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Currently, the FDA does not require growers, food manufacturers, or seed sellers to label their products as genetically engineered. It is a purely voluntary system for which, as you can imagine, there have been few takers. Agribusiness corporations know from public opinion polls that demand for genetically engineered food is low and that demand for labels is high. Labeling could translate into commercial failure for genetically engineered foods - precisely the reason that biotechnology companies and agribusiness giants are trying to keep labels off their genetically engineered food products.
Because of horizontal gene transfer, organic fields can become contaminated by genetically engineered pollen from nearby fields. Such contamination can occur via the wind, from pollen stuck to bees, or even when neighbor farmers share equipment. Because of this contamination, even a farmer who uses organic seed and follows organic standards perfectly can still be unwittingly growing and selling genetically modified crops. Only expensive, sophisticated tests can reveal the contaminant DNA.
Food producers often use soybeans or corn from many different sources and growers. In the United States, genetically engineered crops have not been segregated from normal crops, and therefore many food producers cannot tell consumers or grocery stores if their product contains genetically engineered ingredients.
Eating organically grown foods is currently the best way to avoid genfood. This option is not foolproof, however: Even organic growers and backyard gardeners can be duped into buying genetically engineered seeds because many seed packages are not well labeled either. In fact, in Monsanto's current New Leaf Product Guide and Seed directory, the term "genetically engineered" never appears. Farmers unfamiliar with genetic engineering may not even realize what they are buying, growing, or putting on supermarket shelves.