The GMO case in the interpretation of the School of Economic Warfare

In 1983 laboratory experimentation on genetic mutation seemed to pave the way for a future technological revolution. Entrepreneurs heavily invested in research and development of bio-technologies applied for agricultural purposes. In this regard, businessmen sealed a number of deals concerning new varieties of plants created through transgenic processes. European farmers were particularly concerned about this fast-paced development and aggressive propaganda in favor of transgenic products, especially because the agro-chemical sector had confirmed their resistance to pesticides and herbicides.

The development of genetically modified organisms (GMOs) raised some concerns about their impact on human health and on the ecosystem. At the same time, the European agricultural business sector feared that the development of GMOs would have created a dependency on U.S. multinational agro-chemical corporations.

The European public opinion – whose trust had already been broken after the scandals of BSE (mad cow disease) and dioxin in chicken – has so far been caution and vigil towards this new form of agriculture and demanded specific labeling for all GMO products (officially approved in February 2000).

American consumers instead, relied on quality controls provided by the federal agencies like FOOD & DRUG ADMINISTRATION  and EPA , which were considered reliable watchdogs for public health and environmental safety. Since their approval is automatically considered as a guarantee for consumers’ safety, the GMO labeling procedure appears as superfluous. Free market regulations prescribe that every country intending to reject the import of a given product, must provide a proof of its health risks. The transatlantic debate on this topic mostly focused on food safety and environmental protection preserving biodiversity in the long run and promoting a healthy diet. The failure of Cartagena Convention to draft a protocol on biotechnological risks occurred during a phase in which European consumers demanded their governments to make clearer decisions. When in December 1996 the EU Commission authorized the placing on the market of transgenic corn (that benefited the company Novartis), many EU countries expressed their concerns. In February 1997, Austria and Luxembourg prohibited the import of that specific type of corn; similarly, in September 1998, Greece and the United Kingdom banned the rapeseed produced and distributed by Agrevo. Over the course of the same year, Denmark banned all kinds of GMOs and France suspended the farming of transgenic corn in accordance with the decision made by the Council of State on September 25th, 1998. Public opinion was also very worried and reluctant towards GMOs products. Fearing that governments would have not protected the interests of consumers, many associations and environmental movements vocally campaigned against GMOs and showed civil society’s response to the economic dominance of the United States. In January 1999, the Organization for Biological Certification Soil Association condemned the company Monsanto for the insufficient protective measures against the pollination of surrounding plantations. Soil Association  revealed  the risks of cross-contamination operated by  winds and insects moving the pollen of transgenic plants for long distances. At the same time, a poll conducted by the French NGO Friends of the Earth revealed that numerous fast food chains had already eliminated – or were about to do so – all GMO based food.

The environmental experts of the scientific community were concerned about the impact of the extensive use of chemicals on the crops whose genes were resistant to herbicides; they hypothesized that in response to this, insects might develop a gene mutation as well. The British Medical Association demanded the creation of a health agency and the ban of antibiotic-resistant marker genes in transgenic food. They basically asked for a moratorium.

Already in August 1998, the British researcher Arpad Pusztai pointed out some health risks caused by GMO potatoes and a few days later he lost his job at the Rowett Research Institute. This episode – that had received extensive media coverage – reinforced the stances of the GMOs critics as it was perceived as an attempt to bury a certain kind of scientific research in order not to spread fear. For their part, consumers were already shocked by the BSE scandal and started reducing significantly the purchase of transgenic products. Pushed by public opinion, the British government – that had previously welcome GMO biotechnologies – recognized the importance of a moratorium. Therefore, it commissioned two studies on the impact of GMOs on health, agriculture and environment. Large retailers were therefore forced to yield to the will of consumers. Sainsbury – second largest grocery store in the UK – together with Body and Mark and Spencer announced the withdrawal of all GMO products and some other big European groups followed their example: Carrefour (France), Esselunga (Italy), Migros (Switzerland), Superquinn (Ireland), Delhaize (Belgium). These latter issued a press release in which they committed to addressing the requests of consumers and only sell GMO free products, in agreement with agricultural and raw materials industries.

