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StarLink: Impacts on the U.S. Corn Market and World Trade
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.
... This is not surprising, since the development of commerce and agriculture has always been interlinked throughout history, even from the earliest civilizations. Thus, many authors focused their research on specific intersections of these two sectors, such as international trade (Bessler & Babula, 1987;Goldberg & Knetter, 1995;Kristjanson, 1967;Lin et al., 2003), national purchasing (J. P. Brown Local discrepancies can have a significant influence on a national agricultural market (Birthal et al., 2011;Nganje et al., 2004). ...
... The development and growth of agricultural and commercial sectors is co-dependent, especially for economies still going through transition. Extensive research into agrocommercial connections exists, focusing both on international aspect (Bessler & Babula, 1987;Goldberg & Knetter, 1995;Kristjanson, 1967;Lin et al., 2003), as well as national perspective (J. P. Brown Brown (2014), do provide a regional analysis of the topic, going into effects on a local level, but these efforts also fall short in terms of a specific focus on transition economies. ...
... First research angle focuses on observing price-related factors, such as price incentives (Thiele, 2003) and policies (Dorosh & Salam, 2008;Fulginiti & Perrin, 1993). These research efforts adopt a macroeconomic perspective, analysing either international markets (Bessler & Babula, 1987;Lin et al., 2003;Thiele, 2003) (Tudor & Balint, 2006). Since the close link between agriculture and processing industry has already been identified (Savic et al., 2016), this paper focuses on analysing influence of identified structural non-price factors in the context of two aforementioned industries on proposed agricultural product purchase ratio. ...
The main idea in this paper was to investigate how agriculture and processing sectors are connected through commercial activity, and how they influence municipal economic development in Serbia. This was examined through the influence of relevant non-price structural factors related to agricultural and processing sector on the ratio between agricultural product procurement and overall agricultural production. The focus was placed on agricultural investments and subsidies. A multi regression model was developed based on hard data provided by SORS and SBRE on a municipal level in Serbia. The analysis confirmed the relation between agricultural commercial activity and municipal level of economic development. In addition, important findings concerning municipal investment and agricultural subsidies allocation have been provided as well.
... Because major agricultural producing and exporting countries have led their adoption, biotech crops represent a substantial share of some key agricultural commodities (maize, soybeans, cotton, and canola) which are broadly traded in international markets. Their trade has not always been uneventful, however, as in few occasions small amounts of unauthorized biotech crops have been found in the food supply chain and, in some cases, have led to trade disruptions (Carter and Smith 2005;Li et al., 2010;Lin et al. 2003;Schmitz et al. 2004Schmitz et al. , 2005. ...
... The second set includes ex post studies that estimate the economic impacts of specific incidents, such as the discoveries of Starlink maize and the Liberty Link rice. Many of these studies use partial equilibrium or time series analyses and focus on individual commodity markets that are affected most directly by the incidence of unauthorized events (Carter and Smith 2005;Li et al., 2010;Lin et al. 2003;Schmitz et al. 2004Schmitz et al. , 2005. A few others examine the economic impacts of specific incidents on downstream industries, mostly through personal interviews of supply chain participants and case studies (Brookes 2008;DEFRA, 2010). ...
... Ex Post Impact Assessment Studies: In one of the first ex post economic impact assessment studies, Lin et al. (2003) calculated the supply disruption of US exports to Japan and S. Korea prompted by the discovery of Starlink maize. They found that up to 3.2 MMT of maize were affected and concluded that, for a limited period of time, there were price differentials of 4-6% between Starlink-free and commodity maize in the US. ...
... Such protection often requires respect for the human rights -in particular the cultural rights -of local and indigenous communities. 20 Commonly, they are minorities within the State in which they reside 21 and their ways of life are often under threat from the very economic and resource-related activities that damage their immediate environment. 22 Hence, in order to respond fully to the clear social justice dimension as well as the gender equality and rights-based approach of sustainable development as expressed at Rio, 23 the international community should consider seriously how these human-rights-related elements of sustainability can be better protected. ...
... Compromise was reportedly gavelled by the European Union, which was itself torn between environmental integrity concerns and the need to accommodate the interests of Poland. 21 Eventually, it was agreed to limit the amount of surplus units that may be carried over, and only Parties that have undertaken emissions reductions for the second commitment period have been allowed to do so. 22 Most Parties have declared, however, that they do not intend to purchase/use AAUs carried over from the first commitment period. ...
