MONSANTO, the American biotechnology firm leading the field in genetically modified foods, announced yesterday that it was pulling out of the European seed cereal business and closing its operation in Trumpington, Cambridge, with the loss of 125 jobs.

The surprise move came as the Government prepared to publish the results of scientific tests on GM crops and their effects on the environment and wildlife, delighting anti-GM campaigners who scented victory in the battle over the controversial technology.

Jeff Cox, general manager for Monsanto UK, denied that there was any link with the huge opposition to GM crops in Europe, although he admitted that the timing of the announcement was “unfortunate”. The decision was part of a global corporate strategy that would save the company up to £63 million after tax. The company blamed the failure in the growth of a market in hybrid wheat seeds for the decision and said it intended to move to a new base in Cambridge for its crop protection and oilseed rape business.

Asked whether the decision was connected with the stinging rebuke of the GM companies this week from Margaret Wallstrom, the EU Environment Commissioner, Mr Cox said: “I am not getting drawn on that.” Ms Wallstrom had accused them of “trying to lie” and “to force” unsuitable crops on European farmland.

The pressure group Friends of the Earth was, however, convinced that the move was related to the GM controversy. Its spokesman, Pete Riley, said: “If they are pulling out then we should rejoice.”

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