They appointed Law Laboratories Ltd, an independent research lab, for quality controls in cultivated fields and in food-production chains in order to detect the potential presence of GMOs. Some GDO companies offered consumers the choice between transgenic products and a GMO-free alternative of their own production. Paradoxically, the campaign against GMOs turned into a marketing strategy that favored national brands over the big industrial chains. On April 27th 1999, Tesco, leader in the UK food distribution, decided to collaborate with Greenpeace in order to identify suppliers that guaranteed GMO free products. Tesco’s commitment in the distribution of biological products resulted in both great enthusiasm of environmentalist groups and in Greenpeace’s success in the countries where Tesco was present (Hungary, Czech Republic, Slovakia and Poland).

On April 28 of the same year, Unilever, the first grocery store that introduced GMOs on the UK food market, decided to stop distributing these products; so did Nestlé – the Swiss titanic food industry- and H. McCain, world leader in the frozen food distribution, that withdrew the sale of transgenic potatoes as consumers had requested. The actions taken by the European agro industrial sector led many foreign companies to adjust their policies. In the United States, for example, Gerber – company specialized in food for children – decided to utilize only organic corn. As a result, most American farmers realized that transgenic seeds were the reason of the drop in exports (60% drop in 1998). The reports issued by the federal agencies USDA  and EPA clearly showed that the amount of insecticides used for a transgenic sowing was exactly the same used for traditional sowing. Besides, and that certain types of insect were resistant to the toxins present in transgenic plants.

These revelations produced some troubles in the agro-chemical sector that controlled 2/3 of the global market of pesticides and one quarter of the seeds one and the whole market of transgenic plants. Multinational corporations like Monsanto (USA), Du Punt de Nemours (USA), Novartis (Switzerland), Aventis (France and Germany) and Zenecca (United Kingdom) had made huge investments in order to reach the global control of pesticide market. They engaged in the significant challenge of setting the regulations of a new market (norms, rules, financing) to secure their absolute primacy in the biotechnological field.  These companies also initiated a communication campaign on global food security with slogans like: “Acting in harmony with Nature” (Novartis); “You have the right to know what you are eating. Especially if it’s the best” (Monsanto).  Since June 1999, Monsanto Director-General, Robert Shapiro, launched a massive advertising campaign involving the most important news outlets in the UK and in Europe in response to the protests.  The leitmotiv of this campaign was the idea of improving people’s diet and health while protecting the environment. In an open letter addressed to the President of Rockefeller Foundation, Gordon Conway (that had previously discredited this technologies and highlighted the disadvantage of developing countries), Shapiro announced Monsanto’s intention to use biotechnologies to produce sterile seeds. Later, on October 6th, 1999 Shapiro intervened in a conference-call during the debate in London with Greenpeace. Loaded by the criticism of environmentalist and consumers, Monsanto tried to regain some credit. Since it was aware of the fact that the opposition to GMOs was caused by its obstinate attempt to acquire the absolute primacy in seed production and distribution, Monsanto decided to change strategy. The political change of course was due to the necessity of meeting market and investor requests, that started to share their very low expectations of growth for the agrochemical food sector.

In December 1999, thanks to the fusion with the group Pharmacia-Upjohn, Monsanto sold 20% of its agricultural division and developed its pharmaceutical branch, whose outcomes were very positive thanks to the sales of Celebrex – an analgesic medicine used in the treatment of arthritis. Most likely, this strategy paved the way and favored the increase in production of medicated feed, also known as “pharma-food”. These products that can be found on the counter of big food chains in the shape of candies for the sight-improvement or chewing gum for the cold. The core concept of the pharma-food is the focus on the advantages of a healthy diet and is one of the innovative challenges of the next century. This moment marked the beginning of a partnership between pharmaceutical laboratories and food industries on nutrigenetics, a new science that offered evidence for a healthy diet with healing properties. In recent years, about eight billion dollars invested in life sciences led to significant achievements in this new biotechnological branch. Nevertheless, the worldwide opposition of consumers and environmentalists made investor fear a sharp fall in sales and therefore the agro-chemical industry changed direction. The trade of transgenic products is a very important challenge for the U.S. government that traditionally supported the agrochemical industry. The United States never denied the favor towards the agrochemical industry and its ability to boost the production process, like in the case of the medicated feed. During the Cartagena conference in 1999, the opposition of a group from Miami led by the United States referred the matter to the World Trade Organization (Seattle, December 199) but no deal was reached anyways.