... Specifically, Colombia claimed that paragraphs 4-9 of UNCLOS Article 76 should not be considered to be rules of customary international law, due to a lack of State practices indicating that it has reached that level of acceptance. 21 Ultimately, the Court refused to take the bait, deciding not to rule on this matter. It noted that paragraph 1 of Article 76 would be sufficient basis for its decision, and that all had agreed to its relevance and status as customary international law. ...
Augmentation of Genetic Engineering has changed the perception of life. Use of this technology to produce Genetically modified crops with traits for insect resistance, herbicide tolerance, as well as abiotic and biotic stress tolerance has placed it at cutting edge. If on one side it is being hailed as a solution to world hunger, on the other it is marred in controversies. Release of GMCs in environment has evoked number of questions. Strong proponents and opponents of this technology fail to back their claims with scientific validation and proof. Under such scenario, when these issues reach the courts decision making process becomes even more difficult. When a technology has long-term, far reaching and irreversible impacts on environment, economy and health, role of Judiciary becomes challenging. This synthesis is an attempt to review the role, the courts have played and give impetus to renewal of GMCs regulation around the world.
... For instance, farmers incur higher costs from extra labor for equipment cleaning during planting, harvest and storage as well as increased field isolation to prevent pollen flow from adjacent fields. Elevators incur higher costs from extra labor for facility clean outs, and higher testing costs (Lin et al. 2003). ...
... This is because the salvage value of such shipments is zero since they are illegal and cannot be sold at any price in the specific market. Hence, they must either be destroyed or redirected to a different market, typically at great cost (Lin et al., 2003 ...
... For instance, farmers incur higher costs from extra labor for equipment cleaning during planting, harvest and storage as well as increased field isolation to prevent pollen flow from adjacent fields. Elevators incur higher costs from extra labor for facility clean outs, and higher testing costs (Lin et al. 2003). Indirect IP costs are mostly implicit costs that result from loss of flexibility; inefficiencies due to underutilization of production, storage, transportation and processing assets; and lost profits (e.g. ...
The paper presents some results from a stated-preference study that compares three samples of urban consumers of extra-virgin olive oil from three representative Italian cities: Naples (South), Rome (Centre) and Milan (North). A series of multinomial logit models are estimated from choice experiments responses and tested for unobserved heterogeneity for EU labelling informing on PDO/PGI, organic and place of origin attributes. The consequences of such form of heterogeneity are flashed out with respect to issues of market segmentation on the basis of the pattern of correlation across preferences as estimated from mixed logit models. Results indicate that product origin matters differently in different cities, while the sample from Naples is the least heterogeneous the Milan and Rome samples display highest taste heterogeneity, but also stronger intensity of taste.
... It became commingled with non-StarLink corn in the U.S. grain handling system. According to Lin et al. (2001), commingling of StarLink corn with other corn varieties was exacerbated by three factors: (1) some of the corn grown on the buffer zone was probably cross-pollinated with StarLink corn, (2) a portion of the StarLink corn (including that grown on the buffer zone) had entered the marketplace prior to the effort to contain StarLink-commingled corn, and (3) some elevators did not know they were receiving StarLink-commingled corn. The commingled corn may have come from either the 1999 or 2000 corn crop because StarLink was grown in 1999 but was not detected. ...
... The discovery of StarLink in food products caused considerable disruption in corn markets in 2000and 2001(Lin et al. 2001. To segregate the U.S. corn market, identity preservation costs (IP costs) were imposed on the U.S. grain handling system to deal with both domestic and export sales of food corn and export sales of non-food corn to Japan. ...
... The discovery of StarLink in food products caused considerable disruption in corn markets in 2000and 2001(Lin et al. 2001. To segregate the U.S. corn market, identity preservation costs (IP costs) were imposed on the U.S. grain handling system to deal with both domestic and export sales of food corn and export sales of non-food corn to Japan. ...
Research and Development (R&D) and innovation are crucial features of the seed industry. To support large R&D investments by the private sector, strong intellectual property rights, such as patents, are necessary. The exclusivity granted by patents naturally creates market power positions and raises difficult and unresolved competition issues in an antitrust context.
... In the most famous case, Starlink corn, unapproved for human consumption, was planted on one percent of total US corn acreage in 2000. Discovery of Starlink corn in the human food chain resulted in the recall of over 300 food products and caused major disruptions in the food chain (Lin et al., 2002). The commingled total of Starlink with other corn eventually reached 124 million bushels in 2000 (Lin et al., 2002). ...
