Reuters News:  

The world’s top food companies and farmers of crops such as beet sugar are pitted against each other as they lobby the U.S. government over plans to label genetically-engineered ingredients.

At the heart of the issue is transparency over ingredients used in food. Packaged foods manufacturers are facing flagging consumer trust and stagnating demand for some core products as consumers opt for foods with simpler ingredient lists.

Many food companies want the government to require manufacturers to include on the label all ingredients that have been genetically modified (GMO).

Farmers want the labels to exclude ingredients that have been so refined and processed that they no longer contain any trace of the transformed genes when they are used for food.

Nestle (NESN.S), the world’s largest food maker, and rivals including Hershey Co (HSY.N) and Unilever Plc (ULVR.L) want the U.S. Department of Agriculture (USDA) to include on the label ingredients from crops that were genetically modified such as canola and soybean oils and sugar from beet.

The USDA has asked for feedback on a proposal for required labeling of genetically-engineered ingredients after a battle over the issue in states including Vermont sparked the federal government to intervene to pass national legislation. The deadline for public comment is July 3.

For farmers, facing a GMO backlash from consumers, the fact that the ingredients no longer contain transformed genes by the time they make their way into chocolates, pasta sauce and cereal, should mean they are excluded from the labeling.

“The law has been very clear that the required disclosure is going to be for those crops or ingredients that contain the genetic material,” said Luther Markwart, head of the American Sugar Beets Association in Washington.

The entire U.S. sugar-beet crops is genetically-engineered.

“For things like sugar and other refined products that don’t contain the genetic material, the law does not apply to us,” Markwart said.

But Nestle – maker of Stouffer’s frozen prepared foods and Lean Cuisine frozen entrees – and Hershey, whose confections include Reese’s Peanut Butter cups, disagree.