BEFORE THE U.S. DEPARTMENT OF AGRICULTURE ------------------------------x IN RE: : : ADVISORY COMMITTEE ON : BIOTECHNOLOGY AND 21ST : CENTURY AGRICULTURE (AC21) : : EIGHTH PLENARY MEETING : : FEBRUARY 7-8, 2005 : : ------------------------------x Tuesday, February 8, 2005 USDA South Building, Room 1623 USDA/NFC Training Center Lincoln Rooms 1, 2 and 3 1400 Independence Avenue, S.W. Washington, D.C. 20036 BEFORE: DR. MICHAEL SCHECHTMAN Designated Federal Official, USDA DR. PATRICIA LAYTON Chairperson A P P E A R A N C E S CYNTHIA SULTON, HW&W ABBY DILLEY, RESOLVE DARYL D. BUSS CAROLE L. CRAMER MICHAEL D. DYKES JUAN ENRIQUEZ-CABOT RANDAL W. GIROUX DUANE R. GRANT DAVID HOISINGTON GREGORY JAFFE JAMES MARYANSKI MARGARET MELLON RONALD D. OLSON JERRY SLOCUM LISA W. ZANNONI BERNICE SLUTSKY I N D E X Page Overview of report on the impacts of 4 agricultural biotechnology on American agriculture and USDA over the next five to ten years and the reports Introductory Chapters, Discussion of 5 Executive Summary, Discussion of 24 Preparing for the Future, Review 24 Rosy Scenario, Discussion of 24 Continental Islands, Discussion of 24 Biotech Goes Niche, Discussion of 24 Implications and Questions 24 Discussion of process for finalizing 24 the Committee's reports, the Committee's work plan, next steps and future work topic P R O C E E D I N G S (8:00 a.m.) MS. LAYTON: Good morning, and welcome to our second day of the lovely February meetings of the AC21. We had a very productive day yesterday. We had a lot get done during the day on two of our various reports. So we have a lot more to do today. So I'm going to ask Michael to welcome you this morning, and then I'll think we'll probably have kind of a quick review of how we're going to get through the day. Thank you. MR. SCHECHTMAN: Well, as is frequently our habit, we departed a little bit from our stated agenda. Happily we were able to move I think quite, quite well on two documents, and we managed to make progress on both the traceability and labeling report, including a work group that went off and really did some fine negotiations I think, to bring back a new consumer section for the traceability and labeling report that I think was generally very well received by, by the full committee. And, there was the decision to push as hard as we can to also now take the -- what was the scenario's chapter for the five to ten year report, and make that a separate proposed report going along on the same, on the same track as the traceability and labeling report, two documents that will be submitted under separate cover letters but pretty much simultaneously to the Secretary as two items -- outputs of the first two years of this committee's existence. And, we established a process by which we should be able to finalize those documents without another plenary session. We really very much appreciate everyone's hard work and cooperation yesterday. We have a lot more to do today. So I think that's basically the introductory thoughts. I think at this point we want to -- MS. DILLY: We want to jump back into the market segmentation. MR. SCHECHTMAN: We're I guess going to turn, turn first to the traceability and labeling, if you want to work on that part of the report, and I'll turn it over to Abby. MS. DILLEY: Sure. We thought we'd start with market segmentation which I think was the last piece that we hadn't discussed as our full committee, to finalize that with the new language. UNIDENTIFIED SPEAKER: And the policy concerns which we hadn't discussed. MS. DILLEY: Right. And then we'll turn to the policies section, and then finally do the, the Executive Summary, and, and then complete that and then continue the discussion of the scenarios document. Before we shift to the scenarios document, we might just want to at least outline a cover note that would go with the traceability and labeling document from the committee to the Secretary and then hopefully have time to do the same with the scenarios document as well as cover note for the scenarios document. So that's giving an overall outline of the agenda for today. So market segmentation, which is on page -- let's see here -- UNIDENTIFIED SPEAKER: 30. MS. DILLEY: -- 30. On page 30. Here we go. Section G, and just to remind everybody of my outline notes, but I wasn't sure everybody was in the room, that with the new language, that first line, line 23, 24, and then the next page at the top of 31 is also new language. And I think everybody, at least when we first talked about this before, were fine with that first sentence, but we want to make sure that those of you who were out of the room had a chance to review that, and then we started talking about the other paragraph but wanted -- I think we wanted Ron in particular to be in the room to talk about the different options there before we close that out. So first of all, any comments on 23, 24 on page 30? MR. OLSON: The only question is about heterogeneous and homogenous, whether that accurately describes the process, should this be larger and smaller segments or something. I don't know if smaller segments are necessarily homogeneous. MS. DILLEY: Okay. MR. SCHECHTMAN: More homogeneous? MR. OLSON: Or just, you know, dividing the larger market into several sub-markets. UNIDENTIFIED SPEAKER: Okay. MR. OLSON: We don't need to define the specific -- MS. DILLEY: Whether they're homogeneous or heterogeneous. MR. OLSON: Yes. MS. DILLEY: Okay. So larger market into several sub-markets. Are people fine with that then? UNIDENTIFIED SPEAKER: Smaller or sub? MS. DILLEY: So just take out homogeneous. UNIDENTIFIED SPEAKER: Okay. MS. DILLEY: And then the next page is page 31, that's lines 5 through 9. MS. SULTON: We made the change yesterday, Abby, and they're likely to be substantially equivalent, the change yesterday, to very similar? MR. SCHECHTMAN: But I think there was some more discussion and Greg had raised some issues about, about this piece. So we should let him find where we are and -- UNIDENTIFIED SPEAKER: Page 31, lines 5 -- MS. DILLEY: They're trying to describe the range of perspectives here, and so it's trying to find the right language to do that. MR. OLSON: And what did you change to substantially equivalent? MS. SULTON: I think it was changed to very similar or likely to be similar to traditional products. MR. JAFFE: I think we were trying to say that - - I think we said that current products, the difference between the current and future products. MR. SCHECHTMAN: Current products are very similar. MS. DILLEY: Okay. What did we take out? MR. JAFFE: That future products offer the promise of addressing future needs of -- that's one way to put it. MS. LAYTON: Okay. And so omit future products until after and. MR. JAFFE: Correct. MR. OLSON: Just a question. I guess I missed that discussion. What was the reasoning of taking out substantially equivalent because that's a term that's kind of used today. MR. SCHECHTMAN: There had been the thought that it's, it's a term that's freighted with a lot of baggage in some eyes and is not actually an endpoint in the U.S. regulatory system anyway, if I could capture the discussion. MR. MARYANSKI: It's certainly more than it's more -- it's more inaccurate in the -- labeling than it is here in this context here, but because it's that term that's, that's evokes a lot of emotion in the debate, it's better to use something different. MR. OLSON: Okay. Thanks. MS. DILLEY: Any other comments on that section? Greg? MR. JAFFE: I would just delete the word unknown. MR. SCHECHTMAN: In line 8? MR. JAFFE: Yeah. MS. DILLEY: And focus on potential long-term safety concerns or consequences to the environment. MR. JAFFE: Yes. MS. DILLEY: Any other comments on that section. Mardi? MS. MELLON: What page are you on? I'm not looking -- MS. LAYTON: 31. MS. MELLON: Political system on page 31? UNIDENTIFIED SPEAKER: Up at the very top. MS. LAYTON: The italicized section. MS. DILLEY: Any comments on that? Okay. So we can accept it as modified? MR. BUSS: Does anybody see a change in the message by deleting unknown? It sends the message that -- MS. LAYTON: We know what the long-term safety concerns are. MR. BUSS: -- there are no long-term safety concerns, and when you take it out, it implies that you do. MS. LAYTON: Yeah. I actually like the unknown in it. MR. GREG: Why? MS. LAYTON: Where you took out unknown, a focus on potential unknown longer-term safety concerns. If you take out the word unknown, then it looks like you know what longer-term safety concerns are. MR. JAFFE: I think potential suggests that it may or may not happen. Unknown to me is somewhat derogatory. It's suggesting people going after something that's nonexistent. In this debate, all these people are sort of -- some are saying people are going after unknown, undocumented, unsubstantiated concerns as opposed to -- and so I don't think, I don't think it needs to be there. It could be ascribing to points of view here I think that that gives an unnecessary negative tone to that point of view, suggesting they're going after something unknown as opposed to something that's potential long term. UNIDENTIFIED SPEAKER: Yeah, I agree. MR. JAFFE: I just don't think it's needed there. MR. GRANT: The phrase is used a lot though, Greg. I think we have to agree the phrase is used a lot by those who question the long-term viability of the technology. You read it in the press constantly, you know. I've even heard the phrase unknown unknowns used. We don't know what questions to ask yet. MR. MARYANSKI: Well, here it's in the context of safety though. MR. GRANT: Right, unknown longer-term safety concerns. MR. JAFFE: I think potential long term -- longer-term safety concerns covers it. I just don't think putting unknown in there helps. I think it does suggest -- MS. MELLON: I mean potential needs, that may or may not be there. MR. JAFFE: The whole point here was Ron wanted to put in two -- the main -- the two ranges of viewpoints. I think unknown adds a negative aspect to that. MS. LAYTON: Okay. Any -- can we leave it out? MR. OLSON: Does it imply that there are coming ones though? Potential sounds like to me that there's -- MS. CRAMER: So is there a weaker word for potential? Is possible? I mean I use potential all the time, you know, as it has great potential, and it's like it's going to happen. UNIDENTIFIED SPEAKER: Possible. MS. LAYTON: Possible. Are you comfortable with possible, Greg? MR. JAFFE: Yes. MS. LAYTON: Mardi? MS. MELLON: Sure. MS. LAYTON: Okay. Possible longer-term safety concerns or consequences to the environment. MR. SCHECHTMAN: Okay. MS. LAYTON: Okay. Nothing else on that page that had any questions? UNIDENTIFIED SPEAKER: Mardi. MS. LAYTON: Mardi had something. MS. MELLON: Yeah, on I guess it's line 34 in the political system, there's the use of this term science- based which I don't think is appropriate. I think it ought to be safety-based. MS. LAYTON: Okay. MS. MELLON: This doesn't mean anything to -- MS. LAYTON: So change science-based to safety- based? MS. MELLON: Yes. MS. LAYTON: Okay. Is everybody okay with that? MR. OLSON: Which one? MS. LAYTON: She's substituting -- where it says regulations on different approaches, which may be more or less safety-based or market-based and may blend in various "right to know" concepts, instead of science-based or market-based. MR. GIROUX: I'd like to know the reason to change that, because this is black text and I thought this was out of scope for discussion. MS. LAYTON: That's why I asked. MR. GIROUX: And I want to know what the prime reason why. We use science-based all the time. The United States uses the term. It's used internationally. I want to know what would be the compelling reason, and actually I think it changes the meaning. MS. MELLON: Well, I think it's just flat out inaccurate to say concerns are science-based. That doesn't have any meaning. The concerns -- the differential is between people who are concerned about -- who claim that there are safety-based or environment risks associated with technology and people who, who have other concerns about it. The other concerns are often also science-based. I mean we have a concern about, about putting an animal gene into a vegetable and serving it to people who don't know that an animal gene is in there. That is a science-based concern. It -- it derives from the science. It's proved by the science. It would be enforced by the science if you were to build it into some sort of a, or a regulatory scheme. So what differentiates concerns is the purpose of the -- what motivates people and the differentiation here I think is, is that some folks say, well, your concerns are not safety-based. They are only values- based or social- and economic-based. So I -- but I do agree that the term is constantly used and I think, of course, inaccurately. It -- I'm not sure why, why it has been -- MR. GRANT: Can I suggest an alternative perhaps? Either -- I share your concern that that word sometimes is misinterpreted. How about if we use science- based safety assessments? MS. MELLON: I would be pleased with that? MS. ZANNONI: But this is about different countries based -- based on safety except the U.S. which is not what we're -- not what this paper is talking about because this is talking about process-based labeling. MS. MELLON: So you would argue we should just drop it. We should have more or less market-based and may blend in various "right to know." MS. ZANNONI: I don't know. MS. DILLEY: I think Randy's other point, Mardi, is the question if we start opening up black text then -- MS. MELLON: On that I was going to say I would yield. MS. DILLEY: Yes, I think we should -- MS. MELLON: This is a point that I think is important that I didn't catch earlier. So -- MS. DILLEY: I think we should not go there. MS. MELLON: Okay. MS. DILLEY: Especially with people not being here to discuss it, and it had already been discussion at the last meeting. So if we can then -- that brings us to moving into the Section 4 which is the policy concerns issue raised, and that's what we call -- I'm sorry. MS. LAYTON: I was just going to say, Carole, there was a slight change on the H section that was -- showed you this morning. Did you show her the one that had the change on it? I just want to make sure Carole knows a change was made. They briefed her on it already. Okay. We're just going to give her a copy. MS. DILLEY: Okay. So on page -- that brings us to the Policy Concerns/Issues Raised section, and as you recall, we spent a fair amount of time in the December meeting going through this section, but then we had a, we had a rewrite that we didn't have a chance to really go through. So I wanted to turn to that at this point, and see if there -- yesterday we talked about number 9 I think and we -- some language to -- MR. GRANT: Yes, we have some suggested language that we'll get to. MS. DILLEY: -- come up with, but why don't we start from the top and see what -- if we can just work through these one by one. MR. GRANT: It's page 33? MS. DILLEY: That's correct. It starts on 33, and let's start with the first one and just see if there are any additional comments on that. I don't think that changed much really. So -- MR. SCHECHTMAN: The ones that changed are the ones that have bracketed text. MS. DILLEY: That have bracketed text, right. So that starts with number 2 which has some different alternatives in there. MR. JAFFE: I'm the one who suggested that -- well, I think I was the one who made a comment and then Michael probably put in the language from the suggestion for number 2. I felt that the first sentence read as if all three things related to certain countries as opposed to we're saying some tracing and labeling requirements are uncertain, are rapidly evolving and often lack specification at all. All three of them have existed in one instance, whereas what I thought we meant was some of one, some of the other and some of the third. And so Michael changed the language in the second part to try to address that concern because I think we meant that some of them were uncertain, some of them are rapidly evolving, some -- MS. DILLEY: As opposed to they all fall in one category. MR. JAFFE: Right, they all have to fall under one category. So we're clarifying -- it's an attempt to clarify. MR. OLSON: Yes, I like the change. MS. DILLEY: Okay. Any, any dissent on the change? MS. LAYTON: I'm okay on the red. MS. DILLEY: So it's that second, second bracket, also number 2. Okay. How about number 3? And there's a bracket, one at the beginning in terms of "Industry is grappling with the impacts of" or "There are inherent difficulties in." MS. CRAMER: I like "There are inherent difficulties in." MS. DILLEY: Any disagreement with that? MR. GIROUX: That's the first change, correct? MS. DILLEY: Yes. MR. GIROUX: Okay. MS. DILLEY: And then we're adding "and enforcing," I guess is the next question. "With difficulties in complying with and enforcing." MR. JAFFE: IÕm not inclined to include that. MR. SCHECHTMAN: Yeah, that was, that was -- those were words from Terry. MS. DILLEY: Okay. Can we remove that? MR. GIROUX: I would like to include it because there are inherent difficulties which I think we address in the paper around detectability of products no longer contained DNA protein and some of the other inner difficulties in testing. So I would like to see that stay. MR. JAFFE: But enforcement is a specific term that talks about Government taking action against somebody for noncompliance -- MR. GIROUX: Correct. MR. JAFFE: -- and I don't think it fits here. MS. DILLEY: Do you think it's a Government thing or is it more industry specific so it would be complying with and -- MR. GIROUX: To enforce traceability and labeling laws, you have to be -- you have to have some approach to execute it. MS. DILLEY: You say complying and -- MR. GIROUX: And since a different part requires you to test the food, and because it's very difficult to test food, and in some cases, impossible to test the food, I think there are difficulties in enforcing these regulations. MS. DILLEY: Could you just say implementing instead of enforcing because I think most people assume that enforcing is associated with government as opposed to industry. MR. JAFFE: Yes. This is a report primarily talking about the impacts of industry. We're talking about industry here because industry is having compliance -- to put both of those in the same sentence doesn't make any sense. MS. SULTON: How about interpreting in -- MR. GIROUX: I'll yield on that one. MS. LAYTON: So leaving enforcing in or -- UNIDENTIFIED SPEAKERS: Out. MS. DILLEY: And then Government-imposed process certification requirements pose challenges for either the marketplace or industry. MR. JAFFE: Just industry. MS. DILLEY: So it was the original industry or was the original marketplace? MR. OLSON: Marketplace. MS. DILLEY: So it's changing it to industry versus the marketplace. MR. OLSON: Industry is there. They're just not grappling as much. MS. DILLEY: So industry. Okay. Okay. So then on 4. MS. LAYTON: We're dealing with in or when one is. MR. JAFFE: The first two I suggested when one is and I suggested that are required to meet, and I thought those would make the sentence read better, the meaning more accurate. MS. DILLEY: Okay. So that's in the second sentence. MR. JAFFE: No, they're both in the first sentence. MS. DILLEY: I'm sorry. Second line. MR. JAFFE: First and second. MS. LAYTON: So this is a more editorial and readability issue. MR. GRANT: Abby? MS. DILLEY: Yes. MR. GRANT: Before we leave 3, I wanted to flip back and look and see if we defined industry as -- okay. Yeah. Okay. All right. Never mind. We can leave it be. MS. DILLEY: You're okay with that? MR. GRANT: Yeah. MS. DILLEY: Okay. So just editorial comments. If it changes the meaning, then obviously we need to revert back to the other language but are people okay with the editorial changes suggested? So the first one would be -- UNIDENTIFIED SPEAKER: So the suggestion is in. MR. JAFFE: The suggestion was -- no, in was in there. I suggested saying "There are significant sampling and testing issues when one is supplying grain and grain products that are required to meet specific tolerances or thresholds as opposed to in compliance with and in. MS. DILLEY: Any problems with that? UNIDENTIFIED SPEAKER: No. MS. DILLEY: Okay. MS. LAYTON: Okay. So we're accepting the change. The last line in that section, there's a bracket. MR. SCHECHTMAN: Yeah, I added those words just because I thought it improved the meaning. MS. DILLEY: The problem of variability? MR. SCHECHTMAN: Yeah. MS. DILLEY: Does anybody have any problem with that? Okay. MS. LAYTON: It's probably among instead of between, I'm sorry, statistician that I am. UNIDENTIFIED SPEAKER: Between two tests or more. MS. CRAMER: Yes, it is. MS. LAYTON: Well, but I think in that, when you don't know, I think it's safer to use among. Is that okay? I'm sorry. It wasn't in -- I didn't suggest. MR. SCHECHTMAN: That's fine. MS. LAYTON: But it was in blue and not black. MS. DILLEY: Okay. All right. Can we move to 5 or are there any other comments on 4? (No response.) MS. DILLEY: Okay. Five. MS. CRAMER: Here we're grappling industry. MR. OLSON: We're grappling again. MS. MELLON: Industry is grappling again. MR. GIROUX: So this is new text or old? MS. CRAMER: It's old text. MS. DILLEY: No, it's old. It moved up from -- it was 5, but then we deleted one -- another one at the last go around, and then it became -- MR. GIROUX: Okay. MS. DILLEY: So it's just moved and that's why it's -- so it really isn't open. MS. CRAMER: The question is whether grappling is still -- current industry. MS. LAYTON: Industries don't struggle. MS. DILLEY: But they grapple? MS. LAYTON: They don't grapple. MR. OLSON: I would say they do here. MS. DILLEY: Yes. MR. OLSON: There's been a lot of meetings among the industry players about how we, how we get this done -- MS. LAYTON: Okay. Grappling it is. MS. DILLEY: So we move to 6 then? So the change here suggested is established as opposed to clarified. MS. LAYTON: And we're adding which instead of the or something. Michael has changed the to which? MR. SCHECHTMAN: Yes. MR. JAFFE: I had a couple of suggests that come up in the -- in the proposal, but that's okay. Why don't we suggest which biotech test results because we're specifically biotech here, and the first sentence talks about the movement of goods, and the second sentence talks about grain and grain products. So I propose putting in which biotech test results of a grain or grain product take precedence in the movement of goods needs to be clarified. Aren't we talking about test results of grain and grain products? So -- MR. OLSON: Clarified I think is better than established because usually it's established. When you make a contract, you establish which test. Most people won't write a contract unless you agree which test takes place. So it is established. It's just that sometimes it's not clarified. MS. DILLEY: Okay. So use the word clarified. That's more technical. MR. JAFFE: I had suggested that. MS. LAYTON: And I think all of the testing we're talking about is biotech. So that may be redundant. MS. CRAMER: Result should be plural. MS. LAYTON: Test results. MR. SCHECHTMAN: Could you read, Greg, the rest of your change again? MR. JAFFE: I suggested which biotech test results of a grain or grain product take precedence in the movement of goods needs to be clarified. MR. SCHECHTMAN: Are you okay with the suggestion that, that biotech was a little bit redundant since that's all the tests that are described in here. MR. JAFFE: That's fine. MR. SCHECHTMAN: Okay. MS. MELLON: I think we should just substitute grain and grain products for goods -- MS. LAYTON: Goods. MS. MELLON: -- because the next sentence talks about enabling downstream Parties to accept testing. MR. JAFFE: That's fine. MR. SCHECHTMAN: Okay. MS. DILLEY: So Mardi, what did you replace then? MS. MELLON: I would strike goods and say the movement of grain and grain products. MS. LAYTON: So it would read as I understand it, "Which test results take takes -- precedence in the movement of grain and grain products needs to be clarified? UNIDENTIFIED SPEAKER: No, period. MS. LAYTON: Period. Okay. MS. DILLEY: Any other comments on that? (No response.) MS. DILLEY: Okay. Anything else on number 6? (No response.) MS. DILLEY: Okay. Let's move to 7. MR. JAFFE: That was 7. No, I'm sorry. MS. DILLEY: This one is on the top of 34 -- page 34. MS. MELLON: I was going to -- back on page 33, is it really true that development and recognition of testing certificates would reduce commercial risks or is it like should reduce commercial risks? Is there any uncertainty about that at all? MS. DILLEY: The last two sentences? UNIDENTIFIED SPEAKER: Where? MS. MELLON: The last sentence on the page. UNIDENTIFIED SPEAKER: It's what? MS. MELLON: Is it really would or is it like should? UNIDENTIFIED SPEAKER: Or could. MS. MELLON: But would is almost like it's -- it's a very complex system to say that a simply thing like a certificate without even common -- MS. CRAMER: I think would is appropriate. MR. OLSON: Yes, it establishes a certainty. MS. DILLEY: Okay. So 7. I think what was added is in the second sentence, even where specific -- Michael, are these your changes? MR. SCHECHTMAN: Yeah, these are just for -- to try to -- MS. DILLEY: Grammatical. MR. SCHECHTMAN: -- to make it read better. MS. DILLEY: So even where specific tolerances are provided by regulation, the marketplace often requires -- that's the additional language. MR. GIROUX: I think often is too strong. I think it should say may. MS. DILLEY: May require. MR. SCHECHTMAN: May require. MS. LAYTON: Okay. So take out the s on require. MS. DILLEY: Anything else on 7? (No response.) MS. DILLEY: Okay. Eight. Can we do 8? MS. MELLON: A comma after levels? MS. DILLEY: Where? MS. MELLON: On line 5, much lower, sometimes zero tolerance levels, to allow them. MS. DILLEY: Right. To be consistent with may require. MS. MELLON: Yeah. MR. SCHECHTMAN: So you put that comma after levels or after zero? MS. MELLON: I would say after zero. MS. DILLEY: Okay. Number 8. MR. JAFFE: I have a question on this one, and that is -- and I didn't do an extensive search but I'm not sure there's much text, if any, in the document to support this policy issue. UNIDENTIFIED SPEAKER: There was at one point in time. MR. JAFFE: -- insurance company exclusions. So I read through the text, and I went onto the recommendations, and I didn't recall it. I was at home. I didn't have the ability to do a search for it but -- UNIDENTIFIED SPEAKER: It's still in the text. MR. OLSON: I think when we talk about it, don't we include the actual clause from an insurance contract. We didn't want to put in the language. We just left the concept in. MR. JAFFE: Again, I'm -- we might -- these are big ticket issues which should be substantiated with a significant portion of text in the body to make it as a key recommendation or key issue. MR. OLSON: This is a real issue for the grain industry. MR. JAFFE: Then it should be substantial in the text. MS. DILLEY: I'm just trying to find that page number where it's discussed because I know we reviewed this, and it was still there. MR. JAFFE: I don't, I don't think we brought up any issues the first time in the -- MR. OLSON: I don't think we brought up -- MR. JAFFE: That's what I'm asking. I didn't recall reading it. MR. GIROUX: Page 27. MS. DILLEY: Did you find it on 27? MR. GIROUX: Yeah, it's in the -- just the paragraph or second paragraph before contracting liability, Section D. MS. LAYTON: Mine is 26. MR. GIROUX: I have a different copy. Under the paragraph ending may stop at the elevators. MS. LAYTON: Well, maybe that's not it. MR. OLSON: What's the title of the section? MR. SCHECHTMAN: It's in Section C, two paragraphs above Contracting and Liability D. MR. JAFFE: Traceability Systems. MS. LAYTON: It's 25 then? 25. MR. OLSON: And the top of page 26. MR. SCHECHTMAN: Yes. And the version in the back, it's at the top of page 26. MR. OLSON: We talk about liability transfer, at the top of page 26. MS. LAYTON: Yes, certain current insurance industry exclusions for unauthorized or illegal biotechnology-related presence. MR. JAFFE: That has nothing to do with this, this -- MS. DILLEY: There's another section of this -- MR. JAFFE: -- key issue here, and that's barely a sentence for a key issue. So my proposal is to delete this one unless we have text to -- UNIDENTIFIED SPEAKER: No. No. MR. JAFFE: Well, then we need to put some text in to explain it. We're dropping an issue here that we haven't explained in the text. MS. DILLEY: It's in here but it must be in a different section because I remember that language. MR. SCHECHTMAN: My, my recollection is that in the discussion there was in an earlier draft -- let me just finish what I'm saying here -- the thought that there was going to be a citation -- a specific citation of the actual language of the exclusion and then it was decided that rather than, you know, put the words in or name the particular company -- companies that are involved in that, that it just made sense to describe them briefly though certainly the people on the industry side thought this was a very big issue. MR. JAFFE: I don't doubt it's a big issue but we have lots of terms here, and we have no discussion in the text about it, biotechnology-related claims, certain portions of the supply chain. All I'm saying is if we want to include this in, I think we need to go back to the text and add a paragraph or two somewhere, and I'm not sure the traceability system is the proper place for it. I'll defer to Ron and others where it is, but my view is that if you're going to have a key issue, the first place we raise an issue shouldn't be in the key issue section. This is sort of a summary. This is -- the high points are coming out of the text and I don't see text that goes to explain this issue. So I'm not against the language in here if there's appropriate text in it, but if we don't, then I don't think it belongs here. MS. DILLEY: I know it's in here. I just -- MR. JAFFE: I'm happy -- like I said, I didn't do a computer search, but my recollection was there was no real discussion about insurance, lack of insurance, exclusions in insurance. I know at one point we had it but we've taken it out. So maybe we need to put it back in but there's no discussion of exclusions here, and this major thing is talking about exclusion, and I understand exclusions from insurance companies is a big issue. MR. SCHECHTMAN: Yeah, I mean it is, it is there, and it's just one sentence, but it's there. MR. JAFFE: No, this sentence here is -- this sentence here in not related at all to exclusion. MR. SCHECHTMAN: "This possibility accounts for certain current insurance industry exclusions for unauthorized or illegal biotech-related presence in insurance policies for claims by grain elevators as the blending trail may stop at the elevators." MR. OLSON: And the reason you get there is because the tracing -- because tracing allows you then to isolate the problem further back in the chain and implicate the elevator. The elevator has a difficult time taking it to the farmer because of blending, and therefore the people that insurance the grain handling industry are putting this exclusion in insurance policies because that's the piece that's most vulnerable in this whole system. MR. JAFFE: Then make the recommendation based on grain elevators because that's all this discusses. MR. SCHECHTMAN: I could do that. And that's the issue, grain handling. MS. LAYTON: For certain portions of the supply chain, you're saying for grain elevators? MR. OLSON: Grain handling. MS. LAYTON: Okay. So how could we change that to where it works? MR. OLSON: Grain elevators or grain handling or -- MR. SCHECHTMAN: Grain handlers. MR. OLSON: Grain handlers. MS. MELLON: We would delete for certain portions of the food supply and say for grain handlers to be more specific. MS. LAYTON: Yes, Randy? MR. GIROUX: Grain handlers and processors perhaps or grain handling would be fine. MS. LAYTON: Which one? The first one or the second one are we going to change? Can we establish that so I can figure out which one I've got? MS. MELLON: Change number 8. MS. LAYTON: As to whom -- uncertainties as to whom in the supply chain can be liable. MR. OLSON: I think the first one is more accurate. MR. JAFFE: Yeah, the second one is way too broad. MS. LAYTON: Okay. Let's stick the first one then. MR. OLSON: Certain portions of this we would just change that to the grain handling sector. MS. LAYTON: Of the grain handling sector are having -- and not can have -- significant impacts on the marketplace. MR. OLSON: I don't think if they've had it yet today. It's just that -- MS. LAYTON: Can have. MR. OLSON: Can have. We haven't had any claims at this point. MR. GRANT: You know what? I'm not real sure I'm comfortable with limiting this just to the grain handlers. MR. OLSON: Include the farmer side as well? MR. GRANT: Yeah. UNIDENTIFIED SPEAKER: Can we say growers and grain handlers. MS. LAYTON: Growers and grain handlers? UNIDENTIFIED SPEAKER: Well, the corn growers are big on this issue, too -- UNIDENTIFIED SPEAKER: Right. UNIDENTIFIED SPEAKER: -- because they've been meeting a lot. MR. GIROUX: I don't see a problem with the original text. It says for certain portions of the supply chain, and so -- MS. LAYTON: It's not the whole supply chain? MR. GIROUX: Right. It's not the whole supply chain, and it doesn't say that, and, and nowhere in this document, nor did it, when I sat down and read it, did it say, if it's an important issue, it has to have a large amount of text. That's a disconnect for me. Just because it's one or two sentences, and we've pulled out significant issues in this section, that this is a significant issue, Greg -- MR. JAFFE: Well -- MR. GIROUX: -- and just because we don't have a page or two of text describing the issue because it's an emerging issue, and there really isn't a lot to talk about at this point, it doesn't reduce the impact or the significance of this issue, and this is something that the Secretary can look at and understand, and just because it's an emerging issue, we don't have to have a page of text for it to be in here. I don't understand, I don't understand why you say that. MS. LAYTON: In fact we have pages of text for which there's not a significant issue. MR. GIROUX: Right. MR. JAFFE: No, it says here, and it says, these are some of the key policy concerns and issues that emanated from committee's discussions that are captured in the full report. This issue is not captured in the full reports. MS. MELLON: I believe that it is. MR. JAFFE: Well, I don't think it is. I don't think it is. I think we should add a couple of sentences in the full report if we want to include this. MS. LAYTON: If, if that's the case, then I think that it is incumbent upon you to figure out the couple of sentences and suggest how we might add them, and -- because I think that you can't -- I think that's what we need to do to make it constructively through the day, Greg. So if you feel that we need to add a few sentence, I've got some old versions on my computer that you can take a look at, but I don't think we can just say no when others in the group are saying it is here, and there was substantive discussion on this and part of what you just said is, that it was discussed by the committee and they are -- and it was for an hour at least or more on two occasions, discussed by the committee. MR. SLOCUM: It is captured in the full report. MS. LAYTON: And it is captured by a couple of sentences in the full report. MR. JAFFE: I don't disagree that it's an issue, but I can't write it because I don't know the issue. I'll be happy -- if Ron will sit down with me or somebody will sit down with me, I'll be happy to add some text in the traceability and work with somebody to do it. For me to write it, I'm not a grower. I never read the exclusions. So I'm