... Discovery of Starlink corn in the human food chain resulted in the recall of over 300 food products and caused major disruptions in the food chain (Lin et al., 2002). The commingled total of Starlink with other corn eventually reached 124 million bushels in 2000 (Lin et al., 2002). These events demonstrate the consequences of poor traceability. ...
... The risk of unintended commingling of grain has been explored in the context of identity preserved programs, where genetically modified (GM) and non-GM grain had to coexist on the same facilities, and trials have shown the difficulty of achieving the level of purity required in contracts or regulations when the grains were handled in the same pathways (Boac et al., 2012;Ingles et al., 2003;Ingles et al., 2006). The logistical and economic effect of unintended commingling on an entire supply chain is potentially considerable, as observed during the StarLink maize crisis in the United States in 2000 (Bucchini & Goldman, 2002;Lin et al., 2003). In the current EU regulatory context, stakeholders are required to assess and manage the risks of unintended allergen presence, without a legally defined tolerance level, which may lead to the use of precautionary labeling (i.e., "may con-tain…" language) in a significant number of food products (ANSES, 2018;Pieretti et al., 2009). ...
Background and Objectives
In the European Union, soybean production has increased by almost 130% over the last 10 years which also increases the risk of commingling of grains, especially during storage. Soy is a major allergen and stakeholders are then confronted with an increased risk of unintended presence of allergen in cereal products. The aim of our work is to provide elements of evaluation and management of the allergen risk to silo managers faced with the storage of wheat and soya on the same facility.
Findings
We reproduced the cross‐contamination between batches of wheat and soybeans using the same handling circuit and measured the effectiveness of elevator cleaning and grain cleaning to reduce the contamination. Soy content (%) and soy protein content (mg/kg) in wheat were monitored.
Conclusions
The observed cross‐contamination rate was between 0.15% and 0.18% but was largely dependent on the tonnage of wheat, with the cross‐contamination rate decreasing rapidly as the grain was conveyed. Vacuum cleaning of pit elevators and grain cleaning significantly reduced the cross‐contamination rate but not enough to eliminate the allergenic risk in food products with a high wheat content.
Significance and Novelty
The rapid decay of the commingling rate allows the consideration of flushing procedures to manage cross‐contamination between batches. The model established on our results allows us to calculate the tonnage required to obtain a sufficiently effective flush to manage the risk of cross‐contamination.
... Laux and Hurburgh (2010); Lin et al. (2003) while designing a traceability system should be (i) Mycotoxin presence; (ii) Commingling. Table 1b lists other research work supporting mycotoxin and commingling should also be assigned a criticality score of 5. ...
Background and Objectives
This article analyses the approach of identifying critical traceability events (CTE) and corresponding key data elements (KDE). The CTE–KDE approach is evidence‐based that identifies, and documents activities. It can be easily performed by (i) auditors; (ii) food manufacturers/processors; (iii) food suppliers to access gaps in process and supply chain. For example, for a grain processor storage of grain is identified as a CTE performed under grain elevator, and the necessary KDE includes the location of storage bin and supplier details. The CTE–KDE approach requires verifiable data, and the ability to assess graduated levels of success based on data. This article proposes the use of vulnerability analysis to predict levels of success in each CTE–KDE situation.
Significance and Novelty
A vulnerability analysis model identifies, quantifies, and prioritizes various factors responsible for reducing the efficacy of a system. Vulnerability analysis measures system attributes (data) related to: (i) frequency of occurrence; (ii) degree of impact of occurrence; and (iii) likelihood of detection. This article applies vulnerability analysis as a standard method for identifying when and how a traceability system will fail. Vulnerability analysis of an evidence‐based CTE–KDE framework accounts for complex interactions among supply chain participants' critical activities. The need for standard measures of evaluating traceability systems is clear. Such analysis must restrict CTE to be measurable events and key data elements to measurable system attributes.
... This GM feed corn contaminated approximately 10 percent of corn meal designated for human food products despite the fact that less than one percent of corn acreage was planted in StarLink. 21 The producer had to pledge over US$1 billion to address the contamination situation, including by withdrawing the product and compensating producers and food manufacturers who had had to recall their products. 22 In a complete contrast, a class-action lawsuit was filed by consumers who claimed they had inadvertently consumed food unfit for human consumption, because StarLink was not approved as a human food product. ...