The US strongly supported the Montreal Conference (January 24 – 28th 2000) and managed to secure an important benefit. On the one hand, the act of the conference recognized the precautionary principle that granted the importer countries the right to ban GMO products; on the other hand, it was not very clear how these countries could claim this right in practice. The text of the agreement stated:  “the exporters are only requested to inform about the possibility that a load may or not contain GMOs, without specifying the nature or ensure the presence of GMOs”. This formulation allowed the US to buy time since there was no specific measure prescribing the creation of a separate production chain.

Congressional lobbies – agricultural professional organizations backed by scientists and academics – defended the GMO cause in front of the U.S. Senate and asked for the government’s unconditional support and opposed the compulsory labeling procedure requested by the EU. The President of the National Organization of Corn Producer, Tim Hume, strongly criticized the European skepticism towards GMOs: in his opinion, European or American organization opposing GMOs only aim at increasing their profits through the exploitation of people’s fears and concerns. According to several researchers, GMOs would be the only solution to fight world hunger and cure many diseases. According to John Oblorogge, Professor at the University of Michigan, the second generation of transgenic plants will allow to increase the nutritive content of the crops. Charles Arntzen, Emeritus Professor at Arizona State University and former President of the Research Institute Boyce Thompson, considered the labeling process as an unjustified scaremongering for consumers and concluded that “The microbiological contamination of food is a problem as much as the labeling”.

Scientists therefore requested public funding to support university research on biotechnologies in order to avoid big corporation funding that usually represents an obstacle to independence and objectiveness.

In order for their strategy to be effective, GMOs critics needed to cast doubts on transgenic product and amplify it through local and regional press, TV channels, environmental associations websites, internet forums (that are often loaded with information). Besides, due to GMO critics’ initial disadvantage, they had to identify the contradictions in GMOs supporters discourse and exploit them to their own benefit. On their side, businessmen in the agrochemical sector had to conduct a number of tests on their products in order to prove the absence of toxicity before putting them on the market. Entrepreneurs must anticipate the strategy and study the potential of the opponent in order to foresee its attacks towards their products or their company and be able to react rapidly. It is no more a matter of crisis management and substantial communication, but rather of managing the power during the attack and react accordingly, case by case.

Greenpeace has indeed contributed to boosting the campaign against multinational agricultural corporations Unilever and Nestlé, which were forced to withdraw their transgenic products from the United Kingdom. The analysis of Greenpeace French website reveals a manipulative communication strategy. The absence of transparency of the debate on GMOs is quite remarkable in the narrative employed in the brief introduction to the topic posted in the topical issues section: “Manipulators”; “Sorcerer’s apprentices”; “disturbing lottery”; “inadequate and weak responses”; “the future of our health is at stake”; “environmental impact”; “risks for public health”. This narrative reflects the clarity of the premises of Greenpeace as a protest movement: it portrays the duel between the weak (consumers) and the strong (agrochemical multinational corporations), and exploits the power of the general discontent linked to the primary need of nutrition that is common to each human being. Its technique consists in manipulating the consumers (both figuratively and tangibly) according to the following scheme from the INFO-CONSUMERS section on Greenpeace website, articulated in four simple concomitant steps:

  1. Spread the two lists of products with the producers’ names: the white list of GMOs-free products for which it is possible to track the origin of the ingredients and additives; the black list of products that might contain GMOs and for which the supplier (highlighted in bold) does not oppose GMOs possible presence and cannot formally deny it.
  2. Questions to the suppliers through spamming the administration of the targeted company with petitions, fax, mail, phone calls in order to push it to take some measures in response, usually through a public statement. For this purpose, the website offers some pre-compiled letter templates that are filled with the address of the negligent industrial groups (Danone Unilever France and Nestlé France). In addition, Greenpeace shared a successful story of a company that, after having found its name on the black list and received a number of petitions, had publicly apologized for the presence of GMOs and issued a written statement declaring their withdrawal from its production.
  3. Forwarding the response of the company and the letters to at least 5 people.
  4. Keeping Greenpeace posted with updates on the activist participation and the recruiting of new activists.

