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What are GM Foods?

Welcome to class of Role of Genetically-Modified (GM) Foods in Emerging Markets Dr. Satyendra Singh Professor, Marketing and International Business University of Winnipeg Canada s.singh@uwinnipeg.ca http://abem.uwinnipeg.ca. What are GM Foods?.

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What are GM Foods?

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  1. Welcome to class ofRole of Genetically-Modified (GM) Foodsin Emerging MarketsDr. Satyendra SinghProfessor, Marketing and International BusinessUniversity of WinnipegCanadas.singh@uwinnipeg.cahttp://abem.uwinnipeg.ca

  2. What are GM Foods? • Crops created for human/animal consumption using the molecular biology technique to get desired traits such as:

  3. Role of GM Foods in EMs • Very important for developing countries/EMs • By 2050pop. 9b  food strategy for next 20 yrs • Need more food, as such hunger and starvation • 3m deaths/year in Africa solely relating to hunger • 3 options: aid/food, money/funds, provide GM foods • GM foods: Rapid, accurate,↑ yield, ↓labor, ↑shelf-life

  4. GM Birds/Animals http://www.reuters.com/news/pictures/slideshow?articleId=USRTXTZ7A#a=1

  5. Disease cure vs designer babies http://www.reuters.com/news/pictures/slideshow?articleId=USRTXTZ7A#a=1

  6. Advantages of GM Foods… • Pest resistance • Crop loss due to insets  financial loss to farmers • So, farmers use tons of pesticides/fertilizers annually • GM eliminates pesticides and thus ↓ cost of production • Disease resistance • Viruses, fungi, bacteria  plant diseases • GM crops resistance to these diseases • Cold resistance • Frost can destroy sensitive seedlings • Antifreeze gene from cold fish  tobacco and potatoes

  7. Advantages of GM Foods • Drought resistance • More population  ↑ land for housing, ↓ land for farming • Land unsuited for plant cultivation  Africa, dessert • GM crops  grow in draughts or ↑ salt-content soil • Nutrition • Single crop (rice) cannot give all the nutrition needed • Lack vitamin A  blindness  common in EMs • GM food: golden rice has Vitamin A (beta-carotene) • GM food: with enhanced iron is underway, Europe? • Pharmaceuticals • Edible vaccines in tomatoes and potatoes • Easier to ship, store, administer than traditional injections

  8. Criticism of GM Organism/Foods…

  9. Criticism of GM Organism/Foods

  10. Criticism of GM Foods… • Environmental hazards • Unintended harm to other organism • Difficult to design toxin  kills crop-damaging pests, not other insects • Reduced effectiveness of pesticides • Develops resistance  DDT • Gene transfer to non-target species • Cross-breeding • Transfer of herbicide resistance from crops to weeds • The “superweeds” will then have herbicide tolerance as well • Solution • Create buffer zone • Enviro pigs  they do not produce phosphates!

  11. Criticism of GM Foods… • Human health risks • Allergenicity • We already have allergies to peanuts and other foods… • Introducing gene may create more allergies • Unknown effects on human health • However, proposal to introduce a gene from Brazil nuts into Soyabeans was abandoned • On the whole, with the exception of possible allergenicity, scientists believe that GM foods do not present a risk to human health!

  12. Criticism of GM Foods • Economic concerns • Lengthy and costly process • May be patented • Monsanto, Novartis, Dow, DuPont hold patents for GM crops • Make substantial profit by exporting it to EMs • Farmers from developing countries/EM cannot afford • More gap between rich and poor • Other invention  discouraged/stopped • Suicide gene technology • Only one growing per season • Next time would produce sterile seeds that do not germinate

  13. Governments and GM Foods… 2009: 25 countries

  14. Governments and GM Foods • Europe: Anti-GM protests (Austria, France, Hungary) • Japan: GM testing is mandatory. Customers for organic • USA: FDA  GM foods are substantially equivalent to natural food, so not subject to FDA regulations • GRAS  Generally Recognized As Safe • India: No policy yet for GM  ↓poverty • Brazil: Some states have banned GM crops • ↑Smuggle to compete with grain-exporting countries • Africa: EU opposes the use of GM in Africa • S. Africa, Sudan, Zimbabwe have GM laws; Kenya Act  2009 • Argentina: Very pro-GM • New Zealand: NO GM Foods grown here!

  15. GM Food Labeling • No need to label  same wrt to nutrition • Europe and Japan  Mandatory • 1% contamination of unmodified products with GM foods • Consumers have the right the know the information • Let consumers decide  but no choice • Reduced sales, so processors do not sell GM foods • EU has disguised policy of protectionism • Canada and US  Voluntary • Mandatory for Non-GM foods • Let consumers decide  more choices

  16. Traditional International Entry Mode Strategy

  17. Multi-Mode international Entry Strategy for GM Crops

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