deferring to people that this is an issue. I don't doubt it's an issue but I am uncomfortable putting something in this key section at the end that doesn't have any explanation of it in the text. MR. GRANT: One of the reasons it's hard to really write a lot about this is it's a pretty concise issue, and you're either covered or you're not, and if you're covered, it's no longer an issue. MR. OLSON: It's black and white. -- the insurance policy, there's not. So the only thing is we didn't quote the specific phrase from the insurance policy because we didn't feel that was appropriate. MS. LAYTON: Right. MR. OLSON: That's the only thing that's not in there. MS. LAYTON: Absolutely. And at one time that quote was in there, and I think it was even in a footnote at one time. MR. OLSON: Right. We just took it out because it -- it's like Ron says, you either have insurance or you don't. MS. LAYTON: Now maybe it needs to be moved into a separate paragraph in that section, so it highlights it. Maybe that's a bigger issue that it's not -- it's at the end of a paragraph and not in some paragraph but I don't think that it's an issue. MR. JAFFE: I'll work on the proposed text at the break. MS. LAYTON: Okay. Let's move onto number 9. MR. GIROUX: Should we be adding additional text at this point? We have the whole committee here. Are we going to -- what's going to happen if we start adding additional text? MR. OLSON: It doesn't go the process. MS. LAYTON: It has to go through this process. I think if we're going to add it at the black stuff, because we agreed we wouldn't touch the black stuff. MS. DILLEY: I think we're in somewhat the same situation with number 9 from Dick's comments yesterday. So -- MS. LAYTON: Actually we have some suggested language on number 9. MR. JAFFE: Right. So if we can add that language this day, I think we can add this language this day. I mean these are things related to open text. MS. DILLEY: Well, why don't you take a run at adding a sentence that you think helps clarify it, and then the committee needs to deliberate on that. I do think taking it out at this point is not the question. It's more see if there's additional text that will give more information on that particular issue. MS. LAYTON: But I do think, Abby, that in taking Dick's comments, we did it only because he was not at the last meeting. MR. JAFFE: No, we were talking about number 9. The issue -- MS. LAYTON: I understand. MR. JAFFE: -- was on number 9. Nobody had gone through the, the -- MR. SCHECHTMAN: Right, but that one had specifically been his issue when he was leaving. So that was, that was particularly why I wanted to make sure that one was raised before he departed. MS. DILLEY: Well, I could be wrong then where the status of that is but I thought we were getting text in the body of it, not just in number 9. MS. LAYTON: Actually we just moved things around. MS. DILLEY: We did. MR. SCHECHTMAN: We're doing both. We're offering -- we'll have some suggestions for altering the actual text of the portion on the trilateral arrangement and a suggestion for number 9. MS. LAYTON: Right. And we took that out because he had not been here at the last meeting to get his comments in. MR. SCHECHTMAN: Right. MS. LAYTON: That's why we did that. MR. SCHECHTMAN: And that's why we took up number 9 and that in fact reflected Greg's concerns on the text on the trilateral arrangement. MS. SULTON: Which was a question of fact. MR. SCHECHTMAN: Yes. MS. LAYTON: And it was a question of fact. Okay. So do you want to hear what to hear what we've proposed? MR. GIROUX: One point of clarification on I guess what is 8. Are we using the bracketed text or the unbracketed text? MS. LAYTON: The first text. UNIDENTIFIED SPEAKER: The unbracketed. MS. LAYTON: Uncertainties as to liability, transfer and exclusions for biotechnology-related claims by some insurance companies for certain portions of the -- now I still had growers and grain handling sector -- can have significant impacts on the marketplace. MR. OLSON: Actually, I was wondering, too, why -- I guess I prefer the existing text, for certain portions of the supply chain. I think it is very adequate. MR. JAFFE: I think that's too ambiguous. MS. MELLON: It's straightforward. MR. JAFFE: Well, they're not allowed to create the text. So -- MR. GIROUX: We are or we are not going to create the text? Now I'm confused. MR. JAFFE: Well, they told me, and it may not be agreed, but the text has to go through the -- MS. LAYTON: Are you people comfortable with having Greg create text today and entertain it? MR. SCHECHTMAN: I think, I think what we're talking about doing here now is a possible combination of using the first sentence that's here with some additional text that, that perhaps can be agreed on at this meeting today to add earlier in the report, and that would be part of the draft that would go out. MR. GIROUX: That's my -- MS. LAYTON: Okay. Then in that case are we comfortable with certain portions of the supply chain can have significant impacts on the marketplace. MR. SCHECHTMAN: If that's, if that's described a little bit better earlier on. MS. LAYTON: Early on in that thing -- that section on page -- which is under traceability -- 26. MR. JAFFE: We're going to add those sentences. MS. LAYTON: Okay. MR. SCHECHTMAN: Which we'll talk about later after they come back to the group. MS. LAYTON: Okay. Moving on. MR. JAFFE: Sometime later. MS. LAYTON: Today. Today. MR. JAFFE: Yeah. Okay. MS. LAYTON: And you're taking the lead on making sure we get those sentences? MR. JAFFE: Yes. MS. LAYTON: Okay. Other than that, are you okay if we move onto number 9? MR. JAFFE: Yes. MS. LAYTON: Okay. Abby. MS. DILLEY: I was out of the room when this was discussed. So -- MS. LAYTON: Michael has some suggested text we worked on this morning because I agreed and Michael agreed to help me to come up with a solution to the number 9 issue. So Michael, do you feel comfortable reading or -- MR. SCHECHTMAN: Sure. I think again this, this piece is going to be linked to the discussion of the piece in the earlier piece in the text. So let me read the revised version of number 9, and then we'll probably have to go back and look at the revised version describing the agreement. If I can read my writing, "There is a role for international organizations, as well as bilateral and multilateral efforts, to address some of these impacts and implications. The U.S. should continue to creatively explore different venues and approaches for the resolution of each." MS. LAYTON: Now this refers to the section on page 14 under the Cartagena Protocol on Biosafety. MR. JAFFE: Can you read that back again? MR. SCHECHTMAN: Yeah. I'll just preface it by saying this was the attempt to say that -- to respond to your desire that, you know, the various kinds of things can be listed without showing particular preference for one kind or another. So, "There is a role for international organizations, as well as bilateral and multilateral efforts, to address some of these impacts and implications." And then followed by the last sentence except to be added to the last sentence, the words, "for the resolution of each." MS. CRAMER: What does each refer to? MS. LAYTON: Impacts. MR. SCHECHTMAN: Impacts and implications, yeah. MS. MELLON: So we're going to delete that second clause about it is unclear? We're just going to make the statement that there is a role for the international organizations, as well as the bilateral and -- MR. SCHECHTMAN: Uh-huh. MS. MELLON: -- and multinational efforts or arrangements? MR. SCHECHTMAN: Yes. MS. MELLON: And addressing some of these impacts and implications. MR. SCHECHTMAN: Yes. MS. LAYTON: For the resolution of each. MS. MELLON: Okay. MS. LAYTON: How did it end again? MR. SCHECHTMAN: "The U.S. Government should continue to creatively explore different venues and approaches," I said, "for the resolution of each," or it could be, "for their resolution if you prefer." MS. MELLON: Okay. I think you can just say different venues and approaches. MS. LAYTON: Yeah. MR. SCHECHTMAN: Okay. MR. GRANT: Creatively explore? How did you have that worded? MR. SCHECHTMAN: The last sentence as it reads. MS. LAYTON: As it reads. MR. OLSON: Just a question. There is some lack of clarity on who's got the right to accept these. There's an International Grain Council. There's CODEX. There's different groups of the media. Who sets the, who sets the roles in the tolerances because the U.S. isn't -- so it's unclear as to the responsibility for negotiating those cross-boundary type agreements. Whether it's private industry or contracts or -- MR. JAFFE: Well, the U.S. is involved in many of them. CODEX is one of them. I assume ISO, and those international, they're Parties to most of these. That would be one exception to -- MR. OLSON: And that's what's driving this, is the traceability coming through that, through the European. Can we just live with the roles of the -- and that's it or is there a role for organizations to figure out how to define those trade roles -- or is that the marketplace's decision as opposed to government's? That's what I think was meant by it being unclear as Mardi has alluded to that. MS. JAFFE: I don't have a problem keeping that language in there. MR. OLSON: I kind of like it in there because I think it is -- there are situations, not on everything, but there are situations where it is unclear who -- how is this going to get handled or who is responsible for handling, whether it's government's or industry or contacting. MR. SCHECHTMAN: The only reason that I had crossed it out was because, because I added the bilateral and multilateral efforts to attempt to put them all in parallel and then organizations didn't fit. MR. JAFFE: You could say what mechanism or which approaches. It's unclear which approach could be best suited for the resolution of each particular issue or something. I mean -- MS. LAYTON: Okay. MR. SCHECHTMAN: That's fine. MR. JAFFE: That's a way to keep it in. MS. LAYTON: So period after implications. New sentence, it is unclear which organizations or mechanisms are -- could be suited for the resolution of each. MS. ZANNONI: Which approach. MS. LAYTON: Which approach instead of organization. MR. JAFFE: Right. MR. MARYANSKI: Now there's some organizations where it's very clear what is appropriate. Like CODEX for food safety. There's no question about that. UNIDENTIFIED SPEAKER: Right. MS. LAYTON: Right. MR. OLSON: It's not on everything. MR. SCHECHTMAN: Right, but -- MS. LAYTON: Instead of each -- some? MR. GRANT: But it's sometimes unclear. MS. LAYTON: It is sometimes unclear. MR. GRANT: It may be unclear. MR. JAFFE: Even in CODEX it's unclear where the traceability goes, does it go to this committee or that committee. MS. LAYTON: It is sometimes unclear which approach can be suited for the -- MR. JAFFE: No, I think it's unclear, not sometimes unclear. MS. MELLON: It is unclear which approach is best. MS. LAYTON: Is best for the resolution of each. It is unclear which approach is best for each. MR. GRANT: It is not always clear. MS. LAYTON: Is not always clear. It is not always clear which approach is best suited for each -- for the resolution of each. MR. JAFFE: You say not clear or unclear. Not always clear is changing the meaning. MS. LAYTON: Okay. Can somebody make a stab at that one? I can't read my notes anymore. MR. SCHECHTMAN: Well, I think not always clear was intended to say that for some of them, it may be clear and for others it's unclear. MS. LAYTON: It's unclear. MS. DILLEY: So it is not always clear which approach is best suited for resolution of each. MS. LAYTON: Which approach -- MS. DILLEY: Now it says, "There is a role for international organizations, as well as bilateral and multilateral efforts, to address some of these impacts and implications, but it is not always clear which approach is best suited for the resolution of each." MR. SCHECHTMAN: Yeah. Is that one sentence or two? MS. DILLEY: It's not poetic but -- MR. SCHECHTMAN: Is that with a but or without a but? UNIDENTIFIED SPEAKER: I think make it two. MS. DILLEY: That's fine. And then take the middle sentence out and then -- MS. LAYTON: The U.S. Government should continue to creatively explore different venues and approaches. MR. SCHECHTMAN: Okay. Do you want to go back and look at the other text related to it? We have -- MS. LAYTON: And this comes up with -- Mardi had a concern on this issue which was starting at line 27. Michael, I'm trying to save your voice. Page 14, line 27. We're in the section on Biosafety Protocol. MR. SCHECHTMAN: If I had a little more time, I would have printed this out so that you could have seen it. What we will do is this. What we suggest is this. Keep the first sentence, "The Protocol often allowsÉ;" take the last paragraph or the paragraph in lines 40 through 43, move those 4 lines after that first sentence, and then add a new sentence. So let me read you the -- let me read you how it would read. "The Protocol also allows for Parties and non- Parties to enter into bilateral and multilateral agreements to implement requirements of the Protocol consistent with the Protocol's objectives. The documentation requirements that will be established under the Protocol for shipment of LMOs from a country, Party or non-Party, to a Party will play a major role in dictating how easy or difficult it will be for exporters to comply with Protocol requirements depending on how much information will be required on documents accompanying shipments." Then, a new paragraph. "Consistent with the objectives of the Protocol, the U.S., Mexico and Canada recently developed an arrangement to address documentation needs for commodity shipments." Then continuing with the text, that which would replace, "To that end" sentence, I'm on 29 and 30, the text would then continue, "This arrangement allows for the continued use of the 'may contain' language for affected commodity shipments in trade. It also establishes that a shipment that has 95% non-LMO content does not require the 'may contain' language, provided that this does not conflict with the regulations of the importing countries. Of particular importance to commodity trade is the stipulation that, under the arrangement," now, "adventitious presence should not be considered to be a trigger for the LMO documentation requirements. The adoption of this type of arrangement to facilitate trade between Parties and non-Parties will likely be influenced by the success of its implementation in North America and the strength of commodity exporting countries in the continuing negotiations around implementation of the Protocol." MS. LAYTON: And it stays among and not between. MR. SCHECHTMAN: Yes. Shall I read it again? Does it -- do you want to see -- I presume people will want to see -- MR. JAFFE: I'd like to see it. I have some initial -- MS. LAYTON: Thoughts. MR. JAFFE: -- comments and thoughts. MR. SCHECHTMAN: Yeah. MR. JAFFE: And I would delete the first sentence. The Protocol also allows for Parties to enter -- I mean I'm not sure why we need that in this sentence. We're not discussing that in any way. So I would just delete -- I mean the Protocol allows a lot of different things, and if we were to keep that, then the next two sentences don't flow from it. MS. LAYTON: They aren't connected. MR. JAFFE: They aren't connected. MS. LAYTON: Okay. Bear with me. The Protocol also asks Parties and non-Parties to enter into bilateral and multilateral agreements to implement requirements of the Protocol consistent with the Protocol's objectives, is the finish of, is the beginning of the finish of the section on the Biosafety Protocol. It's about the Cartagena Biosafety Protocol period. And then the last paragraph is also a finish of the BSP which was the documentation requirements. MR. JAFFE: No, no. I think -- MS. LAYTON: That's the way I read the whole -- MR. JAFFE: The only reason we talked about that was because that was -- there's lots of requirements in the Protocol. I'm suggesting that we eliminate discussion of this requirement -- this thing. If we -- it's not related to labeling and traceability. This is not, and so I don't see any need for this sentence. It doesn't -- the way that -- MS. LAYTON: Which sentence don't you see the need for? I'm sorry. MR. JAFFE: The Protocol also allows for Parties and non-Parties to enter into bilateral and multilateral agreements to implement requirements of the Protocol, consistent with the Protocol's objectives. Then you have the other sentence which talks about -- I'm comfortable with the next sentence about documentation requirements. I think that's a good way to start the discussion into this arrangement. MS. LAYTON: Okay. MR. JAFFE: I'm just saying delete the first sentence. MS. LAYTON: Okay. MR. JAFFE: I don't think there's any need for it. MR. GIROUX: I disagree. I disagree because this, this bilateral arrangement, we could enter -- the Protocol allows for Parties or non-Parties to enter the bilateral or multilateral agreements for the documentation of labeling and traceability of shipments to implement the requirements of the Protocol. There's labeling of shipments. So this does apply to labeling and traceability. MR. JAFFE: But it's not an agreement. MR. GIROUX: I'm not saying that this is an agreement but the Party does -- the Protocol does allow Parties and non-Parties to enter into agreements, bilateral or trilateral agreements around the requirements for documentation and labeling of shipments. So it does apply to this report, and as such, the -- we're not -- and we're not saying in this section that this is an agreement under the Protocol. We're saying we -- there are arrangements that are alternative arrangements also made. We're not, we're not saying that we're using the Protocol to do this. We're saying -- we're making sure that the Secretary understands that there are opportunities, there are ways or arrangements that can be made to meet the needs of the Protocol that don't necessarily follow the Protocol. I think that's all this section is saying. It's not saying it's the best way or the right way. It's just stating a fact of what is occurring in the marketplace. MR. JAFFE: Then let's put that sentence as the last sentence of the first paragraph. MS. LAYTON: Yeah. MR. JAFFE: So the Party -- the U.S. is not a Party to the Convention and thus cannot be a Party to the Protocol, and then you could say, although we're not a Party to the Protocol, the Protocol allows Parties and non- Parties to enter into agreements to implement -- MR. GIROUX: All right. MR. JAFFE: -- their extents. MR. GIROUX: Fine. MS. DILLEY: Thank you for the suggestion. MR. JAFFE: Move it up there. MR. SCHECHTMAN: So done. I'll read the text a second time. MR. GIROUX: Please do. MR. SCHECHTMAN: Okay. I'll start by not reading the four sentences from 40 to 43. They were just moved up. Then, "Consistent with the objectives of the Protocol, the U.S., Mexico and Canada recently developed an arrangement to address documentation needs for commodity shipments." Then the text continues with the following two sentences that are, that are here. "This arrangement" sentence and the "It also establishes" sentence, and the following sentence, "Of particular importance" is exactly the same except for agreement changed to arrangement and then the following sentence is changed this way. "The adoption of this type of arrangement to facilitate trade between Parties and non-Parties," et cetera. MR. JAFFE: I'm comfortable obviously with 40 to 43. I would delete the introductory clause that you proposed, and just say the U.S., Mexico and Canada. I don't think we need to say whether it's consistent with the Protocol or not. That's an opinion, not a factual statement. There are a lot of people that don't think it's consistent with the Protocol, and so I just think we need to say, "The U.S., Mexico and Canada recently" to address documentation requirements, "The U.S. and Canada recently agreed to this arrangement." MR. SCHECHTMAN: Well, I know you haven't seen the text of the arrangement, but the arrangement states that it is intended to be consistent with the objectives of the Protocol. MR. GIROUX: Mexico is a signatory to the Protocol. So whatever we establish must be consistent with the Protocol since they need to -- MR. JAFFE: I think a lot of Mexicans are unclear whether it is consistent, and it's an interim activity when things are finalized. I think it's an open question on that. What do we need that sentence for? Why can't we just say, "To try to address the documentation requirements, U.S., Canada and Mexico recently set forth this arrangement -- the negotiated arrangement." MS. DILLEY: So you're changing it to address documentation requirements did you say? MR. JAFFE: I don't think you need a clause there at all. You can have this -- MS. DILLEY: Just, "The U.S., Mexico and Canada recently -- MR. JAFFE: I forget the way the sentence went but it just seems that those six words don't need to be there. MR. OLSON: Well, wasn't there an intent -- there certainly was an intent to be consistent. Whether it is or not, would be debatable but -- under this arena. MR. SCHECHTMAN: Intending to be consistent with. MR. GIROUX: I wasn't at the negotiations quarterly, but there was -- my understanding that the intention to make sure that this arrangement was consistent with the Biosafety Protocol. So the intention was there, and I think it's important that we maintain that there was an intention to be consistent with the Protocol. Maybe just make an arrangement outside of, trying to make sure that it was consistent with the Protocol. MR. SCHECHTMAN: And I think it's also probably worth pointing out that Mexico as well as the U.S. and Canada have brought this to the Protocol, to the negotiations saying that this is our attempt to do this. MR. JAFFE: Right. It's their attempt, but haven't the Parties -- the Protocol having said this is consistent yet. They said this is our attempt. MS. SULTON: This is our attempt. MR. JAFFE: If you want to write something that's no -- if you want to say after the first sentence, they set this arrangement, those negotiators believe it is consistent with the Protocol, I'm comfortable with that but to put a clause there the way it's written, it's just that we were saying it's consistent with the Protocol and I don't want to say that. I don't have the comfort of saying that. MR. SCHECHTMAN: Okay. How about, how about something like this? In an attempt to address documentation needs for commodity shipments consistent with the objectives of the Protocol, the U.S., Canada and Mexico -- MR. JAFFE: I'd like a separate sentence. I'd like it after. MS. DILLEY: Can't you say the U.S., Mexico and Canada recently developed an arrangement to address documentation -- MR. JAFFE: That they believe is consistent. MS. DILLEY: -- intended to be or -- MR. JAFFE: That they believe or that they intend to be consistent -- that they intended to be consistent with the Protocol. I'm comfortable, in the latter half of the sentence, related to those governments, not to our -- not to the inclusion of ours. MS. DILLEY: So they intended to be -- so the U.S., Mexico and Canada recently developed an arrangement to address documentation needs for commodity shipments. MR. SCHECHTMAN: That the three governments intended -- was intended to be -- MS. SLUTSKY: I believe it's a little fuzzy as to -- I mean it's not a government to government agreement. MR. SCHECHTMAN: Okay. MS. DILLEY: Just say the U.S., Mexico and Canada recently -- MR. SCHECHTMAN: That was intended to be -- MS. DILLEY: -- recently developed an arrangement to address documentation needs for commodity shipments that was intended to be consistent with the Protocol. MR. SCHECHTMAN: The objectives of the Protocol. MS. DILLEY: With the objectives of the Protocol. MR. SCHECHTMAN: Okay. MR. JAFFE: The other sentences are all fine. I have a problem with the last sentence but I don't have it in front of me. It's very difficult to make proposal changes to that but I don't like the adoption -- I don't think you can use Parties and non-Parties there because it's not an agreement for trade among Parties and non- Parties. It's an agreement for trade by private Parties. So -- it's not an agreement between the U.S. and Mexico. It's an agreement that allows Cargill to ship in stuff. It's not an agreement -- MR. SCHECHTMAN: Well, I mean governments don't trade. MR. JAFFE: Well, but then usability -- that's why I'm uncomfortable with the Parties and non-Parties, that it relates to the Protocol and the Protocol specifically -- I have to seen the sentence but -- it's hard for me to pose anything different, but I'm telling you why I'm uncomfortable with it. MR. SCHECHTMAN: Can I, can I -- there are only really few changes. I'll just read the most of it so that you can see the sentence if I may. The adoption of, and then this type of arrangement -- MR. JAFFE: But this type -- it hasn't been adopted. That's what I guess I'm saying is it's not adopted by anybody because the governments -- it's an arrangement. It's not adopted. If -- the U.S. Government hasn't adopted it, so you can use that word adopted. MR. GIROUX: That's a forward looking statement. MS. SLUTSKY: Either -- use either -- use the conclusion of this arrangement or -- MR. OLSON: Why not call it this arrangement. MR. GRANT: This type of arrangement to facilitate trade among Parties. MR. SCHECHTMAN: Well, no. It's talking about here whether others are going to use it. MR. GIROUX: It may be used in the future as a model MR. JAFFE: I don't have a problem with saying this type of arrangement could be used in the future as a model for trade period -- MR. GIROUX: Could also be used. MR. JAFFE: -- for trade with -- for biotech commodity products. I don't have a problem with saying that. MR. GIROUX: As a model for trade between Parties and non-Parties. That's the fact of why they're taking it to the biotech Protocol. MS. SLUTSKY: I don't understand why you, why you don't like Parties and non-Parties in that sentence because that's what this is. It's an arrangement between Parties and non-Parties to -- the arrangement is in fact between two non-Parties and a Party. So I -- MR. JAFFE: It isn't an arrangement. MS. SLUTSKY: It is. Trade goes between, between countries and those countries -- two of those countries are non-Parties and one country is a Party. So Parties and non-Parties are being used in a different context in this sentence. MR. JAFFE: They're not being used in the sense of the Protocol you're telling me. MS. SLUTSKY: They're not being used in the sense of them entering agreements. It's being used in the sense of trade between those countries. MR. JAFFE: Can we get rid of the large P then because I mean what we're suggesting here that it's the Parties of the -- MR. SCHECHTMAN: I think the Protocol refers to -- and movement between Parties and non-Parties even when that exchange is carried out by private entities. MS. SLUTSKY: I mean that exchange is always I mean carried out by private entities. I mean the government -- the U.S. Government is not sending commodity shipments. MR. GRANT: I think, if I'm hearing right, I think the only way that the U.S. could make an arrangement or an agreement as you have defined it, would be to be a Party to the Protocol. Otherwise, they can't -- MR. JAFFE: I haven't defined any of this. The Protocol talks about agreements between Parties and non- Parties. The USDA and FAS, the woman who spoke at the -- this is not a Government document. It is not in the Federal Register. It's not a regulation. The Government hasn't published it. It doesn't sign it. It is not a Government document. It is an arrangement that the U.S. government effectuated with Mexico. They negotiated it. MS. SLUTSKY: But, Greg, this sentence isn't talking about that. This is talking about trade between Parties and non-Parties. It's not talking -- it's not referring to the arrangement. If I understand what you're saying correctly, but I would agree with you if, if the sentence were referring or somehow implying that this was a formal agreement between governments of the U.S., Canada and Mexico, because you're correct, it was not a formal government-to-government agreement. I guess I would characterize it as an arrangement that the Government helped facilitate in conjunction with private entities. But this sentence if I understand correctly, what you're saying, what this sentence now reads as, this is trade between Parties and non-Parties, and that's a fact. I mean trade does go between Parties and non- Parties. MR. JAFFE: Okay. So what is the beginning now again? If we don't have the word adoption in there, maybe it works. MS. DILLEY: I thought it was this type of arrangement -- MR. SCHECHTMAN: No, I think a substitute for the word adoption may just do the trick. How about the usefulness. The usefulness of this type of arrangement to facilitate trade between Parties and non-Parties. MS. CRAMER: All we're trying to do is say this could serve as a model to facilitate trade. MR. OLSON: This arrangement. MS. CRAMER: So why don't just say this arrangement -- MR. OLSON: Can serve as a model. MS. CRAMER: -- can serve as a -- has the -- could serve as a model to facilitate trade between Parties and non-Parties. MS. SLUTSKY: To facilitate trade. MS. CRAMER: I mean we're not trying to make a profound thing here. We're just saying it may be useful. MS. DILLEY: So that this arrangement can serve as a model to facilitate trade. MR. JAFFE: Could. MR. SCHECHTMAN: This type of arrangement -- MR. GIROUX: Could serve as a model. MS. CRAMER: To facilitate trade between Parties and non-Parties. MS. MELLON: We could modify -- we could say this type of government facilitated arrangement just to make it clear that it's not -- MR. JAFFE: I don't think we need that. MR. SLOCUM: So who wants to read the last sentence to us? MS. CRAMER: Well, actually just to get a little more -- I mean I think it's true that it's excessive doing that. It's going to be facilitated by the rest of the sentence. So we may want to say -- MR. SLOCUM: You said this was simple. MS. CRAMER: I mean we could stop there or we could say that the ability of this arrangement to serve. MR. BUSS: Right, or the extent to which this arrangement will -- could serve as et cetera, et cetera, et cetera, and then just run the rest of the sentence. MS. CRAMER: Yes. MR. SCHECHTMAN: The usefulness of this arrangement. MS. CRAMER: The extent to which -- I like that. The extent to which this arrangement serves as an effective model to facilitate trade between Parties and non-Parties. MS. SULTON: That's not the sentence. MR. SCHECHTMAN: Let me, let me read that and see what people think. The extent to which this arrangement could serve as a model to facilitate trade between Parties and non- Parties will likely be influenced by the success of its implementation in North America, et cetera. MS. MELLON: What about just stopping the sentence that you use read after North America? MS. DILLEY: Is there a real heartburn with that rest of that or not? Mardi. MS. MELLON: I guess you could think about the rest of it is that it does, it does imply that it's basically a Ð whoÕs got the most power type of issue and that that probably accurately foretells, foreshadows the debate -- MR. JAFFE: I don't have a problem with that. MS. DILLEY: Okay. Keep it then. MR. JAFFE: Can I ask you, Michael, just to read over that first sentence again, the one right after line 43. MR. SCHECHTMAN: Okay. The U.S., Mexico and Canada recently developed an arrangement to address documentation needs for commodity shipments that was intended to be consistent with the objectives of the Protocol. MR. JAFFE: I'm just thinking about the word developed and facilitated, and I'm just trying to -- MS. SLUTSKY: Well, I think it's fair to say that the governments developed the arrangement. I mean I don't really -- I don't know how the government formally articulates its role in this. So -- MR. SCHECHTMAN: The governments -- MR. GIROUX: The governments were there. I don't know who the three signatures are on the final document. MR. JAFFE: Were there -- MS. ZANNONI: And at the Protocol meeting, Mexico had a meeting specifically on this. MR. GIROUX: Three governments signed the final document. MS. ZANNONI: And the Government pushed it forward. MR. JAFFE: It's fine. MR. SCHECHTMAN: Okay. MS. DILLEY: So that brings us to the last one, 10. Ron, you guys didn't take a run at language for this did you? MR. OLSON: No, we didn't. MS. DILLEY: Do you all want to take a 10 minute break? I guess what would be helpful is if the same people who did the language, because it should be consistent with the language you drafted, if you have -- if you could do a sentence that could be pulled from that for 10, and I don't -- this was not -- MR. GRANT: Right now the whole thing is in brackets. MS. DILLEY: Right. So it might be best just -- because that point was obviously to be consistent with the language that you generated yesterday. Maybe it would be worth it in the 10-minute break trying to take a run at that before we launch in there as a group. Okay. So why don't we take a 10 minute break and reconvene at 10 of, and Ron and Duane, you guys can help, and obviously Carol, but she's not here, so we could finish number 10. (Whereupon, a 10 minute break was taken.) MS. DILLEY: Okay. So we had Ron and Duane and Mardi as a surrogate Carol, and taking some of the -- and so taking some of the language that was in the original number 10 as well as building up of what the group did yesterday to reach an agreement on consumer language, we came up with this sentence. So let's run it past the group. And that is, "Variability in retail labeling requirements in different countries and associated debates regarding safety environmental and general acceptability of biotech crops stimulates consumers' interest in seeking additional information about their food." That's it. Take a minute to read it. Again some of the language echoes what the group worked out yesterday. Any comments, questions, concerns? (No response.) MS. DILLEY: Is everybody okay with it? MR. SLOCUM: All consumers or some consumers. MS. MELLON: We just left it at consumers. MR. SLOCUM: So read into it what you -- is it meant to imply all consumers? MS. MELLON: No. Usually if you don't say all, it doesn't imply all. MR. JAFFE: Is there a reason why it say about biotech content of their food? MS. DILLEY: Yes, because I think it was to echo the language from -- MR. OLSON: Because the content is also how it was processed, how it was handled, all those issues. MS. DILLEY: Okay. Any problem? (No response.) MS. DILLEY: Okay. Great. UNIDENTIFIED SPEAKER: Good work. MS. DILLEY: I think -- MR. JAFFE: I did come up with a paragraph. MS. DILLEY: You did come up with a paragraph. MR. JAFFE: Yes. MS. DILLEY: Were you able to run it past Randy and MR. JAFFE: No, they were working. MS. DILLEY: Do you want to go to that now or do you want to go to the Executive Summary and then come back to this or -- UNIDENTIFIED SPEAKER: Let's finish it. MR. JAFFE: Carol suggested putting it in the D Section. Me, I don't care where it goes. She thought it would go better in Section D than in Section C under contract and liability. She sort of mentioned that to me but I'll defer to people on that. "The introduction of biotech grain and grain products and their potential liabilities has affected the insurance that members of the food and feed chain can obtain for business related risks. Certain insurance industry members have recently added exclusions to their policies for unauthorized or illegal biotechnology related presence." And that's just taken from that other -- that phrase was taken from another place in the document. "With these new policies, there is uncertainty about who in the food and feed chain will bear the liability for biotechnology related claims, which could have significant impact on the