The Genetically Modified Food Industry

1. The Genetically Modified Food Industry Thuy Nguyen AGI London 2011

2. Overview of the GM Industry • Global Industry • Genetically modified organisms (GMOs) are defined as any organism that has had their genetic material (DNA) altered unnaturally. • To alter these genes, individual genes are usually isolated and implanted in another organism where it would not naturally occur. • These organisms can be related or unrelated species.

3. Overview of the GM Industry • Perceived benefit claims • Lower food costs due to less crop loss • Possible additional health benefits • Feed the world with higher yields • 99% are grown for animal feed and fuels • Counteract climate changes • Three main concerns • Possible allergic reactions • The way human body’s interact with the new genes when introduced into the body (gene transfer) • Indirect effects on food safety and security when mixing different organisms (outcrossing).

4. EU vs. Others – Perception European Union/United Kingdom United States Some opposition but not as vocal Biggest GM farmer, up from 2009 ~45% of world’s cultivation • High public opposition • Eurobarometer figures show public opposition to GM in the EU is 58%. • 28 countries in GMO free region and growing • Decline in by more than 10% in last five years Other Countries • GM crops in 29 countries in 2010 • Brazil is second • Developing countries are more accepting

5. EU vs. US - Regulation European Union United States Moderate regulation Food and Drug Admin (FDA) GM foods subject to the same two requirements as traditionally grown foods Rational – GM is done using plant/animal that is already used in food supply Not subject to additional safety approvals • High regulation • Under GMO Regulations Act, must submit full details • Application approved by all member state in EU • If not approved by all, then a committee is formed and votes

6. Market Potential of GM Products in the European Union • A joint survey effort from the Department of Agribusiness Economics and Department of Marketing, Southern Illinois University Carbondal • If price the same, 71% would buy non-GM foods • If price was higher for non-GM foods, 56% would buy non-GM foods, but “Don’t Knows” increase from 4% to 22% • When the size of the premium price increased, more were willing to buy GM foods. • These changes suggest that a premium for non-GM foods would encourage a significant portion of consumers to choose lower-priced GM foods Source: http://www.agbioforum.org/v6n3/v6n3a06-moon.htm

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