... Institutions such as the National Academies that advise the government on matters related to science, technology, engineering and medicine can initiate research on biotechnologies, leading to new regulations. During the last decade, research into the impact of transgenic corn on monarch butterflies (Sears et al., 2001), the inadvertent commingling of regular maize with transgenic corn (Starlink) that had not been approved for human consumption (Lin et al., 2003), and concerns over gene flow have resulted in recommendations for strengthening biological containment practices for GMOs. ...
Research on landrace in situ conservation has examined the socio-economic characteristics of landrace custodians and the social organizations where landrace diversity occurs. However, researchers have paid less attention to the distinctive features that result in landraces of some crops being preserved while others are abandoned. In this work, we analyze reasons behind landraces' in situ conservation or abandonment. We worked in temperate home gardens in Vall de Gósol, Catalan Pyrenees. Data collection included participant and non-participant observation, freelistings, garden inventories, structured interviews, and a workshop. We found ten strains that conform to the definition of landrace, a high number for the relatively small geographical area studied. Crop and landrace features are of key importance in explaining whether a landrace is maintained or abandoned. Features that promote in situ conservation include 1) crop and/or landraces intrinsic characteristics (e.g., propagule viability, productivity), 2) landraces socio-economic characteristics (e.g., commercial interest, uniqueness vs. substitutability), and 3) landraces cultural significance (e.g., tradition, local organoleptic perceptions). Viable landrace conservation plans should identify the specific features that affect in situ conservation at the landrace level.
... In the StarLink corn case, GM corn was grown to be marketed as animal feed in the US. The GM feed corn contaminated approximately 10% of corn meal designated for human food products despite the fact that less than 1% of corn acreage was planted in StarLink (Lin et al., 2001). The producer has had to pledge over US$1 billion to address the contamination situation withdrawing the product and compensating producers and food manufacturers who have had to recall their products . ...
... Farmers who were concerned about this technology had questions mainly about GMOs effects on consumer health (30% of the respondents) and on the environment (55% of the respondents)-issues for which there is a diversity of opinion in the scientifi c and popular press (Ervin et al., 2000;Fernandez-Cornejo and Mc-Bride, 2002). At the time this study was conducted there were many stories in the media about the acceptance of GMOs in the market and their effects on the environment, in particular as a result of the StarLink corn incident (Barbazo, 2000;Linn et al., 2001). These factors may have infl uenced the farmers' opinions. ...
ADDITIONAL INDEX WORDS. antioxidants, farmers' markets, GMO, health-en-hanced, locally grown, marketing, survey SUMMARY. Fresh-market vegetable production in the midwestern U.S. has been declining due to diminished returns received by farmers, competi-tion from vegetables produced in other regions, older farmers retiring and not being replaced, and urban sprawl. To reverse this trend, midwestern-U.S. vegetable farmers must fi nd ways to enhance the value of their production. One way might be the production of vegetable cultivars that have enhanced attributes desired by consumers. Our objective was to assess how Illinois farmers' current perceptions may affect acceptance and production of vegetable cultivars with enhanced health benefi ts. About 20% of Illinois fresh-market vegetable growers were surveyed. We found that the current media atten-tion on genetically modifi ed organisms (GMOs) infl uenced grower response. Farmers who were concerned about GMOs were 5 times more likely to reject growing new vegetable cultivars with enhanced health benefi ts even those developed with conventional breeding methods. However, farmers who were not concerned or who were undecided in their opinions concern-ing GMOs were 11 times more likely to adopt new cultivars. Education and research programs must be developed to supply information about vegetable cultivars with enhanced health benefi ts and to address farmers' concerns about GMOs.
... Because major exporting countries have led their adoption, biotech crops represent a substantial share of key agricultural commodities (maize, soybeans, cotton and canola) which are broadly traded in international markets (James, 2012;Kalaitzandonakes, 2006). Their trade has not always been uneventful, however, as on a few occasions small amounts of unapproved biotech crops have been found in the food supply chain and, in some cases, have led to trade disruptions (Carter and Smith, 2007;Li et al., 2010;Lin et al., 2003;Schmitz et al., 2004Schmitz et al., , 2005. 1 There are four different types of unapproved biotech crops that could inadvertently find their way to the food/feed supplies of one or more countries in minute quantities despite stewardship programs that seek to keep them away: ...
