Agricultural Biotechnology - Department of Agricultural Economics ...

beefzoologistBiotechnology

Feb 21, 2013 (4 years and 8 months ago)

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Agricultural Biotechnology

Marshall A. Martin

Professor and Associate Head

Department of Agricultural Economics

Purdue University


March 2000

What is biotechnology?


New name for an old tool


Molecular biology


Genetic engineering


Techniques of rDNA






Medical applications of
biotechnology


Control of diabetes
with Humalin


or
Humalog


What are the new products of
biotechnology?


Food ingredients, e.g.,
chymosin

What are the new products of
agricultural biotechnology?


Animal growth
hormones, e.g., bST

What are the new products of
agricultural biotechnology?


Herbicide tolerant
crops, e.g., Roundup
Ready soybeans and
corn and Liberty Link
corn

What are the new products of
agricultural biotechnology?


Insect resistant crops
commercially
available, e.g., Bt
corn, cotton, and
potatoes


Corn rootworm
resistance in 2001?



Biotechnology Adoption: 1999


Chymosin


80%



Bst



Farmers 15%


Herds


30%



Crops




Corn


30%


Cotton


50%


soybeans 57%

Technology Adoption Rates
0
20
40
60
80
100
1
3
5
7
9
11
13
15
17
19
Years
- % _
What are the new products of
agricultural biotechnology?




Identity
-
preserved or
specific
-
attribute crops
(vaccines, higher oil or
starch content,
additional amino
acids)

Who are the stakeholders?


Farmers

Who are the stakeholders?



Agribusiness

Who are the stakeholders?


Consumers

Who are the stakeholders?



Environmentalists

Who are the stakeholders?



International traders

Who are the stakeholders?


Policy makers

Who are the stakeholders?


Ethicists

Biotechnology Critics

What are their concerns?

Monarch Butterfly

Cornell University
laboratory study of
Bt
corn pollen
Monarch Butterfly

Cornell University
laboratory study of
Bt
corn pollen

Recent field research
suggests very few
adverse
effects from
Bt
corn

Superweed


Cross pollination

Superweed


Cross pollination

Laboratory study of
canola
and mustard
weed

Superweed


Cross pollination

Laboratory study of
canola
and mustard
weed

Not likely a major
problem but
is possible
Food Safety

Allergenicity
Food Safety

Allergenicity

Unknown diseases or
future health consequences
Food Safety

Allergenicity

Unknown diseases or
future health consequences

Safety of animal products
from livestock that
consume
GMO-feed
Structure of Agriculture

Corporate control of
the food system
Structure of Agriculture

Corporate control of
the food system

Ownership of
intellectual property
rights
Structure of Agriculture

Corporate control of
the food system

Ownership of
intellectual property
rights

Further decline in the
role of the family farm
Xenotransplant

Use of animals such as
milk-goats as bio-
factories
Xenotransplant

Use of animals such as
milk-goats as bio-
factories

Organ transplant such
as pig heart into a
human
Who regulates agricultural
biotechnology?


U.S. Department of
Agriculture’s Animal
and Plant Health
Inspection Service

Who regulates agricultural
biotechnology?



Environmental
Protection Agency

Who regulates agricultural
biotechnology?


Food and Drug
Administration

The International Trade
Controversy over GMOs


Who are our
customers for
agricultural
commodities?

U.S. Corn Use


1999


Exports


21%



Feed


59%



Food, Seed,&


Industrial


20%

U.S. Shelled Corn Exports

1999


Canada



2%


Mexico


11%


South America


8%


EU
-
15


<1%


Asia


60%


(Japan)

(30%)

U.S. Corn By
-
Products Exports
1999


Canada



1%


Mexico



3%


South America


1%


EU
-
15


88%


Asia



6%


(Japan)

(2%)

U.S. Soybean Use

1999


Exports


31%



Crush


61%



Seed &


Residual


8%

U.S. Soybean Exports

1999


Canada



1%


Mexico


15%


South America


1%


EU
-
15


26%


Asia


52%


(Japan)

(16%)

U.S. Soybean Meal Exports

1999


Canada


13%


Mexico



2%


South America

15%


EU
-
15



7%


Asia


33%


(Japan)

(4%)

Many Europeans uneasy about
biotechnology


Strong environmental movement

Many Europeans uneasy about
biotechnology


Strong environmental movement


No coherent regulatory system



Many Europeans uneasy about
biotechnology


Strong environmental movement


No coherent regulatory system


Weak public trust in government
since mad cow disease



Many Europeans uneasy about
biotechnology


Strong environmental movement


No coherent regulatory system


Weak public trust in government
since mad cow disease


EU consumers perceive no
benefits with potential risk



Many Europeans uneasy about
agricultural biotechnology


Strong environmental movement


No coherent regulatory system


Weak public trust in government
since mad cow disease


EU consumers perceive no
benefits with potential risk


Protectionist farm policies



Many Europeans uneasy about
agricultural biotechnology


Strong environmental movement


No coherent regulatory system


Weak public trust in government
since mad cow disease


EU consumers perceive no
benefits with potential risk


Protectionist farm policies


Strong support for
labeling



Geographic diversity in views


Least support in
Austria, Germany,
Denmark, Sweden,
and Luxembourg

Geographic diversity in views


Least support in
Austria, Germany,
Denmark, Sweden,
and Luxembourg


More support in
Portugal, Spain,
Belgium, Finland, and
Greece

U.S. Consumer Attitudes towards
Food Biotechnology


About 3/4 Americans
have heard of
biotechnology

U.S. Consumer Attitudes towards
Food Biotechnology


About 3/4 Americans
have heard of
biotechnology


About 1 out of 3
consumers know that
GMO foods are now
in our supermarkets

U.S. Consumer Attitudes towards
Food Biotechnology


About 3/4 would buy a
GMO food if less
pesticide use

U.S. Consumer Attitudes towards
Food Biotechnology


About 3/4 would buy a
GMO food if less
pesticide use


About 3/4 support
FDA labeling of
biotechnology foods
with health and
nutrition
information

Montreal Agreement


“Precautionary principle”
-
allows refusal of import
without scientific basis

Montreal Agreement


“Precautionary principle”
-
allows refusal of import
without scientific basis


Establishes Clearing House
for GMO seeds

Montreal Agreement


“Precautionary principle”
-
allows refusal of import
without scientific basis


Establishes Clearing House
for GMO seeds


Label “may contain” GMOs
for food and feed


Montreal Agreement


“Precautionary principle”
-
allows
refusal of import without scientific
basis


Establishes Clearing House for
GMO seeds


Label “may contain” GMOs for
food and feed


Segregation still likely until 2002
when negotiators
must meet again

What should I consider before
adopting GMO crops?


Technology fee


What should I consider before
adopting GMO crops?


Technology fee


Probability of a pest
problem

What should I consider before
adopting GMO crops?


Technology fee


Probability of a pest
problem


Per acre return of
GMO vs non
-
GMO

What should I consider before
adopting GMO crops?


Technology fee


Probability of a pest
problem


Per acre return of
GMO vs non
-
GMO


Is there a market?

What should I consider before
adopting GMO crops?


Technology fee


Probability of a pest
problem


Per acre return of
GMO vs non
-
GMO


Is there a market?


Will I need to
segregate the
crop?

Should I adopt GMO crops in
Indiana in 2000?


Bt corn?


No in most Indiana
locations due to low
probability of ECB
infestation


ID
-
219 “Economics of
Bt Corn”





Should I adopt GMO crops in
Indiana in 2000?




Roundup soybeans?


Maybe, depending on weed
pressure, soil erosion concerns,
input costs, and expected markets



Your Questions