The Joe Biden administration has cleared the way for a type of genetically modified wheat from Argentina, putting agriculture technology company Bioceres Crop Solutions Corp a step closer to its goal of bringing its drought-tolerant grain to global markets.
Shares in the Rosario, Argentina-based company surged as much as 13 percent on Wednesday after the US Department of Agriculture said a day earlier that Bioceres’ so-called HB4 wheat is unlikely to pose an increased plant pest threat and “may be safely grown and bred” in the US. The decision clears the regulatory path for the strain, which is also herbicide resistant.
The decision marks a major milestone for the agricultural biotechnology industry. While farmers have for decades cultivated genetically modified soybeans and corn — crops that are mostly used for livestock feed or biofuel — the HB4 wheat would be the first major crop directly consumed by humans. That distinction has for years stoked fierce opposition from consumer, farming and environmental groups.
The US Food and Drug Administration determined in 2022 that the variety was safe for humans to eat. Bioceres Chief Executive Officer Federico Trucco said in May that US approval for its GMO wheat was long overdue.
A Bioceres spokesperson said HB4 wheat is now fully approved for production in the United States, making it the fourth country to allow its cultivation. Brazil, Paraguay and Argentina had already approved the company’s variety.
Even as the USDA’s ruling clears the regulatory pathway for the new crop, it will still take years for Bioceres to be able to successfully commercialise wheat with the HB4 trait in the US. Additional steps are still needed including closed-system field trials, according to a US Wheat Associates statement.
The group said it’s confident that the technology “has the potential to deliver significant producer and consumer benefits.” It said support will also depend on the technology being accepted in major importing countries.
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