USA: September 9, 1999 CHICAGO - Strategic Diagnostics Inc. has developed an inexpensive test to allow grain elevators to detect the presence of genetically altered soybeans as more buyers demand to know the genetic makeup of the crops they purchase. "The way we look at it, it's a necessary evil," Dwight Denham, global business unit manager for Newark, Del.-based SDI, said in an interview. "The GMO (genetically modified organism) issue is really heating up, and it's one people are going to have to deal with." A crop's genetic makeup has become increasingly important as overseas customers - especially those who buy grain for food and have concerns about the safety of GMO crops - call for genetically modified crops to be kept separate from traditional crops. Last week, leading grain exporter and processor Archer Daniels Midland Co. formally warned its grain suppliers to keep GMO crops separate from conventional ones. In March, European Union food labeling regulations became effective for foods derived from genetically modified seeds. SDI provides biotechnology-based diagnostic tests for agricultural, industrial and water-treatment applications. Its soybean test allows grain merchandisers who purchase crops from farmers to determine whether the oilseeds have been genetically altered to resist the Roundup Ready herbicide manufactured by Monsanto Co.. In April, Monsanto agreed to license the use of proprietary technology to SDI so the company could make and sell the test kits to food processors, their suppliers and regulatory agencies. To use SDI's test, grain dealers need to crush a number of soybeans and mix them with water. The mixture is then tested with a strip similar to those used in pregnancy tests, which can detect the protein expressed by Roundup Ready soybeans in three to five minutes, Denham said. The strip test, which has been on the market since early July, costs about $5.75 per test. That compares to a much more sophisticated test that uses DNA technology to detect GMO crops and costs about $150 to $400 per sample, Denham said. As demand for non-GMO crops grows, Denham said the tests are becoming a more important source of revenue for the company. "People tell us they really want these (test) kits," Denham said. "It's a rapidly increasing source of revenue for us." Denham said the company is working with all major players in the U.S. grain industry for wider distribution and use of its strip test. REUTERS NEWS SERVICE (Strategic Diagnostics Web Site can be found at http://www.sdix.com)