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Page 3 Release No. 0005.94 Becky Unkenholz (202) 720-8998 Ron Hall (202) 720-3310

USDA SETS HEARING ON "CLASS II" MILK PRICING FORMULA

WASHINGTON, Jan. 3--The U.S. Department of Agriculture will hold a public hearing on proposed changes in the formula used to calculate the price of milk used in "Class II" products for all federal milk marketing orders. These products include such items as cottage cheese, yogurt and ice cream.

The hearing will begin at 9 a.m., Jan 6, 1994, at the Ramada Hotel-Old Town, 901 N. Fairfax St., Alexandria, Va. 22314; tel. (703) 683-6000.

Lon Hatamiya, administrator of USDA's Agricultural Marketing Service, said two milk processing trade associations and a federation representing a significant number of dairy farmers requested the changes.

According to the proponents of the change, the current Class II price formula results in widely fluctuating prices, which, they claim, interfere with the orderly marketing of Class II products. AMS's Dairy Division sets the prices for the milk orders as authorized by the Agricultural Marketing Agreement Act of 1937.

Class II prices are presently determined using a base price, updated to reflect recent changes in dairy product prices and adding a differential over the manufacturing price. At issue in the proposals is the amount of the differential and the updating procedure. Other proposals include a request that announcement of the Class II price be changed from the 15th of the month to the 5th, to coincide with the Class I and III price announcements.

Details of the proposals and of the hearing were published in the Dec. 21 Federal Register. Copies may be obtained from any federal milk marketing order office, or the Order Formulation Branch, Dairy Division, AMS, USDA, Rm. 2968-S, P.O. Box 96456, Washington, D.C. 20090-6456; telephone (202) 720-6274.

Release No. 0006.94 Cynthia A. Eck (301) 436-5931 Ron Hall (202) 720-3310 USDA TO RULE ON GENETICALLY ENGINEERED SOYBEANS

WASHINGTON, Jan. 4--The U.S. Department of Agriculture is asking the public for comments on the Monsanto company's petition for a determination of nonregulated status for certain genetically engineered soybeans.

Monsanto Co., in Chesterfield, Mo., has asked to grow its bio-engineered soybean lines without securing further USDA permits or acknowledged notifications, according to John Payne, acting director of biotechnology, biologies and environmental protection for USDA's Animal and Plant Health Inspection Service.

"After reviewing information submitted by Monsanto, as well as other relevant data and public comments, we'll determine whether it is appropriate to approve or deny this request that we no longer regulate the soybean lines involved," Payne said.

The soybean line, known as glyphosate-tolerant soybean line 40-3-2, or GTS line 40-3-2, is currently regulated because it contains gene sequences derived from plant pathogenic sources. Monsanto describes the GTS line 40-3-2 as soybeans that have been genetically engineered to tolerate the herbicide glyphosate.

Payne said that USDA regulators have the responsibility to assure that in releasing any bio-engineered plant, no plant pest risk is presented. APHIS reviewers focus on the biology, propagation and cultivation of the plant. The reviewers examine the source of the engineered genes, the vector used to transfer them and the stability of the insertion (in the current review process, APHIS regulators will inspect all the data).