Staff writer

KUSATSU, Shiga Pref. -- With compulsory labeling of some foods made up of genetically modified organisms to be introduced in 2001, the genetic testing business is growing, supported by plans by many Japanese food makers to label their products as "GM-free."

An increasing number of orders has been flowing into the Gene Analysis Center at Takara Shuzo Co. here, one of a few businesses in Japan that currently provide testing services, keeping researchers at work into the small hours every night.

In April 1998, the center, which has been offering gene analysis services since 1979, started checking food samples for genetic alterations. It handles soybeans and its derivatives, such as tofu, as well as corn, and charges 25,000 yen per sample.

The center used to receive orders mainly from consumer cooperatives, but now is getting steady work from trading houses, processed-food makers and distributors. Between April 1998 and last June, it tested 1,500 samples.

"In the last few months, the number of orders has doubled, and the number of clients who send us samples has tripled," said Masayuki Nakao, a spokesman for Takara, a Kyoto-based manufacturer of distilled spirits and other drinks. "I think it reflects a growing interest in GM foods."

On Aug. 10, a panel under the Ministry of Agriculture, Forestry and Fisheries issued a final proposal calling for mandatory labeling of genetically modified farm products in 30 product categories, including soybeans, corn, potatoes and foods made from them, like tofu and popcorn.

Although the government has not yet allowed genetically modified crops to be grown in Japan, GMO produce from the United States and Canada, such as soybeans and corn, have been imported since 1996.

Currently, about 80 percent of soybeans consumed in Japan and nearly 90 percent of corn are imported from the U.S., and about 20 percent to 30 percent of these imports are believed to be genetically modified. Exact figures are not available, because most GMO produce is mixed in with GMO-free produce at various stages of the distribution process.

Though mandatory labeling will not take effect until April 2001, some food companies, such as manufacturers of "natto" fermented beans and miso makers, are planning to label their products "GM-free" as early as next month, and trading houses are seeking to secure purchasing sources for GMO-free products and set up separate storage facilities for them.

Anticipating that demand will grow for more accurate testing and certification, Takara and Mitsubishi Corp. are now discussing setting up a joint venture to certify foods as free of genetic modifications.

For that purpose, Takara introduced new machines this month that enable more precise testing.

"By using new machines, we are now able to tell not only whether or not the sample is GM-free, but also how much genetically altered content it has," Nakao said.

Trading house Nissho Iwai Corp. announced earlier this month that it will go into the GMO testing business in October with Tokyo-based clinical-testing firm BML Inc. The two companies expect annual sales to grow to 1.5 billion yen in three years.

However, labeling and testing don't seem likely to address all of the concerns over GMO food. While the final proposal by the Agriculture Ministry's panel only calls for compulsory labeling on 30 items, consumer groups are demanding that all GMO food be labeled as such.

But current technology cannot detect GMO material if it has been processed in such a way that DNA or protein are no longer present in their original form. Such foods are believed to account for a major part of Japan's total imports of GMO foods.

For instance, testing cannot be done on fermented foods such as natto, miso and soy sauce, as well as purified products such as purified oil, because their DNA has been destroyed or removed in their production.

The question also arises of how GMO-free a product should be to be labeled as such. A Nissho Iwai spokeswoman said it will certify a sample as GMO-free if 95 percent of it is unmodified.

The growing interest of food makers apparently reflects their concern that having to label their products as genetically modified might alienate consumers. But experts suggest that the GMO food issue has been blown out of proportion.

Some researchers say they are surprised by the public perception that GMO foods are dangerous, even though at this point a great deal about such products, including their impact on human bodies or the natural environment, remains unclear.

"I personally think that there are other things on the shelves that may have adverse effects on health when consumed regularly," said a researcher who did not want to be identified. "I don't know why people are so concerned about GM foods in particular."