As the pipeline of new biotech crops has continued to expand, regulatory approvals of such crops across different countries have become less synchronized. As a result, some biotech crops can be cultivated in one or more countries but may not be approved for use in others. Under such circumstances, small amounts of unapproved biotech crops can be found in the food/feed supplies of some countries and under zero threshold policies they must be withdrawn and can lead to market disruptions. In this paper we examine the potential economic implications of regulatory asynchronicity and zero threshold policies for unapproved GMOs using the EU as a case study. To measure the potential economic impacts from possible trade disruptions between the EU and its major suppliers of soybeans, we develop a spatial equilibrium model and examine alternative scenarios where bilateral trade flows are set to zero. From our analysis we find that when asynchronous approvals become a systemic problem leading to trade disruptions with multiple trading partners the impacts can be severe. For instance, we find that if the EU were to stop imports from its three main suppliers the US, Brazil and Argentina, it would pay roughly 220% more for soybeans, 211% more for soybean meal and 202% more for soy oil.
... Commingling GE food with non-GE food can have important food safety and economic repercussions. When an unapproved variety of StarLink™ corn was discovered in processed foods a decade ago, corn growers lost access to European markets (Lin et al., 2003). Likewise, when a Texas company mixed Prodigene's pharm corn-corn designed to produced pharmaceuticals-with soybean crops in Iowa and Nebraska, serious public health impacts could have followed had commingling gone undetected (Fox, 2003;Union of Concerned Scientists, 2003). ...
... Institutions such as the National Academies that advise the government on matters related to science, technology, engineering and medicine can initiate research on biotechnologies, leading to new regulations. During the last decade, research into the impact of transgenic corn on monarch butterflies (Sears et al., 2001), the inadvertent commingling of regular maize with transgenic corn (Starlink) that had not been approved for human consumption (Lin et al., 2003), and concerns over gene flow have resulted in recommendations for strengthening biological containment practices for GMOs. ...
This report examines the role of seed and seed systems in the conservation and the use of plant genetic resources for food and agriculture. It focuses on developments since the publication of the first report on the State of the World’s Plant Genetic Resources for Food and Agriculture.
... The bulk commodity handling industry has not traditionally focused on food safety ), but recent food safety concerns have focused attention on this matter. Several food safety incidents have involved the adulteration of bulk agricultural commodity products (FDA 2010;Lin et al. 2002;). Without a standard methodology for implementing quality systems, the ability of processors, regulators, and consumers to identify, isolate, and contain unsafe products within the food and foodstuffs supply chain is limited ). ...
Human factors play an important, but often overlooked, role in the management of safety and quality in the work environment. Workplace safety and quality are two of several competing organizational demands. The relative priority of these demands is formed by perception, based in part on employee experiences and practices. One human factor believed to influence employee perceptions of workplace safety and quality is trust.
Links between trust and safety outcomes and safety perceptions and safety behavior have been explored by researchers, but little research has examined the relationships between trust and quality perceptions or between employee perceptions and employee decision-making, an important precursor to employee behavior. Because safety and quality depend heavily on decisions employees make, an increased understanding of factors influencing employee decision-making processes provides information helpful to those wishing to improve organizational safety or quality.
This research examined the predictive relationships between employee perceptions of trust, safety, and quality and employee decision-making in safety and quality. Data were collected in two parts. First, 180 workers at a three grain handling facilities were surveyed on three aspects of organizational climate: trust, safety, and quality. Each survey instrument asked for employee perceptions concerning two levels of administration: supervisors and management.
Next, employee decision-making was measured using two computerized decision-making scenarios. The safety decision simulation asked employees to decide whether to take a safety shortcut that would save time but present a higher safety hazard. The quality decision scenario asked the employee to choose between following company policy and handling the product in a manner that preserved its quality. Decision software tracked both the final decision choice and the factors employees used to make the decision.
Using regression analysis and bi-variate correlation, the relationships between variables were calculated at the management and supervisory level. Significant positive relationships were noted between supervisory and management trust and employee perceptions of a more positive safety climate. Although trust in management did not significantly predict a more safety-oriented decision choice, a significant relationship was observed between trust in supervisors and a more positive safety decision choice. Results from the quality decision data demonstrated a positive significant relationship between trust in management and a stronger quality climate as well as a higher inclination to use the factors of customer service and company policy when making quality decision choices. At the supervisory level, trust significantly the decision choice, but did not predict a stronger quality climate or any factors in the decision process.