marketplace." MR. GRANT: The word was, was it attained or obtained. MS. MELLON: It should be obtained. MR. JAFFE: I had obtained. It should be obtained. MR. GRANT: Yeah, obtained. MR. JAFFE: O B T A I N. MR. GRANT: Yes. MS. DILLEY: Greg, can you read it one more time? MR. JAFFE: "The introduction of biotech grain and grain products and their potential liabilities has affected the insurance that members of the food and feed chain can obtain for business related risks. Certain insurance industry members -- " MR. GIROUX: Let's do it a sentence at a time. MR. JAFFE: Okay. MR. GIROUX: Can we have in some cases because I don't believe it's in all cases. MR. ENRIQUEZ: Just use the word may. MR. GIROUX: May. That's fine. Because it's only specific insurers. MR. JAFFE: Okay. MR. GRANT: So far. MR. JAFFE: So may affect instead of has affected. "Certain insurance industry members have recently added exclusions to their policies for unauthorized or illegal biotechnology related presence." MR. GIROUX: It's just a technical point. MR. JAFFE: Well, I took that, again, I don't know, I took that directly from the clause. MR. OLSON: That's exactly the language in the - - that's the language of the policy, but it wouldn't be insurance members of the insurance companies. MR. JAFFE: Certain insurance industry companies. MR. OLSON: Certain insurance companies. MR. JAFFE: Okay. Certain insurance companies. Okay. "With these new policies, there's uncertainty about who in the food and feed chain will bear the liability for biotechnology related claims, which could have significant impacts on the marketplace." MS. MELLON: I think we need to change these to such if you're just going to have these kinds of things could -- may be out there. MR. JAFFE: Okay. MR. OLSON: Is it better to say grain handling, part of that sector of the industry. MR. GIROUX: Specific section -- MR. JAFFE: Growers are getting this also. So, so that's why I -- MR. GIROUX: Could we say a specific segment because really I don't believe it's a food company issue. MR. SLOCUM: No. MR. GIROUX: Certain segments or specific segments. MR. GRANT: That would work all right. Uh-huh. MR. SLOCUM: But it affects processing companies, too. Anybody who takes direct delivery from the farmer is exposed to it. MR. GIROUX: Right. If it's written in their insurance -- in their contract or their insurance policy. MS. DILLEY: Greg, do you have that written down? You can write it up on the board so everybody can look at it. MR. GIROUX: You can choose your insurer. MR. JAFFE: I have it written down here. I mean -- UNIDENTIFIED SPEAKER: Yes. MR. JAFFE: -- and go -- UNIDENTIFIED SPEAKER: Go write it up on the board. MR. JAFFE: I apologize. I'm just trying to figure out where to put stuff people are saying. MS. SULTON: Michael, why don't I read it to you and you write it. MR. GRANT: Abby -- MS. DILLEY: Yes. MR. GRANT: -- before you go to the Executive Summary, we need to go back to terms. So if I could just put that marker in there. MS. DILLEY: Okay. In the introduction you mean? MR. GRANT: Yeah, page -- I guess terms are actually part of the introduction. MR. JAFFE: Do you want me to write it up on the board? (Pause.) MR. SCHECHTMAN: Okay. Here are the words up here now with a few abbreviations. MR. OLSON: The exclusion is for claims unauthorized. MR. SCHECHTMAN: For claims. MR. OLSON: Yes. MR. SCHECHTMAN: So exclusions for claims. MR. GIROUX: Is that correct or should it say added exclusions for claims to their policies for damages created by -- MR. SLOCUM: They just exclude coverage is what they do. A claim that is related to an unauthorized event is not covered in the policy. MR. OLSON: Maybe we can spell it out a little cleaner. MS. DILLEY: Say it again. MR. OLSON: You can't buy coverage for unauthorized contamination by an unauthorized -- MR. BUSS: Say exclude coverage for claims that are unauthorized. MR. SLOCUM: Just exclude the coverage. MR. OLSON: You don't need to say to their policies. MS. DILLEY: Just exclude coverage. MR. SLOCUM: Actually have added exclusions to their policies for unauthorized or illegal biotech -- presence. That's probably as good of words -- MR. SCHECHTMAN: Leave out the claims. MR. GRANT: Yeah, claims is implied. MR. SLOCUM: You can't buy coverage for it which in effect in a grain handling system means you don't have any stocks coverage period. It's all commingled. MR. JAFFE: Unauthorized or illegal is redundant. It's redundant in the original text also. MR. GRANT: I just took a little bit there -- MR. JAFFE: I know you did. MR. GRANT: For unauthorized biotech. MS. MELLON: I would say unauthorized. MR. SCHECHTMAN: All right. MR. JAFFE: Okay. MS. SULTON: Section D. Did you say Section D is where you want to place this? MR. JAFFE: That's what Carole suggested as opposed to putting it in the traceability put it in the contract and liability section. MR. GRANT: It seems a logical place. MS. DILLEY: Anybody have a problem with moving that to contract and liability? MR. SCHECHTMAN: I don't see how removing the other part -- MR. JAFFE: I wasn't removing what was there in the other part. I was leaving that there. MR. SCHECHTMAN: Oh, okay. MR. JAFFE: This is an independent stand-alone paragraph. MS. SULTON: So maybe before the 5 paragraph that is on page 27, before number 6. Make it the second to last paragraph. MS. DILLEY: Add it between the two final paragraphs on E which would, if you have one of the handouts here, at the top of page 27. MR. SCHECHTMAN: So before "Unlike the conditions." MS. SULTON: Yes. MS. DILLEY: Correct. MR. GIROUX: Actually, it may belong one paragraph further up because the one that's further is on liabilities. This one talks about minimum quality selection. MR. JAFFE: Right. That's what Carole had suggested, the last -- between the -- on page 26 between the third and fourth paragraphs there. MS. SULTON: Okay. MS. DILLEY: That makes sense. MR. JAFFE: That's what Carole had suggested. MS. DILLEY: This is right after the elevator. The other sentence stays intact where it is and this is a new paragraph up here that goes into this section. MR. GIROUX: That's correct. MR. BUSS: Where did this wind up now? MS. DILLEY: This one goes -- what's up on the board goes on page 26, between the third and fourth paragraphs. So between the paragraph that starts, "At the next stage," and further down, "The supply value chain." MR. BUSS: Okay. It seems somewhat redundant with lines 2 through 5 on 26. MS. DILLEY: Yes. MS. CRAMER: Yes, they are. MS. DILLEY: That's okay. Redundancy is good. MR. SCHECHTMAN: It becomes doubly important. MS. DILLEY: Yeah. Then it's clearly mentioned. MS. DILLEY: Okay. Duane requested that we come back to the definition of grain and grain products on page 5 before we move to the Executive Summary, and I think yesterday you were bouncing back between having a specific definition for grain and grain products as far as acknowledging -- will we be referring to it in that context versus a broader context. So Duane? MR. GRANT: Right. I guess IÕm not exactly sure where we left this. I know there was a proposal to add wheat onto the list there. So did we end up with a list or did we not? MS. DILLEY: I think where it stood at that conclusion was it was still broadly defined which is grain and grain products refers to wheat, corn, and soybeans, and products or ingredients derived from them. MR. JAFFE: Et cetera. MS. DILLEY: Et cetera, sorry. MR. GRANT: So that's where I've got an issue. It says refers to the majority of current biotechnology products and wheat is not a current biotech. MS. DILLEY: No, we took that out. So now it says grain and grain products is broadly defined as not being defined with as only grain and grain biotech products. It's -- so now it reads, "Grain and grain products refers to wheat, corn, soybeans, et cetera, and products or ingredients derived from them." MR. JAFFE: No, ", including finished foods." MS. DILLEY: All right. "Including finished foods," right? MR. GRANT: Okay. MS. DILLEY: And that's all. MR. GRANT: All right. All right. I'm okay with that then. Thank you. MS. DILLEY: Okay. Now we can move to the Executive Summary. MR. OLSON: I have one other, on page 7, and maybe it was covered yesterday afternoon, about the middle paragraph, it talks about, in the last sentence, participants in these markets capture the values and importers are able to maintain low costs. Is that importers and exporters? Should that be exporters/importers or just importers? MR. JAFFE: What page are you on? MR. OLSON: Page 7, line 30. Because typically it's the exporter that pays for the inspection process. MS. DILLEY: I don't know, but if it prompts any discussion, then it's -- unless it's just a quick -- MR. OLSON: It's also line 44 down below. It just refers to importers. We're talking about participants of the market. I just didn't know if it should be importers/exporters or just importers. It's more of a question. MS. DILLEY: Yeah. MS. LAYTON: It's importers into the country that have a regulatory or labeling framework, right? MR. GRANT: I think just as it's written, I think -- MR. OLSON: Because the exporters bear some of the cost of bringing it into a country. It's not just the importer that covers the cost. MS. DILLEY: So where are we? Keep it as it is or -- MR. OLSON: Leave it as it is. MS. DILLEY: Okay. Let's leave it as is, and then turn to the Executive Summary. MS. MELLON: Just one discussion, I'm assuming all of the issues that are -- conform to the descriptions of the issues at the end of the chapter. MR. JAFFE: There are no issues in the Executive Summary. MR. SCHECHTMAN: The current version doesn't have -- MS. MELLON: Doesn't have any. MR. JAFFE: They wouldn't be put in. We talked about that. MS. MELLON: Okay. MS. SULTON: Okay. Are we ready for the Executive Summary? MS. MELLON: These are not other issues, and these are not the issues that were raised. MR. JAFFE: I don't understand what you're saying? MS. MELLON: Page 2. MR. JAFFE: You're talking about the bulleted things? MS. MELLON: Yes. MR. JAFFE: Those are not related to Section 4. They're related to Section 3. MS. DILLEY: That's basically the outline of the chapter. MR. JAFFE: -- performing with Section 3, but that's what we need to do now. MS. MELLON: Okay. MR. JAFFE: Not to the -- which was the policy, not the nine items we just identified. Those are different sections. Section 3 is commercial implications. The bullets relate to those sections. MS. MELLON: Okay. MS. SULTON: So turning to the Executive Summary, page 1, and we're seeking out the bracketed text. On line 21, "Although most countries have sanitary and phytosanitary regulatory requirements." MR. SCHECHTMAN: And the other new words. Since this section hasnÕt been gone over yet -- MS. SULTON: We haven't gone over it yet? MR. SCHECHTMAN: None at all. Everything that is underlined are new words. MS. SULTON: New text. So it begins at the beginning, paragraph one. MR. SCHECHTMAN: I'll just make a point about why the changes in line 10. Given that the report is future focused but is also talking about some implications in the policy concerns section, we moved current -- current was moved from in front of implications to after -- to before different mandatory labeling requirements so that it captures sort of -- the focus and future implications of it, current focus and future implications. MS. SULTON: That in addition to the word "United States" and the word "supply." They're all clarifications. Everybody okay with paragraph 1? (No response.) MS. SULTON: No changes in paragraph 2. Changes in paragraph 3 begin on line 21. It's just a clarification of what we're talking about there, plant-based products of modern agricultural biotechnology, followed by question of whether we should put in the text that says, "Although most countries have sanitary and phytosanitary regulatory requirements." MR. SCHECHTMAN: And those were suggestions from Terry who is not here. MR. JAFFE: I don't have a problem with it. MS. SULTON: Is it accepted? And those few last words beginning on line 25. MS. MELLON: I think we need to get rid of other. MS. SULTON: What line are you on? MS. MELLON: On page 25. Shouldn't it just say in the many countries that have mandatory -- MR. SCHECHTMAN: Yes. MS. SULTON: Okay. Is the rest of this paragraph okay with the changes and the suggestions, since they are mostly grammatical? MR. GRANT: I guess on page -- or line 26, do we need many or can we just say in the countries. MS. SULTON: In the countries that have or is it true for all countries that have them. This is saying that it's in many of them. That means that it's not true in all. MR. SCHECHTMAN: No, it's in all of the countries that have and there are lots of those countries is what that says. UNIDENTIFIED SPEAKER: That's what it's saying. MS. SULTON: In the many. MR. GRANT: I guess the question would be whether many implies plurality or just, you know, a majority or just about you or -- MR. OLSON: Many have -- in the countries? MS. SULTON: Yeah. UNIDENTIFIED SPEAKER: In the countries. MS. SULTON: In the countries. MR. GRANT: That's fine. MS. SULTON: Okay. That's clearer there. Okay. Nothing in paragraph 4, paragraph 5 beginning on line 38. Actually on line 42, there is a choice between having to label and labeling, and it suggests the new text is labeling. MR. BUSS: That's more accurate. MS. SULTON: I would suggest that we delete the "have been evolving." MR. SCHECHTMAN: The words are just moved in the sentence. MS. LAYTON: Yeah. From "Supply chains have been evolving" to "Supply chains that source non-biotech grain and grain products have been evolving." MS. SULTON: Correct. Everybody okay with that? UNIDENTIFIED SPEAKERS: Yes. MS. SULTON: Page 2, the second paragraph on that page, line 12, eliminate the word regulatory. MR. GIROUX: Could I have an explanation for that? MR. SCHECHTMAN: I don't recall, I don't recall who suggested that. MR. OLSON: It seems appropriate. MR. JAFFE: I think it should stay in. MS. SULTON: So let it stand. Then line 15. MR. JAFFE: I would say we stick with may. MS. SULTON: Is everybody okay sticking with may as opposed to going to the change? (No response.) MS. SULTON: Line -- MR. SCHECHTMAN: Let's make sure on that before -- MS. SULTON: All right. The documentation and the challenge of supplying products that are exempt from labeling in the United States may or will -- MS. LAYTON: In the EU. MS. SULTON: -- in the EU, may or will have significant impact on the ability of U.S. producers to compete in the EU market? MS. CRAMER: Don't they now? Don't they do it now? MR. GIROUX: Will. MS. SULTON: Is it will or is it would? MS. LAYTON: Just have. UNIDENTIFIED SPEAKER: Will is future. MR. SLOCUM: We could say do. MS. LAYTON: The documentation requirements and the challenge of supplying products that are exempt from labeling in the EU are having or have significant impacts on -- MR. OLSON: Cross out both may and will. MR. JAFFE: Are we saying we're not competing in the marketplace now because that's what that would suggest? MS. CRAMER: It says impacts. MS. LAYTON: Have significant impacts on the ability of U.S. producers to compete in the EU market. MR. JAFFE: It says we're not competing very well in that market. MR. OLSON: That's right. MR. SLOCUM: There are certain segments we're not competing in at all. MR. BUSS: I don't think it says value judgment on the quality of competition. It just says that it has an impact. It doesn't make a value statement. MS. LAYTON: Okay. So we're dropping may and will and we're just saying have. MS. SULTON: It just says have. Line 19, forums changed fora. MR. OLSON: The last sentence of that paragraph, it says even though the U.S. is not a Party, you know, shipments provide additional challenge for exporters, but if the U.S. was a Party, that means that shipments would -- in light of the first sentences -- first part of the sentence, the way it is related to the second part of the sentence. MS. SULTON: Is it a heartburn there because it's not in -- it's not a change. It was the original proofs. Is that a correction? MR. JAFFE: This is a new section. No, this is a new section. We have not gone through this section as a committee. We didn't bring up any points and -- MS. LAYTON: And I think this goes back to that text that we just changed on page 14. MS. SULTON: No. MR. JAFFE: No, I don't think so. MR. OLSON: I suggest we cross out "even though" and just make "The U.S. is not a Party to the Protocol." And then start the sentence, requirements relating provide additional challenge. MR. GRANT: Okay. That works. MS. SULTON: Is everybody okay with that? MR. JAFFE: That's fine. MS. SULTON: Very good. Okay. The paragraph beginning on line 29 -- sorry -- 28. Did you have a point to make? UNIDENTIFIED SPEAKER: Where are we? MS. SULTON: We're on the sentence that introduces bullet 1. MS. LAYTON: Instead of this report also addresses, it says, the following are other issues that are raised by the labeling and traceability requirements in the food and feed chain's efforts to implement them in practice, instead an effort to attempts. MS. SULTON: Because it follow -- because there were some issues mentioned above I presume, like the one in the last sentence about an additional challenge. Then we go to the definition of adventitious presence, with a question about whether we use the word risk or real challenges. MS. LAYTON: I think that might have been my correction, and that had to do with the commercial risk issue, and so I attempted to not use the word risk, and I wrote real challenges. I'm open to any other suggestion but I know there was a sensitivity of using the word risk because it had other meanings other than -- we had to either modify it to commercial or we had to do something. MR. JAFFE: But later in the sentence it is, because it says both in terms of regulatory compliance and consumer/commercial expectations. MS. LAYTON: Okay. I can back off if you're comfortable with the word risk. MS. CRAMER: I like challenges better than risks. MR. JAFFE: I wouldn't say real. I would delete real. MS. CRAMER: Just say challenges. MS. MELLON: Just challenges. MS. LAYTON: Okay. So now it says challenges both in terms of regulatory compliance and consumer/commercial expectations. MS. SULTON: Then in the next bullet we add the word commercial to modify risk. MR. JAFFE: I had another comment in that bullet though. MS. SULTON: Okay. MR. JAFFE: In the phrase, control unapproved products, I'm not sure what that's referring to. I mean I would suggest either saying control -- control experimental crops or otherwise control products for non-food uses but there isn't such a thing as an unapproved product. It's approved if they have a permit to grow it, but it may not be for food use. I don't like using the word unapproved. If we're talking about experiments, we could say control experimental crops. I think we're talking about pharmaceutical use and other kinds of things, and in this case, we may want to say control products not for -- MR. GRANT: Could you use regulated there? That doesn't capture everything, does it? That's only -- MR. JAFFE: I mean we could take control regulated products. MR. GIROUX: We could use the word manage instead of control. MR. JAFFE: That's fine. MS. SULTON: Manage regulated products. MR. JAFFE: That's fine. MS. SULTON: Is that okay? UNIDENTIFIED SPEAKER: That's fine. MR. SCHECHTMAN: Okay. MS. SULTON: The third bullet. MR. GIROUX: The only word I'd like to see stricken in this one is may because -- MS. LAYTON: That they also impose new cost and commercial risks. MR. JAFFE: I propose to leave out the word new. Just impose costs and commercial risks. MS. SULTON: Is everybody okay? (No response.) MS. SULTON: Okay. Now it reads, "but they also impose costs and commercial risks." The next bullet, tracing and testing are interrelated tools for origin or process certification. MR. JAFFE: I had a question in the second sentence. It says for many uses, they have evolved independent of transgenic product. I didn't know if the they there, is it referring both to tracing and testing or, or not? It's a simple factual question for Ron or somebody else? MR. OLSON: Tracing is what is meant. MR. JAFFE: It sounds to me like tracing not -- so maybe we should -- MS. LAYTON: It should be tracing has evolved. Is that clear? Is everybody okay with that one. We're leaving in for many uses. MR. JAFFE: Yeah, it was just the they. MR. SCHECHTMAN: Can you just repeat what happened? MS. LAYTON: For many uses, tracing has evolved independent of transgenic product labeling requirements. MR. SCHECHTMAN: Thank you. MR. JAFFE: That fits better with the text. MR. OLSON: Yes. MS. SULTON: Okay. Page 3, first bullet we did yesterday. We accepted Juan's position. I can't remember what we did. MS. LAYTON: Yes, we accepted Juan's position. MS. SULTON: And I don't have the notes on -- MS. LAYTON: I do. MR. SCHECHTMAN: We got rid of assumptions about. MS. LAYTON: Assumptions about and it was contract terms relative to liability transfer. MS. SULTON: So it now reads, however -- MS. LAYTON: Contract terms relative to liability transfer. MS. SULTON: -- contract terms relative to liability transfer with the transaction are not uniform along the chain. Okay. And then the next bullet, a variety of tests. MR. JAFFE: Yeah, I have a clarifying question here. A variety of tests have been developed to detect specific biotechnology-derived products, but no test works for all products or for all genetic events. My question is should it say test or test methods, and is that an accurate statement. I mean the ELISA, does it -- I mean a particular ELISA only works for one but the ELISA itself could work for all of them. That's why I'm -- should it say test or test method here. MS. CRAMER: I think test is right. MR. GIROUX: Test methods but say no single test. MR. JAFFE: Okay. MS. SULTON: No single test. No single test or no single test method. MR. GIROUX: Single test. MS. SULTON: Single test. MR. GIROUX: Let's say, a variety of test methods have been developed to detect specific biotech products but no single test works for all. MR. JAFFE: Right. Okay. That's what I -- that's better. MS. SULTON: Okay. Anything else in this bullet? MS. MELLON: I'd like to have some -- in the Executive Summary, some mention of the consumer issue. MR. JAFFE: I think there needs to be a consumer bullet. MS. MELLON: And I was going to suggest that we have this, a consumer bullet that we developed up here, be included up here along with these other -- MS. LAYTON: It's the last one. So can we wait until we get to the and -- MS. MELLON: Okay. MS. LAYTON: -- locally it would be the last bullet. MS. MELLON: All right. MS. SULTON: So then it moves to the bullet that begins, when food manufacturers and ingredient suppliers comply with labeling requirements. There is the recommended addition of the word commercial to modify risk again. MR. GIROUX: The only question I have on that one is do we define IdP as identity preservation. MR. SCHECHTMAN: Yes. MS. SULTON: We have. MR. SCHECHTMAN: Up on top. MR. JAFFE: Line 13, page 2. MR. SLOCUM: We don't define identity preservation. MR. GIROUX: No, no. MS. SULTON: Then the final bullet before the one we may add, again commercial is modifying risks. MR. JAFFE: Right. And I have two questions on that bullet. It says increasingly stringent product requirements with respect to the parameters discussed above. I don't know what we're talking about when we say parameters discussed above. I don't think there's any -- MS. SULTON: Right. MR. JAFFE: -- parameters discussed in this Executive Summary. So I'm not proposing language because I don't know what to propose there. MR. GIROUX: I'd say we just erase that. MS. SULTON: So with respect to the parameters discussed above is erased? MR. GIROUX: Increasingly stringent product requirements could lead to lead to market segmentation. MR. JAFFE: And then I would just propose deleting the word dramatic and just say a narrowing of the group of suppliers. MS. SULTON: Is everybody okay with that? MR. GRANT: Sure. MS. SULTON: It's gone. So we're removed dramatic and with respect to the parameters discussed above. Now, Mardi. MS. MELLON: I propose we add the language on the board as -- I'm almost -- I just said that I don't feel like formally recommending it, but I mean we're having it as the last bullet. That kind of makes it seem like it's not as important as the other parts of it. In some ways you could argue that it should be -- could be part of the - - MS. LAYTON: Isn't it following the outline of the report? MS. MELLON: I withdraw that, but I would suggest that it be included, I think that a bullet on consumer concerns should be included in the Executive Summary. MR. JAFFE: I agree with Mardi that there should be a bullet concerning consumer concerns. I have no problem using that language. We also keep in mind though that we do not put the key policy issues in it, and this would be the one case where the language would be identical. On the other hands, we all want to negotiate. MS. SULTON: Juan? MR. ENRIQUEZ: I just wanted to get back to the point that I made yesterday, that I would propose a paragraph which is, "We wish to note that it is not just countries that could have significant input and impact on labeling regimes. Mega-retailers and mega-consumers of food could also drive rapid change in labeling." All you want to note in here is that we're talking about countries, but we had presentation I think in the session two of this thing, that basically said -- Wal-Mart says you're going to label this. It's just doesn't matter what countries are saying but we have a whole report that simply doesn't address the reality of business. MS. LAYTON: That segment though it in there, the mega-reality retailers is in there somewhere because we saw it yesterday. MR. SCHECHTMAN: Can I make, can I make this suggestion, that maybe that be additional text that goes into the -- first off into the document to expand, you would make that recommendation but I don't know that the text made it into the report, that we maybe see where the Wal-Mart thing is, where Wal-Mart was in the report and stick in the little expanded text there and then come back and look at it again here. MR. GIROUX: I think that text was not in this document but in the document we discussed yesterday around -- MS. SULTON: Scenarios. MS. DILLEY: No, it's in here. MR. JAFFE: Right. MS. DILLEY: He's right. MR. ENRIQUEZ: I think it's a big enough issue that if you pull up 40 pages on labeling and traceability, you don't happen to mention that -- MR. GRANT: Could it be rolled together into the consumer section? MS. CRAMER: Well, that's what he just -- MR. GRANT: Not in the section but in the consumer bullet. MR. JAFFE: In the market segmentation bullet, of the market segmentation section because that's where it's discussed. It ought to be put in there. MR. ENRIQUEZ: We're discussing governments in this thing but there happens to be this other thing that's sitting out there. MS. CRAMER: Would you read your statement one more time? MR. ENRIQUEZ: We wish to note it's not just countries that have significant input and impact -- MR. OLSON: Commercial realities. MR. ENRIQUEZ: -- on labeling regimes. Mega- retailers and mega-consumers of food could also drive rapid change in labeling regime. MS. CRAMER: What's a mega-consumer? MR. ENRIQUEZ: McDonald's. MR. JAFFE: I wouldn't call it consumers. I think you need to call it something else? Buyers -- mega- customers, or something like that. MS. SULTON: Wholesale buyers. MS. LAYTON: We had two terms that we defined yesterday, consumer and customer, and I think they're a customer. MR. ENRIQUEZ: But just out of 40 pages, you want to say something similar, that it isn't just governments who are going to decide labeling. MS. LAYTON: And IÕm trying to decide if it's G, H, I under Section 3, commercial impacts and realities and it's Section I, after market segmentation and after consumers, and we would just call it customers. MR. ENRIQUEZ: Sure. MR. SCHECHTMAN: Do we want to make it a separate two segment section or does it go somewhere else? MR. ENRIQUEZ: Put it anywhere you want to. MR. SCHECHTMAN: Yeah, I'm just trying to see what -- trying to see what everyone -- MS. LAYTON: I don't know the answer to that. MS. MELLON: Which page is the commercial realities on? MS. SULTON: It begins on page 16 and I have Sections A, B, C, D, E, F, G, H, I. Looking at F. MS. LAYTON: Let's see. Discrepancy between regulatory and commercial requirements. MR. GIROUX: No. MS. LAYTON: It could be that we actually need it to go there right after that MS. SULTON: Originally when these were laid out, they were laid out without any sense of priority but rather in alphabetical order. MR. SLOCUM: Why wouldn't it fit inside of F? MR. GIROUX: Because even a Wal-Mart has to work inside the regulatory framework. They may choose their labeling but they still -- MR. SCHECHTMAN: Demand their own commercial requirements. MR. GIROUX: They may very well. MS. SULTON: And it could fit within F? MR. SCHECHTMAN: As a last paragraph in F. MR. GIROUX: I would be okay with that. MR. SLOCUM: Does it fit there? I think it fits under the title but does it fit in the discussion. MR. BUSS: Alternatively, it could fit under the first paragraph in F. MS. LAYTON: Yes. MR. GRANT: Yes. MS. LAYTON: Actually it could. So -- MR. SLOCUM: -- minimum contractual specification. MS. SULTON: So page 29, suggesting it be the second paragraph. MS. LAYTON: Or mega-customers. MR. BUSS: Follow on line 37, if we continue that first -- MR. SCHECHTMAN: But then that sort of breaks up the discussion of countries. MS. LAYTON: Right. MR. SCHECHTMAN: The first paragraph is countries and then the next paragraph is countries. MS. MELLON: Well, but if you use the we wish to note -- MS. LAYTON: It isn't -- MR. ENRIQUEZ: Or put it under -- MS. LAYTON: Yeah. MR. OLSON: The third paragraph talks about food manufacturers doing tighter specs than a country does. So I would put manufacturer or it could be mega whatever you want to call it, an impact right in there. MS. LAYTON: So after the third paragraph? MR. ENRIQUEZ: The latter half of that paragraph starts to allude to it but not as explicit as Ron is pointing out. MS. SULTON: Yeah. So on page 30, top of the page, the first paragraph on page 30 -- MR. OLSON: Lines 4 through 9 start to get at it. MS. SULTON: So could you put it as a new paragraph between the, the last paragraph and the second to last paragraph? MS. LAYTON: Or within that paragraph. MR. GIROUX: I don't think it belongs in the paragraph. The original sentence talks about companies that are striving to exempt from labeling and having conditional or more stringent requirements. In this case, I think it's more general than that. I think it's a stand- alone. MR. OLSON: I think it's important -- MS. LAYTON: Stand-alone paragraph. MR. OLSON: I think it's a stand-alone paragraph, yeah. MS. LAYTON: Right after that, and then finishes up, the same variability exists -- MR. SCHECHTMAN: It breaks the variability concept. I think if you add some industry standards exceed the legal requirements, then you could move into this specific impact. MS. MELLON: You could also use it as the introductory paragraph and say -- you know, it's called discrepancy between regulatory and commercial requirements, I can't recall the language but make the point that it's going to be driven by countries and by, by these big mega- consumers and retailers, and then just go on to say that the regulatory framework and do all the regulatory discussion after that. It would remain in a block. MR. GIROUX: So this would be the second paragraph? MS. LAYTON: No, she's saying it would be the first paragraph. MS. MELLON: I'm saying the first paragraph -- MR. OLSON: First or last. MS. CRAMER: I like it last actually because you're doing all of this sort of discussion but then the end is, you know, there's a lot more than just countries and various companies. These really big conglomerations are having a huge impact -- ends the section with -- you guys need to look at this. MS. SULTON: Is everybody okay with it as the last paragraph? MS. MELLON: That's fine. MS. SULTON: There's nodding around the table. Last paragraph. Juan, can we get your language please? Did you write it out, I hope? MR. ENRIQUEZ: We wish to note it is not just countries that have significant input and impact on labeling regimes. MR. SCHECHTMAN: Countries that can -- MR. ENRIQUEZ: Could. That could have a significant input. MR. SCHECHTMAN: Okay. MR. ENRIQUEZ: It's not just countries that could have a significant input and impact on labeling regimes. Mega-retailers and mega-customers could also drive rapid change in labeling. MS. SULTON: And having ended that paragraph at the end, you logically have a statement -- MR. GIROUX: Is it the impact or labeling or should it be impact of market? MR. ENRIQUEZ: The labeling regime because it doesn't matter what the Government asks you to label. If Wal-Mart asks you to label, you're going to label it. MR. GIROUX: But nobody's ever done that, have they, asked to label? MR. JAFFE: McDonald's does. MR. GIROUX: See, that's the conundrum. MR. JAFFE: So they're not really asked to label. MR. SCHECHTMAN: I guess the question that I would have is whether the word regime suggests that it's a government thing as opposed to a market thing. So labeling and practice. MR. SLOCUM: So maybe we could say submit input and impact on labels or labeling period. MS. SULTON: Period. Not regimes. MS. LAYTON: I agree. Regime sounds like it's a government issue. And so -- we wish to note it is not just countries that can have a significant input and impact on labeling. Mega-retailers and mega-customers could also drive rapid change in labeling. MS. SULTON: In labeling marketplace requirements. MR. SCHECHTMAN: Or just in marketplace requirements. MR. JAFFE: That gets away from the point about labeling and traceability. I mean it is true that McDonald's can say we don't want biotech potatoes and so nobody grows -- it's different than -- this report is not about that. MR. SLOCUM: It's labeling and trade, isn't it? MS. DILLEY: I thought it was traceability. Isn't it one of those things, like the scanner things that you have to be able to trace things. MS. LAYTON: Yeah, but they already have that. MR. SLOCUM: Their decision in Europe is to label their meat products as non-biotech-fed would have a major impact on trade. That label and that impact on trade caused new traceability schemes to be adopted -- MS. SULTON: So you want to add labeling and trade. MR. SLOCUM: I'm fine with labeling but that label, that label -- their desire to label it that way had major impacts. MR. GIROUX: Labeling in the marketplace. Maybe we can say in the marketplace instead of trade. MR. OLSON: Labeling and other market impacts. MR. SLOCUM: It suits me. MR. OLSON: It's much bigger than labeling. MR. GIROUX: It influences the marketplace for sure. MS. LAYTON: We wish to note it is not just countries that have or can have -- could or can? MR. GIROUX: Could. MS. LAYTON: -- could have a significant input and impact on labeling. MR. GIROUX: And the marketplace. MS. LAYTON: And the marketplace is what I heard. Mega-retailers and mega-customers could also have - - could also drive rapid change in labeling. And it's implied that it would impact the market from what we said before. Is everybody okay with that? Do you want me to read it again, Randy? MR. GIROUX: No. MS. LAYTON: Okay. MS. SULTON: Do you want me to read it again? MR. GIROUX: No, I understand it. MS. SULTON: That brings us back to the phrase that we need to add to page 3. MR. BUSS: I have a question for clarification. We had added the bullet -- not bullet, but we've added that point earlier as point number 10 in the policy concerns. Is that right? MR. SCHECHTMAN: Yes. MR. BUSS: Okay. The section that we're talking about now in the Executive Summary begins, the following are issues raised by labeling and