It's not been the best of weeks for Monsanto, the group indelibly linked with genetically modified organisms.

Just as it announced that third-quarter profits had fallen further than expected, the EU announced proposals for labelling of foods containing genetically-modified ingredients.

EU governments have backed plans for compulsory labelling on foods where at least one ingredient contains more than 1 per cent of genetically modified material. The decision has yet to be rubber stamped by the Commission.

Most processed foods contain soya or maize, much of which has traditionally been shipped from countries such as the United States where GM crops are more widespread than in Europe.

The latest ruling is unlikely to do much to improve relations between the United States and Europe which have already clashed on the subject of GM foods.

EU officials stressed that the plan would not give anyone the green light to label their foods as "GM-free". The definition of GM-free will be the subject of a separate plan still being drawn up by the Commission.

dcoyle@irish-times.ie