This pressing strategy against agro-chemical industries turned out to be effective because it forced producers to report on their activities. Greenpeace has recently published other two lists containing all the GMOs introduced in the animal feed and asked consumers to make sure that poultry farmers used the organic ones. Activists are also asked to communicate the answers through updating the lists.

Whenever necessary, Greenpeace may also resort to disinformation. In its magazine, the organization reports that in 1998 the Council of States favored Greenpeace in revoking the authorization for the cultivation of GMOs corn that had been granted at the beginning of the year. Although on February 5th 1998, Greenpeace and other organizations had requested the annulment of a decree of the French Minister of Agriculture, the Council of State had simply decided on September 25th 1998 to suspend that decree and refer to the EU Court of Justice for the interpretation of the EU law. The activists did not actually win, but they have leveraged on a free interpretation of reality and deliberately spread misinformation across public opinion. In fact, what is important for Greenpeace is to push the intervention of national courts, no matter the result obtained. Greenpeace has also proved capable of considering all the nuances of a given issue, when it decided to admit a mistake and play the transparency card. In 1998, British researcher Arpad Pusztai was fired because he had proved that some test animals fed with transgenic potatoes presented some organic atrophies. In reality, the variety of potatoes that the researcher used in his experiments had been transformed with a gene of a toxin of a different species; therefore, these potatoes were not harmful because of the presence of GMOs, but because of this toxin that was harmful per se. In August 1998, Greenpeace had presented Pusztai as a renowned expert that had been unfairly fired after proving the toxicity of transgender plants. The following year, Greenpeace specified: “The conclusions of this research is still fragile, as some varieties of potatoes produce their own insecticide. Besides, similar vegetables are regularly sold in Canada”.  In this specific case, Greenpeace managed to appear as genuinely misguided by this research, and recognizing to have made a mistake just like anyone else.

Transgenic market represents a strategic field for the U.S. government. Since the early ‘80s, multinational chemical and pharmaceutical corporations have freely operated in the field of genetic engineering and allowed the US to establish their worldwide primacy. Nowadays a consistent part of EU and U.S. public opinion (consumers and farmers) strongly opposes these initiatives. On the other hand, US government criticized the European public opinion and attacked the EU weaknesses in response, without offering justifications for its own support for GMOs. According to Alan Larson (Undersecretary ad interim for Economic, Trade and Agricultural Affairs):“because of the EU, many U.S. corn producers are deprived of almost 200 million dollars in exports. (…)Some EU agencies specialized in food safety revealed to be easily influenced by politics and should take inspiration from the FDA. I had never witnessed such a level of scaremongering in Europe between consumers.”

It is important to note that there is no independent health agency at the EU level. The only authorities that can effectively address this issue belong to Member States, that is the reason why it is legitimate to question their impartiality. According to James Murphy, U.S. adjunct representative for international trade:

Our ability to sell these products goes beyond economic data. It is more a humanitarian, ecological and food safety issue. We are witnessing a strong opposition from Europe … with the lack of trust of public opinion towards science … the opposition group were able to exploit the anxiety of consumers that have consequently lobbied their political representatives.”

David Sandalow, Assistant Secretary of State for Oceans and International Environmental and Scientific Affairs, that represented the US at the Montreal Conference in 2000, declared to the Washington File that

Focusing on biodiversity and environmental protection can sometimes overshadow the debate on food safety. Negotiations…should not be focused on trade regulations…that could hinder international trade. The United States will not support it. According to many experts, the scaremongering in Europe towards GMOs, risks to let thousands of people die from hunger and millions of children of developing countries, if scientists and institutes financing researches refuse to apply modern biotechnologies. The safety and the quality of the food produced through modern biotechnological techniques are not different from traditional food”.

