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GM Crops in Europe: How Much Value and for Whom?

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  • Matty Demont
  • Koen Dillen
  • Erik Mathijs
  • Eric Tollens

Abstract

summary Who gains from genetically modified (GM) crops in Europe? We review the global impact literature and assess the potential value of GM crops for Europe and how this value is shared among stakeholders. The literature suggests that, on average, two thirds of the global benefits are shared 'downstream', i.e., among domestic and foreign farmers and consumers, while only one third is extracted 'upstream', i.e., by gene developers and seed suppliers. Can this global rule of thumb be extrapolated to the EU? We review studies on GM maize, sugar beet and oilseed rape in Spain, Hungary, the Czech Republic and the EU-25. The potential annual value of GM technologies for single Member States ranges from €0.1 million to €42 million, distributed according to the same rule of thumb. With a global annual value of €668 million, herbicide tolerance in sugar beet cultivation is the EU's most promising 'first-generation' GM technology The new Member States could also substantially benefit from GM crops. While the Czech Republic embraced GM maize in recent years, Hungary imposed a "de facto" ban on GM crops. By denying farmers access to potentially cost-reducing technologies, banning GM crops could be counterproductive for the future competitiveness of EU agriculture. Copyright The Agricultural Ecomomics Society and the European Association of Agricultural Economists 2007.

Suggested Citation

  • Matty Demont & Koen Dillen & Erik Mathijs & Eric Tollens, 2007. "GM Crops in Europe: How Much Value and for Whom?," EuroChoices, The Agricultural Economics Society, vol. 6(3), pages 46-53, December.
  • Handle: RePEc:bla:eurcho:v:6:y:2007:i:3:p:46-53
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    Cited by:

    1. Dillen, Koen & Demont, Matty & Tollens, Eric, 2008. "Modelling heterogeneity to estimate the ex ante value of biotechnology innovations," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43945, European Association of Agricultural Economists.
    2. Tillie, Pascal & Dillen, Koen & Rodríguez-Cerezo, Emilio, 2014. "Modelling ex-ante the economic and environmental impacts of Genetically Modified Herbicide Tolerant maize cultivation in Europe," Agricultural Systems, Elsevier, vol. 127(C), pages 150-160.
    3. Demont, Matty & Daems, W. & Dillen, Koen & Mathijs, Erik & Sausse, C. & Tollens, Eric, 2008. "Are EU spatial ex ante coexistence regulations proportional?," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44191, European Association of Agricultural Economists.
    4. Matty Demont & Marie Cerovska & Wim Daems & Koen Dillen & József Fogarasi & Erik Mathijs & Frantisek Muska & Josef Soukup & Eric Tollens, 2008. ""Ex Ante" Impact Assessment under Imperfect Information: Biotechnology in New Member States of the EU," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(3), pages 463-486, September.
    5. Demont, Matty & Dillen, Koen & Daems, Wim & Sausse, Christophe & Tollens, Eric & Mathijs, Erik, 2009. "On the proportionality of EU spatial ex ante coexistence regulations," Food Policy, Elsevier, vol. 34(6), pages 508-518, December.

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