scholarly journals A Welfare Analysis on GM Crop Market Structures and Existing Regulations

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Linda Lee ◽  
Aaron Giesbrecht

Since their introduction in 1994, genetically modified (GM) crops have become a major sector of the agricultural industry in developing and developed countries. Despite this, many economic concerns have arisen regarding how governments regulate GM crops. These concerns have caused countries to ban GM crop usage, which has proven to be detrimental for national and international economies. This paper outlines the economic advantages of GM crop production and usage and surveys the current inefficiencies in the regulation of GM crops through a review on existing literature. It notes the increased farming efficiency, cost effectiveness, and rise in income for developing countries resulting from GM crop production and usage. It then considers why many of the listed potential benefits are unrealized, particularly due to the excessive market power given to GM seed producers, high barriers of entry into the GM market due to biosafety procedures, utility patents, and international trade asymmetries. Finally, the discussion section of the paper poses potential solutions by describing methods to efficiently regulate GM crops and suggesting possible areas of further research. The objective of this paper is to inform readers with minimal economic understanding of the potential economic benefits of GM crops and aid them in recognizing the optimal ways to regulate them.

2019 ◽  
Vol 11 (5) ◽  
pp. 1342 ◽  
Author(s):  
Haiyan Deng ◽  
Ruifa Hu ◽  
Carl Pray ◽  
Yanhong Jin

China is one of the biggest consumers of genetically modified (GM) products, importing maize, soybeans and canola, and producing GM cotton. The cultivation of GM food crop, however, is still not permitted. Many studies argue that consumers’ attitude toward GM food safety is a major barrier to GM food crop production in China. Recent studies suggest that special interest groups such as biotechnology scientists with an economic interest in biotechnology are more supportive of the technology than groups with nothing to gain. Others believe that agribusiness groups influence the debate about GM food production. This is the first study that examined agribusiness managers’ attitudes toward GM biosafety and their support for GM crop production. The sample was 160 firms in the seed, pesticide, feed and food processing industries. We found most agribusiness leaders are concerned about GM food consumption and oppose GM crop production. Using regression models, we found business managers’ attitudes toward GM crop cultivation are more supportive if they expect to profit, if they are already using GM crops in their firm or are doing research on GM crops.


Global Jurist ◽  
2011 ◽  
Vol 11 (2) ◽  
Author(s):  
Alessandro Chiarabolli

The objective of the research is to analyse the way the European Union is addressing the issue of the coexistence between traditional, organic, and GM crops.In the European Union no form of agriculture, whether conventional, organic, GM, should be excluded. Farmers are free to choose the production type they prefer, without being forced to change patterns already established in the area, and without spending more resources.Today EU rules on genetically modified crops are very rigid; in particular, before starting a GM crops commercial cultivation, it is compulsory to obtain a specific European Commission authorisation (based on a safety risk assessment carried out by the European Food Safety Authority), and GM food and feed (threshold 0,9%) must be labeled (to inform consumers) and traced.Coexistence is the weak point of the European legislation in the field. The European Commission defines the term coexistence as the farmers’ ability to make a practical choice between conventional, organic and GM-crop production, in compliance with the legal obligations for labeling and/or purity standards. In simple terms, coexistence is a way of allowing farmers to choose between the three agricultural systems. Farmers’ choice to grow GM or non-GM crops depends not only on technical aspects related to the productivity gains and agronomic benefits to be gained from adopting this technology, but also on consumers’ preferences. Particularly in Europe, consumers continue to be concerned about the potentially adverse implications of widespread GM crop production for the environment and food safety. According to Directive 2001/18/EC (Article 26 bis), Member States may organise measures to avoid the unadventitious presence of GMOs in other non-GM products. In order to help the Member States to organise national coexistence measures, the European Commission adopted the Recommendation 2003/556/EC on the guidelines for the development of national strategies and best practices to ensure the coexistence of genetically modified crops with conventional and organic farming. The act establishes that the approaches to coexistence need to be developed in a transparent way, based on technical guidelines and in co-operation with all stakeholders concerned. The guidelines are based on experiences with existing segregation practices and, at the same time, they ensure an equitable balance between the interests of farmers of all production types. Further, they state that management measures to ensure coexistence should be efficient and cost-effective, without going beyond what is necessary to comply with EU threshold levels for GMO labeling. Today it is accepted that total isolation of GM material, certainly once agricultural biotechnology is widespread in the EU, is impossible; coexistence focuses on the practices used to decrease the adventitious GM presence. The implementation of coexistence measures is a complex process owing to the diversity in field, farming and natural conditions extending over Europe.On 13 July 2010, the European Commission adopted a new coexistence package that consists of a coexistence Communication, a new Recommendation on co-existence of GM crops with conventional and/or organic crops, and a draft Regulation proposing a change to the GMO legislation. The new approach aims to achieve the right balance between maintaining an EU authorisation system and the freedom for Member States to decide on GMO cultivation in their territory. The new flexible European scenario will give to the Member States the possibility to decide whether to cultivate biotech crops, maintaining at the same time an EU wide science-based authorization system.


