Economic Impacts of Genetically Modified Crops on the Agri-Food Sector by the European Commission. (by Diego Fdez-Sevilla)
In 2001 a review about the Economic Impacts of Genetically Modified Crops on the Agri-Food Sector by the Directorate-General for Agriculture Commission of the European Communitie identified that farmers in US “had strong profitability expectations. However, the studies reviewed do not provide conclusive evidence on the farm-level profitability of GM crops. (Chapter 3)“
I wonder which is the situation today since GMO´s have an impact on agricultural management practices.
Here I leave you a link to this review published in 2001.
A review of the available literature addressed to answer three main questions:
- How fast and to what extent have sowings of GM crops developed? Which crops are concerned?
- Which economic reasons explain the rapid adoption of GM crops by farmers?
- Which are the consequences of citizen/consumer reactions and food suppliers’ initiatives?
The analysis follows the path of the food chain, from the supply side up to final demand (see figure). This approach takes into account the chronology of developments regarding agri-biotechnology, but it also allows for analysing driving forces and interactions between the main stakeholders all along the food chain.
The first chapter provides a global picture of areas sown to GM crops throughout the world
Chapter 2 considers the “life sciences industries”, which are active in human, animal and plant health.
Chapter 3 analyses the economic reasons for the rapid and vast uptake of GM crops by US farmers. They had strong profitability expectations. However, the studies reviewed do not provide conclusive evidence on the farm-level profitability of GM crops.
Chapter 4 provides an overview of differences in citizen concerns and consumer preferences between the EU and Northern America. These differences had direct consequences on the strategy of retailers.
The economic implications of Identity Preservation and of GM labelling are analysed in Chapter 5.
While being limited to economic issues which are of direct interest for the agri-food sector, this report does not address other important issues. The reasons explaining the uneven developments of plant biotechnology throughout the world are not only of an economic nature and the implications of this new technology go well beyond the agri-food sector.