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StarLink: Impacts on the U.S. corn market and world trade

Author

Listed:
  • William Lin

    (Economic Research Service, USDA, 1800 M Street, NW, Room S-5206, Washington, DC 20036-5831. E-mail: wwlin@ers.usda.gov)

  • Gregory K. Price

    (Economic Research Service, USDA, 1800 M Street, NW, Room S-5199, Washington, DC 20036-5831. E-mail: gprice@ers.usda.gov)

  • Edward W. Allen

    (Economic Research Service, USDA, 1800 M Street, NW, Room S-5008, Washington, DC 20036-5831. E-mail: ewallen@ers.usda.gov)

Abstract

StarLink disrupted the U.S. corn market during the 2000|01 marketing year as a result of inadvertent commingling. The potential, upper-bound volume of marketed StarLink-commingled corn from the 2000 crop located near wet and dry millers prior to October 1, 2000, is estimated at 124 million bushels. The percentage of corn shipments that tested positive mostly ranged from 5 to 10%, varying by mode of transportation. Price differentials between StarLink-commingled and StarLink-free corn commonly ranged between 7 and 12 cents per bushel during the early stage of the incident. These differentials eroded quickly due largely to Aventis' compensation of additional transportation costs when StarLink-commingled shipments had to be rerouted to approved uses. While StarLink had a negative impact on U.S. corn exports, most of the reductions in exports to Japan and South Korea during the period from November 2000 through March 2002 were due to increased competition from rival exporters. [EconLit citations: Q130, Q170]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 473-488, 2003.

Suggested Citation

  • William Lin & Gregory K. Price & Edward W. Allen, 2003. "StarLink: Impacts on the U.S. corn market and world trade," Agribusiness, John Wiley & Sons, Ltd., vol. 19(4), pages 473-488.
  • Handle: RePEc:wly:agribz:v:19:y:2003:i:4:p:473-488
    DOI: 10.1002/agr.10075
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    Cited by:

    1. Mulvaney, Dustin & Krupnik, Timothy J., 2014. "Zero-tolerance for genetic pollution: Rice farming, pharm rice, and the risks of coexistence in California," Food Policy, Elsevier, vol. 45(C), pages 125-131.
    2. Kalaitzandonakes, Nicholas & Kaufman, James & Miller, Douglas, 2014. "Potential economic impacts of zero thresholds for unapproved GMOs: The EU case," Food Policy, Elsevier, vol. 45(C), pages 146-157.
    3. Harvey E. Lapan & Giancarlo Moschini, 2004. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 634-648.
    4. Colin A. Carter & Aaron Smith, 2007. "Estimating the Market Effect of a Food Scare: The Case of Genetically Modified StarLink Corn," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 522-533, August.
    5. Schmitz, Troy G. & Schmitz, Andrew & Moss, Charles B., 2004. "Two Approaches To Measuring The Economic Impact Of Starlink Corn On U.S. Producers," 2004 Annual meeting, August 1-4, Denver, CO 20306, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Johnson, D. Demcey & Lin, William W., 2004. "The Economics of Testing for Biotech Grain: Application to StarLink Corn," 2004 Annual meeting, August 1-4, Denver, CO 20044, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Troy G. Schmitz & Andrew Schmitz & Charles B. Moss, 2005. "The economic impact of StarLink corn," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 391-407.
    8. Lee, Jongkuk & Palekar, Udatta S. & Qualls, William, 2011. "Supply chain efficiency and security: Coordination for collaborative investment in technology," European Journal of Operational Research, Elsevier, vol. 210(3), pages 568-578, May.
    9. Carter, Colin A. & Smith, Aaron D., 2004. "The Market Effect of a Food Scare: The Case of Genetically Modified StarLink Corn," Working Papers 11997, University of California, Davis, Department of Agricultural and Resource Economics.
    10. Magnier, Alexandre & Konduru, Srinivasa & Kalaitzandonakes, Nicholas G., 2009. "Market and Welfare Effects of Trade Disruptions from Unapproved Biotech Crops," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49592, Agricultural and Applied Economics Association.
    11. Schmitz Troy G. & Schmitz Andrew & Moss Charles B., 2004. "Did StarLink Reduce Import Demand for Corn?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(2), pages 1-16, May.

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