traceability requirements in the food and feed chain's efforts to implement them and closes with the report also highlights in a separate section, the series of policy concerns and issues. Are we going to add all of those bullets? MS. SULTON: No. MR. JAFFE: None of them. MR. SCHECHTMAN: Except for possibly that one that has a summary of the consumer -- MR. JAFFE: Above that sentence though? MS. LAYTON: Above that sentence. MR. JAFFE: Not as -- right. It's just a summary of the -- it will have to look the same and be the same but it's a summary, not as a -- it's not here written as a policy. MS. SULTON: And how would that read? MR. SCHECHTMAN: Just like that. MS. DILLEY: And the reason to do that is as Greg said, it's practicality unless somebody else wants to take another round at figuring out that language because I think Ron and Duane have done theirs. MR. JAFFE: Now as I just check my voice mail, and Carol said that she woke up sick this morning, it's nothing bad, and if there's something, I do know her cell number, if there's something we need to run by her. I'll probably do the lunch time call and run this by her but if there's other things she said, I could call her. MR. SCHECHTMAN: Give her our sympathies. MS. LAYTON: And I'll change that policy to policy concerns to reflect the title. MS. SULTON: So that concludes the Executive Summary, right? MR. SCHECHTMAN: I think we needed to ask the question of whether or not there was to be an additional sentence relating to Juan's -- MS. SULTON: That's what I just asked. MR. SCHECHTMAN: Did that just happen? MS. SULTON: That's what we just asked and then you all pointed to this one. MR. SLOCUM: No, no, that's a different one. MS. SULTON: Okay. My question was based on the paragraph that Juan just added, do we need to have another bullet in the Executive Summary? I believe that's where this discussion began. MS. LAYTON: But it's around that food manufacturing, ingredients suppliers, complying with the -- isn't that where it's in? MR. SCHECHTMAN: Yes. MR. JAFFE: For consistency, we wouldnÕt put a new bullet. The question is whether you add a sentence to the bullet of the summary of that section. MR. SCHECHTMAN: I would suggest that the last - - the second sentence that Juan suggested would be -- would do as an addition to that -- the end of that bullet. MS. LAYTON: Mega-retailers and mega-customers could also draw rapid change in labeling, as a final -- MR. SLOCUM: Where is this? MS. SULTON: This is the second to the last bullet on page 3. MR. SLOCUM: Of the Executive Summary? MS. SULTON: Yes. MS. LAYTON: It's line 23. In some cases, the contractual specifications can be far greater than actual regulatory requirements. Now what we're saying is we wish to note that it's just not countries as the last paragraph. Does it warrant coming up to the Executive Summary in that section? MS. MELLON: Yes. MS. LAYTON: Okay. And is the last sentence then acceptable as an addition to that last bullet? MS. DILLEY: For me. I mean it seems like what we're talking about is what the report highlights here. I thought in the spirit of Juan's note, we just wish to note, we don't address the stuff in the report but we're also acknowledging that it has a big influence. MS. MELLON: I would say put it in there. MS. DILLEY: I'm not arguing about whether to have that in the Executive Summary but whether it goes in the last part of the introductory -- of the Executive Summary before you put it in the bullet. MS. SULTON: Does it stand alone do you mean or it's just a sentence there? MS. LAYTON: We're adding it to a bullet. We're proposing to add it at the last sentence of the bullet on line 24. MR. OLSON: I don't know if it's needed. I don't think it's needed. I think we've kind of got it there in broad case and fix it up in the text. MS. SULTON: Juan? MR. ENRIQUEZ: As long as the point's in there. MS. SULTON: Okay. MR. GIROUX: It's important for -- MS. LAYTON: It is important, and I think that contractual specifications are actually hinting at it. Okay. Done? MS. SULTON: Done. MR. SCHECHTMAN: Are people saying okay, this is the final temperature-taking on putting this in as the final bullet? MR. JAFFE: I'd like to try to run it by Carol. MR. BUSS: I'd ask Ron about this sentence, and as I was reading it, it says that variability in retail labeling stimulates consumer interest in seeking information. I was wondering if that was a true statement implying that if you had uniform retail labeling, it wouldn't stimulate consumer interest? MS. MELLON: One of the things as I understand it, a point that Carol was making, was that -- is that not only the kind of debate around biotech foods but also the fact that some parts of the world have a job -- stringent regulations. That too stimulates debate in -- among consumers in interest in their food. It's something they would note. MR. OLSON: It could just reverse the whole thing, and say consumersÕ interest in seeking additional information is stimulated by associated risks and variability in labeling regimes. MS. LAYTON: That way it wouldn't look the same. MR. OLSON: But it disconnects it because the issue of the debate is seeking additional information as the issue. So if you put that at the top, that's what the issue is. I mean it's stimulated by the associated debates of safety and environmental and general -- and variability of labeling. MR. BUSS: I think it's a little clearer, the subject and the verb are coming a lot closer together. MS. SULTON: Okay. The ability to reverse it then? MR. OLSON: No, just taking the words and switching them. MR. JAFFE: The consumer's interest in seeking additional information about their food is stimulated by variability in retail labeling requirements of different countries and the associated debates -- and associated debates regarding safety and environmental concerns and general acceptability of products. MS. MELLON: That's a good suggestion. MR. OLSON: And it reads a little better. It starts with consumer. MS. SULTON: It starts with consumer. So it will start here. MS. LAYTON: And then -- and after biotech crops and -- so it stops here, and this whole thing to here. MS. SULTON: Does that conclude the Executive Summary? MS. MELLON: Yes. MS. SULTON: Okay. MS. CRAMER: I have one little thing since I wasn't here yesterday in the black text way back on page 22 that I just -- page 22, line 23, which says no one size fits all. I don't think that adds and it sounds -- processors and food companies. Page 22, line 23. MS. LAYTON: As such, IdP systems and requirements vary across geography, among importing companies, and all the way to specific end-use customer requirements. And then the statement comes, no one size fits all. MS. CRAMER: It just sounds a little -- MR. OLSON: I can tell you where it came from. There was a second group that I was also involved with -- foundation did a traceability which I think some of you -- I have the website, if you want to go read it. That was the core conclusion of their report because they wanted to say, should governments step in and start dictating what the traceability system should be, and what they found out is that depending on the makeup of the plant, the manufacturer, the type of products, it wasn't a way to get to define one size fits all comment. MR. SCHECHTMAN: So you just want a more elegant way to say it? MR. OLSON: We can say it differently but that was the reason for having it in there, that there isn't a common traceability system that exists -- for the IdP system that exists for all situations. In fact, the variation is greater than the similarities probably. MS. SULTON: Carole, do you -- MS. DILLEY: Do you want to approach this from all situations? So no one approach fits all situations or something like that, Carole? Is that what you're looking for so it doesn't sound like a -- commercial or something. MR. OLSON: There's just a wide variability of -- MS. SULTON: Right.-- MR. OLSON: -- in the marketplace or something like that but -- MR. BUSS: You could say no system or set of requirements in all circumstances. MS. DILLEY: All circumstances, right. MS. LAYTON: I like that. No system -- MR. BUSS: Or set of requirements -- MS. LAYTON: -- or set of requirements -- MR. BUSS: -- that all circumstances -- MS. LAYTON: -- that fits all circumstances. MR. OLSON: It's grain language. MS. DILLEY: Okay. Carole, any other issues? MS. CRAMER: No. MR. SCHECHTMAN: Can we take a moment just to -- for everyone to peer through and make sure that we've done everything, that we've gone through everything? MR. OLSON: Are you open for any page, for any sort of comment? MR. SCHECHTMAN: Not at all. I'm asking if there are any pieces that are unresolved -- MS. DILLEY: To make sure that we -- MR. SCHECHTMAN: -- that we missed going back to. MR. JAFFE: Michael, if we see typos or little things like Section 2 and it should be Section 3, are you talking about things like that? MR. SCHECHTMAN: Tell me now. MS. CRAMER: I started making a little list. I caught the 2 and 3 one. MR. JAFFE: Page 8, Section 3-A(1). I have the different page numbers. MS. CRAMER: Page 8, line 5. It should be Part 3 and not Part 2. MR. JAFFE: Part 3, not Part 2, right. MS. CRAMER: I have a little list of typos that I caught. UNIDENTIFIED SPEAKER: I have one on page 6, line 22. Okay. Additional requirements impose additional costs on producers and suppliers. And it's also manufacturers and retailers, the whole supply chain, not just stop with suppliers. MS. LAYTON: So can we just say for the supply chain? MR. OLSON: We could. Then on page 8 -- MR. SCHECHTMAN: Hold on a minute. Let me make sure everyone's okay with that. MS. LAYTON: Okay. MR. OLSON: On the top of page 8, line 2 -- the first line actually, number 1. MR. SLOCUM: Which page, Ron? MR. OLSON: Top of page 8. It's the bottom of page 7, where it talks about a food manufacturer, may give a specification of identity preservation and/or sourcing from conventional grains, it would be sourcing through segregating from conventional grains. MS. SULTON: What line? MR. OLSON: There may be a specification of identity preservation and/or sourcing from conventional grain. You would source to segregate it from conventional grain. MR. SCHECHTMAN: Yeah, I think that depends on whether by conventional grain you mean -- MR. OLSON: Just a commodity crop. Non-biotech. MR. GIROUX: Convention a lot of times is used as non-GM. MS. SULTON: In the U.S., it would be a GM, right? MR. GIROUX: Conventional and commodity are not the same. MR. SLOCUM: Conventional in the U.S. would imply non-traditional. MR. GIROUX: Yeah, correct. MR. OLSON: And I was just wondering if that was clear enough terminology. MR. SLOCUM: Why don't we just say sourcing from non-biotech. MR. GRANT: That would be more clear. That would be more consistent. MR. SLOCUM: That's what that is. MS. LAYTON: So it's just going to read -- you're going to strike conventional and put non-biotech. MR. OLSON: Correct. MS. LAYTON: Or non-GM. Which is it? MR. SLOCUM: Non-biotech. MS. LAYTON: Non-biotech. MR. OLSON: It's also on page 11, line 17, the same. MR. SCHECHTMAN: Page 11, line 17? MR. OLSON: Correct. There's conventional grain again. MR. SCHECHTMAN: Non-biotech. MS. LAYTON: This is, you know, this is a good last opportunity for us to make sure that we've got that. So should we do a search on conventional grain to make sure. Let me just make sure to the editors take -- do a search on conventional grain. MR. OLSON: I think the grain industry understands it but I don't know that everybody understands it. MS. LAYTON: And if so, substitute it with non- biotech grain. And then we don't have to worry about that. MR. SCHECHTMAN: Assuming that it's used in the same meaning throughout the document. MS. LAYTON: Anything else for the good of the order? MR. BUSS: I just have a question on format. The section on policy concerns on 33. We list policy concerns numerically. Everywhere else we've used bullets. Does the numbering imply priority? I know it doesn't but I'm asking from the standpoint of -- MS. SULTON: So are you suggesting that we change it to bullets? MR. BUSS: Well, I don't know. That's what I was raising. Does everybody else want to use bullets? MS. SULTON: Does everybody want to change it to bullets? UNIDENTIFIED SPEAKER: Yes. MS. SULTON: Bullets. MS. LAYTON: Bullets. MR. BUSS: The other point about that is actually throughout the text, we use four different kinds of bullets. MS. LAYTON: We'll fix that. Fix bullets. MR. OLSON: I have one just for clarification, too, on page 26. We talk about -- line 11. This was software costs often range from 150 to 400 depending on the depth of the data. And right before we talk about farmers. That's not a cost to the farmer. And I don't know if we need to clarify that? Where that number came from, was people approaching companies such as us to say you pay for the software and then you implement it all the way. So you pay the $4 million or $2 million or whatever the number is because it's all different prices, and then they want you to pay for it and then you give it away free to the elevators and farmers that supply you grain because the farmers aren't going to pay for it. It's alluded there that the farmers won't pay for it in there, but the farmer is not going to pay $150,000 or $2 million for a software system and neither is the country elevator. MS. SULTON: So you want to say initial software licensing cost to manufacturers. MR. OLSON: I mean that's where it came from. So I guess the question is should we leave it in there or do we want to -- because that's what they talk about the cost of establishing the software to do a traceability system from end to end. It doesn't say who pays for it here but it kind of implies that the farmers might be asked to pay for it and -- MS. LAYTON: If you read the next three sentences, is it not clear. MR. OLSON: I didn't think it was quite clear enough. I just put not to farmers and put a circle around it. That's an indication to me that it's not quite clear enough, and that we should make it clear enough. MS. SULTON: Can we say to whom the costs -- who incurs the costs? Is it manufacturers or others. In this case, we could say initial software licensing costs for manufacturers. MS. LAYTON: Actually, we go back down -- it is generally difficult to get upstream players to pay for these systems. So it contradicts that. MR. OLSON: So it picks it up later on. I just wanted to make sure it didn't imply that that was the farmer's costs. MS. LAYTON: I think it's okay. MR. OLSON: Okay. MR. SLOCUM: That's a confusing paragraph period. MS. MILEWSKI: Could you just write a sentence that says who pays for these costs? MS. LAYTON: Right now I think you're saying nobody is paying for them. MR. OLSON: There's several of them out there but they're coming primarily from the software companies or maybe a few larger players or something like that. So they kind of got this Holy Grail of the software traceability and want you to pay for it. They want somebody to pay for it. MR. SLOCUM: Nobody's paying for it. MR. OLSON: That's right. MR. GRANT: So, Ron, when I read that paragraph, I agree with you, it does -- I mean it's -- I know that if I take this back to the growers and they read this, they're going to say, we're expected to pay $150,000 for -- MR. OLSON: That's why I questioned it. MR. GRANT: So I guess I would suggest that you maybe add just a little, on line 12, so it says range from $150,000 to $4 million, depending on the depth of data needed, and initial costs would be borne by the who? MS. LAYTON: That's the issue. Nobody's willing to bear the initial cost. MR. OLSON: Maybe as Jerry said, this whole thing reads a little -- we didn't spend the time on this one. MR. SLOCUM: No, we didn't. MR. OLSON: I wrote it, and that's the first draft. I donÕt think it's ever been edited by anybody. MS. SULTON: Well, how can you say initial software licensing -- initial software offered. MR. OLSON: I would say, yeah. I haven't seen -- MS. SULTON: Offered software having initial costs -- MR. OLSON: Maybe something like software systems are being offered at or -- MS. SULTON: Yeah. MR. OLSON: It's implied that nobody's paying it. MS. CRAMER: If you say often range, it makes the implication that -- MR. OLSON: And that's, that's the point. MS. SULTON: So software being offered have licensing costs that often range -- MS. CRAMER: Being offered to institute traceability. MR. BUSS: The previous sentence begins with such farm level systems. Would it work to separate the two -- MS. SULTON: For this report. MR. BUSS: -- to start that sentence as saying, system designed for handlers and processors, include initial software licensing costs ranging from -- MR. GIROUX: No, because then that suggests that that's the costs that should be borne or the ones who are using it. MR. SLOCUM: The way this reads it's, "Such farm level systems are being marketed on a cost-per-bushel or," and that or ties it back to farm level systems who license the software. Initial software license is $154 million. It means that the farm software licensing. That's the way it reads. MR. OLSON: Yeah, that's where the disconnect is. MR. SLOCUM: And that's not what it's supposed to read. MR. BUSS: I understand. That's what I was trying to separate. MR. GRANT: Well, the way I read it is it's the same system but it's a system that's owned by the end user or the mills, for example, it goes right down to the farm level, but it's managed and controlled by the end user and the farmer provides his inputs into that system. So it goes to the farm level. MR. SCHECHTMAN: How would it be if you moved the initial software licensing cost sentence, and made it the second sentence of the paragraph. MS. SULTON: Right. MR. OLSON: That would disconnect it better. MS. SULTON: So several traceability systems are evolving today from both ends of the supply chain. The costs of offered software systems often range from $150,000 to $4 million, depending on the depth of the data. Then -- MR. SCHECHTMAN: Hold on. Costs of offered software systems. MS. SULTON: Yes. MR. OLSON: Proposed I would say. MS. SULTON: Proposed. MR. OLSON: I mean you can't say nobody's paying because some companies have developed systems and have spent the money to do that. MS. LAYTON: Then all you have to do is say proposed software licensing costs often range from -- you don't need often -- range from $150,000 to $4 million depending on the depth of the data needed. Those are designed from the farm level, capture all detail from type of seed, blah, blah, blah. Such farm level systems, blah, blah, blah. These systems thus far are costly, require entry and are focused on sectors of supply chain that cannot or will not pay due to small margins. I think that really works. So it really is costs -- MS. CRAMER: Proposed. MS. LAYTON: -- proposed software licensing costs range from blah, blah, and move it up. MS. MELLON: Good solution. MR. OLSON: That makes it clear. MS. LAYTON: So all we did was move the sentence and change initial to proposed. MR. SLOCUM: But we're not defining what the software does. MS. LAYTON: We do in the next sentence, from the farm level -- MR. SLOCUM: When we say that software -- MS. LAYTON: This software -- MR. GIROUX: Can we call it traceability software. MR. SLOCUM: Yeah, let's call it traceability software. MR. OLSON: That's what it is. MR. SCHECHTMAN: Traceability software designed from the farm level. MS. DILLEY: Proposed traceability software. MR. SLOCUM: Proposed traceability software is being developed and offered. It's not proposed. MS. SULTON: That's being developed and offered at the farm level capture. MR. SLOCUM: Right. MR. SCHECHTMAN: Now I'm completely confused. MR. SLOCUM: You should be. MS. LAYTON: Okay. I think we're changing the second sentence to be or we're adding -- we're moving that sentence from down below and it is going to be traceability software being developed and offered -- MR. SCHECHTMAN: Ranges in price -- MS. LAYTON: -- range in price from $150,000 to $4 million, depending on the depth of the data needed. Those that are designed from the farm level capture all details blah, blah, blah, and then it goes on. And so traceability software being developed -- MR. OLSON: Most are being developed from the farm level up. The latter part of that paragraph captures the other end of the -- there are systems coming out from manufacturers going back. It's like Wal-Mart saying, I don't care what you spend to develop your system, we're going to use mine. MS. LAYTON: Yeah. MR. OLSON: It's that concept. MS. LAYTON: Okay. Is it okay to say traceability software being developed and offered ranges in price from $150,000 -- okay. And then it goes those that are designed from the farm level can't -- and it talks about how it does it. MR. OLSON: Right. MS. LAYTON: Okay. Is everybody okay? MR. SCHECHTMAN: Is those -- should those be changed to those systems or -- MS. SULTON: Those systems that are designed, yes, from the farm level. MR. OLSON: Just systems. MS. LAYTON: Systems that are designed. We don't need those. MR. SCHECHTMAN: Okay. MS. LAYTON: Okay. Anything else for the good of the order? Randy? MR. GIROUX: I don't like that we're going down the road changing black text. MS. LAYTON: Okay. MR. GIROUX: And we can do this -- UNIDENTIFIED SPEAKER: Forever. MS. LAYTON: And we really do need to finish this up because it's 11:30. So that's done. MR. SCHECHTMAN: May I just ask, I was given a little list of typos. Rather than talk about them -- MR. JAFFE: Deal with them. Clean up the document so things look good. MR. SCHECHTMAN: I just wanted to the blessing. MS. LAYTON: We still have another document. MR. GIROUX: So that concludes this document. MS. LAYTON: That concludes this document. I really appreciate all the hard work and the -- and compromise. Thank you very much. MR. GIROUX: Can we just reiterate for the people who were here yesterday, the process -- MS. LAYTON: Yes, at the beginning of the day. MS. SULTON: We'll do a follow-up memorandum from this meeting. MS. LAYTON: It's here, and I think you did mention it in the very beginning. MR. SCHECHTMAN: Yeah, I mentioned it at the beginning of the meeting. We can do it at the very end. MR. JAFFE: We'll have both documents. MS. MELLON: Yes, we'll have both documents. MS. LAYTON: Okay. Now at that, early lunch. We want to be here working at 12:30, okay. And we have 12:30 to 4:00 to finalize the other document, review and hopefully actually initially capture some language for cover letters. MR. SCHECHTMAN: If we don't in fact have time for the actual text of the letters, we'll get some of the ideas down. MS. LAYTON: If you want to do something over lunch, we'll be happy to -- MR. SCHECHTMAN: If anyone wants to work on cover letters over lunch -- MS. LAYTON: But don't take longer than 12:30. (Whereupon, at 11:27, a luncheon recess was taken.) A F T E R N O O N S E S S I O N (12:37 p.m.) MS. LAYTON: All right. They can come in but let's talk about how we're going to go through today -- this afternoon. Abby, do you want to give us the overview of what we're going to do? MS. DILLEY: Well, we're going to briefly go over the changes made yesterday to the second section which is what we're less certain of -- what is much less certain. MS. LAYTON: There was one change in the first section. MS. DILLEY: So just in terms of broad outline, we're to go over those real quickly and just make sure that people who weren't here didn't have any additional comments on those and then move into -- walk through the scenario descriptions, and then come back and talk about the introduction as well as where in the text to put the questions that are not currently part of the chapter but are in the conference call summary. And I guess if there are any other additional comments. We didn't think we wanted to start there because that had been revised and reviewed and revised accordingly already. So we're hoping that that goes a little more quickly. MS. LAYTON: Now I believe Mardi and Lisa were both here with us yesterday afternoon during these discussions. So I think it's okay to proceed with walking through where we did yesterday -- what we did yesterday. MR. SCHECHTMAN: Randy. MR. GIROUX: So does the draft that we have incorporate Mardi's and Michael's comments? MR. SCHECHTMAN: No. MS. LAYTON: To some extent. MR. SCHECHTMAN: Partly, yes. MS. LAYTON: All right. Mardi and Michael both had a copy of their comments and I thought we got a lot of Mardi's in the first section and the second section. MS. DILLEY: There were kind of two things. One is that the work group considered their comments and did all the appropriate changes that they thought at the time, helped work the document, except for the third scenario. MR. JAFFE: So the work group reviewed their comments, incorporated what they thought were appropriate for everything except for the third scenario. MS. LAYTON: Yes. MR. JAFFE: Yesterday, Michael and Mardi raised any additional comments they still had regarding what we -- MS. LAYTON: What we know and what we don't know. MR. JAFFE: -- what we are much less certain about and up to where we start, we didn't get -- we got into the scenario, and that's as far as we got. So if they raise anything else. MR. SCHECHTMAN: I would suggest that it might be nonetheless useful -- in my judgment from Michael's comments is that he had a particular number of comments about the second scenario, so it might just be useful for the group to -- if we have some time, to just look at those as we, as we go through. We have -- those comments were distributed yesterday. MS. LAYTON: Now I don't know if everybody -- are they on the back? If you don't have a pack -- because the small group was out. So if you don't have Michael's comments and Mardi's comments, we did pass those out, and I think they may be in the back MR. GIROUX: So what do we need to accomplish by the end of the day? MS. LAYTON: Complete the document. MR. GIROUX: What does that mean? MR. SCHECHTMAN: Formulate the questions. MS. LAYTON: There's a draft of the questions here. MR. JAFFE: Add any changes to this -- I assume any changes to this document that people feel strongly about without getting heartburn, and then figuring out what we do about these questions, and if we have an introductory paragraph or sentence or something. MR. JAFFE: Where do we stick them? How do we put them in? I assume we stick them in the back. MS. DILLEY: But that's open to debate. MR. JAFFE: Where we stick them will be attached with explanatory text around them. MR. SCHECHTMAN: I just want to make sure I know what we're doing. MS. DILLEY: So just to review quickly the changes that were made yesterday, we started on page 5. We don't have lines obviously on the document but it was the first bold section that starts, "Enormous new agricultural commodity production areasÉ" and what we changed was that third sentence. This could have implications on the U.S. export of soybeans. And then just took the rest of that sentence out. So that the third sentence now reads, "This could have implications on the U.S. export of soybeans." MR. GIROUX: And the rest was deleted? MS. DILLEY: Yes. And 6, page 6, on demographic uncertainties, in the e.g. section which is in the third sentence, we just took out the current popularity of and just put e.g. low carbohydrate diets and also impact demand for key agricultural commodities. So it's just taking out current popularity of. MS. LAYTON: And the comma needs to come out, too. I didn't do that but I think it should. For example, low carbohydrate diets could also impact the demand for -- MR. SLOCUM: Dietary preferences also. MS. LAYTON: Okay. I just want to make sure. MR. ENRIQUEZ: There are a couple of style things there that would just make it a bit easier. The first paragraph, third line from the bottom. MR. SCHECHTMAN: The first paragraph on page 6. MR. ENRIQUEZ: Page 6, third line from the bottom where it says one could as easily expect -- just one could expect. Take out as easily. The next paragraph down, uncertainties, political developments and political or economic decisions. You could just make that political and economic decisions by key trading partners. MS. LAYTON: So it's political and economic. MR. ENRIQUEZ: Decisions by key trading partners. It's repetitive. MS. LAYTON: Okay. MR. ENRIQUEZ: On page 1 -- MS. LAYTON: Right. Before you go past that one, we made another change. Can we mention that? MS. DILLEY: As well the European Union, that sentence, that starts in the middle, it says instead of granting it's increasing access. MR. ENRIQUEZ: Sure. MR. SCHECHTMAN: Just to reflect the current changes, and let's go on. MS. LAYTON: And the next one had some changes also. MR. BUSS: With the change that was made in the first paragraph of striking as easily expect to, and we should strike as in the following. MR. GRANT: It actually doesn't read -- if you take that easily out, I don't think, Juan, unless I'm reading it wrong -- MR. ENRIQUEZ: One could expect to see increased demand for new health improved products. MR. GRANT: As to see -- MR. ENRIQUEZ: That's why I was suggesting taking out the second as. MR. GRANT: But then it's still -- it's worse. MR. SCHECHTMAN: I think it should be one or the other. That's why the one -- MR. BUSS: Right. MR. SCHECHTMAN: It's not going to be expect this and this. You could expect to see this or you could expect to see this. MR. BUSS: That's right. MR. ENRIQUEZ: Sorry. MS. LAYTON: So leaving as easily? MR. ENRIQUEZ: Sure, leave it as it reads. MS. LAYTON: Technology and -- did you have a change or can we go through the changes that we did yesterday? MR. ENRIQUEZ: There's one change on page 1 that may make a difference. It says what we know or think we know. MS. LAYTON: Uh-huh. MR. ENRIQUEZ: Under one of the key drivers likely to influence the next decade into the future. MR. GIROUX: I'm still on the demographic uncertainties. I don't understand the last sentence. What's the point of the last sentence? Is it to say that health improved products and organic based products are the same? MR. SCHECHTMAN: No. MS. DILLEY: You may see shifts in those two directions, or no particular net shifts. MS. SULTON: That second comment is confusing. MS. DILLEY: That is. MR. HOISINGTON: The issue -- MS. DILLEY: Is aging population dietary. MR. HOISINGTON: Right. There will be a change in dietary, and I guess the question is are we saying that food products are different from organic based products? MS. LAYTON: Yes, I think that's what we are saying. MS. DILLEY: Is the health improved, is that supposed to be like the nutra -- type products. Is that what -- MR. SCHECHTMAN: It could be. MS. LAYTON: Or it could be like the Vitamin D, C orange juice, whole grain cereals. MR. GIROUX: Right. I think there's lots of health improved products coming out on the market. MS. LAYTON: And we see organic products and we see people who don't shift at all. MR. GIROUX: So it is or? MS. ZANNONI: -- health improved. It looks like they should be labeled organic. MR. JAFFE: We could see more vegetarians. I don't see more meat eaters. MR. HOISINGTON: There's not a contrast at all between the two. MS. LAYTON: Yeah, it's not really a contrast. It's just that the range of things -- MR. HOISINGTON: So health improved products. We could see more organic products. We could see more of this or we could see nothing. I think it should be or as opposed to as. MS. SULTON: And the comma in front of it kind of makes it continuous. One can expect to see a demand for new health improved products or -- MR. ENRIQUEZ: It could be and/or. There's no reason why it's one or the other. MR. GIROUX: That's correct. MR. SCHECHTMAN: And/or. So is that going to be at the very end? MS. DILLEY: It's going to product, and/or to see a trend toward consumption of organic-based products, or to see no particular net shifts. MR. GIROUX: And/or a trend towards consumption of organic-based products. MS. LAYTON: Right. MS. CRAMER: Should we say and/or or do we need to say or see no particular shifts. Is that redundant? MS. DILLEY: No because what you're trying to say is there's lots of different shifts or there's no particular net shift. MS. LAYTON: So you've got two phrases that are connected by and/or and then the opposite or the alternative is the or at the end. No shift. MS. SULTON: To see the demand for new -- MS. SULTON: I'm not the good English person here. MR. SCHECHTMAN: I don't think it's worth -- if we have one and/or in there, I think -- if we have the and/or in there, I think we're safe. MR. OLSON: I guess a shift in current popularity of low carb diets could also impact -- low carb diets are kind of -- MS. LAYTON: We took that out the words, the current popularity of. MR. GIROUX: Okay. MR. BUSS: It's been stricken. MR. OLSON: It's been stricken. Okay. MS. DILLEY: And technological and regulatory uncertainties portion, yesterday we deleted the notwithstanding the information presented in Chapter 2, and just started that sentence with which. MR. SCHECHTMAN: In the second sentence, we deleted the word will on -- near the end of the second line. MS. DILLEY: Those were all the changes we had yesterday. MS. SULTON: What about will additional cases -- MR. SCHECHTMAN: The next to last sentence in that section, in that paragraph -- MR. JAFFE: I don't think people heard what you just said. MR. SCHECHTMAN: We deleted the next to last sentence in the first paragraph, the sentence dealing with organic stuff. MS. LAYTON: Will additional cases of food safety issues with organically grown produce continue or expand with the expanding organic market and will consumers demand other agricultural products, has been stricken. MR. ENRIQUEZ: In the logic of? MS. MELLON: The logic is that there isn't a shred of evidence that organic -- I mean this implies that there somehow is some -- MR. ENRIQUEZ: Odwalla in the -- MS. MELLON: Odwalla wasn't certified organic. It wasn't organic. MR. ENRIQUEZ: If it had been what would have happened? MS. MELLON: It doesn't matter. Food safety things arise in connection with all kinds of food production systems, conventional and otherwise. The implication here is that something about organic is, is more susceptible to food safety incidents, and that simply isn't the case. I mean that is -- like I said, there isn't one shred of evidence. So to say continuing implies that something -- there just aren't any cases. There are a few cases of people -- of food safety incidents and they're arising across the country. MR. ENRIQUEZ: So you haven't had issues with organically pressed cider? MS. MELLON: I really wouldn't know, but in order for it be a meaningful statement, you have to some comparison between the organic products and conventional products. MS. DILLEY: Isn't the point there not the food safety issue but whether the organic market or other markets expand and contract? It doesn't state the issue. MS. MELLON: It doesn't belong in this section at all. I mean it is -- I mean what it really is, is an attempt to kind of raise some questions about organic that somehow balance out concerns about biochemistry. MS. LAYTON: It was deleted yesterday. So unless somebody has a real reason to bring it back. MR. GRANT: So we should take out the first sentence of the next paragraph then as well. MR. ENRIQUEZ: That is a major concern. MR. GIROUX: The same logic would apply. MR. ENRIQUEZ: There's a whole lot more concern about launching plant-based pharmaceuticals in the world, even on the part of regulatory agencies, than there is about -- organic food in the supermarkets. You haven't had a market that has PMPs and you've some of the issues that are being discussed on that, particularly about the terminator dates. MR. GRANT: So my point I guess, Juan, and I was being a little facetious, and I failed to recognize that -- my point is that this document is not grounded in hard body interpretations over where the lines are drawn today, but rather this is a little bit looser look, if you will, if you