VZCZCXYZ0012
RR RUEHWEB

DE RUEHSL #0542/01 2740855
ZNR UUUUU ZZH
R 010855Z OCT 07
FM AMEMBASSY BRATISLAVA
TO RUEHC/SECSTATE WASHDC 1229
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC

UNCLAS BRATISLAVA 000542 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EAGR ETRD TBIO LO
SUBJECT: PROSPECTS FOR BIOTECHNOLOGY IN SLOVAKIA IMPROVING 
 
REF: STATE 90220 
 
 ¶1. Summary.  On September 14, the Embassy funded and 
co-hosted the conference "Biotechnology and its Prospects for 
Biofuels," in cooperation with Slovakia's leading farm 
association.  The conference, held in the spa town of 
Piestany, was attended by approximately 160 participants, 
predominantly farmers who are considering use of Bt corn. 
American biotech companies see the opportunity for a 
significant increase in Bt corn planting in Slovakia next 
year for the following reasons: 1) the opening of the Enviral 
bioethanol plant, which provides a clear market for Bt 
products, 2) the government's quiet support of biotech in 
agriculture, and 3) high commodity corn prices combined with 
low local yields.  End Summary. 
 
Piestany Conference 
------------------- 
 
¶2. (SBU) Using funds granted by the Economic and Energy 
Bureau (EEB) (reftel), the Embassy partnered with the Slovak 
Food and Agriculture Association (SPPK) to develop a biotech 
outreach conference targeted toward Slovak farmers who are 
considering planting Bt corn next year.  Farmers in Slovakia 
were legally able to plant MON810 Bt corn for the first time 
in 2007; however, only 16 farmers did so due to uncertainty 
about available markets, limited knowledge of EU and Slovak 
biotech regulations, and lack of information about the 
product's effectiveness and safety.  To address these 
concerns, we developed a program featuring three 
Embassy-funded speakers from outside Slovakia (US farm leader 
Fred Yoder, UK bioscientist Richard Phipps, and Spanish 
biofeed industry specialist Jorge de Saja) and several Slovak 
speakers representing the bioethanol industry, the scientific 
research community, and government regulatory bodies. 
 
¶3. (U) In his opening remarks to the conference, Ambassador 
Vallee emphasized the need for Slovakia and the United States 
to develop alternative energy sources and praised genetically 
modified seeds as a means for making bioethanol economically 
competitive.  Most of the subsequent morning discussion 
focused on EU/Slovak regulatory frameworks for Bt corn and 
practical experience growing genetically modified crops. 
During the afternoon, the link between biotech and biofuels 
was explored more fully, with many questions directed toward 
the representative from Enviral, Slovakia's leading 
bioethanol producer, which began production in June 2007. 
While Enviral did not explicitly announce that it would begin 
purchasing Bt corn next year, it stated that Bt corn was the 
best product on the market for producing bioethanol and that 
farmers should make planting decisions accordingly.  To wrap 
up the conference, farmers visited the nearby Piestany 
Research Center (VURV) test fields, where they could see 
first-hand the quality and economic efficiency of Monsanto's 
.Bt corn and other biotech crops relative to conventional 
crops.  During the field visit, many farmers took the 
opportunity to ask Yoder about his experience growing biotech 
crops in Ohio. 
 
¶4. (U) The conference was attended by at least 160 
participants, mostly farmers, only one of whom grew Bt corn 
in 2007.  Minister of Agriculture State Secretary (Deputy 
Minister) Vladimir Palsa, who is also a grain farmer and farm 
cooperative chairman in Eastern Slovakia, attended most 
sessions and visited the test fields.  Several other office 
directors from the Ministries of Environment and Agriculture 
were in attendance.  The conference was covered in national 
and local newspapers. 
 
Looking Forward 
--------------- 
 
¶5. (SBU) Looking toward 2008, Monsanto is optimistic that 
they will be able to significantly increase sales of Bt corn 
in Slovakia next year for the following reasons: 
 
- Available Markets.  The June opening of the Enviral 
biofuels processing plant in Leopoldov (Western Slovakia) 
favorably alters the market dynamics for growing Bt corn in 
Slovakia.  The Enviral representative in Piestany wanted to 
avoid making headlines by stating absolutely that it would 
accept Bt corn in 2008.  However, Enviral has already started 
signing contracts to purchase crops from farmers growing Bt 
corn in Southern Slovakia and plans to increase purchases in 
coming years unless the Slovak or EU regulatory framework 
dramatically changes.  Enviral has a current annual 
production capacity of 120,000 cubic meters of bioethanol and 
expects to operate at 75 percent of capacity by next year. 
Bioethanol from Enviral will be the predominant domestic 
contibutor to Slovakia's efforts to meet the European Union's 
biofuel content standards, which will rise to 5.75 percent in 
¶2010. 
 
- Government Positive.  The Ministries of Agriculture and 
Environment, which respectively handle domestic and 
international (EU) regulation of genetically modified crops, 
have become increasingly convinced that biotech crop 
development is in Slovakia's interest.  Upon entering office 
in 2006, high-ranking political appointees in these 
ministries knew little about biotechnology and were slow to 
issue regulations concerning Bt corn, resulting in the low 
number of farmers using Bt corn this year.  Contacts in these 
ministries indicate, however, that the relevant Deputy 
Ministers from the coalition-leading Smer party -- Palsa 
(Agriculture) and Dusan Munko (Environment) -- have become 
strong supporters of biotech.  Support for biotech within the 
governing coalition appears to stand on solid ground since 
anti-biotech pressures from Hungary, Austria, religious and 
environmental groups -- all of which were taken seriously by 
Slovakia's previous government -- do not significantly 
influence the current government.  Officials from Monsanto 
and Pioneer now feel more secure that Slovakia's biotech 
legislation will not be changed for the worse. 
 
- Price Signals.  Slovak farmers are aware that increasing 
global and local demand for biofuels is likely to result in 
high corn commodity prices for the near future.  Corn acreage 
has already been rising in Slovakia for several years -- a 25 
percent increase since 1995 -- and corn has been the 
second-most profitable crop for Slovak farmers this decade 
(behind sugar beets) despite low yields by EU standards. 
2007 has been no exception; yields are expected to be low due 
to dry conditions and pests, but SPPK reports that corn 
growers will be among their highest earning members this 
year.  Anecdotal evidence from discussions with participants 
in Piestany suggests that Slovak farmers see higher yields 
associated with biotech technology and, given assurances 
about available biofuel and biofeed markets, they also see 
higher profits.  Many suggested they want to try Bt corn in 
¶2008. 
VALLEE