the rest of the country. There is not enough space in any warehouse in the country to double-slot all the food items a typical supermarket carries.
The problem will be compounded if other states adopt different labelling bills. Will warehouses have to triple- or quadruple-slot items? What products will stores no longer be able to carry? What will this do to consumer prices? The need for a national standard is clear.
Sale items will also be affected. Many times, a supermarket can offer a sale because there is an oversupply of a product in another part of the country. For example, a manufacturer may call to say there is an oversupply of cranberry juice in warehouse. If the New York chain buys a certain amount, it can have the juice for a $1 off a bottle. Today, the chain buys the juice, ships it to New York and puts it on sale. If New York requires state-specific GMO labeling, then all those sale items go away.
Fresh produce will also go up in price. The bill requires farmers to produce a written statement to accompany each shipment of non-GMO product that is not certified organic. In other words, the farmer's assurances and his/her records are not good enough.
A typical supermarket has over 500 items in its produce department. These departments are restocked daily. Tracking written statements for each delivery of every product will create a paperwork nightmare and drive up prices for farmers, distributors and retailers. Ultimately, the consumer pays.
How much will the New York GMO labeling bill cost consumers? It is unclear. Studies in Washington and California placed the cost at $400-$450 per family. We think it may be more expensive in New York, due to the additional cost imposed on the labelling of fresh produce.
The state Legislature needs to remember that New York is not an island. We need the free flow of goods coming into New York at the lowest possible prices.
Michael Rosen is president & CEO of the Food Industry Alliance of New York State out of Albany.