characterize it that way, at the state of the debate and where we think it might go in the next 10 years, and, you know -- so I hope that we've got a little bit of latitude to leave some of these issues in. I do think there are concerns, Mardi, specifically around organic products, and I think the UK has demonstrated examples of health concerns that have arisen through organic systems and, and Juan's examples also illustrate that point. It's not a big issue. I agree it's not near as big as the issue of pharmaceuticals and has near the potential that the pharmaceuticals issue has but nonetheless it's, it's real and it's out there. MS. MELLON: Well, if you're going to use Odwalla as your example, then you have to say natural foods. That was not -- they never even claimed to be small organic. The incident occurred before the organic rules went in. So it seems to me, and like I said, there have been plenty of incidents that have concerned juice makers. They got a bigger rap because they were claiming to be, you know, natural or something at one of these meaningless labels. If they're -- I'm not aware of data from, from Britain, you know, but if there are studies, they need to be reviewed very carefully, and I would say they're very hard to do, you know, to make -- it just, you know, the implication here is that these are less safe, that there are more safety concerns than with conventional products and it just -- I just am not aware of certainly in the U.S. of any, any data that that's true. Well, if we would want to say that there would be continuing food safety problems associated with conventional dairy production, you know, we could cite last week's outbreak with or last year's outbreak in the northeast with contaminated hamburger that came from dairy. It doesn't -- I just -- MR. ENRIQUEZ: Start with the logical chain. First, first notion, food can hurt you -- MS. MELLON: Sure it can. MR. ENRIQUEZ: -- whether it's organic or not organic because we have a lot of cases of -- MS. MELLON: Sure. MR. ENRIQUEZ: The second thing is the reason you use preservatives is because spoiled food and food that is mishandled can really hurt you -- you have to be more careful with organic standards and tighter with organic standards than you do with food that has been canned or with the use of preservatives, precisely because it's harder -- MS. MELLON: To have canned organic food. Plenty of canned organic food that has to meet food safety standards. You don't have to put in a preservative in order to -- MR. ENRIQUEZ: If the sentence was taken out -- take it out, but the notion that organically grown produce can't hurt you is, is an interesting notion. MS. MELLON: No one is claiming that organic doesn't have -- could not hurt someone and I'm sure that it has and it will in the same way as conventional can and will. If organic lettuce is contaminated with an animal product, you're likely to see E. coli on it, but it's no more likely to happen in an organic system than in a conventional system or, you know, it's a reasonable question to ask perhaps, but you need to actually go out and actually do some studies, and you need to come up with conventional systems defined in some way, organic systems defined in some way, and see whether in fact if you -- whether there are food safety differences between the two, and I would say both systems are both complicated that it would be, it would be a multi-variant analysis and it would be very difficult to do. MR. ENRIQUEZ: I agree with that but the headline on CNN was organic food hurts X person, and the problem here is a lot of people perceive that organic foods are healthier, they're better for you, et cetera, et cetera. This is the first case. As this system expands, what's going to happen is the organic food market is going to have to answer those same questions that a biotech food market answers. MS. MELLON: Right. MR. ENRIQUEZ: If more and more people are eating organic and 1 out of 10,000 gets hurt, the headline isn't going to be 9,999 were safe. It's going to be a person got hurt eating organic food. I don't know if organic food is more safe, less safe. I'm simply saying because the standard has been set where this stuff is supposed to be healthy and good for you, which usually is, if you have a case in this stuff, it's going to be -- or the cases you get in this stuff is going to be -- but maybe this doesn't belong in a scenario. MS. LAYTON: Is it technological or regulatory uncertainty? MR. GRANT: No, I disagree with that. If it gets so -- IÕm not interested solely in the reputation of organic food, and if that's what this implies, then we need to change it. Neither am I interested in organic food getting a bye when earlier up on this same page, organic is held up as a counter to health improved products, almost as an alternative to health improved products, therefore implying that it has, has a place in the market that is comparable to or a reasonable alternative to health improved products. So if we're going to hold it up as an alternative to highlight the marketing pull that it has, then we also have to hold it accountable on the food safety side, and it's conspicuous by its absence if we don't have it included in here somewhere if we are going to tag transgenic and conventional food at the same time. MS. ZANNONI: So can that just be changed -- a sentence changed? MR. SCHECHTMAN: Can I make a suggestion? MS. MELLON: Delete it in both places, that would be fine. I don't think it needs to be in here at all. MR. SCHECHTMAN: Could I make a suggestion, and just run it by you? If it doesn't do any good -- flipping the sentence around a little bit, and it says with the expanding organic market, will there be increases safety scrutiny on organic products? MS. MELLON: There's no increasing. There's no demonstrated level right now. MR. HOISINGTON: Will there be food safety issues arising due to expanding the organic market? MS. MELLON: What's the implication for biotech? What's the implication? I agree with Duane's point. MR. GIROUX: One of the scenarios that we play out in here is that there's a major, or it's written somewhere in this document, I'm not sure where, is that biotech is major food safety issue and that is a catharsis for biotech, and so the food safety risk or the failure to protect the consumers will be a way to bring the tide of people over from biotech food. I believe that's one of the questions that we ask in this document. So my gut tells me, well, the same thing could happen with organic. If at some period a group of the population -- we might want to say if there was a major scare in the organic market, then will the same thing happen to the organic market, and it's unfortunate that we hear people say if you don't want GM, you can buy organic or if you don't buy organic, you know, somehow people are trying to tie them together. So -- but I think they are tied unfortunately or fortunately but I, I agree with Duane. We can't give organics a bye and then say there's all these potential risks around biotech because there are risks on all food. MS. LAYTON: Is the big issue the additional cases? I mean is it will food safety issues -- will food safety issues with organically grown produce occur or arise, arise -- MR. HOISINGTON: Arise with the expanding organic market. MS. LAYTON: Okay. Will food safety issues with organically grown produce arise -- what else did you say David? MR. HOISINGTON: With the expanding -- you don't need with organically grown produce. It's just -- will food safety issues arise with the expanding organic market. MS. LAYTON: Yeah. MR. HOISINGTON: That's to me what I hear is the issue. MS. LAYTON: Will food safety issues arise with the expanding organic market? MS. MELLON: We have to figure out why that makes a difference. Is it because organic is a surrogate label, a de facto non-GM label. MS. LAYTON: Yes. MS. MELLON: So then the argument which I think we ought to lay out, if the de facto no-GMO label in the U.S., you know, is in some way tainted, then what? Then people will be more likely to accept the fact that they don't have a choice in the marketplace? MS. LAYTON: I'm just trying to find situations. MS. MELLON: I mean I don't think it really belongs here at all. MR. JAFFE: Can we move it to page 7, the second paragraph be made into a -- uncertain section. MS. LAYTON: Yeah. MR. JAFFE: I mean because it is talking about expanding organic market, consumer demand for other food products. It might fit better in the issue -- in this section on the consumer uncertainties. MS. LAYTON: Yeah. MR. JAFFE: Than in the regulatory -- MS. MELLON: But this is an issue that arise in connection with conventional agriculture. Where does that leave us? MS. CRAMER: Why not broaden in the technological and regulatory uncertainties section, there is a, there is an uncertainty that if we have additional new food safety issues, they could then subsequently change the overall regulatory framework in such a way, whether it's organic, biotech or conventional, this is looking at the uncertainties and so we may just want to say something in the order of -- where did it go. MR. BUSS: Actually, Carole, I was thinking along the same lines but mine in a more neutral way was will food safety issues arising in organic, biotech or conventionally produced foods lead to a need for additional regulation of any of the three sectors? MR. GRANT: That's fair. MS. MELLON: Organic is not a sector. You know, it's a government sponsored label. I don't know that you can say that it stands in -- whether you can have conventional, organic and biotech and that they all meet -- MR. JAFFE: Well, those are modes of production, really they are. MS. ZANNONI: Well, they're seen as three different sectors. So I understand that it's different than biotech because this puts them all together, and, and that issue is how do you help someone choose what they want putting the sectors together. MS. CRAMER: There's some issue -- MS. ZANNONI: It's not a fixed issue. MS. CRAMER: It's not specific for one or the other. MS. MELLON: If there are food safety issues that arise, you know, new food safety issues that arise in the future, it could, you know, have implications for biotech. MS. CRAMER: Except that on the same side, Mardi -- MS. MELLON: But I would take out -- I agree with Duane. I think that to the extent that we've set organic up as some sort of a standard consumer desirability, I think we would take that out so that it would simply -- I mean I do have problems with what organic is. Do we mean -- we've already seen some people, you know, believe that Odwalla was organic when it wasn't even close, and do we mean certified organic? Do we mean people are using the word -- do we mean natural foods? Do we mean -- there are other green labels of all kinds that are out there. Maybe we should just say conventional green labeled and, and biotech. MS. ZANNONI: I think people think organic -- I mean I think that green label -- MS. DILLEY: Can we take part of what Carole is saying, I think where Carole and Daryl were going with additional food safety issues require changes in regulation. Isn't that the main point that's trying to be made. MR. GRANT: Yeah, but I still would argue -- MR. SCHECHTMAN: Can we have one conversation? MS. DILLEY: Go ahead, Duane. MR. GRANT: Yes. I think that we could take -- I like Daryl's language. I would argue in favor of retaining the segments just because I think they're recognized in the marketplace and they're recognized consistently throughout our document as well. MS. LAYTON: I think the other thing you could add to Daryl's that might expand on this and give Mardi -- and give some alternative is country of origin because we've already seen Chilean produce walk off the shelf one time. MR. GRANT: I would be very comfortable with that as well. MS. LAYTON: You could add a country of origin issue in there. MR. SCHECHTMAN: Or you could conceivably instead of have -- instead of listing the three systems, you could say various production systems. MS. MELLON: Or we could just say natural. That would be fine with me. I mean that covers the whole -- MR. GIROUX: No, because natural -- correct me if I'm wrong but organic has a government standard. MR. GRANT: Sugar -- MR. GIROUX: So if something were to occur in the organic system, then the government would likely respond with regulation, and the same if it happened in biotech, same if it would happen in country of origin labeling, that there may be some regulatory impact of a large problem, and so natural, I don't know whether natural is a government regulation, but organic does have regulations as well does biotech, country of origin labeling. So I think -- MS. MELLON: Those are labels, and we don't have a biotech label system. I mean there is nothing to label biotech. So it's not equivalent in that sense. You know, it is a -- there is a general notion that there is something out there called organic, but it's very confused about what it is, and -- all right. So I'm not sure that we should feed that confusion. I would certainly, I would certainly -- I mean I would agree that we could say, you know, if there are food safety incidents that arise in connection with different production systems and those could have an impact, but I do think it's hard to know what we mean by organic unless we -- we could be certified organic, but why? MR. ENRIQUEZ: As opposed to what we mean by biotech? MS. MELLON: Well, we're talking about biotech and we do have a lot of context for what we're talking about here. We've defined it. We didn't define organic. MS. DILLEY: Can we go with, will additional food safety issues arise with various food production systems requiring a change in regulation? I mean isn't the main point that changes in regulation or not? MS. LAYTON: Yes. MR. GRANT: Uh-huh. MS. ZANNONI: Uh-huh. MS. DILLEY: Can we just go with that instead of continuing a conversation about whether we know what each of these terms mean? MR. GIROUX: So we didn't use the word organic and biotech each as well. So we're going to use the word organic talk about -- organic and organic system. So either organic food production, those consist of six percent of the total food production. So, you know, you can't -- it's in or out. MR. JAFFE: I don't think we can do the scenario without having the word organic in there. MS. DILLEY: I think it's the association with food safety issues I'm guessing. So if it's here, you don't have to be specific. I don't know if it matters or not. I think in other parts of the document, it seems that people are more comfortable with the terminology organic when it's not linked to food safety issues. MR. GIROUX: So I don't feel comfortable talking about food safety issues or potential food safety issues in biotech -- MS. DILLEY: Anymore than you could organic. MR. GIROUX: -- or in organic. We can't do it in either one. There has to be compelling evidence to show that there is a food safety issue. Then that same metric should be held for biotech, and so we can't talk about potential food safety issues and biotech if we can't talk about potential food safety issues. MS. DILLEY: That's why we're using various food production systems as opposed to biotech. MR. BUSS: This is a forward looking question in the future. So, so there can't be documented evidence of something in the future. MS. CRAMER: Yeah, it seems to me that the whole -- MS. DILLEY: We either have it all in there or we don't have any of it. MS. CRAMER: -- is the concept that not just what -- that country of origin, that some incident that has nothing to do with biotech could in fact wag this dog, and so that is the whole point. MR. JAFFE: We've seen that. MS. CRAMER: It's not just what happens in biotech. MR. JAFFE: In Europe, mad cow disease. MS. DILLEY: I'd offer we get out of this box which is just going with food production systems. Why do you have to name them particularly if you're projecting in the future. Maybe there are other food production systems. So if we just take the particular food production systems out of it, it seems that it gets to your point of increasing regulation should something happen in particular food production systems which raises the whole issue of additional regulation. It's only in this piece I think where we run up against organic or transgenic in the document and we need to deal with it there, but that's just in one section. It just seems like the -- a particular type of food production system is being called into question, and therefore may be more regulation. I don't care what -- MS. LAYTON: Well, food safety issues associated with a food production system -- MS. DILLEY: Require changes in regulation. MS. LAYTON: -- that require changes in regulation. MS. DILLEY: Which is basically I think what Daryl suggested. It just takes out the particular example of food production systems. MR. GRANT: So we have an uncertain statement or a statement of uncertainty, that is somehow appropriate I guess. MS. CRAMER: No, I'm not comfortable with it. I think it's too weak the way it is. It doesn't have any teeth. Why bother putting the sentence in. MS. DILLEY: Because any food production system called into question is to potentially increase regulatory scrutiny and therefore additional regulation. Does it really add to particular food production systems that occur now as opposed to looking into the future and saying any kind of food production system. MR. BUSS: -- to me in the context that if not specified, given the documents about biotech, implies you're talking about. MR. SCHECHTMAN: Can you, can you read your original sentence? MR. BUSS: Will food safety issues arising in organic, biotech or conventionally produced foods lead to a need for additional regulation in any of these production systems? MR. SCHECHTMAN: You could say organic -- conventional, biotech, organic or other new food production system. MS. CRAMER: Or say whether using this, this or this. MR. SCHECHTMAN: Yeah, just sort of indicate that there's a whole range of possible places where it could come up. Does that diffuse it enough, Mardi? MS. MELLON: I don't know why you would -- I'm just -- I do feel very uncomfortable with this, you know, and this does depend on where you stand. There is, you know, people are out there saying over and over that there are food safety issues associated with organic and there isn't a shred of evidence that that's the case. MS. ZANNONI: That's the same as biotech. MS. MELLON: No, it is not the same as with biotech in the sense that there is no -- I mean we're not - - this isn't addressed to the food safety concerns that one has about biotech. We were very careful to craft a statement that said that there were no demonstrated food safety risks associated with biotech. I would say there are, I mean I don't see any evidence that there's concern about -- of anywhere near the level that we see around biotech, about organic except coming from Alex Avery. I mean that -- he's the only person who seems to be out there concerned. Now we're talking a lot about concerns that are based on potential safety risks, and I agree with that and I would, you know, I've never -- I certainly -- I wouldn't say that there are demonstrated safety parts associated with biotech but this just doesn't -- there isn't even enough to get to the presumption that this is a problem. MR. SCHECHTMAN: The sentence was just listing all different kinds of possible -- of production systems. MS. MELLON: Then all I would say is that we've got to hold this stuff, then let's just not use that one but use all the other ones. MR. ENRIQUEZ: Is food 100 percent safe? MS. MELLON: Food is not 100 percent safe. MR. ENRIQUEZ: If there is an accident in food produced under this method, do you think that there could be push for a change in regulation. Forget about what the method is. MS. MELLON: It depends. If it's under -- it could happen if there, if there is a food safety risk associated with anything, associated with natural, associated with country of origin. MR. ENRIQUEZ: That's what Daryl's saying. MS. MELLON: Yes. All right. All I'm requesting is that we provide a list and that organic not be on it. MR. ENRIQUEZ: Because organic is 100 percent safe. So it's intellectually honest to say -- MS. MELLON: No, no, it is not. MR. ENRIQUEZ: -- we're going to exclude -- MS. MELLON: I'm just saying there's no -- if we have a list of 10 things, we can -- and we've got 10, we can pick 5. MR. ENRIQUEZ: Because organic is 100 percent safe. MS. MELLON: No, it's only 1 of 10, and it's not. MR. ENRIQUEZ: Then we'll list it as 1 of 10. MS. MELLON: All right. And then I'm asking that it not be listed. MR. ENRIQUEZ: Because it's intellectually honest to -- MS. MELLON: No, because it's confusing and it feeds into an unfair and not widely shared view that it is less safe. MS. LAYTON: But there are others here who are willing to list biotech. MR. GIROUX: We're going to have a problem with the final scenario if you take that position, Mardi, around the use of the term organic. If you say we should use organic in this section because it's, it's unclear, it's difficult to deal with, how are we going to rationalize this discussion when we get to the scenario that talks about organic production growing, using organic, organic growth. So I'm just cautioning you that if you're -- if we're going to go down that road, we're going to have a problem with that third scenario. MS. MELLON: I'm listening. I'm listening. MS. LAYTON: I think again, Mardi, they're not asking you to put up organic in this list without listing -- MR. OLSON: Anything else. MS. LAYTON: -- anything else. MR. JAFFE: Add as many things as you want. MR. ENRIQUEZ: And we're not saying organic is more safe. MS. LAYTON: Or less safe. MR. ENRIQUEZ: We're simply saying if there were to be a problem in any one of these food production systems, it would probably lead to increased regulations. MS. MELLON: Okay. I will, I will probably yield on this but I just want to hear from Juan why it should be include. Why of the 10, 10 production systems out there -- MR. JAFFE: It's a major market. MS. ZANNONI: It's a growing market. MR. JAFFE: Because a growing market. It's a big issue. MR. ENRIQUEZ: That's what people are buying. They're paying a premium for this stuff in supermarkets right now. MS. MELLON: Right. MR. ENRIQUEZ: It's a reasonably growing -- fast growing sector, and I think going forward in all food systems, you're going to have safety issues, and by the way, I think if I were in the organic market, I'd watch the stuff very carefully because I think the organic market along with the biotech market, the most vulnerable to accidents. So that's not a place where people expect to see it or they expect this food to be 100 percent safe. MR. JAFFE: The reason to put it in here is not because it's more or less safe. MS. DILLEY: Right. MR. JAFFE: It's a big market. MR. ENRIQUEZ: It could be 99 percent safer. MS. LAYTON: Okay. Should we add country of origin to his list or is there any other thing -- MR. OLSON: Michael? MS. LAYTON: Michael? MR. SCHECHTMAN: Daryl, it was your sentence. MS. LAYTON: Read it. MR. SCHECHTMAN: I don't have it written. MS. LAYTON: Reread it. MR. BUSS: I'm not sure I have a good suggestion on how to add country of origin. MS. LAYTON: Okay. Keep going. MR. SCHECHTMAN: Just read the sentence. MR. BUSS: For food safety issues arising in organic, biotech or conventionally produced foods lead to a need for additional regulation in any of these food production systems. MR. SCHECHTMAN: Arising in conventional, organic, biotech or other new production systems -- then what? MR. BUSS: Lead to a need for additional regulation. MS. LAYTON: What's that one where you grow it in water? Hydroponics. You could list hydroponics as one of them. MR. GIROUX: So the only difference is that one doesn't include -- MS. LAYTON: But he had new, so I just thought we'd be broad. MS. MELLON: You don't need to go to hydroponics for me. MS. LAYTON: Okay. Delete hydroponics. MS. MELLON: But I am going to -- I mean the reason I think that I will yield on this is, is, you know, is because of what Duane said. We used it in some ways as an exemplar of a health conscious -- of a production system that is being driven by consumers interest in the environment and health. MS. LAYTON: And whoever thought we would have arsenic on grapes. MR. SCHECHTMAN: Now is that sentence going in the consumer section or -- MR. JAFFE: Now that it's written, it's regulatory. MS. LAYTON: Okay. So the next change is a the top of page 7. It's under the section of environmental uncertainties and I think it was will serious effects of global warning become pressing in the next decade instead apparent. MR. GIROUX: I'd like to back step one, to the one that talks about PMP's, and I'd like see us drop the word safe. MS. LAYTON: Where are we talking about? MS. DILLEY: The first sentence. MR. GIROUX: Will concern regarding the deployment of transgenic plants instead of safe. MS. DILLEY: Does concern have an s in your master? UNIDENTIFIED SPEAKER: It needs an s. MS. ZANNONI: I have an issue. MR. SCHECHTMAN: We have to add this somewhere on -- MS. ZANNONI: Well, to back up on that aging population with the consumption of organic-based products, can you drop the aging because it looks like older people will go toward organic based products. To me that doesn't make sense. MS. LAYTON: It's under demographic uncertainties. MR. SCHECHTMAN: It's saying that, you know, as people get older, they may choose one, one or the other or nothing, and that sentence is supposed to say that they may decide to live forever, they're going to do A, B, C or nothing. MR. GIROUX: the other addition I'd like to see to the regulatory uncertainty one is there's one statement that just needs some additional language. It says, or make it -- same sentence -- "Or make it economically impractical -- MR. SCHECHTMAN: Which sentence? UNIDENTIFIED SPEAKER: Bottom of page 6. MR. GIROUX: Why? Because it's in the regulatory sections because I'm assuming what the author meant was if there was increasing amounts of regulations and requirements around this crop, that would make -- that would make it impractical to grow, not the concern doesn't make it impractical to grow but -- and so maybe the team can help me here. MR. ENRIQUEZ: The regulation can be so tight -- MR. GIROUX: So I'd like to see that, so we explain why that is, because the way the sentence reads, it says, "The concern will make it economically impractical," and that's not the case. MR. HOISINGTON: So we should change concerns to regulations or regulatory. MR. GIROUX: No, I think you can make it a separate sentence. MR. ENRIQUEZ: Okay. So if we can put just a question mark after -- restrict their cultivation? Will tightened regulations make it economically impractical to grow them in the U.S.? MS. LAYTON: Well, tight. MR. JAFFE: Increased regulations. MS. LAYTON: Increased. MR. GIROUX: I guess it's increased. MR. JAFFE: The regulation now, so -- MS. DILLEY: Increased regulation. MR. ENRIQUEZ: Fair enough. MS. LAYTON: Regulation market it -- MR. ENRIQUEZ: Impractical. MS. LAYTON: -- economically impractical to grow them in the U.S. MR. ENRIQUEZ: To grow PMPs in the U.S. MR. SCHECHTMAN: To grow these crops. MS. LAYTON: Plant-based pharmaceuticals. MR. GIROUX: Because that leads directly to the second one. MS. CRAMER: Will you read that sentence again? MR. SCHECHTMAN: Will increased regulation make it economically impractical to grow plant-based pharmaceuticals in the United States? MS. CRAMER: Doesn't that have the same implication? Do we need the second sentence? MR. BUSS: Yeah, it seems redundant. MS. LAYTON: One is concern and one is regulation. MS. CRAMER: But we've taken the concern sentence and made it into concerns and a regulation. MS. LAYTON: No, we didn't. We said -- will concerns regarding the deployment of transgenic plants producing plant-based pharmaceuticals and food crops inhibit or severely restrict their cultivation? We didn't say what kind of concerns. The next thing is -- will increased regulation make it economically impractical to grow plant-based pharmaceuticals. MS. CRAMER: which would push products to move offshore to avoid economic or regulatory considerations. So why not ask the new sentence number 2 and go right onto 3. MR. GIROUX: Fair enough. MS. LAYTON: Okay. MR. GIROUX: Now onto the environment piece. MS. LAYTON: Yes. And Abby has given you the first change, the first sentence become -- instead of be apparent, it's become pressing. Next Abby? MS. DILLEY: I think the next was public receptiveness to increasingly novel products such as transgenic animal-derived products, plant-derived food products engineered to offer specific health benefits to consumers and plants and livestock producing pharmaceutical and industrial compounds. MS. CRAMER: But why is that in the environmental section, that statement. MR. BUSS: As opposed to under uncertainties. MR. SCHECHTMAN: Because we missed an entire consumer -- MS. LAYTON: Randy? MR. GIROUX: I feel like we're racing through these sections, and I think, you know that we have to make sure before we move onto the next section we're comfortable. MS. LAYTON: Okay. MR. GIROUX: Back in technological and regulatory uncertainties -- MS. LAYTON: Okay. MR. GIROUX: -- there's -- in the middle of that paragraph says -- notwithstanding the information presented in chapter 2. MR. SCHECHTMAN: Okay. That sentence was crossed out. We mentioned that I think. MR. GIROUX: I'm sorry. MR. SCHECHTMAN: And then it starts -- which products will make it to the U.S. or global marketplaces. MR. GIROUX: Sorry. MS. DILLEY: Anything else, Randy? MR. GIROUX: No. MS. DILLEY: Maybe we're going too fast. We'll slow down. So back to Carole's question. MS. LAYTON: Maybe let's talk a little bit about that. We split out environmental uncertainties and consumer uncertainties and we did not add at that first paragraph to go back and check if there were consumer uncertainties mixed up with environmental uncertainties, and that may have been a mistake on our part. So the global warming and -- certainly is an environmental uncertainty. MR. HOISINGTON: Can we just title that whole section environmental and consumer uncertainties or do we need two separate sections? MR. JAFFE: I think separate them. I mean I don't think -- I mean -- MR. HOISINGTON: Keep them separate. MR. JAFFE: Yeah. MS. LAYTON: So really stops after global warming. MR. JAFFE: The first three sentences -- MR. HOISINGTON: It says environmental, and then start a new section -- MR. SCHECHTMAN: Just put the headline consumer uncertainties -- MR. HOISINGTON: Just before the public receptiveness. MS. LAYTON: And then I think everything is right in that first paragraph. The second paragraph also had a change. Abby? MS. DILLEY: I'm sorry. MS. LAYTON: The next paragraph also had a change? MR. SCHECHTMAN: Did people caught that rearrangement to sentence of the receptiveness? MS. CRAMER: I wouldn't mind hearing that again? MR. SCHECHTMAN: Okay. Basically what happened is that all of the examples, transgenic animal-derived products, plant-derived food products, et cetera, et cetera, was moved up into the sentence so that it was the public's receptiveness to increasingly novel products that may come to market, such as all of these unknowns. MR. HOISINGTON: Can't we just say is unknown, such as. MS. LAYTON: That's what we had is unknown. MR. HOISINGTON: There's a lot to put in between this. MR. JAFFE: Unknown, and say those products include. MS. MELLON: You don't need as discussed earlier. MR. SCHECHTMAN: That was gotten rid of -- MS. LAYTON: That's gone. MR. SCHECHTMAN: -- as it was being combined into one sentence. MS. LAYTON: Is unknown. MR. OLSON: Is there something that shows what was changed. You keep saying that was gotten rid of. When? MS. LAYTON: Yesterday afternoon. MR. OLSON: All right. Thank you. MR. SCHECHTMAN: Basically the intent was to combine those two sentences, the public's receptiveness and the as discussed earlier in the report into one sentence that says -- the public receptiveness to increasingly novel products that may come to market -- MS. LAYTON: Is unknown. MR. SCHECHTMAN: -- bunch of examples, is unknown. MS. LAYTON: Well, then I think it would go before or after the word products. UNIDENTIFIED SPEAKER: Right. Novel products such as -- MS. LAYTON: Such as da, da, da, da, that may come to market is unknown. MS. DILLEY: No, it's got to come after market. MR. SLOCUM: It probably should come after -- MS. MELLON: I think it has to come after market. MR. JAFFE: These products could include animal- derived products, plant-derived products -- MS. LAYTON: Okay. So just note products such as and unknown, these products include -- those products include -- MR. JAFFE: Could include. MS. LAYTON: -- could include -- MS. MELLON: What about such products, novel products, such products. MS. LAYTON: Such products could include -- MS. LAYTON: Such products could include transgenic animal-derived products. MS. LAYTON: Okay. Such products could include. UNIDENTIFIED SPEAKER: And just to clarify this is now under a new heading. MS. LAYTON: Consumer uncertainties. MR. HOISINGTON: Where did we split it? MR. SLOCUM: We split it after warming. MS. LAYTON: After the warming and before the public. MR. SLOCUM: No, no, no, that sentence where we put the -- MR. SCHECHTMAN: We made it a separate sentence that these -- MS. DILLEY: We gave up on that. The other changes we had under consumer uncertainties including changes in the word malleable to changeable, and that it ends at hardened. MR. ENRIQUEZ: Regarding the technology -- regarding biotechnology. MS. LAYTON: Yes. Good pickup, Juan. MR. GIROUX: I've got a question about the next sentence. Are we there yet? MS. LAYTON: Yeah. MR. GIROUX: What does consumer backlash against large corporations or conglomerates affect biotech? MR. GRANT: It's like Cargill, you know. MR. GIROUX: I want to why it's in this document. MR. OLSON: I have the same question. MS. LAYTON: Monsanto. MR. OLSON: But it implies that it's consumers against Cargill and General Mills and people like that. It doesn't say Monsanto. MS. LAYTON: It's also against Wal-Mart and McDonald's. MR. GIROUX: How's that got to do with biotech? That's what -- I'm trying to -- MS. LAYTON: Okay. Here -- MR. GIROUX: It needs to be in some context. MS. LAYTON: Okay. MR. GIROUX: And so maybe the work group who put this together -- MS. LAYTON: Juan. MS. MELLON: I think Juan drafted this one. MR. ENRIQUEZ: I think that there's a whole series of ways that this thing could go. I think there are increasing concerns about groups like Wal-Mart, you know, there are certainly concerns about groups like Monsanto, and then the question becomes if those become issues, what does that do to these folks? And it can go in either direction. I mean one of the ways that these corporations could go is to say we are more environmentally friendly, we favor organics, we're not going to produce biotech, you know, they can adopt a key strategy of saying we're a green oil company or they can be companies that go the other direction and say we are bringing you the most efficient food or doing this, that or the other, but as there's an attack on these companies, I think biotech and organic are going to become issues as far as food concerns within those conglomerates. MS. LAYTON: Can I just point out that not every question in this section has anything to do with biotech beginning with the first question under environment -- will serious effects of global warming become pressing within the next decade -- has absolutely zip to do with biotech. MS. CRAMER: I disagree. MS. MELLON: I think it has a lot to do with biotech. MS. LAYTON: I don't think it has. MS. CRAMER: No, because it basically says something like cold tolerance or warm tolerant biotech crops may have an advantage that would drive the way things could go. MS. SULTON: It's an outside