The increased role of supervisors in employee decision-making is not a surprise, given most supervisors' increased interaction with employees; however, perceptions of management clearly influence how employees perceive the workplace climate. Implications of this research are important for supervisors and managers who wish to better manage safety and quality at their organization and for those who wish to develop more targeted workplace intervention and training programs.
... StarLink corn became commingled with non-StarLink corn in the US grainhandling system. According to Lin et al. (2003), commingling of StarLink corn with other corn varieties was exacerbated by three factors: (1) some of the corn grown on the buffer zone was probably cross-pollinated with StarLink corn; (2) a portion of the StarLink corn, including that grown on the buffer zone, had entered the marketplace prior to the effort to contain StarLink-commingled corn; and (3) some elevators did not know they were receiving StarLink-commingled corn. In order for US corn to be sold for food purposes both in the United States and in major importing countries, it now had to be segregated and tested. ...
... In some occasions small amounts of biotech crops that have not been authorized for production or trade have been found in the food supply chain and, in some cases, have led to trade disruptions(Carter and Smith 2005;Lin et al. 2003;Schmitz et al. 2004Schmitz et al. , 2005. ...
This JRC Scientific and Technical report provides proceedings of the “International workshop on socio-economic impacts of genetically modified (GM) crops” which was co-organised by JRC-IPTS and FAO in Seville on 23-24 November 2011. JRC-IPTS has been requested to review for policy makers the main findings of scientists active in this field world-wide in cooperation with FAO. The objective of this workshop, which was directed at socio-economic experts from the Competent Authorities of the EU Member States and staff from the EC, was to start the technical discussions between the Member States and the Commission to define factors and indicators allowing a proper capture of the impacts of GMOs in the EU.
The workshop covered the following topics: Session 1: Adoption of GM crop varieties and socio-economic impacts on farmers Session 2: Aggregated and global impacts of GM technology in agriculture Session 3: Economics of segregation/coexistence of supply chains Session 4: Socio economic impacts of GM crops: examples of use in decision-making Session 5: Economic compensation, liability issues and institutional framework influencing adoption of GM crops Session 6: Research on consumer attitudes, direct/indirect impacts of GM crops on consumers including health issues Session 7: Looking forward: New GM crops in the pipeline and their possible economic and social impacts
... Despite the availability of the transgenic technology since 1996 and a worldwide-cultivated area of 140 million ha, only 9%, or 12.4 million hectares were cultivated with transgenic corn worldwide. The crop came under criticism for eventual negative impacts on the environment (death of butterflies); and mistakes, like it was the case with Starlink, developed by Aventis, causing prejudices to firms, producers and US exportations (Lin, Price and Allen, 2002); subsequently, it was put under market restrictions because of the possibility of direct use in human food. ...
This paper discusses the current regulation of genetically modified organisms and derivatives used in Brazil, where GM-plants are on the verge of being approved for commercial use. The paper further uses a simulation model to assess the potential economic benefits resulting from unrestricted commercial approval of herbicide-tolerant soybeans and some other crops on the Brazilian economy. Only soybean has been specially approved in the last three seasons (2002/03, 2003/04 and 2004/05). As there is no consistent information about the benefits of using transgenic seeds in Brazil, the authors made simulations on the basis of the experiences reported by Argentina and the USA. The paper concludes that Brazil could do much better if government had taken the lead to clarify the legal requirements for research and commercial release of genetically modified crops which are still contradictory and unlikely to control any future environmental impact in Brazil.
... Some degree of contamination seems likely. Organic foods are frequently contaminated with genetically engineered ingredients despite preventative measures (Giles 2004), and in the case of StarLink corn, the largest case of contamination to date, the contamination was widespread despite the fact that the amount of StarLink planted was relatively small (Lin 2003). ...
I analyze Ojibway objections to genomics and genetics research on wild rice. Although key academic and industry participants in this research have dismissed their objections out of hand, my analysis supports the conclusion that the objections merit serious consideration, even by those who do not share the Ojibway's religious beliefs.
... There are no specific reports for seed admixture between nonGE herbicide-resistant corn and conventional corn. However, seed admixture has been reported between Bt resistant corn and conventional corn 49 and between glyphosate-resistant corn and conventional corn. 50 Lentil (L. ...