Author(s):  
Rene Van Acker ◽  
Motior Rahman ◽  
S. Zahra H. Cici

The global area sown to genetically modified (GM) varieties of leading commercial crops (soybean, maize, canola, and cotton) has expanded over 100-fold over two decades. Thirty countries are producing GM crops and just five countries (United States, Brazil, Argentina, Canada, and India) account for almost 90% of the GM production. Only four crops account for 99% of worldwide GM crop area. Almost 100% of GM crops on the market are genetically engineered with herbicide tolerance (HT), and insect resistance (IR) traits. Approximately 70% of cultivated GM crops are HT, and GM HT crops have been credited with facilitating no-tillage and conservation tillage practices that conserve soil moisture and control soil erosion, and that also support carbon sequestration and reduced greenhouse gas emissions. Crop production and productivity increased significantly during the era of the adoption of GM crops; some of this increase can be attributed to GM technology and the yield protection traits that it has made possible even if the GM traits implemented to-date are not yield traits per se. GM crops have also been credited with helping to improve farm incomes and reduce pesticide use. Practical concerns around GM crops include the rise of insect pests and weeds that are resistant to pesticides. Other concerns around GM crops include broad seed variety access for farmers and rising seed costs as well as increased dependency on multinational seed companies. Citizens in many countries and especially in European countries are opposed to GM crops and have voiced concerns about possible impacts on human and environmental health. Nonetheless, proponents of GM crops argue that they are needed to enhance worldwide food production. The novelty of the technology and its potential to bring almost any trait into crops mean that there needs to remain dedicated diligence on the part of regulators to ensure that no GM crops are deregulated that may in fact pose risks to human health or the environment. The same will be true for the next wave of new breeding technologies, which include gene editing technologies.


2004 ◽  
Vol 9 (1) ◽  
pp. 37-43 ◽  
Author(s):  
Jane Curtis ◽  
Joseph Huesing ◽  
Robert Simpson ◽  
Jack Elands

The successful introduction of genetically modified (GM) crops has created a revolutionary transformation of the agricultural industry with GM crops currently planted on some 130 million acres. Historically, agricultural companies were involved in the discovery of conventional insecticide chemistries in processes that were very similar to those in the pharmaceutical industry. With the introduction of GM technologies, the process has radically changed. The new process is best described as the pharmaceutical equivalent of a very large-scale limited clinical trial conducted at the discovery stage. For example, unlike pharmaceutical screens, GM crop discovery screens frequently involve live insects challenged with complex protein containing soups. Furthermore, the nature of the potential avenues for discovery mandates that assay models also support protein engineering, proteomics, and genomics efforts. The range in sample demand ranges from ultra-low to high throughput. Finally, regulatory and good business stewardship demands that data integrity and tractability is in place, from discovery through varietal introduction, to manage the information generated in support of a commercialized GM plant variety. The authors describe their discovery workflow and detail how they have customized a commercially available database software package to achieve an optimum configuration for entomology screening. ( Journal of Biomolecular Screening 2004:37-43)


2019 ◽  
Vol 51 (4) ◽  
pp. 539-561
Author(s):  
Eduardo Dargent ◽  
Madai Urteaga

Regulation concerning GM crops around the world range from total prohibition to full openness and state-wide promotion. The Andean countries in Latin America provide an interesting setting to analyze the possible causes for this variation. Despite having similar conditions to plant GM crops, Colombia and Bolivia allow GM crop cultivation, while Ecuador and Peru do not. Interestingly, Evo Morales, Bolivia's leftist president, could not ban GM crop production, and Alan Garcia (2006–2011) in Peru, despite his pro-GM stance, failed to adopt a permissive regulation. We argue that two factors explain these divergent outcomes regarding GM seed sowing and reform efforts in Andean countries: (i) the time in which regulatory measures were attempted, and (ii) the quick structural change that GM seeds generate once introduced into a country.


2012 ◽  
Vol 151 (1) ◽  
pp. 7-33 ◽  
Author(s):  
F. J. AREAL ◽  
L. RIESGO ◽  
E. RODRÍGUEZ-CEREZO

SUMMARYThe present paper presents a meta-analysis of the economic and agronomic performance of genetically modified (GM) crops worldwide. Bayesian, classical and non-parametric approaches were used to evaluate the performance of GM crops v. their conventional counterparts. The two main GM crop traits (herbicide tolerant (HT) and insect resistant (Bt)) and three of the main GM crops produced worldwide (Bt cotton, HT soybean and Bt maize) were analysed in terms of yield, production cost and gross margin. The scope of the analysis covers developing and developed countries, six world regions, and all countries combined. Results from the statistical analyses indicate that GM crops perform better than their conventional counterparts in agronomic and economic (gross margin) terms. Regarding countries’ level of development, GM crops tend to perform better in developing countries than in developed countries, with Bt cotton being the most profitable crop grown.