source. MS. LAYTON: It's an outside source that affects biotech, and that's same kind of thing with would a retailer have a problem, would a consumer have problems with mega-retailers. We already recognized yesterday that there are many places where consumers already have problems with mega-retailers and it could have an outside impact on biotech. So that's my issue. MS. CRAMER: I agree that -- MS. MELLON: I mean I'm more than comfortable taking that out. I agree with what Juan said, I mean actually I think, you know, there are lots of ways that, that -- feelings about big companies, you know, could play out even in the biotech. I think one of the things, you know, that we might see for example is big companies adopting non-biotech technologies, and the question is whether the same sets of -- whether, whether a Monsanto, you know, using conventional breeding is still going to be a target or not, but I think it's almost so complex that it's -- it may not -- I mean either we can put it in kind along the line that Patricia is alluding to, you just kind of raise these issues. They are going to be, you know, they're going to have lots of different impacts on a lot of other folks, figure it out. But I'm comfortable making the list a little bit shorter and the connections a little bit more direct. MS. DILLEY: Well, if you take that -- we've already added some other stuff. I thought part of what you were trying to get to there is maybe not so much the backlash against large conglomerates specific only but just consumer -- they're just not looking at the technology. They're just not looking at other technologies but there's a myriad of different considerations that go into consumer behavior and so that just being one of them, and maybe there's a way to -- instead of using the word conglomerate which I think maybe is -- MR. OLSON: Well, it puts all of them in there. I mean if you have to, I think you should put some large conglomerates. I mean this implies all big companies are bad. MS. LAYTON: Why don't we put mega-retailers or mega -- because consumers are only going to deal with mega- retailers. MR. OLSON: Yeah, but then you're implying -- if you look at the history of Wal-Mart, just pick on Wal-Mart because that's what we talk about, their performance and their record shows that consumers are endorsing the concept, not rejecting it at this point. Now I know this is a future looking thing but that will have discontinued. If you look at their long range plans, that growth almost accelerates because consumers -- 190 customers a week, their prices are 14 percent cheaper than anybody else in the market, and consumers are endorsing that concept. Now the question is should we say will there be a backlash against that? Maybe, but it may also go the other way. I mean -- UNIDENTIFIED SPEAKER: Or will they become more powerful. MS. LAYTON: Or will this not be an issue for the majority of consumers which is the second half of that sentence. UNIDENTIFIED SPEAKER: Right. And we took it out. MS. LAYTON: And we took it out. MR. GIROUX: It would be consumer backlash/endorsement. MR. HOISINGTON: We're citing the worst. That's the opposite. MR. GRANT: You know, to me this issue speaks, and it's not really clear, but it speaks to the control that the large conglomerates have, significant control. If I was going to change it, I would pull that point out, so will it be consumer backlash against the significant control or the -- MR. OLSON: I would add the word some. MR. GRANT: Some control. MR. OLSON: If you're going to leave it in there, I would qualify it with the word some. MR. GRANT: Sure. MR. OLSON: Because it implies everybody that is big is bad. MR. GRANT: I would agree with that. It's the control issue that needs to be -- MS. LAYTON: Can somebody give me what is sounds like now? MS. DILLEY: I think it's -- will there be consumer backlash against some large -- do you want to switch that to corporate control or -- is it specifically directed towards an entity or is it a control issue that Duane raised. UNIDENTIFIED SPEAKER: It's a control issue. MS. ZANNONI: It goes to -- MS. MELLON: Duane's point is one that's well taken but what seems to me like happened is that, is that there will be a reaction -- possibly a reaction against the enormous control that Wal-Mart in particular is going to have over the food system, and what really could be interesting for the future is that it won't be -- I don't think it will be consumer-led. I think it will actually -- what actually may happen is more like -- it's in the food system part. It may be that some consumers, some growers, some food retailers, I mean that other sectors in the food system may combine to try to undermine the power that Wal- Mart appears to be amassing and putting itself, because like I said, it is, you know, it is the world's largest company and now it is allied with our largest competitor which is China. I think people are going to wake up one day and say, this isn't good for U.S.A. to have Wal-Mart and China sitting on top the world's food system. MR. SCHECHTMAN: May I -- I'm just sort of recognizing that we have a limited amount of time here, and rather than make it perfect, will it be close enough just to say against some large conglomerates so that we can just get -- MS. MELLON: Let's just take a consumer and say will there be reactions against -- MR. OLSON: I would add the word market power. MS. DILLEY: Will there be consumer backlash against -- MR. GIROUX: Some large conglomerates. MR. SCHECHTMAN: Against the market power of -- MR. OLSON: Yes. The issue is market power rather than the company itself. That way you don't have a company. MS. MELLON: And I agree, that it isn't going to be against, you know, it isn't going to be a company thing. It is going to be a sense of too much power. MS. DILLEY: So is there a -- do we still have some in there or is it just -- will there be consumer backlash against the market power of some large conglomerates. MR. OLSON: Yes, I think that hits the issue square on the head. MS. DILLEY: Okay. And we have deleted that. We deleted like Wal-Mart. MS. LAYTON: Yeah, we deleted like Wal-Mart. MR. SCHECHTMAN: We deleted the like Wal-Mart. MS. DILLEY: Okay. And then envisioning a few possible futures, we made a couple of changes to that including -- I think we took out a few -- a few and just have to provide examples of possible futures. UNIDENTIFIED SPEAKER: The fourth line. MS. DILLEY: The fourth line. And then started the next paragraph with each scenario is intended as a coherent description of what the world might look like. So that sentence -- we didn't make any changes to that sentence. The next bolded sentence or paragraph, and then the next paragraph was going to be all in bold instead of just part of it. Is that right? MR. OLSON: Where are you, Abby? MS. DILLEY: I'm sorry. On page 8. MS. SULTON: Abby, you missed on page 7. We took the word all out and replaced it with these. MR. SCHECHTMAN: No, it was all the scenarios. All the scenarios. Not all three. MS. LAYTON: I thought we had three because we took three out of. So these three scenarios share the uncertainties but how the uncertainties play out influence how the scenarios are shaped. And then in the next one when we talk about we hear the titles of the scenarios, and we took three out. MR. SCHECHTMAN: No, I thought the three -- I thought the three went out because we, we then moved the names of the scenarios to the very end of that whole discussion. So I thought it was all the scenarios and then here then are three scenarios we have created -- MS. LAYTON: And we never used -- MR. SCHECHTMAN: -- that we have titled. MS. LAYTON: Okay. Sorry. MS. DILLEY: Randy, go back to page 7, right? MR. OLSON: Under agricultural food system uncertainties, we list only two innovations, crop production for bioenergy or industrial feed stocks. I'd like to see it say and other uses, as not to confine it to just those two uses. MS. LAYTON: Where are you? MR. OLSON: Starting middle of the paragraph for agricultural and other novel uses. MR. SCHECHTMAN: It should be or. MR. GIROUX: Or. UNIDENTIFIED SPEAKER: Sounds good. MS. DILLEY: And so as has been mentioned, that the titles of the scenarios have been moved down, and it says -- we have entitled them -- last time it said -- here then are three possible visions for the future we have created. We entitled them and then Rosy Future, Continental Islands and Biotech Goes Niche. MR. BUSS: I suggest we use scenarios rather than visions. MS. DILLEY: Scenarios. MR. SCHECHTMAN: Three scenarios that we have created. MR. ENRIQUEZ: How about here are three possible scenarios for the future . . three names. MS. LAYTON: You came up with the word created yesterday. MR. SCHECHTMAN: Yeah, there was -- the point for that was that most people think that they increased the hypothetical list. MR. OLSON: So -- was changed to created. Is that what happened to those? MS. LAYTON: Yes. MS. DILLEY: Okay. Any other comments on that piece? MR. SCHECHTMAN: I have one suggestion that I was just going to run by you which is in a further effort to let the users of the document know that this -- that these are not the predictions, make some sentence that to the effect that other scenarios -- that these are not the only three possibilities. Other scenarios might be developed. MR. BUSS: Actually I would have a section to think about saying something to the effect of -- I don't remember how we had that worded, but essentially saying we have chosen three among many possible scenarios or something to that effect. MR. ENRIQUEZ: The paragraph take it out to that effect actually. MR. HOISINGTON: But we didn't choose anything in developing it. MS. SULTON: We created three. MR. HOISINGTON: We created three among many. MS. LAYTON: Here then are three scenarios we have created among the many possibilities -- among many possibilities. MR. ENRIQUEZ: Actually, on page 7 we should say, nor do these represent the full range of conceivable outcomes, and what we deleted out of there was accidents, military as opposed to trade wars because these outbreaks for example, do not carry out these scenarios. Although certain other scenarios could be envision, these are the key words. MR. JAFFE: I don't think we need that. I think just putting a few words at the section here would be fine. MR. SCHECHTMAN: Among the many scenarios that could have been created, we have chosen three as examples. MR. GRANT: Don't we kind of say that already on page 7, unless I've missed that or deleted it. MS. DILLEY: Yes. MR. SCHECHTMAN: This is just an emphasis though. MR. GRANT: Fair enough. MR. JAFFE: I don't think it hurts us to repeat it. MR. ENRIQUEZ: How about using or adding to our list of certainties and uncertainties, you can build your own scenarios. MR. GRANT: That's good. MS. LAYTON: Using the list of certainties and uncertainties, one can build -- MR. ENRIQUEZ: You can built. MS. LAYTON: -- you can build your own set of scenarios. MS. MELLON: And obviously just to that concept, we come to the transmittal letter. MR. SCHECHTMAN: Yes. MR. GIROUX: Using and adding to, the first time you mentioned it, because these aren't all. These were just a list, right? MS. MELLON: Yes. MR. SCHECHTMAN: That's the additional value of -- MS. LAYTON: You don't like our certainties or uncertainties. MR. SCHECHTMAN: Both that and illustrating the usefulness of this as a tool. MS. LAYTON: Okay. MR. HOISINGTON: You need a statement to indicate what we need -- we're doing with the scenarios at this point? MR. SCHECHTMAN: Well, afterwards we'll -- I think we -- MR. HOISINGTON: Because the people who read these, I mean they're actually something concrete as opposed to a tool used to answer the implication questions. MS. DILLEY: To answer the question. MR. HOISINGTON: It might be useful at this point to indicate why you have scenarios. MR. ENRIQUEZ: How about a sentence that says as you read through each of these scenarios, you might wish to consider how it would impact your distribution channel replacing your -- MS. LAYTON: That's what these are. MR. ENRIQUEZ: -- regulatory regime. MR. SCHECHTMAN: Well, we have that whole list. MR. HOISINGTON: I mean I think it's going to relate to where we put this list. MS. LAYTON: Right, the list. MR. HOISINGTON: Because in many ways this list should come before the scenarios. You should know about the implication question as you go through the scenarios. The scenario is not the end of the point. MS. LAYTON: Right. What David I think is saying is that before you start doing that, is to preface the concept of why we build scenarios which I -- is not necessarily as clear in the first part of the document as one might hope because I went back and reviewed that. So we built the scenarios so that we could look at possible futures and examine implications from those possible futures. We have presented -- we are presenting a list of questions that will draw you to those implications. Do that sound exactly it? MR. HOISINGTON: And you should know these questions before you start reading the scenarios. MR. ENRIQUEZ: It leads to very different answers for some of these questions. MS. LAYTON: Yes. MR. HOISINGTON: I think it would be useful for them to know what those questions are. MR. ENRIQUEZ: You could actually put that at the end and say, so what, after the three scenarios, the reason why you should consider these and alternate -- of the world is under each of the worlds the answer to the following questions are very different. MS. LAYTON: Okay. Let's -- MR. HOISINGTON: We still need something here that describes that process. I agree. You could put the questions either place. I think you need something here that describes why you're having these scenarios laid out. MR. OLSON: I would cast that the value of this tool would expand our thinking and get us thinking -- MR. HOISINGTON: Think out of the box. MR. OLSON: -- about the process, and there's a value to doing this, and we should state that there's a value to doing this somehow. MS. LAYTON: Yeah. MR. OLSON: What is the value that we're capturing here? MS. ZANNONI: To prepare for the future. MR. OLSON: To help evaluate possible future outcomes. MS. ZANNONI: Also prepare. MR. OLSON: There is a value doing it this way. MR. HOISINGTON: We could have to write an opening paragraph or so about why the scenarios particularly since this will be taken totally separate out of context. MS. LAYTON: Well, it does. It says neither the AC21 nor anyone else can say with certainty what U.S. agriculture will look like in a decade but we can try to examine different scenarios. MR. HOISINGTON: But it doesn't -- MS. LAYTON: This does not imply that we're predicting or endorsing any given scenarios but rather we are trying to understand the implications of different outcomes. We are providing questions that will lead you to develop the implications. MS. MELLON: Providing a list of some of the confusion is something you might want to consider. MS. LAYTON: But we're -- actually we're not going to try to understand the implications of the different outcomes. We're actually going to provide a list of questions that allow you to understand the implications of differing outcomes. Is that correct? MS. MELLON: Aren't our questions a list of implications? What are the implications for resources? What are the implications for trade? What are the implications -- MS. LAYTON: No, it's what is the impact of the scenarios relating to economic impact of the scenario? What is the environmental impact of the scenario MR. ENRIQUEZ: Won't that still work for the document that we've got and then -- where we put the questions. MS. LAYTON: Okay. MS. DILLEY: So isn't it, Juan, I think building on what you had said would be as you read through each of these scenarios, you should consider this list of questions and others, if you want to add that, the answer to which will be different under each scenario and something like we hope these will provoke thought and -- or thinking about the future -- appearance of the future. Isn't that ultimately what we're trying to get them to do is -- MR. ENRIQUEZ: Well, you can put a paragraph in there and say you may agree or disagree to a greater or lesser extent with each of these scenarios. The reason why we are writing them is because what happens to you under this system changes. MS. ZANNONI: Yeah. MR. ENRIQUEZ: Other than a rosy world or this world or that world. MR. OLSON: That's the value. MR. HOISINGTON: Yeah, but my concern is that if somebody doesn't understand scenarios, they're going to come into this, they're going to start reading it, and they're going to say, oh, I don't think this is correct and they're going to quit reading the Rosy scenario and they're going to jump to the one that they believe in and that's not the point. MS. LAYTON: Right. MR. HOISINGTON: They're not to pick which one do they think will come true or which one they agree or disagree with. And that's our problem. It's got to be couched in those terms of what do the scenarios allow you to do. MS. DILLEY: You've got to take them together. MR. HOISINGTON: You've got to take them altogether with a neutral mind. MR. BUSS: The suggestion I had was on page 8, the bold part that says -- these are not predictions of the future nor are profitabilities or likelihoods assigned to them -- and then suggesting that the next sentence read -- they're intended to provoke thought over a wide range of possibilities. So no single scenario should be considered in isolation. MR. OLSON: Something like that. MR. HOISINGTON: Nor should you -- MR. SCHECHTMAN: Do you want to repeat that again. MR. BUSS: The second sentence -- thought, over a wide range of possibilities, so no single scenario should be considered in isolation. MR. GIROUX: Just change to they were created which was the change we already made to that. MR. BUSS: Okay. MR. SCHECHTMAN: But they were created to provoke thought? MR. BUSS: Sure and then the rest of the sentence. MS. LAYTON: So no single scenario should be considered in isolation? MR. BUSS: Right. MS. CRAMER: I think we should add then a sentence that started out with -- their value therefore was based on implications. I agree with David that we should expect this point of view of teaching somebody before they go into that, how to utilize scenarios because this isn't a common tool that they're used to. MR. SCHECHTMAN: So what was your next sentence then? MR. HOISINGTON: I lost my train of thought there. I think this is better. It may still come down to when do we bring in the questions, the scenarios. I'm not quite sure whether they would fit at the end better than -- but I'm willing to wait until we can focus the scenarios -- MS. LAYTON: Let's go through the scenarios an then figure that out because we have some work to do on the scenarios and I don't want us to bog down on this and not get to the scenarios because we'll never get it done, and we are at 5 minutes to 2:00. The committee had reviewed work group -- I mean Rosy Future and you had looked at both Michael and Mardi's comments. Would someone from the committee or do we want to take it paragraph by paragraph. MR. SCHECHTMAN: Can I just back up for half a second. Just before the scenarios, with or without that inserted text, we have the -- using and adding to the list of certainties and uncertainties, you can build your own scenarios. As you read through each of the following scenarios or develop your own -- do something or is this premature. Should we do the scenarios first? MS. LAYTON: We should do the scenarios first. MR. JAFFE: One suggestion, instead of going paragraph by paragraph, the scenario is, the whole point of it is the whole overall point. MS. LAYTON: Right. MR. JAFFE: Maybe if you read the first one, everyone for five minutes and then get into Abby's questions. Is there anything in there or major heartburn, and then move to the second one. MS. DILLEY: Do you want to do it that way? MS. LAYTON: Okay. I agree. MS. DILLEY: Then why don't we take five minutes to read the Rosy Future scenario. MR. JAFFE: reread them one final time. MR. SCHECHTMAN: And I would also suggest just since, Mike -- I know that Michael had a bunch of comments, and he wasn't, he wasn't here. He's not here today and wasn't expecting to be doing this, and we have his comments here that we look at those as well. MR. SLOCUM: Michael's comments are incorporated in Rosy Future. MR. JAFFE: One and two. MR. GIROUX: I want to remind the committee as well that we deleted the first sentence of Continental Islands. What that means is that we're not making an assessment of what the world looks like today. MR. GRANT: Just another scenario. MS. LAYTON: Right now we're only doing Rosy Future and you have four minutes. (Pause.) MS. DILLEY: Just a couple of things in terms of calibrating your heartburn, too. I think we -- the work group did a huge amount of work in terms of trying to bring some parallelism to all three scenarios, and just as we are suggesting to the USDA or whomever who uses these, to think of -- do not think of each scenario independently but as ways of looking at three different complex futures as opposed to whether you like or dislike a particular scenario we're looking at at the time. So I think we've got to keep that in mind, too, as we review each of them. MS. LAYTON: And since it's totally created, I'm not sure we can in fact check anything. MR. HOISINGTON: If it doesn't give you heartburn, it probably wasn't a good scenario. MS. LAYTON: Okay. Rosy Future. MS. DILLEY: Having said that, and with a very high bar for heartburn. MR. GRANT: Are you ready? I do think in the second paragraph it talks about European opposition. It's the last sentence in that paragraph -- European opposition to the food uses decreased significantly as EU governments. This is just kind of a fact check I think. I don't think the fact that EU governments change will decrease EU opposition. What will be the catalyst there I think is a change on the part of environmental groups, so what would be required would be a change of heart on the part of the environmental groups. So I would propose that we change that wording to say environmental groups -- MR. JAFFE: How about source? In the end, it's not -- it's the people. UNIDENTIFIED SPEAKER: Government and consumers. MR. JAFFE: Consumers of the EU public. MS. LAYTON: I'm comfortable having governments and consumers because it's that agricultural GDP, agricultural productivity on GDP and that's got to be government first. MR. GRANT: Okay. So -- MR. OLSON: Does Greenpeace play any role in that? MS. LAYTON: Is Greenpeace playing a role in -- on making decisions based on increased agricultural GDP? MR. OLSON: That sentence. Instead of governments and consumers, isn't it also -- MR. SLOCUM: Greenpeace plays a big role with consumers in Europe. MS. SLUTSKY: Having governments by themselves won't change this. MR. SLOCUM: They're far behind. MS. LAYTON: That's the scenario. Is it that they're losing money and they're -- MS. DILLEY: Is it European public or consumer opposition to food uses or -- because the government has realized -- NGOs and consumers -- MR. GIROUX: I mean it's the Rosy Future, right? So everybody gets somebody from the side. MR. SLOCUM: Even the EU governments. MS. LAYTON: Right. MR. GRANT: So if you had NGOs, with governments that would work. MS. LAYTON: Well, the NGOs are the European opposition. MS. MELLON: No, but the opposition -- MR. JAFFE: No, they're not. European opposition is broader than the NGOs. MS. LAYTON: Right. I know but it's part of the European opposition. MS. DILLEY: So is it European opposition to food use to decrease significantly as NGOs, consumers and EU governments realize the value of increasing -- MR. JAFFE: That's fine. MS. LAYTON: I'm sorry. Say that again. MS. DILLEY: It was decreasing significantly as NGOs, consumers and EU governments realize the value of increasing agricultural productivity. MS. LAYTON: Okay. Okay. Any other thing. MR. ENRIQUEZ: There some stuff, just simple language in the next to the last paragraph. MS. LAYTON: Governments have had success. MR. ENRIQUEZ: Yes. I'd simply make that Governments adopted compatible regulatory systems, essential for the development of. MS. DILLEY: Take out, and this has been. MR. ENRIQUEZ: Yes. MS. LAYTON: Wonderful. MR. ENRIQUEZ: And then below that also -- however, the poorest developing countries found themselves to have problems -- take out the have. MS. MELLON: I think there are a lot of haves to come out. MS. LAYTON: Okay. MS. DILLEY: Anybody else have any significant concerns or questions or -- MR. SCHECHTMAN: If we look at this in dealing with things like tenses, we're going to have problems. MS. LAYTON: Carole. MS. CRAMER: On page 9, the third paragraph down it says -- energy companies begin to establish pipelines on the bio-based energy. It seems to me energy connected with pipelines has Alaskan Pipeline implementations which isn't really talked about. MS. DILLEY: Networks. Is that what you're -- MS. CRAMER: Yeah, I think that -- MS. DILLEY: Or infrastructure. MS. MELLON: Supply chains. MS. CRAMER: Or just say, begin to manage -- yeah. I don't know. Pipeline seems like the wrong word. MR. ENRIQUEZ: Energy companies begin to invest in bio-based energy. Do that work? MS. DILLEY: Yeah. MR. SCHECHTMAN: And then get rid of the and manage? MR. ENRIQUEZ: Yes. MS. CRAMER: Yes. MR. SCHECHTMAN: Okay. MS. CRAMER: And then in the following paragraph, the second sentence -- information companies merged with financial companies. MR. SCHECHTMAN: Say that again. Where are you? MS. CRAMER: The paragraph after that which starts -- as various. MR. SCHECHTMAN: Uh-huh. MS. CRAMER: I don't understand the context or utility of that second sentence in our context. MS. DILLEY: Information companies merge with financial companies. Is that what you're -- MR. ENRIQUEZ: It's the same type of merger as you saw with the IT revolution. Instead of managing molecules you're managing bits in biology. So the merger pattern and the reorganization is going to be very different. In the beginning you see General Electric -- MR. SCHECHTMAN: Do you mean -- MR. ENRIQUEZ: And I think IBM is going to become a life science company. MR. SCHECHTMAN: Do you mean bio-information companies. MR. ENRIQUEZ: yes. MS. LAYTON: Bio-information companies merge to financial companies. MR. ENRIQUEZ: Right. MS. DILLEY: Did you say bio-informatics? MR. BUSS: On the next sentence I think we could probably do better than outfits. We just said mergers between seed and chemical and pharmaceutical companies continue. MS. DILLEY: Yes. MR. GIROUX: Can't we just disconnect in the next paragraph. The beginning of the sentence is -- global multinational corporations and then in the next sentence talk just about U.S. companies see the overall opportunity pie. Opportunities, this is the future, global, not just for the U.S. bio-market. MS. LAYTON: Just companies. MR. GIROUX: U.S. companies, right. So can we just say companies are seeing more and more diverse business opportunities. MR. ENRIQUEZ: Sure. MS. LAYTON: So take out the words global and multinationals? MS. MELLON: And then the paragraph beginning as various conglomerates, the last sentence, you might want to take out the two words, their own. I think energy companies began developing portfolios of alliances and acquisitions outside the traditional energy business. MS. LAYTON: Broad portfolios of alliances. MS. MELLON: And acquisitions outside the traditional energy business. MR. SCHECHTMAN: I missed what happened to the paragraph after that. MR. JAFFE: Global and multinationals -- MS. LAYTON: Global and multinationals are cut out. MR. SCHECHTMAN: Companies began seeing. MS. LAYTON: Yes. MR. SCHECHTMAN: Okay. MS. DILLEY: And then is U.S. deleted as well or -- MS. LAYTON: No. MS. DILLEY: Okay. MS. LAYTON: I'm just going to switch a couple of tenses and words in there. Companies began seeing more and more even with increased global competition, the opportunity pie was growing faster than the increase in competition. MR. GIROUX: I just see a disconnect if we agree that NGOs and everybody that got on board with biotech, does the last sentence of the next paragraph beginning with -- within the food area -- environmentalists throughout the developed world continued to worry about increased rates of new product introduction could lead to a serious accident, but so far none has occurred. MR. GRANT: I think that's still consistent. MS. DILLEY: Yeah. MR. SCHECHTMAN: Maybe you would prefer to say some. Some environmentalists. MR. OLSON: Some would be better. MR. GRANT: On the paragraph that starts with -- farmers adapting to new technologies became more profitable regardless of farm size, any one part of this scenario that isn't captured in here is that we're getting old in the U.S., as far as the farm population, it's really aging, and so this scenario really sees young tech with sophisticated workers returning to agriculture. So you're kind of repopulating the farm base with younger technically sophisticated farmers. I would put that in just before the semicolon on that first line of that paragraph. MS. DILLEY: In which paragraph? MR. GRANT: third paragraph up from the bottom on page 9. MS. LAYTON: So it's going to read -- farmers adopt into the new technologies become more profitable regardless of farm size and young -- MR. GRANT: Technically sophisticated workers are attracted to agriculture -- return to agriculture. MR. GIROUX: You're implying that those who did not adopt perhaps are older, that you could tack onto the end of that, and they were replaced by more technically efficient. MR. GRANT: It works for me. MR. OLSON: Younger more technically efficient or something like that. MS. DILLEY: Or you could do farmers including young new sophisticated -- however you said that. MS. LAYTON: Can you work this in? MR. GRANT: Yes. MS. MELLON: I would suggest in the next -- MR. SCHECHTMAN: Can we hold on a second? Can we work this in? Can we get the language before we move on? MS. LAYTON: Yeah, that's what I meant. MR. GRANT: Ron, the language -- Ron, how did you have it? MR. OLSON: I would put it after harder, because I think those who did not adapt had a harder time and were replaced by younger, more technically savvy -- MS. MILEWSKI: Wouldn't the aging ones have to be replaced? MS. LAYTON: But the ones who didn't adapt -- MR. GRANT: We got rid of age but we imply that the age is probably why they had a harder time. MR. OLSON: It just says those who don't -- MR. SCHECHTMAN: But we're using that younger, more technically savvy. MR. OLSON: Take younger out then, too. MR. SCHECHTMAN: More technically -- MS. LAYTON: Sophisticated. MR. SCHECHTMAN: -- sophisticated -- okay. Thank you. MS. MELLON: And now in the next paragraph, I think we ought to delete really, for really high value crops, take out really. MS. DILLEY: High value crops. If they're high, they're high. MR. SCHECHTMAN: They're not necessarily really high. MS. LAYTON: Okay. Any other comments? (No response.) MS. LAYTON: Okay. Then we move to Continental Islands and do the same thing. Take a few minutes. MR. JAFFE: Keep in mind the first sentence has been deleted. MS. LAYTON: The first sentence has been deleted. It begins -- new products. (Pause.) MS. LAYTON: Okay. MS. DILLEY: Okay. So again taking comments that rise to the level of significant heartburn. Mardi? MS. MELLON: On page 11, the second paragraph, it's just to make it more readable -- The EU (including the accession countries) continued not to accept food products in general, although they -- I think rather than say continued to accept, just say they accepted products for feed uses and approved some products for field testing and importation. I'm just not sure we need another continued. MR. OLSON: And the second sentence of that same paragraph where it says -- despite the approval, though, no products -- nor food products, and it should be nor were any food products. MR. ENRIQUEZ: Nor were many. MS. DILLEY: Yeah, that would be good, nor were many. MR. OLSON: Let's back up a little. The first page. MS. DILLEY: Wait a minute. I didn't -- MS. LAYTON: We didn't get the first sentence that Mardi had. MS. DILLEY: Despite the approvals, though -- what was the change, Ron? MR. OLSON: Nor were many food products imported and offered for sale. Or you could say many or any. MS. DILLEY: So after nor. MR. OLSON: You need to put the word were. MS. DILLEY: Okay. MS. LAYTON: And what was Mardi's again? I'm sorry, Mardi? MS. MELLON: Mine was just a suggestion to delete the two words -- continued to -- in the second line in the paragraph beginning, The EU including. MR. SCHECHTMAN: And then accepted products. MS. MELLON: Then accepted. MS. LAYTON: Okay. Thank you, Mardi. MR. GIROUX: Were many. Could we say many? MS. MELLON: Nor were many -- okay. MS. DILLEY: Pardon. MS. MELLON: Nor were many products. MS. DILLEY: Okay. Anything else in that? MR. OLSON: The very first paragraph -- with two or more new traits in a single variety. I think you want to insert the word stacked in a single variety. MR. GIROUX: What's the word for that? Trait products. MS. DILLEY: So wait. Slow down, Ron. Wait. Two or more nuw traits stacked in a single variety. Is that what you're looking for? MS. ZANNONI: Stacked has a different meaning, and so you have to be careful when you use it. MR. OLSON: Leave that out then. The only thing I would add is the word but should be changed to and I think. MS. DILLEY: So after -- MR. OLSON: Provide additional value but some of them are still introduced -- and they were introduced I think. MS. DILLEY: And some -- and some new ergonomics. Okay. MS. CRAMER: There might be in that paragraph as well, but one of the things that's missing from both the first Rosy scenario and this one is concepts of impacts on minor crops which is that -- one implication here is that the current investment in minor crops has sort of dissipated because they don't move forward to the regulatory process due to consumer rejection. MR. ENRIQUEZ: We really had a strange purchase last week by Monsanto. That was a $1.4 billion purchase of about 70 percent of the vegetable seed market. MS. MELLON: For a product that's trading at $260 billion two years ago. MS. CRAMER: But Monsanto has moved to a lot of non-biotech approaches. MS. MELLON: And they have a very expensive exit strategy. MS. DILLEY: So, Carole, your original question is should there be some discussion about the minor crops? MS. CRAMER: Minor crops. Implications to minor crops? MS. MELLON: Minor crops are mentioned in Rosy scenario, right? MR. SLOCUM: Yeah, they are in the Rosy Future. MS. MELLON: They're in Rosy Future. MR. SLOCUM: Second paragraph from the bottom on page 9. Most innovation took place in mega-crops, but some improvements to minor crops took place and began to change cropping patterns in the U.S. MS. MELLON: Okay. MS. DILLEY: So you're looking for something referencing minor crops -- to minor crops in the Continental Islands. And what might that be I guess? MR. ENRIQUEZ: One sentence, given, given the reduced market, little investment was made in minor crop biotechnology. MS. CRAMER: Yes. That's sounds good. MR. SCHECHTMAN: At the end of that third paragraph? MR. JAFFE: After animals would be good to add that right in that first paragraph because we're talking about the different products. MS. DILLEY: Okay. So many of these new products and then say at the end, given -- Juan, say it again. Sorry. MR. ENRIQUEZ: Given smaller markets, little investment was made in further development of -- in further small crop biotech. MS. LAYTON: Okay. Given smaller markets -- MS. CRAMER: Non-commodity. MS. LAYTON: Little investment was made in minor crop biotechnology. MS. CRAMER: The minor crop guys don't like to be called minor. MR. SLOCUM: Well, that's one part of the scenario they don't like. MS. LAYTON: And we've already covered minor in Rosy. MR. SLOCUM: That's right. MS. LAYTON: So little