The Economic Impact Of Genetically Modified Food

1. The Economic Impact Of Genetically Modified Food Presented by Giorgi Modebadze

2. Pros: • Spend less money, produce more food • Resistance to Herbicides • Remove weeds, thereby protect the soil • Improved Stress Tolerance • Faster Growth • Cons: • Unexpected Health Issues, Side-Effects • Reduced Species Diversity • Ecological Damage • Effects on Non-GM Crops • Over-Use of Herbicides

3. As of 2013, roughly 85% of corn, 91% of soybeans, and 88% of cotton produced in the United States are genetically modified.

4. Spreading GM foods leads to selling more agricultural technology (supplements) • More technology brings more benefit to farmers • Economic benefit of GM corn to farmers in five states was $6.9 billion over the last 14 years • In 2010, GM crops increased farm incomes worldwide by $14 billion, with over half this total going to farmers in developing countries

5. World economic surplus increased by $840.3 million for 2010 • Of this total, • 59% - U.S. farmers, the largest share • 21% - The gene developer, Monsanto • 9% - U.S. consumers • 5% - the germplasm supplier, Delta and Pine Land Company • 6% - the rest of the world

6. A 2010 study showed that farmers in developed countries experienced increase in yield of 6% and in underdeveloped countries of 29% • Loss of harvest was decreased by 25–58% on soybeans, by 76% on crops • 72% of farmers worldwide experienced positive economic results.

7. Challenges, critiques: • The seed industry faces oligopoly, • huge market power possessed by several companies • 73% of the global market is controlled by 10 companies • Firms have started to engage in vertical integration, gradually forming a monopoly • They practice pricing strategies (price discrimination) • Allegedly, they thwart the attempts of smaller companies to enter the market.

8. But… • Production costs have decreased • Resulted in the economies of scale that facilitates market efficiency • Could be beneficial in raising welfare because "even though price discrimination is often considered to be an unwanted market distortion, it may increase total welfare by increasing total output, eliminating deadweight loss and by making goods available to markets where they would not appear otherwise"

9. Only 26 countries in the whole world banned GM foods. 28 different countries grow genetically modified crops Top 10 suppliers: USA, Brazil, Argentina, Canada, India, China, Paraguay, South Africa, Pakistan, Uruguay

10. List of companies using GM ingredients in their products: Blue Sky  Coca Cola  Hansen  Kraft  Nestle  Procter and Gamble  Libby's  Ocean Spray  Kellogg  Nature Valley   SmuckersSkippy  Hormel  Progresso  EggoBoca Marie CallenderMorningstar Farms  Stouffers   Mountain Dew Amp energy drink Sun Chips Lays potato chips Doritos Tostitos Tropicana juices Dole juices Quaker Oats Aunt Jemima Syrup Rice-A-Roni Gatorade Nabisco Hershey  Lifesaver  Quaker  Pepperidge Farm  Campbells Aquafina Frito Lay  Hostess  Heinz  Crisco  KashiPeter Pan   Betty Crocker  Pillsbury  Aunt Jemima  Duncan Hines  Beech-nut  Enfamil  Good Start  SimilacIsomilYoplait  Land O Lakes  Keebler  Dannon

12. Sources: http://en.wikipedia.org/wiki/Genetically_modified_food_controversies#Economics http://gefreebc.wordpress.com/2010/02/07/really-great-gmo-statistics/ http://chartsbin.com/view/1278 http://www.ksre.ksu.edu/bookstore/pubs/MF2449.pdf http://knowledge.allianz.com/?500/gm-crops-facts-and-figures http://www.infowars.com/economic-issues-surrounding-genetically-modified-foods/

13. Thank You!