The skepticism of the scientists and of the EU politicians is the proof of their incapacity to support research on GMOs and this delay is the cause of many deaths in developing countries. The defense strategies that the Department of Agriculture and the Federal Agencies put in place consisted in a discourse centered on accountability and justification: on November 1st1999, the U.S. Department of Agriculture launched its new internet website in order to inform consumers on the state of biotechnological research applied to the agricultural sector. The website was aimed at providing an answer to the most Frequently Asked Question (FAQ) and shed light on regulations and information on international trade related to agricultural products. The U.S. Food and Drug Administration organized three public conferences on the GMOs issue: Chicago – November 18th; Washington November 30th; Oakland – December 13th1999. These public debates allowed U.S. consumers to express their views on the policies of the FDA: many associations like Consumer Union demanded the labeling of transgenic product to ensure the respect of the right of choice.

During the Washington session, Joseph Levitt, Director of the Center of Food Safety at FDA declared: “Taken note of the controversy … we want to point out your recommendations in order to improve our verification of food safety strategies and optimize the sharing of information on the public level.”

According to the Director of the Center for Biotechnologies for Agriculture and Environment of the University of Rutgers, the skepticism of European consumers towards GMOs was the result of ineffective norms that had been proved incapable of preventing the BSE diseases and the sale of animal feed containing dioxin. James Maryanski, FDA Coordinator of biotechnologies maintained that EU regulations focused on product, foods and additives rather than on the plants used in the production process. Today FDA is managing to adopt new regulations to apply when a product does not comply to certain safety standards. The only law controlling the food obtained from transgenic plants dates back to 1992 and essentially consists in the same safety measures foreseen for traditional food. This law was heavily criticized by an American author, because it allowed the commercialization of GMOs without any proof of safety or authorization. It seems that at the moment FDA is imposing the agrochemical industries to carry out preemptive checks in order to avoid any risk for the health. Multinational corporations like Monsanto and Du Pont de Nemours were forced to batten down the hatches and tried to adopt a new approach based on accountability and justification. On October 6th, 1999 during a debate with Greenpeace, Monsanto took the initiative and admitted its lack of listening and conciliation spirit. Similarly, Du Pont de Nemours, recognized that businessmen were incapable of addressing the concerns of public opinion and considered them as the result of ignorance. Between the counter-offensive techniques used by Monsanto, the use of advertising campaigns as communication weapons plays a prominent role: “The protests of farmers, consumers and businessmen forced Shapiro to publicly withdraw Terminator technology from the market”.

This principle – an open letter addressed to a famous Foundation – allowed to orient the message towards the desired direction, limiting the competitor’s operating space.

“(…) The decision has therefore taken into account the opinions that you have expressed and those of a huge number of experts and personalities, included the representatives of our important agricultural community. We have consulted many international experts in order to get to a deep and independent evaluation of the subject. We will continue to encourage a free and transparent debate”.

This press release portrays Monsanto as a responsible company that pays attention to collective interests and partners up with farmers to help them improving their harvest, rather than a monopolistic corporation that exploits on its power.

The strong mobilization of GMOs detractors and its media echo provoked a sudden halt in the GMOs scientific progress. In fact, transgenic plants were created in order to improve agricultural output, but their long-term impact on people had not been considered. To this day, nobody is able to guarantee that GMOs are fully harmless. This is a key issue that is capable to persuade part of the U.S. population.

This year, the FDA has been subject to a legal action because of its politics on food biotechnologies that was considered too lightly regulated. This is the commercial reason why some U.S. retailers must obtain supplies of non-transgenic corn, so that they comply with the traceability designed at the EU level. The European campaign was not addressed to cope with the economic rivalry with the US on GMOs, but rather from a complete absence of clear information and from food safety issues (BSE and dioxin in chicken).

Agrochemical industries completely misinterpreted the balance of power and this precluded the chance of anticipating and foresee such a campaign. It was too late when they understood the necessity of changing communication strategies, since US farmers refused to buy their seeds.

When the protests broke out, companies showed their lack of global vision and knowledge of the fields, environment in general and of the other actors, so that the ignorance on competition principles dragged them into a crisis.

Managing information risks cannot be improvised but needs to be based on a substantial plan. This episode shows the power of information as offensive strategy and the limitations that companies go through when they have to reorganize their communication approach to attract consumers.

In a meeting, it is not so important to know the interlocutor, but rather having the ability of putting oneself in the other’s shoes.

Gagliano Giuseppe
Gagliano Giuseppe
President of the De Cristoforis Strategic Studies Center (Italy)