SLAYTON, Minn.: Feed manufacturers from seven European nations visited a farm and grain elevator near this southwestern Minnesota town to evaluate whether U.S. farmers can ensure a supply of non-genetically modified soybeans.

Fifteen members of the European Feed Manufacturers Federation visited the farm of Doug Magnus, chairman of the United Soybean Board, in coordination with the American Soybean Association and the U.S. Foreign Agriculture Service.

"They're actually the ones who buy our soybean meal," said Magnus, who raises 1,400 acres of corn and soybeans.

The federation, which visited the farm Tuesday, consists of feed industry organizations in the European Union and associate members in Switzerland and Central Europe.

The EU's compound feed manufacturers - who mix forage crops with cereals, soybean meal, bran, meat and bone meal - produce more than 120 million metric tons of feed each year. But EU crop production covers only one-third of the protein needed for animal feeding, meaning they must import 40 million tons of feed materials such as soybean meal and corn gluten meal.

Federation members said consumer is driving demand for livestock raised on non-GMO meal. GMO stands for genetically modified organism.

"If we want to keep our markets, we have to obey," said Koen de Heus, a feed manufacturer from The Netherlands.

The EU has approved one of two biotech soybean varieties and four of 11 biotech corn varieties grown in the United States.

But De Heus said feed manufacturers remain under pressure from food retailers not to use GMO feed. "The way we see it, at the moment we need to buy this non-GMO soybean meal," he said. "If we can't get this from the United States, we will get it from Brazil as much as we can."

Premiums paid for non-biotech corn and soybeans aren't enough to justify the high cost of segregating the crops, said Doug Schmitz of Schmitz Grain Inc., which also was visited by the group.

"To get our producers in this area to grow it for you, we're looking for a premium of at least 50 cents a bushel," Schmitz said.

Thomas Brennan, deputy director of the soybean association, downplayed Europe's aversion to biotech crops. For instance, while the EU imports much of its soybean meal from Brazil - where GMO crop production is prohibited - the federation says 10 to 20 percent of Brazil's soybean acreage is planted with GMO varieties illegally imported from Argentina. In addition, Brazil imports up to 3 million tons of soybeans a year from the United States.

To compete with Brazil for Europe's non-GMO meal market, U.S. farmers must establish identity-preserved soybean processing facilities, De Heus said.

Europe continues to be a key market for U.S. soybean producers. Magnus pointed out that since Oct. 1, 2000, Europe has imported 270 million bushels of U.S. soybeans - more than a third of total U.S. soybean exports.

"These guys are our friends," Magnus said. "They believe in biotechnology, they're just in a tough spot."

** NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed for research and educational purposes only. **