Columbia, Missouri
September, 2007
AgBioForum Volume 10
Number 2
Table of contents
1. Current Contribution of Four Biotechnologies to New
Zealand's Primary Sector
William H. Kaye-Blake, Caroline M. Saunders, and Paul
Dalziel, Lincoln University (New Zealand)
This paper presents
research estimating the economic contribution made by the
uptake of biotechnology in the primary sector of New
Zealand. It focuses on the impact of four biotechnologies:
clonal propagation/cell manipulation, bio-control agents,
enzyme manipulations, and marker-assisted selection.
Interviews with 59 key informants and secondary economic
data were incorporated into a cost-benefit analysis to
produce an estimated overall net impact of NZ$266 million
per annum. This impact is spread unevenly through the
primary sector and across biotechnologies.
2. The Economic Impacts of
Introducing Bt Technology in Smallholder Cotton Production
Systems of West Africa: A Case Study from Mali
Jeffrey Vitale and Tracey Boyer, Oklahoma State University
Rafael Uaiene and John H. Sanders, Purdue University
Africa has been slow to
respond to biotechnology even as its pest management grows
increasingly obsolete and insects remain a major adversary
of its farming. Opponents of biotechnology cite concerns
over the scientific boundaries and potential North-South
domination that transgenic crops could bring. This paper
reports on the positive aspects of introducing biotechnology
in Africa. An economic model was developed to predict the
economic impacts to consumers and producers from the
introduction of Bt crops in the smallholder cotton farms of
Mali. Since farmers rotate cotton and maize in three-year
rotations, the analysis considered the introduction of both
Bt cotton and Bt maize. Results from an economic model
indicate that the potential economic impacts to West African
consumers and producers would be significant, potentially
reaching $89 million in an average year. For Bt cotton, the
benefits would primarily accrue to producers. At a
technology premium of $60 per hectare, wh!
ere seed company revenue is maximized, Malian producer would
capture 74% of the benefits and the seed company would
capture the other 26%. The model found that the adoption of
Bt maize was weaker than Bt cotton. If Malian maize
producers were charged the same technology premium as South
African producers, the model found that adoption would be
less than 10%. The introduction of Bt maize in the region is
likely to require complementary changes in maize markets and
technology in order to boost profitability.
3. Consumer Attitudes and
Policy Directions for GM Labeling and Pollen Drift Regulation:
Evidence from the 2006 Vermonter Poll
Valerie Esposito and Jane Kolodinsky, University of Vermont
Given the uncertainty of
the use of genetic engineering in production of genetically
modified (GM) foods, it remains the subject of one of the
most vitriolic scientific debates throughout the globe.
Newer facets of the debate include regulation of GM seed
labeling as well as liability pertaining to GM pollen spread
to non-GM plants. This study analyzes Vermonter Poll data of
656 respondents for relationships between demographics and
opinions about seed labeling and GM pollen drift
legislation. Preliminary results demonstrate general trends
that the majority of respondents are in support of labeling
for GM seeds, and opine that the US government, GM seed
producers and GM farmers should be held liable for GM pollen
spread, but also reflect some incongruity in attitudes. The
article concludes with a discussion of the implications of
these results and how they can best inform policy formation
regarding this controversial issue.
4. Economic Impacts of Not
Extending Biofuel Subsidies
John Kruse, Global Insight
Patrick Westhoff, Seth Meyer, and Wyatt Thompson, University of
Missouri-Columbia
The exponential growth of
the biofuels industry has created significant increases in
feed prices to the livestock sector. In February and March
of 2007, the National Cattlemen’s Beef Association and the
National Pork Producers called for the non-renewal of the
$0.51 per gallon excise tax credit for ethanol as well as
elimination of the $0.54 per gallon import tariff on
ethanol. This study uses a stochastic model to analyze the
impact of not extending the ethanol tax credit, the ethanol
import tariff, or the $1.00-per-gallon biodiesel tax credit
on the biofuels and agricultural commodity markets. The
Renewable Fuel Standard mandate requiring a minimum of
ethanol use is maintained. The study finds that future
growth in biofuels relies heavily on the extension of the
tax credits and import tariff. Commodity prices will fall
without the extension of them and make net farm income drop
by an average of $3.1 billion per year over the 2011-2016
period. This is because lower feed p!
rices for livestock producers represent low output prices
for crop farmers.
5. Market and Welfare Effects
of GMO Introduction in Small Open Economies
Alejandro Plastina and Konstantinos Giannakas, University of
Nebraska-Lincoln
This paper develops a model
of heterogeneous producers and consumers to analyze the
market and welfare effects of the introduction of GM
products in small open developing economies. Analytical
results show that while the agronomic benefits associated
with the introduction of the first-generation,
producer-oriented GM products are certainly important, their
presence does not guarantee welfare gains to small
developing countries. The introduction of GM products is
shown to create winners and losers among the consumers and
producers of the small open economies.
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