"It is vital that labelling of genetically modified foods is consistent, or we risk confusing consumers," said Guy Walker, president of the Food and Drink Federation, which represents manufacturers. "To achieve this we need European-wide legislation."

The European Union has agreed that maize and soya must be labelled but the Commission has yet to issue detailed guidance on what the labels should say.

A joint statement from the federation, the British Retail Consortium and the Institute of Grocery Distribution, said: "If no agreement is imminent by January, the industry will start labelling products containing the protein from this year's US harvest voluntarily."

The genetically modified soyabean developed by Monsanto, the US food and chemicals group, to be herbicide resistant, was approved as safe by the European Commission in April 1996.

But there has been a backlash from environmentalists concerned about the long-term safety of genetically modified crops, and retailers and manufacturers are anxious to offer consumers choice.

Soya from this year's US harvest, of which about 15 per cent was grown from modified seed, has just begun arriving in the European Union. The altered soya is not segregated so it could be in each shipment.

Soya is used in an estimated 60 per cent of processed foods, including soups and sauces, cakes, confectionery, convenience and vegetarian foods such as tofu.

Labels will be put on products containing the added protein which makes the crop resistant to herbicide. Soya oil, where the protein has been removed in processing, will not be labelled even if it was made from modified soyabeans.

The food and drink federation said genetically modified maize posed less of problem because it was not used as widely as soya and non-modified supplies could be obtained readily. The Consumers Association said labelling was a step forward but crop segregation was "the only way to guarantee consumer choice".

Following consumer research, the industry has decided the labels should state that the product "does contain" genetically modified soya rather than "may contain" it. The latter option was found to confuse consumers.

Some supermarkets are drawing up lists of soya-free foods for consumers keen to avoid it.

11/25/97