investment was made in minor crops -- minor crop biotechnology. MS. MELLON: They didn't say improving fruit and vegetable -- fruit and vegetable crops. MS. DILLEY: Minor crops. Let's be consistent because -- MS. LAYTON: Minor crop biotechnology. MS. DILLEY: Yeah. MS. LAYTON: Let it go. I mean, Daryl, somebody is going to be mad at us no matter what. MR. BUSS: For symmetry with the first and third sections, I guess what I would suggest in that last -- if we're working on the next to the last sentence of the first paragraph, about the animals, read -- development of transgenic animals has continued for niche applications, including xenotransplantation, but not for food uses, because we discuss at some length xenotransplantation in the other two. MS. LAYTON: Okay. MS. DILLEY: Including xenotransplantation. MR. BUSS: Including xenotransplantations. MS. LAYTON: Okay. So just after applications, including xenotransplantations. MR. BUSS: Including xenotransplantation comma. MS. LAYTON: Okay. Randy? MR. GIROUX: Although this doesn't represent the current marketplace, in the paragraph that starts -- along the agricultural food chain. MS. LAYTON: Page 11, upper half. MR. GIROUX: Page 11. MS. LAYTON: Right above the fold. MR. JAFFE: Right. MR. GIROUX: One of two changes. Either it says while food products -- MR. SCHECHTMAN: Which sentence? MS. DILLEY: Second sentence. MR. GIROUX: Along the agricultural food chain, the pattern was similar. Products containing ingredients derived from transgenic varieties were acceptable and widely used for domestic markets, while food products for export were largely sourced from non-transgenic-developed ingredients. MS. LAYTON: Food products. MS. MELLON: So it's while products and then it's -- MS. LAYTON: Now it's while food products. MR. SLOCUM: To distinguish it from feed products. MS. LAYTON: To distinguish it. Can we talk about these products later. MS. MELLON: There's also a sentence without a verb at the end of the paragraph beginning -- consumers worldwide remain divided and/or ambivalent. Or maybe I'm just not reading that sentence correctly, but at the end of that paragraph, there's a sentence, the situation was most confused in Africa, given the dire need for food but confusion regarding trade-related issues, especially with the EU. MS. LAYTON: You're right. MR. JAFFE: Continue, especially with the EU. MS. DILLEY: Confusion continued regarding -- MR. SCHECHTMAN: No. Given the dire need and given confusion. MS. ZANNONI: So what's the point? MS. LAYTON: Take out the but and insert and. UNIDENTIFIED SPEAKER: And given. MS. MELLON: Does the dire need for food have something to do with a confusion about consumers? MS. LAYTON: No, it's confusion about -- regarding trade-related issues. MR. HOISINGTON: I think the issue is that Africa needs food but they don't know how best to source that given the issues with trade with the EU in terms of biotech. MS. DILLEY: Okay. So the but is an and? MR. ENRIQUEZ: The issue is Africa needs to produce a lot more food, but they can't export it to the EU. MS. LAYTON: All right. And they need cash, so they have to export. MR. HOISINGTON: They need food and cash. MS. LAYTON: They need food and cash. MS. DILLEY: So the but should be changed to and, and that now makes sense. MS. LAYTON: And given. MR. HOISINGTON: And given. MS. LAYTON: Okay. MR. SCHECHTMAN: Can I make a controversial suggestion? This is maybe -- this is thinking about Michael Dykes' not being here, and my suggestion would be that you consider whether to be silent on the question of transgenic wheat in this scenario. MR. JAFFE: Which paragraph? MR. SCHECHTMAN: It's a one sentence paragraph. I have a suggestion. MS. LAYTON: It became much harder to introduce transgenic -- MR. ENRIQUEZ: Transgenic wheat varieties face significant opposition. MR. GIROUX: Wheat? MS. MELLON: We don't even have to talk about wheat. MS. DILLEY: We already said that we're going on. Okay. Are we hearing anybody argue strongly for keeping it? MR. GRANT: Let me give you a suggestion, or a group of suggestions. MR. JAFFE: We're all agreeing to delete it. MR. GRANT: I know you are, and I'm not sure -- really where, you know, the state of the technology today, and so what I would suggest is that if we're looking ahead 10 years, changes to read transgenic wheat varieties were not introduced -- have not been introduced in Canada. However, they have found a limited marketplace in feed varieties within the U.S. MR. SLOCUM: I don't think I'd go there. Feed approval but not food approval. MR. GRANT: No, no, no. It doesn't imply any of that. It just means that they found a marketplace. They would obviously have to have both approvals but it means they have found a marketplace, and that some kind of system has been implemented that allowed for it to continue. MR. SCHECHTMAN: You're going to have to explain that sentence to everybody who reads the report. MR. OLSON: I think you're going to have to add something about cautious development about transgenic wheat or something like that. MR. GRANT: That would all right, too. MS. LAYTON: Does it add anything on it? MR. JAFFE: I think we should be silent on it. Just be silent on it. MR. BUSS: Yeah, I think just not going there is -- MS. LAYTON: It's a more negative island. MS. DILLEY: But it's supposed to be. MS. LAYTON: Okay. MR. ENRIQUEZ: Are there transgenic seeds for sale today? MR. HOISINGTON: No. MR. ENRIQUEZ: Are there anywhere on the horizon? MR. HOISINGTON: Yes. Well, there's available. MR. ENRIQUEZ: But they haven't been introduced. MR. HOISINGTON: Not available, but they haven't been introduced. MR. ENRIQUEZ: They're not commercially available? MR. HOISINGTON: No, no. MR. JAFFE: They have dozens of different kinds of products. MR. ENRIQUEZ: It was much harder to introduce transgenic wheat products than it had -- MS. MELLON: What about a suggestion that they're introduced in China? MR. GRANT: That's -- MR. SLOCUM: Even madder. MR. GRANT: I think that's a more real possibility than even having a feed market in the U.S. frankly. MS. LAYTON: Okay. So what we would say, transgenic wheat varieties were introduced only in China. MR. ENRIQUEZ: Only in certain countries. MR. GRANT: That would work as well. UNIDENTIFIED SPEAKER: Just say in China. MR. GRANT: Just say they have been introduced in China. MS. LAYTON: Transgenic wheat varieties were introduced in China. MS. MELLON: The reason I would like to put this in there is that -- MR. JAFFE: I don't think Michael will like that. I think he would rather have it deleted. His company lost the -- and somebody else won. MS. LAYTON: Maybe he just sold it China and not the U.S. MR. GRANT: So the fact is that wheat is one of the major crops in the world. It recognizes the benefits that are accruing to corn and beans and the marketplace is agitating to find a way to capture that value in wheat. When it gets done -- IÕm not sure. The Chinese are looking at it. They have the ability to control their marketplace. It would be a significant gain to them, would be consumed domestically there. MS. CRAMER: What about expanding it to wheat and rice? MR. GRANT: That would be all right as well. MS. LAYTON: Let me suggest something. Move it to the top paragraph on that page. The United States continues to be a major producer and distributor of biotechnology products. Other major growers and producers were Canada, Argentina, India, Brazil and South Africa. In China, biotech wheat -- transgenic wheat and rice varieties were grown -- were introduced. MR. GIROUX: Can I -- MS. LAYTON: No, I feel uncomfortable with that. MR. SCHECHTMAN: Let me just say one thing. My initial intent for suggesting that it be deleted was to perhaps eliminate a flash point that might be here for one person who's reading this who will, you know, thumbs up or thumbs down, that additional sentence may very well make the scenario more provocative but it may have the opposite effect. MR. GRANT: So my sense, you're talking about -- MR. SCHECHTMAN: Saying that this is introduced in some other countries. MR. GRANT: My sense is that this would be fine. I can't speak for him obviously. MR. JAFFE: I mean nobody agrees with all the facts in any one of these scenarios. That's the whole point. MR. HOISINGTON: Can we say something like transgenic wheat and rice varieties remain difficult to introduce but were commercialized in at least one country. MS. LAYTON: And could it be up in that other paragraph whether than having it's own paragraph. MR. GRANT: Sure. MR. SCHECHTMAN: Transgenic wheat and rice varieties remain -- MS. LAYTON: limited in scope or limited in production. MR. OLSON: Cautious development. MR. GIROUX: I'm struggling with this. Isn't the scenarios supposed to lay what value does making a controversial comment to both wheat. MS. LAYTON: Bring to the scenario. MR. GIROUX: -- bring to the scenario that makes a better scenarios. MR. GRANT: The very first word, the very first sentence says -- new products of biotechnology continue to be developed and introduced into the marketplace. That's the baseline for this scenario. UNIDENTIFIED SPEAKER: That could be wheat. MR. GRANT: Wheat, right. So, so that's -- so are you arguing to keep it in or to take it out? MR. GIROUX: No, I'm saying -- MS. LAYTON: Just let it lay. MR. GIROUX: -- that to call up the flash point like GM wheat which was clearly a flash point -- MR. GRANT: Right. MR. GIROUX: -- in the marketplace, does it already get covered in saying products continue to be brought to the market. Do we want to make a controversial statement that may not allow certain people on this committee to accept the document. What additional gains does it provide by calling it a wheat direct specifically. MS. LAYTON: I think it's covered in the first paragraph. MR. GIROUX: That's what I'm trying to figure out, Duane. And if there is a compelling argument -- MR. GRANT: If you come up with this scenario from the premise that this represents our best guess at what the future will look like given -- MR. JAFFE: No, it's not a series. MS. DILLEY: Let him finish. He was asked a question. Let him finish. Go ahead, Duane. MR. GRANT: It's illogical for me to suppose that under this scenario that has as a baseline new products continue to be developed, that one of the major commodities globally is somehow isolated from development. MR. GIROUX: Where does it say that? That's what I'm trying to understand. MS. LAYTON: It doesn't. It implies it that it would be developed. MS. MELLON: There is an advantage to -- it is a real example of the Continental Islands phenomenon which is that there might be an acceptance of wheat, and I would, you know, in China. I think that that does -- it does provoke a number of kinds of responses. I mean from -- that I actually think are important, and one of them, of course, is the import question. That all of a sudden, that makes very real to me the notion that we would have to start thinking very hard about import restrictions that food would be coming to us and, and that it wouldn't be like the food we have here. This wouldn't be, you know, our GNP. MS. SULTON: Does it have to be wheat? Could it be rice? MS. MELLON: Well, I would actually test Michael out and see if he is going to have heartburn. I think there's a value to it. I wouldn't argue it -- I'm not sure how far to push him to the wall, but if he would accept it, I think there is value to it. MR. GIROUX: Could we just add it to the first sentence, new products for biotechnology be developed in industries into the global marketplace, like wheat and rice. MR. JAFFE: Go back and read that again. In other words crops, not just new -- any other products meaning another -- I guess I want to make a general comment. My understanding of the scenario is I mean there could be 10 Continental Islands scenarios, would any one factor, any one thing differ in here? So it's not -- this is not my view of Continental Islands. It's no one person's. So we can all put our mind in and say, well, under my Continental Islands, wheat would be introduced or in mine, rice would be introduced. This is just a conglomeration of potential facts. My understanding again there could be 10, 20, 15 different Continental Islands to cite different variations. MS. ZANNONI: But for the import, I think the import question is important if the major commodities are going outside the U.S. and can you just add on the top paragraph, 11, when it says the U.S. continues to be a major producer, the next line says other major growers and producers were -- can't you just add something there that some of the production was not the same as that -- or major commodities not in the U.S. or something like that, so you don't have to name wheat and rice, but you can get the import question in there. MR. HOISINGTON: So you could add something like -- and introduced a commodity not grown in the U.S. MS. ZANNONI: Yeah, but that would be the place, I think that -- MR. SLOCUM: Wheat and rice are both grown in the U.S. MR. GRANT: That's a good point. MR. HOISINGTON: Or just say a commodity MS. LAYTON: Yeah, if we didn't mention wheat in Rosy, why would we mention wheat in Continental? MS. CRAMER: But we're making another point which is broader. MS. LAYTON: I understand that. MS. CRAMER: The point is that how we articulate it. The point is that in this scenario, there's an opportunity to have a major crop being a biotech crop to go out the market globally that is not produced from the U.S. MS. ZANNONI: We're not the major exporter. MR. JAFFE: How about -- and produced commodity varieties grown in the United States. MR. SLOCUM: Not leads to United States. MS. DILLEY: So where is that? I'm still struggling with where that is. MR. JAFFE: Page 11, first line after South Africa. Other major growers and producers were Canada, Argentina, China, India, Brazil and South Africa. And they produced -- MS. LAYTON: And they produced -- MR. HOISINGTON: One or more of these countries -- MR. GRANT: Produced the transgenic variety that was not released in the United States. MR. ENRIQUEZ: Can we try something that says -- China was particularly aggressive in rolling out transgenic wheat, providing a significant growing advantage -- which provided a significant growing advantage. MS. DILLEY: Can we just go back to where Duane was? Can we just try this sentence and see if it gets to the export issue and not. The United States continued to be a major producer and distributor of biotechnology products. Other major growers and producers were Canada, Argentina, list of countries, and one or more of these countries produced a major crop not produced -- not grown in the United States. MR. SCHECHTMAN: Major transgenic. MS. LAYTON: Major transgenic, sorry. MR. GRANT: Crop. Yeah, use the word crop. MS. DILLEY: Third sentence -- one or more -- MR. SCHECHTMAN: Of these countries. MS. DILLEY: -- of these countries commercialized a major transgenic crop not grown in the U.S. UNIDENTIFIED SPEAKER: That's good. MR. SLOCUM: But that's not going to point to wheat or rice necessarily because folks are going to read that as not grown meaning not a crop we grow. MS. LAYTON: Not commercialized in the United States. MR. SLOCUM: Not commercialized. MS. LAYTON: Not commercialized. MR. SLOCUM: If you want to point at wheat or rice without saying wheat or rice, you're going with it. MR. GRANT: That's good. MS. LAYTON: So it says -- one or more of these countries commercialized a major transgenic crop not commercialized in the U.S. MR. GIROUX: So if this is a deal breaker for Michael -- MR. GRANT: That won't be. MS. LAYTON: It doesnÕt mention wheat. MS. DILLEY: It doesn't mention wheat. Okay. Anything else on that? MS. LAYTON: It is now quarter of 3:00. We have one more scenario to go and we still have to do the implications. MS. CRAMER: Wheat is now out. MS. LAYTON: Somebody needs to tell Michael how concerned we were about it. MR. ENRIQUEZ: We have bent over absolutely backwards for Michael. MS. LAYTON: I agree. MR. ENRIQUEZ: I'm getting a little bit -- MS. LAYTON: Okay. I agree. UNIDENTIFIED SPEAKER: He'll acknowledge it. MS. LAYTON: Okay. MR. ENRIQUEZ: Let's be very specific on this. MS. LAYTON: Okay. MR. ENRIQUEZ: It's one of those scenarios that we are not considering all of this as a biotech accident. MS. LAYTON: I agree. MR. ENRIQUEZ: And we're not doing that because of Michael. MS. LAYTON: Because of Michael. MR. ENRIQUEZ: And if I were to push this scenario process forward for the next two years, the one thing that could change things in this room overnight would be an accident, and if there's one thing that this room should be preparing for, it's an accident. Whether you want to do a public report or whether you want to do it in private, somebody at USDA has to have something in place and if God will, it will happen with BSE, what happened with BSE over the course of a year and what happened during the course of -- MS. LAYTON: Okay. And you are now on the record as saying that. MR. ENRIQUEZ: And not doing that on an accident scenario and having an accident scenario blocked from this area of discussion is doing a disservice I think. Okay. I've said that. MS. MELLON: I agree. MR. JAFFE: Number 3. MS. DILLEY: So biotech goes niche and take another five minutes to read it over. (Pause.) MS. DILLEY: Are we ready to go? MS. LAYTON: I have a question. Can I start? MS. DILLEY: Sure. MS. LAYTON: Would, especially at the last part of this scenario, and it's talking about increasing soil erosion and more water and things like that -- MS. DILLEY: So you're on the last page. MS. LAYTON: -- the last page -- is there, is there a use -- is there a lessening of production and therefore an increase in the amount of land needed so that we would take things out of CRPs and put them back into crops? I don't know the answer. That's why I'm asking. MS. MELLON: Certainly globally speaking, you know, the big increase and land use, conversion of land into agriculture in Brazil and Argentina and they're not -- whether they get -- are driven by a need for export products. So whether they get more -- even if there were an effect on productivity, that productivity increase would translate in any direct way that I can see into people not, you know, continuing to convert that, that land into agricultural land, and in the U.S., I don't think there's any -- been any demonstrated, you know, trade-off between productivity on agricultural lands and say CRP. If there's a problem in the U.S., it goes the other way. It's that we are, we are encroaching on our -- and taking our best agricultural lands for use in urban -- for urban settings. So that, that -- I don't think that that -- MS. LAYTON: But what would the case be in Brazil or China? MS. MELLON: I don't think so. I think that they will continue to cut it down but -- MS. LAYTON: So conversion of forests in Brazil might continue to occur? MS. MELLON: Because that's being done, a lot of U.S. growers are now down there -- MS. LAYTON: Absolutely. MS. MELLON: -- doing that. So I mean the notion that you would have less conversion if people got more food and therefore didn't need to cut down an extra acre of rain forest in order to feed themselves, it just doesn't describe the situation. MS. LAYTON: Okay. I just wanted to ask that. MS. DILLEY: Other questions on this? Daryl? MR. BUSS: On page 12, the third paragraph down, the last sentence, I would replace the term humanized organs with the word tissues. MS. DILLEY: Tissues for xenotransplantation came on line? MR. BUSS: Uh-huh. MS. DILLEY: So tissues is more encompassing. You don't refer to them as organs? MR. BUSS: Well, organs imply solid organs and that would be included but some of the transplants may well be isolated cells, Islet cells for insulin production for example, and I guess you could think of that as an organ, but -- MS. DILLEY: Is it redundant to say tissues and organs? Or no. Okay. MS. ZANNONI: A small change on the fifth paragraph, just change the word protocol to reflect its proper name, the Cartagena Protocol. MS. DILLEY: Okay. MR. ENRIQUEZ: On page 13, the second paragraph, make that clearer, the last sentence where it says genomic technologies. I think that should read from various technologies like genomics, proteomics, gene expression assays, and bioinformatics. MR. SCHECHTMAN: I'm sorry. I was hacking here. Can you -- MR. ENRIQUEZ: To date delivered from various technologies as opposed to genomic technologies. MR. SCHECHTMAN: Uh-huh. MR. ENRIQUEZ: Like genomics, proteomics, gene expression assays, and bioinformatics. MS. LAYTON: So various technologies such as -- MR. ENRIQUEZ: Sure. MS. LAYTON: Without the et cetera, right? MR. ENRIQUEZ: Correct. MS. LAYTON: Okay. Is that a paragraph then or do such innovations move -- some innovations -- MR. ENRIQUEZ: Well, it just goes interrogatory the same place. MR. SCHECHTMAN: So it's a new paragraph. MS. LAYTON: It's a new paragraph. MR. SCHECHTMAN: Okay. Got it. MS. CRAMER: I have something that could, you know, some innovations paragraph. UNIDENTIFIED SPEAKER: Which one? MS. CRAMER: The one just after the one we were talking about. MR. SCHECHTMAN: The first innovations paragraph. MS. CRAMER: The third paragraph down, which is stuffed against the second paragraph, somewhere in there I would like to have -- it seems to me as a plant pathologist, one of the biggest things we might lose is this as a tool in the toolbox for an emerging disease for plants, and one of the things we could do is say something like biotech was not utilized as a key strategy in addressing emerging diseases for -- MS. LAYTON: Or insect. MS. CRAMER: -- yeah, pests or diseases or something like that, or these strategies did not effectively or it could be said more negatively which is after it says we went toward traditional strategies, just put a statement saying these strategies did not effectively address several emerging disease or pests of crops. MR. ENRIQUEZ: Could I suggest you put that sentence two paragraphs down in the paragraph that says scientists did not abandon. MS. CRAMER: Sure. MR. ENRIQUEZ: The last sentence of that could read on which you base your subject, less research also meant a smaller tool kit with which to deal with plant diseases. MR. SCHECHTMAN: Can I ask if that's consistent with the first sentence of the second innovations paragraph? MR. JAFFE: We didn't have a way to protect against pests, but that there was a particular disease or particular thing that we didn't have this to use for -- I don't think one makes the other one -- doesn't make this incorrect. MS. CRAMER: The point is that there are and will continue to be diseases for which our current gene pool in that crop doesn't provide for capture. MS. LAYTON: Ë la, we lost the chestnut. MS. DILLEY: Did Juan's suggestion meet that in terms of less research also meant a smaller tool kit with which to address pests. MR. HOISINGTON: Well, I think that's exactly the point of this scenario, and in that case genetic engineering would be used. It's a niche. It's an actual niche because what we're trying to say in the scenario is that biotech -- genetic engineering does get used but for very, very specific and focused high priority targets. Now that's what I'm saying. Now whether we set this scenarios enough in here in bringing that in, that genetic engineering does get used for specific diseases where there is not significant genetic variation. MR. ENRIQUEZ: That's not incompatible with saying the tool kit you're going to have, the amount of research that's going to be done in this is going to be smaller. MS. MELLON: Right, but it does seem to me that we have a very -- I mean our time horizon here was what? Ten years? So I don't see that there's any, anything in that pipeline right now that would lead us to say that there, you know, that there wouldn't -- that there would be a specific disease that we would say wouldn't -- we couldn't address because we know that probably it didn't go forward. I would actually -- I think it would be better to turn it around the way David said and, and actually add that as one of the niche applications that we would continue to work on. MS. LAYTON: Soybean or plum pox disease. MS. CRAMER: I mean there are some serious diseases that are coming, but plum pox, I don't think that's a good target, and the question is in this niche scenario, is that going to be addressed from a research point of view or do people assume that it would be accepted, and not put their efforts into developing it. MS. MELLON: I would say that it would be -- there would be a -- that it would be a niche application. It would continue to be addressed and the Protocol is saying that. The question then becomes whether even with some amount of research, there would be, there would be diseases that would come along that couldn't be addressed. MR. GRANT: I like Carole's point. If you sit there and think about it, there's actually a large number of diseases for which either the resistance is extremely limited or for which we don't know of the resistance in that, in that specific crop or species I guess if you will, and I know of some -- sugar beets for example, rhizomania, where that disease is held in check by a single gene pair globally and the only other alternative is the biotech trait but the company that owns that trait hasn't elected to commercialize it because it doesn't perceive the market will accept it. So that's what you're talking about with the specific example, and we probably -- I would say we would lose sugar beets before that becomes commercialized. MS. DILLEY: Well, this does say in the second paragraph on 13, it says some innovations dependent on new systems of agriculture included new ways of enriching soil, protecting against pests and increasing yields. Couldn't you just build on that to make your point? Because it already talks about using it to -- MR. GIROUX: This scenario really talks about alternatives to biotech. MR. HOISINGTON: Right, alternative to genetic. I mean it is true now, in thinking about it, is that we -- I mean you could play this out two ways. You could use that was one of the implications under the scenario where genetic engineering is not a tool in the toolbox. Then you could look at implications, what that would be, and one in particular would be if a new disease arise, there's no transgenic variation for it, you would be using a tool but that's an implication. MR. GIROUX: Right. Right. MR. HOISINGTON: That's one way to deal with this scenario. The other is to put it back in the scenario as a niche use of the technology, and I think the working group had not considered that, now that I think about it. We thought what would happen is it would go to very high value traits. MR. SCHECHTMAN: So you could possibly add that at the end of the first sentence of the paragraph that starts -- scientists did not abandon genetic engineering but in their research at niche markets, it generally did not involve the food system, or disease for which no conventional -- no alternative approaches were -- MR. GIROUX: It dilutes the scenario. These are not supposed to be realistic scenarios. They're supposed to be divergent. Biotech goes gung-ho. Biotech stays along the same course or biotech withers. MS. CRAMER: I would just like to say something that -- MS. LAYTON: I can see that where -- what Carol is saying, and I'll give you two examples. I can see where in this scenario, there may be some effort in the U.S. to save soybeans from soybean rust. However, I can also see in the same scenario that it would not be implicated or used in plum pox because that is a tree species, it is long lived, it is wind pollinated or actually it's insect pollinated and there are wild origins out there, wild cousins out there and this will not get developed. So it's not going to be in the tool kit in this scenario. MS. CRAMER: I mean we could just say it as an out pack -- I mean an output in that saying, because the first innovations that I suggested first, which is just to say something like, however, several diseases emerged as highly problematic for which there is no traditional breeding approach, and with the implication there might be biotech, but just -- because it's here. So right after it, it says, you know, that they did a whole bunch of marker- assisted and things and if you go in addition, because there were traditionally bred, new products could be brought to market with little regulatory oversight. However, several diseases emerged as highly problematic for which these traditional breeding strategies were not effective. MS. MELLON: Yes. I think that's reasonable. MR. GIROUX: That's reasonable. You're not giving the solution. UNIDENTIFIED SPEAKER: That's good. MS. MELLON: Because it really is an issue that we didn't discuss, and I think it actually is but it a very useful sort of scenario to -- it is a useful situation to bring up in the scenarios. MS. LAYTON: Read it again, Carole. MS. CRAMER: However, there were several diseases -- several diseases emerged that are problematic for which -- MS. LAYTON: However, several diseases emerged that are problematic -- MS. CRAMER: -- for which traditional -- these more traditional approaches were not effective. MS. MELLON: Or you could even say the enhanced traditional approaches, you know, were not effective. MR. HOISINGTON: You're saying natural genetic diversity. MS. LAYTON: Where it's going to take them a while to get going, and so for us to -- and we can't assume that they're going to be 100 percent effective either. So it's not unreasonable to say. MS. LAYTON: For which enhanced traditional approaches were not effective. MS. MELLON: And then that's a good scenario. That provokes people's thought. MS. LAYTON: All right. And where is that going to go again. I've forgot. MS. CRAMER: That goes second to the last sentence, right after regulatory oversight, but before except. MR. SCHECHTMAN: Do you think there or after the last sentence? MR. HOISINGTON: I would put it after the -- at the end of the second sentence because traditional reading could more readily accomplish selection, new products wound up providing a broader variety of traits that generic. However, certain diseases remain -- MS. LAYTON: Several diseases emerged as problematic for enhance traditional approaches were not effective. In addition, because they were traditionally bred, the new products could be brought to market with little regulatory oversight. MS. CRAMER: That's why I put it at the end. MS. LAYTON: So except for some groups focusing on patent and monopoly concerns -- MR. HOISINGTON: No, it has nothing to do with that. MS. LAYTON: Okay. So after the word oversight? MS. CRAMER: Yeah. MS. LAYTON: And then to finish up with except for some groups focusing on patent and monopoly concerns, most of the new innovative products escape consumer opposition. Okay. So this goes -- it goes right before except. MS. CRAMER: Yes. MS. LAYTON: Okay. MS. DILLEY: Anything else on -- Mardi? MS. MELLON: The last paragraph which I think is unlabeled. MR. SCHECHTMAN: The section or the page? MS. MELLON: The third -- MR. SCHECHTMAN: The last paragraph of the scenario? MS. MELLON: Yes. This last paragraph that begins -- a decrease in biotech plantings resulted in a return to agricultural farm practices based on conventional crops. I would suggest that -- I think -- first of all, I would suggest that in the second sentence, that we -- but that we would increase in overall volumes of insecticides and herbicides, I would stop that sentence there. I don't think there is an increase in diesel fuel and water used in manufacturing, transport and application of these products, makes sense. MS. CRAMER: Actually, I think there is. MR. BUSS: That's want discussed earlier. MS. CRAMER: A tractor may have to go over a field seven additional times. MS. LAYTON: To spray as much -- MR. HOISINGTON: Not only that but just in the production of the chemical in the first place. MS. LAYTON: Right. MS. CRAMER: It may not be diesel fuel, but it would certainly be petroleum products. MS. MELLON: Pesticide use has gone up. MR. JAFFE: And is going to keep going up. So it will keep going up. I mean whether you agree that it's gone down or it's gone up, clearly in this scenario it's going up. MS. MELLON: Well, I'm not sure that it will keep going up because people actually -- there are lots of way you could reduce pesticide use, and the question is whether we would turn to them. Now in a 10-year period, I don't know how, you know, how realistic it is, but I don't think that these are going to be -- I mean maybe it would be appropriate to say that -- MR. JAFFE: But it fits within the scenario. The scenario's idea is we don't use very much biotech and to the extent that somebody thinks that biotech was beneficial in some of these things, it loses benefits. It's just a scenario. It's not -- UNIDENTIFIED SPEAKER: It's not reality. MR. JAFFE: It's not reality. It's not saying that biotech decreased these, but it is fitting with the scenario that to the extent that biotech provides benefits here, we've lost those benefits. If anything, it's magnifying those benefits to show that -- MS. MELLON: Unless they have been -- unless alternative approaches have moved in to achieve a similar benefit. I mean that's the, you know, that's the -- to me, that's the question. MS. MILEWSKI: But this scenario says that there were innovations and marker systems and also ways of protecting against pests. So I think if we going to keep that last paragraph, you've got to have some return. It's not like 100 percent. MS. MELLON: To what? MS. MILEWSKI: I mean to be internally consistent with the scenario, you have recognize that there were improvements gained through -- MS. DILLEY: So you're looking for a partial return to agricultural practices. MS. MELLON: But in this scenario, it envisions the existing product which are tolerant, two products continuing to be used and this has been diminishing over, over the 10 years. So it isn't that they would put it to use tomorrow and all of a sudden you would get whatever benefits there are associated with them. MS. LAYTON: Yeah, but we're going to increase our organic and you're going to have to wash them a lot more. Again, it's -- MS. MELLON: I didnÕt put in my own problems. MR. GIROUX: It's just supposed to provoke thought, cause and effect. MR. JAFFE: Well, no, if it's cause and effect, there's a trade-off. It provides a trade-off that people can then -- whether there's a cause and effect -- MS. MELLON: Because it's late, I will agree but I do think we need to make -- then we need to make clear in this clause an increase in the diesel fuel and water used in the manufacturer, transport and application of these products. MR. JAFFE: Insecticides and herbicides. MS. MELLON: Yeah, right. In the manufacturer, transport and application. MS. DILLEY: Right. Not in crops but -- MR. GRANT: Shouldn't this be fossil fuels or some -- MS. DILLEY: And fuel. MS. LAYTON: No, it's petroleum. MR. GRANT: Yeah, petroleum won't work because they manufacturers use other -- MS. MELLON: And I thought you'd use methyl gas as the -- MS. MILEWSKI: That's why the fossil fuel. MR. GRANT: Energy use. Would that work? Because it's -- MR. SCHECHTMAN: Energy and water. MR. GIROUX: I think you're correct. MS. LAYTON: Energy and water. MR. BUSS: Energy and water in the manufacture of. MS. LAYTON: Okay. So energy and water in the use of -- energy and water in the manufacturing of -- MR. BUSS: Transport and application. MS. LAYTON: Okay. So take out the used and put the use of. Okay. Done. MR. BUSS: A question on 13, the second some innovations. MS. LAYTON: Uh-huh. MR. BUSS: Would that be more immediately transparent if we added the words non-biotech between some and innovations? Set the stage for what the paragraph is about? MS. LAYTON: Yes. UNIDENTIFIED SPEAKER: Which? MS. LAYTON: The second innovation paragraph. MR. BUSS: The first one is more obvious. MS. LAYTON: Okay. MR. BUSS: The second one might read easier if you said -- some non-biotech innovations. MR. GRANT: It's non-biotech innovations. MS. MELLON: Is it good even in a scenario to say that U.S. biotech companies transferred research and development efforts to China? Does that ring true? MR. JAFFE: True. That sounds fine. MR. GIROUX: I'm struggling with the paragraph starting with some innovations, the second paragraph -- new systems in agriculture which are fully supported and continue to grow but I'm struggling with calling it organic specifically as the one that will make it possible to divert funds from the heavy investment of biotechnology. I think it's more general than that. I think it's more correct to just talk about the new systems of agriculture are invested in and the funds come from biotech. I think that's reasonable. And then I think it's these new systems that will, that will continue to grow and then products be marketed. MS. LAYTON: And you're taking out organic. MR. GIROUX: They use organic several times and maybe it isn't organic. Maybe bio-dynamic food which was a brand new thing that I learned about at the -- meeting takes over again. MS. MELLON: Right. I mean that's really very, very true. You can -- MS. DILLEY: Support these new systems -- MS. MELLON: -- organic food production and many people who previously liked it are going to actually be kind of -- develop a lot of heartburn with respect to it. So -- MR. GIROUX: So here's my recommendation. MR. JAFFE: You've got language. MR. GIROUX: Right. The first sentence remains the same. Many of these ideas were generated in research done in support of these new systems made possible by research funds that were from the heavily investment -- from investment in biotechnology products with steady increase and double digit annual growth, these food -- systems rose to constitute six percent of the total food production. Several large multinational food companies launched new product lines to capture the value of these alternatives. Does that work? Or launch new product lines. We could just end it there. MS. LAYTON: Product lines. And then continuing, marker-assisted breeding programs. MR. GIROUX: Yes. MS. LAYTON: And were they welcome in organic and sustainable systems? Marker-assisted breeding programs became integrated with farmer and producer needs and were welcomed in organic and sustainable systems. MR. HOISINGTON: You could use new systems. MR. SCHECHTMAN: Use new systems? The farmer and producer needs. MS. LAYTON: I'm asking. I don't know. That's why -- MS. CRAMER: Wasn't the point here sort of that all of a sudden it kind of allows new systems in organic to be, to be compatible, to be formed in place -- MR. GIROUX: What I'm saying is it's going to be all these new opportunities and who knows which one the market is going to grab a hold of next. MS. CRAMER: I'm agreeing with everything you do but then read the last sentence. MR. GIROUX: Just to be consistent, I think if we keep it broad and say these new systems. MS. DILLEY: Into the new systems is the last part. MR. GIROUX: That's just a suggestion. MS. DILLEY: Okay. MS. MELLON: I'm not sure that we don't need to -- I mean one of the points here is, is the huge inequity in the allocation of research funds in the current system to any kind of -- anything but biotech. That's the only real, you know, that's the only kind of research that, that seems to get consistent time level support and so the idea here is that if we were to provide, you know, anywhere near that kind of support for alternative approaches, you might begin to expect a kind of a greater, a greater number of tools and more success -- more improved products and more success in the marketplace. So that's my idea, and actually I think -- I mean it's true that -- I would -- I think I would agree to leaving the word organic from all the references in the -- in this sentence except for the first one because it is organic agriculture as the USDA supported program that now actually does demand the first chunk of research money and so it seems true to me to say that -- it rings true to say that many of these ideas were generated and the research done in support of organic and related systems in agriculture and then go on and say with the steady increases and, you know, alternative food production systems or these food production systems rose to constitute six percent of the food production. Several multinational food companies launched, we could say, alternative product lines. MS. LAYTON: I think if you don't say and new systems, and you just leave it organic and related systems, it's organic and related systems. MR. GRANT: Actually another alternative. MR. GIROUX: IÕm not just thinking about things organic or related to organic. I think there's huge possibilities to take a more conventional approach. MR. GRANT: Right. Right. Organic is so restrictive in the process that you have to use, although there could easily be trade-offs between the different types of systems using the same research. MS. LAYTON: Okay. So what is it now? It stands -- many of these ideas were generated and the research done in support of organic and other new systems of agriculture -- MS. MELLON: Made possible -- MS. LAYTON: -- made possible with steady increases in double digit, these new food production systems rose to constitute six percent of the total food production. Several large multinational food companies launched new product lines and marker-assisted breeding programs were integrated with farmer and producer needs and welcomed in these new systems. MR. GRANT: Good catch. MS. DILLEY: So organic has been taken out of everything except that one sentence. MS. LAYTON: Except the first sentence. MR. GIROUX: I'm not sure if organic needs to be called specific but I'll defer. MS. MELLON: That is where the research money is. Existing research money -- MS. LAYTON: It's 25 after. Heartburn city here. MR. GIROUX: I'm done. MR. SCHECHTMAN: We have to talk about where the implications go. MS. LAYTON: So Juan has been working steadily. So I hope he's got the solution for us. But I just wanted to make sure. Is it okay to stop on this? MR. GIROUX: Can we have a two minute break? MS. LAYTON: Only if you do it in two minutes. (Whereupon, a short break was taken.) MS. LAYTON: Okay. We need to deal with the questions, questions and how we set them up. MR. ENRIQUEZ: So I have a specific solution. MS. LAYTON: Okay. MR. ENRIQUEZ: Go to page 8 of the scenario document. So it's just before Rosy Future. MS. LAYTON: Right. MR. ENRIQUEZ: The paragraph before that would read as follows: Each of these scenarios has implications for farm income, private investment, USDA agendas and resources. We advise you to read the three scenarios without making value judgments or picking a favorite. Instead, we advise you to consider what would be the consequences if each scenario or some version thereof came to pass. After outlining the three scenarios, we will pose a series of specific questions which could help you work through some of the implications. Do you want me to read it again? MS. LAYTON: Yes, please. MR. ENRIQUEZ: Each of these scenarios has implications for farm income, private investment, USDA agendas and resources. We advise you to read the three scenarios without making value judgments or picking a favorite. Instead, we advise you to consider what would be the consequences if each scenario, or some version thereof, came to pass. After outlining the three scenarios, we will pose a series of specific questions which could help you work through some of the implications. And then we go through the three scenarios. MS. LAYTON: Okay. MR. ENRIQUEZ: And then there's one sentence. That one sentence reads: You have now reviewed or you have now visited three very different worlds. Here are a few of the questions you might wish to consider for each scenario. And then we insert the questions and we discuss the questions and see if anybody wants to add to these questions. UNIDENTIFIED SPEAKER: Can you read that last sentence one more time? MR. ENRIQUEZ: Absolutely. You have now visited three very different worlds. Here are a few of the questions you might wish to consider for each scenario. MR. SCHECHTMAN: May I make one suggestion, Juan? MR. ENRIQUEZ: Sure. MR. SCHECHTMAN: In that last sentence, to say for these or other scenarios. MR. ENRIQUEZ: For each -- for these and other scenarios you might envision. UNIDENTIFIED SPEAKER: Uh-huh. UNIDENTIFIED SPEAKER: I like that a lot. MS. MELLON: Once you finish typing -- I would like, if I could, have you read just the first sentence again that list the four -- what are the, you know, the four -- I'm trying to see if that covers kind of the whole range of implications. MR. ENRIQUEZ: Fair enough. Each of these scenarios has implications for farm income, private investment, USDA agendas and resources. MS. ZANNONI: What about public investment? MS. LAYTON: What about the environment? He didn't have that either, but that's a USDA -- the environment is a USDA or government -- MR. ENRIQUEZ: Farm income, the environment -- MR. GRANT: You could really stretch that out but -- MS. MELLON: Yeah, you could go longer. MR. ENRIQUEZ: I believe that's fair. I think each of these scenarios has implications for farm income, the environment, trade, private investment, USDA agendas and resources. MR. SCHECHTMAN: Consumers. MS. LAYTON: And the questions are going to be there at the end. So -- UNIDENTIFIED SPEAKER: I like it. MR. GIROUX: I'd like to see one sentence at the end of questions you might want to consider. MR. ENRIQUEZ: Yeah. MR. GIROUX: And that would be what's the deliverable of that, something like the questions are posed to provoke discussion and something the implications that you might want to consider. MR. ENRIQUEZ: These questions are designed to provoke discussion and help you be prepared no matter -- help you prepare for -- MR. SCHECHTMAN: Prepare for an uncertain future. MS. LAYTON: Prepare for an uncertain future. MR. ENRIQUEZ: So let me see if I got that right. So the last sentence will read -- these questions are designed to help you prepare for an uncertain future. MS. DILLEY: Yeah, provoke discussion. MS. LAYTON: And to prepare you for an uncertain future. Then we have got the footnote in there on page 1 about how to do scenarios. So there is a footnote to a reference book that they can use. UNIDENTIFIED SPEAKER: Yes. MS. LAYTON: All right. MR. SCHECHTMAN: Can you read the whole shebang again, Juan? MR. ENRIQUEZ: Sure. So the first paragraph will go on page 8 reads -- each of these scenarios has implications for farm income, consumers, the environment, trade, private investment, USDA agendas and resources. We advise you to read the three scenarios without making value judgments or picking a favorite. Instead, we advise you to consider what would be the consequences of each scenario, or some version thereof, came to pass. After outlining the three scenarios, we will pose a series of specific questions which could help you work out some of the implications. Then we have the questions and then the questions are introduced by the following paragraph. I'm sorry. Then we have the scenarios and then the questions are introduced by the following paragraph: You have now visited three very different worlds. Here are a few of the questions you might wish to consider for these and other scenarios you could envision. These questions are designed to provoke discussion and help you prepare for an uncertain future. MS. LAYTON: I like that. I think there needs to be some title in which you separate the last scenario with that question or that statement and question. Preparing for the future is our title. What we know -- IÕm looking at what we've got in here as titles. What is much less certain, envisioning a few possibilities and then I'm thinking it's a verb -- working through the implications, something like that. I don't -- yes, Daryl. MR. BUSS: Actually, I was going in a different direction. I really like the symmetry of using that closure as a title and instead of saying preparing for the future as if we know what it's going to be -- MS. LAYTON: Yeah. MR. BUSS: -- why wouldn't we say preparing for an uncertain future. Because that really resonates what we would quote. MS. LAYTON: I'm okay with that. MS. SULTON: The title for the whole report. MS. LAYTON: Title for the whole report. Is preparing for an uncertain future, and so in the last paragraph, what if we say it again, preparing for the uncertain future -- preparing for an uncertain future. Okay. MR. SCHECHTMAN: Okay. With that -- MR. BUSS: Before we were ready to close, I was just going to suggest looking at the questions. Number 4, and what I was wondering on number 4 was whether we should slightly broaden that to be consistent with the rhetoric we've used elsewhere and say what are the implications of the scenario for consumers and for public acceptance? MS. LAYTON: Or the implications of the -- MR. BUSS: Scenario for consumers and for public acceptance? These are views that -- otherwise. MS. MELLON: Didn't we already mention consumers? MR. JAFFE: Not in the questions. MR. GIROUX: Number 4 says public acceptance but consumers have public acceptance. MR. JAFFE: I think that's good. UNIDENTIFIED SPEAKER: I agree. MS. LAYTON: Okay. Other with a question mark. Are we deleting that or is it going to say others without the brackets? MR. JAFFE: I would delete that. MS. LAYTON: Under number 1. MR. SLOCUM: And market segmentation to number 1. MS. LAYTON: I'm sorry. Say that again? MR. SLOCUM: We're going to add market segmentation to number 1. MS. LAYTON: Okay. Instead of other, that last bullet would be market segmentation? MR. SLOCUM: Right. MR. HOISINGTON: Does number 5 cover that issue we're talking about in terms of solving problems -- solving diseases? MR. SCHECHTMAN: Yes. MR. HOISINGTON: Is that part of food security because some people wouldn't think so. Food security isn't solving a disease problem necessarily. MS. LAYTON: Food security is making sure you have enough to eat. MR. HOISINGTON: Making sure you have enough to eat but people don't always translate that directly to solving a production problem. MR. SLOCUM: So is food security and food sufficiency the same thing? MR. HOISINGTON: No, they're different but I don't think many people would quite go into it as solving a disease problem. It's a bigger issue. MS. LAYTON: Actually I think the disease problem is an environmental problem. MR. GIROUX: Is it global food security and self-sufficiency or is it U.S.? MR. SLOCUM: I'd say global. MR. HOISINGTON: I think it's global. MR. SLOCUM: Yesterday it was global. MS. ZANNONI: And what about public sector investment, the universities and things? Where's that caught in here? MR. SLOCUM: The resources. MR. HOISINGTON: Michael, if I remember right, the problem was we were to focus on the implications to USDA, not, not in a broad sense. That's why we limited it only to the USDA. We didn't go into any of the universities or private sectors. MS. LAYTON: Well, I hate to say this, but there's not really a big line between USDA and our land grant university. That's where the money comes from. MS. DILLEY: Number 3 is specifically implications and scenario for USDA. MS. LAYTON: And if you go to USDA, and you talk about research agenda, it immediately brings in the land grant universities. MS. ZANNONI: What is it called in here? MR. JAFFE: It says research agenda 3 -- MS. DILLEY: It's the last bullet of number 3. MR. OLSON: But I don't think I'd cry over something like that, just to make sure -- MR. JAFFE: It's under private economic impact. MS. ZANNONI: I think you need one for public someplace. MR. BUSS: Because USDA has its own ARS in terms of -- MR. SCHECHTMAN: It funds both. MS. LAYTON: It funds both. MS. MELLON: Well, maybe we should just say USDA research and -- USDA and land grant research agendas. MR. JAFFE: Just put public research agenda. MS. DILLEY: Public research agenda. MS. LAYTON: So it that the -- MR. JAFFE: Bullet 5. MS. DILLEY: Public research agenda. MS. LAYTON: Okay. Public research agenda. And I don't know what we did with Dave's suggestion on number 5. Is that now supposed to be for addressing global food sufficiency. UNIDENTIFIED SPEAKER: I think it should be global food sufficiency. MS. CRAMER: What kind of impacts on world development? I mean there's a lot of effort at USDA to, you know, for protection of small farmers and do we want to -- can that be incorporated anywhere because that is an implication for various things. MS. SULTON: It's a series of policies. MS. SULTON: It is -- can it be under the first, what is it, economic impact of the scenario, economic growth, world development. MR. SCHECHTMAN: Farmer income and rural development. MS. LAYTON: Farmer income and rural development. Very good. Farmer income and rural development. Okay. Anything else? MS. MELLON: We should delete that last paragraph, right? UNIDENTIFIED SPEAKER: Yeah. MS. LAYTON: Yeah, we're only picking up 1 through 5. MS. MELLON: I just wanted to make sure. MR. OLSON: Did you insert the word global on 5 or just leave it the way it is? MS. LAYTON: We inserted global. MS. CRAMER: I mean we want to -- from their point of view, are there issues of U.S. food sufficiency as well, things like if we become a major food importer as opposed to just a food exporter, are there implications there and is that something -- I mean should we say in this context, the implications we're addressing, we're addressing global -- MR. SCHECHTMAN: None of the scenarios has envisioned the U.S. becoming a food importer. MS. CRAMER: They're a food importer now. MR. JAFFE: But not to the -- MS. LAYTON: Yeah, but if you're a -- but if it's a global food sufficiency, you're part of the globe so they have included themselves. Okay. We need you to look at the first three paragraphs, preparing for the uncertain future on page 1 -- for an uncertain future -- page 1. MS. DILLEY: The AC21 has been charged with -- MS. MELLON: The title is now Preparing for an Uncertain Future? MS. LAYTON: Yes. I'm assuming that, Michael, you will send out the name of the committee the first time and put AC21 and let it go at that. So I'm assuming you're doing those pieces. MR. GIROUX: I'm getting some heartburn over the title. MS. LAYTON: Express yourself. MR. GIROUX: Talking about biotech and talking about an uncertain future just -- MS. LAYTON: Okay. MR. GIROUX: -- doesn't mean -- MS. LAYTON: Are you comfortable with preparing for an uncertain future at the back of the questions, as the lead in for the questions? MS. SULTON: For the analysis, for the scenarios? MR. ENRIQUEZ: Yes. MS. LAYTON: Okay. Okay. Now once I establish that, then the title of the report is -- UNIDENTIFIED SPEAKERS: Preparing for the Future. MS. LAYTON: Okay. Just -- MS. DILLEY: Is there any comment on the three introductory paragraphs? MS. LAYTON: I just was actually going to think of preparing for the future: the scenario process or something like that. But that's probably dorky. UNIDENTIFIED SPEAKER: No. MS. LAYTON: Okay. MR. HOISINGTON: Can we do this without defining biotech? We did it in the -- we're going into the bigger report. I think we have -- MS. LAYTON: Okay. So footnote, agricultural biotechnology, blah, blah, blah -- MS. SULTON: And take the definition from the other report. MR. HOISINGTON: Take the definition from the other report. MS. LAYTON: So add definition -- MR. HOISINGTON: I'm not sure we need any other of those definitions. MS. LAYTON: So that's -- and that can even be a footnote? MR. JAFFE: Yeah, I think it should be. UNIDENTIFIED SPEAKER: Yes. MS. LAYTON: Okay. Anything else? MR. OLSON: Just the European -- we're talking the middle of the first paragraph, relations between the United States and European Union, between North and South in general, I mean does that eliminate China, Japan or people like that or -- it says including. So maybe it's all inclusive there. MS. LAYTON: I thought China was considered as South when it comes to that. MS. DILLEY: Is there better descriptor? MR. OLSON: The United States and various trading partners or something like that or -- MS. LAYTON: Yeah. That's good. MR. OLSON: Otherwise, we'll have to define north and define south, or is that pretty well accepted. MR. SCHECHTMAN: I think the North and South was really talking about, you know, this topic is just not about the United States. It's between rich nations and poor nations. MS. ZANNONI: Yeah, but nowadays you have economies thatÕs -- so it's not really so defined. MS. LAYTON: On trade relations including those between the United States and its trading partners? UNIDENTIFIED SPEAKER: And various trading partners. MS. LAYTON: And various trading partners. MR. GIROUX: Can't we just say international trade relations -- international trade relations on biological diversity and development of international instruments. MS. LAYTON: Okay. MR. JAFFE: I have something. I have something to add. I'd like to add this page 8, but it comes up on page 1, and that is, and I may be wrong, but we only really talk about that this a 10 year outlook is we say it looks like in a decade in the bold of the text, and then in the first scenario, we say by 2015. To me that's not enough. I think -- so I was suggesting where we say each scenario is intended as a coherent description of what the world might look like, put 10 years from now or something like that. I just think -- we all know it's 10 years from now but those two -- well, I don't think there's a big enough reference and I thought about putting it in the first but now I just actually think it's better off to put it at the beginning of the scenario. MS. LAYTON: How about a decade from now after events driven by the uncertainties? UNIDENTIFIED SPEAKER: Where are you? MS. LAYTON: Page 8, big first bold paragraph - - each scenario is intended as a coherent description of what the world might look like a decade from now after events driven by the certainties and some of the key uncertainties listed above. MR. JAFFE: I just think somewhere in there we have to say -- because the first one does say 2015, but the other two don't mention the date. MR. SCHECHTMAN: Yeah. MS. DILLEY: Okay. Anything else? (No response.) MS. LAYTON: Okay. The rules. MR. JAFFE: Before we go to the rules, I did speak to Carole about this language. I didn't speak to her, I left her a voice mail and she left me back a voice mail message, and I dictated the language to her in the voice mail message, and she had proposed changes to it, so let me provide those and I don't know whether we can have a conference call with her, so I don't know what to do but her proposed changes would be, the sentence would read -- consumers interest in seeking additional information about -- instead of their food -- the presence of GM ingredients in their food and then it would say -- is -- instead of stimulated -- increased by the -- and the remainder is the same. So the two changes are to change the reference about, about their food to a more specific reference of the presence of GM ingredients in their food -- MR. SCHECHTMAN: Not using GM of course. MR. JAFFE: Right. Whatever, biotech ingredients or something. I don't think she would care about that, and then change stimulated to increased by. MR. OLSON: I don't have a problem with the increased by but in food, we talk about biotech, we talk about -- because that also covers processing those goods and growing those goods and stuff like this. So the whole section is about biotech, so I don't know why we need restate it in that text. And it also picks up how it was processed, where it was grown. The information is just bigger than just the -- MS. DILLEY: And I think that -- as I recall, the way that language came up, is consistent with what you guys did yesterday. MR. OLSON: That was the guts of what we came up with the day before. MS. DILLEY: So unless other people have a problem with increased, then we switch stimulated to increased and just leave it more generic in terms of what they're interested in. MR. OLSON: Well, I think the whole rest of the sentence deals with biotech, and I think it's there. MS. LAYTON: Yeah, biotech crops. I mean it's pretty implicit. MR. OLSON: Yeah. But the information is more than just about food content. It's about processing, production methods. MS. MELLON: But it doesn't really -- consumer's interest in seeking a different -- additional information about food isn't really increased by variability and -- labeling requirements in different countries. I mean what is increased is an interest in seeking information about biotech ingredients in food. MR. OLSON: That's why we moved that. That's now how it reads anymore. The bottom sentence, the bottom line is the top line. MR. GIROUX: The first is a declarative sentence. It says consumers are seeking more information about their food, and that stimulated by -- increased by. MR. OLSON: And variability is the last part. The main thing is the biotech stuff. MR. GIROUX: And it's not just biotech. They're looking for information about everything, and that was one of the big issues. It covers safety, environment, processing efforts, not just the presence of biotech per se. MR. OLSON: We spent a lot of time on this. MR. GIROUX: So personally I would accept increasing bio -- if the greater committee reads that it was information about food including biotech -- MS. LAYTON: Yeah. MR. GIROUX: -- and not biotech specifically. MR. JAFFE: How about if we said that information. How about if that is a compromise, additional information about their food and then (including biotech) is stimulated by -- is increased by -- excuse me. MR. GIROUX: So there was a large group of people that went away for four hours and came up with language and that language specifically excluded using the word biotech food. MS. DILLEY: I think we ought to go with just increased, and if Carol has problem, then I think she ought to talk with Ron. MR. OLSON: No, I think the biotech food was picked up from the guts of the sentence. MS. DILLEY: Yeah. I mean -- MR. OLSON: So rather than change how we did everything else and do it again now, I think -- I probably have a problem with that. I think the rest of the group would, too, a little bit, would be my guess after the discussions yesterday. MS. LAYTON: Especially since Duane just left. MR. JAFFE: I think it's already there. MS. DILLEY: And, you know, Carol does have the opportunity to express her concern and bring it to the working group. MR. JAFFE: Okay. MR. OLSON: So we'll just leave it at increased which I think she would -- MR. JAFFE: Okay. MS. MELLON: Actually stimulate did come from Duane. If the rest of the committee is comfortable, he would be comfortable with that change. MR. OLSON: I think so. MR. JAFFE: Okay. I raised and -- MS. LAYTON: You've raised it, and we took 50 percent of it. So we need to -- do we want to repeat that process just to remind yourselves or are we dwindling down to where -- MR. GIROUX: I would like to hear it one last time. MS. LAYTON: You want to hear it one last time. MR. SCHECHTMAN: The process, we are going to take all of these back, confer among the folks here, see if we can be sure what you all said, try to put together quickly within a week or 10 days, new versions containing all of what we thought we heard. You will all have a working period to look at this, a review period of 10 days. MR. JAFFE: That's two weeks. MR. SCHECHTMAN: Yes, 10 working days. Two regular weeks barring holidays. We'll take responses via e-mail. No response will be considered to be agreement. You can either accept the documents or say that you can't go along with them with a reason for a particular problem or raise a question specifically of fact check. MS. LAYTON: You just can't say no. MR. SCHECHTMAN: If there's a no, we will -- once we've tabulated all the votes, arrange a conference call with the work group which will be an open ended call. Anyone will be free to join. We'll announce when they are. If the work group doesn't agree to put in the change, then we'll be either a minority report written and time allowed, a defined period of perhaps two weeks, to allow that person to produce that minority report to go along with. If the minority report is not produced at that time, the report will go in and that person can say -- will have another opportunity to say whether they join the consensus or not. MR. GIROUX: So my original understanding was that the minority report could come after. MR. SCHECHTMAN: It can. MS. LAYTON: Minority reports can come later. MR. GIROUX: But why are we going to defer two weeks? MS. LAYTON: I'm willing to go five days or something like that just to make sure -- MR. SCHECHTMAN: Just to give the person an opportunity to write it and send it in at the same time if they wanted. MR. GIROUX: So that it would go with the report? MR. SCHECHTMAN: Yes. MS. LAYTON: Right. MR. SCHECHTMAN: Giving them an opportunity to do so if they wish. MS. LAYTON: But at some point in time, if the work group did agree to put it in, we would all see a new version. Yes. MR. JAFFE: No, I thought if you cared about it, you were on the call. MS. LAYTON: You're on the call. Okay. MR. JAFFE: And that's one thing that I was going to raise is that I'm assuming -- we've talked about complete transparency. So any no vote, that e-mail with the reason goes to everybody and -- MS. LAYTON: It has to, yes. MR. JAFFE: -- and so it's not a formalized -- if you have a problem, this is your reason, your proposed solution. MS. LAYTON: Michael, you will forward that out to everyone? MR. SCHECHTMAN: Yes. MS. LAYTON: Okay. MR. JAFFE: In advance if you want to be on the call, I mean after it's gotten to you -- MS. LAYTON: Right. MR. JAFFE: -- the votes are tallied. MS. DILLEY: Mardi. MS. MELLON: This is probably hypertechnical, but there may be difficulties trying to schedule a call with the work group. So you might want to consider earlier going through this process, requires that every person on the work group be on that call, whether it is most of the people on the work group would be enough. MS. LAYTON: Yes. MS. DILLEY: And I think the other thing, where I thought you might be going, is that we just tentatively make schedules now because otherwise we don't want to make it delayed because we're late in getting schedules organized. MS. LAYTON: Well, actually I'm hoping it's all yes and we'll cancel it. MR. ENRIQUEZ: Yeah, unless someone has got such a strong objection that they want everybody -- MR. GIROUX: And they want to take the time to write a minority report. MS. DILLEY: Okay. Well, then -- okay. MR. SCHECHTMAN: Let me add one other thing to this process which hasn't been mentioned yet, and that's the matter of cover letters. I would say that we -- if you give us a couple of extra days here, we will draft some cover letters for you to consider that we'll send out along with the documents. MR. JAFFE: Fair enough. MR. SCHECHTMAN: Okay. UNIDENTIFIED SPEAKER: Fair enough. MS. MELLON: And I would just suggest that the scenarios cover letter largely repeat what -- MR. SCHECHTMAN: Yes. MS. MELLON: -- here is the process, here's what it means and -- MR. SCHECHTMAN: And an exhortation to use them. Use the scenarios process. MS. LAYTON: Okay. MR. SCHECHTMAN: Let me just outline for two minutes thoughts on where I think we're likely to be going schedule-wise for a little bit. I presume this is going to take a little bit of time. It will take a bit of time to get the membership sorted out. I'm presuming that the next meeting would be June or July but that we will have work groups meeting on the other materials and some get up to speed work for the new members before then. I would presume that we would still manage to have two more meetings after that this year, probably one in October and one in December. So that we can get in the same number of meetings during this calendar year but not in this fiscal year because I envision that we're going to need a bunch more work groups to work through the issues. MR. JAFFE: I guess I didn't know when you said work groups, what you meant by work groups? MS. LAYTON: The issue group. MR. SCHECHTMAN: Issue, introduction. MR. JAFFE: Well, I guess -- MR. SCHECHTMAN: Issues is the larger one. MR. JAFFE: I guess I would -- I don't know how we can do this, and we shouldnÕt do it now at 4:00 -- MS. LAYTON: Right. MR. JAFFE: -- but it seems to me that since we've now broken off one part of the report, of the paper, that we should have an issues paper until we get rid of the formality of this other one being -- I mean we may not need the introductory chapter. We may not need this whole chapter about benefits. We may just have another 10 page, 15 page document about issues, and, and so we may need a couple of those definitions, but I guess my proposal would be that we not necessarily need an introductory work group, a definitions work group, but I don't know how we come to terms with that but when you said work group -- MR. SCHECHTMAN: That's a fair point. Let's, let's let us at the USDA sit down. Obviously we have a new Secretary coming in. Let's talk about all of that and come back to you. MS. LAYTON: There may be additional issues that this Secretary wants the community to deliberate such as -- MR. SCHECHTMAN: That's a very good point. MR. JAFFE: Well, I mean my view is how hard it's been to get the global traceability and labeling report, how we've had two and a half meetings now just to go through word changes and a lot of time, and how long it took us to write that as a group and so forth, a 30 page document. I mean we may be better off having a more streamlined issues paper -- paper I'm calling it, the 15 pages that is not as elaborate as some of us have dreamed over these last two years to get it done in the time frame which we have of a couple of more meetings. So anyway -- MR. SCHECHTMAN: Point well taken, and we need to check the pulse on what the new Secretary would like in the way of new things. So we will get back to you on that. MS. LAYTON: Okay. My read on this is that the earliest this will go to the Secretary is in early March. That would be -- MR. SCHECHTMAN: Late March. MS. LAYTON: This is if everyone said yes. Okay. Mid to late March, if everyone said yes. If we have nos, it's going to run into April. Does that sound right? Just so everybody has a complete expectation here? UNIDENTIFIED SPEAKER: Yes. MR. JAFFE: Yes. Minimum of four weeks from today is the middle of March. MS. LAYTON: Middle of March. And if we have an extra few days to get a call in. I'm so proud of everything. Thank you very much. MS. MELLON: Before we break, I just wanted to say thank you and good-bye to the two folks who have been with us for so long. We really couldn't have done it without you, and I'm personally going to miss both of you a lot. MR. SCHECHTMAN: Thank you both very much. MS. LAYTON: Terry, we said about you yesterday, and who else went off? Keith. And Keith hasn't been here. David, good luck in your new position, and we'll come to see you in India. MR. SCHECHTMAN: This meeting has once again been an adventure. Thank you all. MS. LAYTON: Thank you. We are adjourned. (Whereupon, the meeting was closed at 4:00 p.m.) CERTIFICATE OF REPORTER I, DAN HAWKINS, do hereby certify that the foregoing transcription was Electronically recorded on audiotape by me and reduced to typewriting under my direction; that I am neither counsel for, related to, nor employed by any of the Parties to the action in which these proceedings were transcribed; that I am not a relative or employee of any attorney or counsel employed by the Parties hereto, nor financially or otherwise interested in the outcome of the action. ___________________________________ DAN HAWKINS, REPORTER FREE STATE REPORTING, INC. 2 190 FREE STATE REPORTING, INC. Court Reporting Transcription D.C. Area 301-261-1902 Balt. & Annap. 410-974-0947 FREE STATE REPORTING, INC. Court Reporting Transcription D.C. Area 301-261-1902 Balt. & Annap. 410-974-0947