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Economic Consequences of GMO Traceability in the EU Food and Feed Industry

Author

Listed:
  • Marina Zapilko

    (University of Applied Sciences Weihenstephan, Professorship for Marketing and Management of Biogenic Resources, Straubing)

  • Sandra Feigl

    (University of Applied Sciences Weihenstephan, Professorship for Marketing and Management of Biogenic Resources, Straubing)

  • Klaus Menrad

    (University of Applied Sciences Weihenstephan, Professorship for Marketing and Management of Biogenic Resources, Straubing)

  • Tobias Hirzinger

    (Munich Re Group, München)

Abstract

The application of genetically modified organisms (GMOs) in agriculture and food production has steadily increased in the recent years, while EU consumers` acceptance of using GMOs in the food area is still very low. In order to ensure consumers` and users` freedom of choice, the EU adopted specific regulations whereby food and feed products have to be labelled if containing more than 0,9 % of GMOs. This led to an increasing need of GMO testing for the EU food and feed industry. This study aims to analyse the economic consequences of GMO traceability within this industry. Furthermore, it also investigated if the need for GMO testing created new economic and business opportunities for producers of analytical test kits as well as for diagnostic laboratories usually carrying out these tests. In summary it can be stated that the economic impact in terms of turnover, additional costs and employment is rather small for all three business sectors.

Suggested Citation

  • Marina Zapilko & Sandra Feigl & Klaus Menrad & Tobias Hirzinger, 2009. "Economic Consequences of GMO Traceability in the EU Food and Feed Industry," Journal of Socio-Economics in Agriculture (Until 2015: Yearbook of Socioeconomics in Agriculture), Swiss Society for Agricultural Economics and Rural Sociology, vol. 2(1), pages 81-112.
    • Handle: RePEc:cha:ysa001:v:2:y:2009:i:1:p:81-112
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    References listed on IDEAS

    as
    1. Hirzinger, Tobias & Menrad, Klaus, 2005. "EFFECTS OF THE REGULATION (EC) No 1829/2003 and 1830/2003 ON THE FOOD INDUSTRY IN GERMANY," Conference Papers 91120, University of Weihenstephan-Triesdorf, Straubing Centre of Science.
    2. W. Bruce Traill, 2004. "Effect of information about benefits of biotechnology on consumer acceptance of genetically modified food: evidence from experimental auctions in the United States, England, and France," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 31(2), pages 179-204, June.
    3. Costa-Font, Montserrat & Gil, José M. & Traill, W. Bruce, 2008. "Consumer acceptance, valuation of and attitudes towards genetically modified food: Review and implications for food policy," Food Policy, Elsevier, vol. 33(2), pages 99-111, April.
    4. Boccaletti, Stefano & Nardella, Michele, 2000. "Consumer Willingness To Pay For Pesticide-Free Fresh Fruit And Vegetables In Italy," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 3(3), pages 1-14.
    5. Lusk, Jayson L., 2004. "United States and European Consumer Demand for Genetically Modified Food in an Experimental Market," Purdue Agricultural Economics Report 188880, Purdue University, Department of Agricultural Economics.
    6. House, Lisa & Lusk, Jayson L. & Jaeger, Sara & Traill, W. Bruce & Moore, Melissa & Valli, Carlotta & Morrow, Bert & Yee, Wallace M.S., 2004. "Objective And Subjective Knowledge: Impacts On Consumer Demand For Genetically Modified Foods In The United States And The European Union," 2004 Annual meeting, August 1-4, Denver, CO 20125, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    More about this item

    Keywords

    GMO; traceability; food/feed industry;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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