In a world that has been divided on the use of genetically modified organisms (GMOs) in food products, the alleged presence of GMOs in wheat grown in Oregon, U.S., has brought about significant alterations to the import-export of wheat worldwide.
GMOs are used in farming to make the crops resistant to pests and other insects capable of harming the plants and also to improve farmers’ efficiency. However, the use of these chemicals varies from country to country, with a few approving the same. Reportedly, subsequent to the allegations, countries like Japan, Taiwan and some of the other European Commission members have started a check on wheat imports from the U.S.
Two days ago, the U.S. Department of Agriculture (USDA) and Animal and Plant Health Inspection Service (APHIS) revealed the presence of genetically engineered wheat plants in one of the farm lands in Oregon. Per the USDA, the chemical resembles the Roundup Ready wheat technology developed by the agricultural chemicals company, Monsanto Company (MON).
Per the company, the technology was developed and tested with permission in 16 states from 1998 to 2005. However, the same has been stopped since, and the technology was never put to commercial usage as the farmers did not accept its usage in wheat. To Monsanto, this is highly unlikely that after a span of eight years and approximately 500 million acres of wheat production, the Roundup Ready trait will be observed in the farm land.
Monsanto also divulged that in case the allegations prove to be true, there would be no food, feed or environmental safety concerns associated with the trait. The final results of the test have not been released yet, since many more tests are being performed on the crop.
Monsanto currently carries a Zacks Rank #3 (Hold). Other stocks worth a look in the chemicals industry are American Vanguard Corp. (AVD) and OM Group Inc. (OMG); each carrying a Zacks Rank #1 (Strong Buy), while, Cosan Ltd. (CZZ) carries a Zacks Rank #2 (Buy).
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