2012 ◽  
Vol 14 (02) ◽  
pp. 1250013 ◽  
Author(s):  
DENISE GALLO PIZELLA ◽  
MARCELO PEREIRA DE SOUZA

Brazil is the second largest producer of genetically modified crops (GM crops) and the National Technical Commission on Biosafety (CTNBio) the decision making agency on this matter. The country uses Risk Analysis (RA) and project EIA as tools for biosafety evaluation. This paper aims to review the appropriateness of these tools for evaluating the environmental impacts of GM crops, also considering institutional aspects. An overview of the process of release of GM crops in Brazil along with important operational and institutional aspects is provided. The results indicate that project EIA could be applied to GM crops in specific sites and RA could give support to the evaluation of GM crop itself. Regarding institutional issues, it is concluded that decisions should be made by the environmental bodies, and not by the CTNBio.


2021 ◽  
Vol 13 (2) ◽  
pp. 233-248
Author(s):  
Manogna R.L. ◽  
Aswini Kumar Mishra

Purpose The study aims to analyze the impact of Research & Development (R&D) intensity on the firm’s performance, measured by growth of sales in the emerging market like India. Innovation strategy and its outcomes for firms may be different in developing countries as compared to developed countries. Thus, a study that focuses on the emerging economy like India, with a majority of the population dependent on agriculture, is of prime importance to the firm performance in the food and agricultural manufacturing industry. For this study, the broader focus will be on one widely recognised factor which may influence the growth rate of firms, i.e. investment in innovations which is in terms of R&D expenditure. Design/methodology/approach The paper investigates the relationship between the R&D efforts and growth of firms in the Indian food and agricultural manufacturing industry during 2001–2019. To empirically test the relationship between firm’s growth (FG) and R&D investments, system generalised method of moments technique has been used, hence enabling to avoid problems related to endogeneity and simultaneity. Findings The findings reveal that investments in innovations have a positive effect on the growth of firms in the Indian food and agricultural manufacturing industry. Investment in R&D also enables the firms to reap benefits from externalities present in the industry. Further analysis reveals that younger firms grow faster when they invest in R&D. More specifically, this paper finds evidence in the case of the food and agricultural industry that import of raw materials negatively affects the FG and export intensity positively affects the growth in the case of R&D firms. Research limitations/implications This study suggests that the government should encourage the industries to invest optimally in R&D projects by providing favourable fiscal treatments and R&D subsidies which are observed to have positive effects in various developed countries. Originality/value To the best of the author’s knowledge, the current paper is the first to analyse the impact of innovation in food and agricultural industry on firm’s performance in an emerging economy context with the latest data. This paper agrees that a government initiative to increase private R&D expenditure would have favourable effects on FG as growing investments in R&D lead to further growth of the firms.


2014 ◽  
Vol 12 (1) ◽  
pp. 33-40
Author(s):  
MZ Hoque ◽  
ME Haque

Seed is the foundation of agriculture for enhancing crop production. The economic benefits from the improved quality seed production help scaling up the livelihood standard as well as nutritional status of the common people. The study was carried out in three districts namely Jamalpur, Gazipur and Manikganj to identify the socio-economic dimensions of the government seed production project beneficiaries persuading profitability of rice seed production. Data were collected through intensive survey of randomly selected 211 sample respondents using pre-tested interview schedule. To examine the profitability of rice seed production, the gross margin and cost benefit analysis were carried out. Co-efficient of correlation and multiple stepwise regressions were employed to find out the determinants of profitability in rice seed production. Rice seed production was not found to be so profitable as investment in rice seed cultivation can produce average BCR of only up to 1.44, where highest BCR was found in Jamalpur (1.58) compared to Manikganj (1.48) and Gazipur (1.26). The results revealed that socio-economic factors have a profound influence on profitability of rice seed production as these factors combined explained 54.9 percent variation. Farm size, contact with information sources, knowledge on quality rice production and age of the respondents were identified as significant contributors in profitability of rice seed production, whereas contact with information sources was the single most influential factor (24.6%). Therefore, steps may be taken so that the seed-growers could directly be linked with more information sources dealing with seed production and marketing through the government initiatives to boost up the production as well as to ensure appropriate price of the farmers’ home grown seed. DOI: http://dx.doi.org/10.3329/agric.v12i1.19578 The Agriculturists 2014; 12(1) 33-40


Author(s):  
Diego Baxerias ◽  
Carol Banda

Peru has a 10-year ban on genetically modified (GM) crops and food that was approved by the Peruvian congress in 2011. Is it scientifically justified or is it a cause and effect fallacy that will make Peru fall behind in taking advantage of this technology and its potential benefits to everyone else in the economy? In order to answer this question, a literature review was carried out to examine the three most commonly used arguments against genetically modified organisms (GMOs) by farmers and all those related to the agriculture industry, reaching the conclusion that they are not one hundred percent plausible. Further research showed the multiple, potential economic benefits that GM seeds could bring about to Peru, which are related to increased labor productivity, the development of human capital, and the expansion of renewable energy sources and its implications for trade and employment – the environmental and health benefits of GMO varieties are also discussed. This paper elaborates on such matters by applying different macro and microeconomic concepts, i.e., market structures and competition, the theory of the firm, and scarcity, among others; and provides insights about the different socio-economic realities present in Peru and possible ways to improve them.


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