Gene flow was raised as one of the first issues related to the development and release of genetically engineered (GE) crops. Gene flow has remained a topic of discussion for more than 20 years and is still used as an argument against the release of transgenic crops. With respect to herbicide-resistant crops, gene flow does not differ whether the herbicide resistance trait is introduced via genetic engineering or via conventional breeding techniques. Conventional breeding and genetic engineering techniques have been used to produce herbicide resistance in many of the same crop species. In addition, conventional breeding has been used to produce a broader range of herbicide-resistant crops than have been genetically engineered for herbicide resistance. Economic, political, and social concerns center on the breeding technique, but the results of gene flow for weed management are the same irrespective of breeding technique. This paper will focus on gene flow from nonGE herbicide-resistant crops in North America.
... There are six documented cases where unapproved GM crops found their way into the food and feed supply chain: Starlink, Bt 10 corn, Prodigene corn, Liberty Link rice 601 and 604, and Event 32 corn. In some of these instances trade disruptions have followed (Schmitz et al. 2004Schmitz et al. , 2005 Carter and Smith 2005; Lin et al. 2003) More recently, concerns about trade disruptions from unapproved GM crops have increased as the GM crop pipeline moving towards or awaiting regulatory approval has expanded while the speed of regulatory approvals across different countries has become less synchronized (Krueger and Buanec 2008; EC DG AGRI 2007; Backus et al.2008). To fully appreciate the problem one must be mindful of certain nuisances in the regulatory process of new GM crops. ...
The paper presents some results from a stated-preference study that compares three samples of urban consumers of extra-virgin olive oil from three representative Italian cities: Naples (South), Rome (Centre) and Milan (North). A series of multinomial logit models are estimated from choice experiments responses and tested for unobserved heterogeneity for EU labelling informing on PDO/PGI, organic and place of origin attributes. The consequences of such form of heterogeneity are flashed out with respect to issues of market segmentation on the basis of the pattern of correlation across preferences as estimated from mixed logit models. Results indicate that product origin matters differently in different cities, while the sample from Naples is the least heterogeneous the Milan and Rome samples display highest taste heterogeneity, but also stronger intensity of taste.
... The StarLink incident in 2000 highlights the economic consequences of inadequate quality control at the farm and elevator level. StarLink is a genetically engineered corn variety that was approved for animal feed and industrial uses but not for human consumption (Lin, Price, and Allen, 2003). In 2000, a portion of the StarLink crop was commingled with other corn varieties, contaminating millions of bushels stored on farms and in elevators. ...
This investigation into the traceability baseline in the United States finds that private sector food firms have developed a substantial capacity to trace. Traceability systems are a tool to help firms manage the flow of inputs and products to improve efficiency, product differentiation, food safety, and product quality. Firms balance the private costs and benefits of traceability to determine the efficient level of traceability. In cases of market failure, where the private sector supply of traceability is not socially optimal, the private sector has developed a number of mechanisms to correct the problem, including contracting, third-party safety/quality audits, and industry-maintained standards. The best-targeted government policies for strengthening firms' incentives to invest in traceability are aimed at ensuring that unsafe of falsely advertised foods are quickly removed from the system, while allowing firms the flexibility to determine the manner. Possible policy tools include timed recall standards, increased penalties for distribution of unsafe foods, and increased foodborne-illness surveillance.
An identity-preserved supply chain creates value by guaranteeing the isolation of products with unique characteristics throughout the supply chain. This enhances the ability of food producers to target increasingly specific consumer demands by controlling food characteristics more precisely. More recently, increased production of genetically modified (GM) crops has increased interest in identity-preserved grain supply chains as a way to segregate non-GM food from GM food and target growing demand for non-GM food.
The US grain storage and handling industry is currently primarily focused on commodity grain and is structured to maximize storage and transportation efficiency. A segregated system for non-GM grain currently coexists within that larger supply chain. Going forward, it is possible that the commodity and non-GM supply chains will continue to coexist with little changes in the GM (commodity) infrastructure. If additional forces for identity preservation (IP) storage and handling occur, though, there could be structural changes to more efficiently facilitate IP even while foregoing scale economies in storage and transportation.
In 2009, Syngenta created two new insect‐resistant corn varieties known as Agrisure Viptera and Agrisure Duracade, which contain the MIR162 biotechnology‐enhanced genetic trait. These varieties were approved for commercial release in North America in 2010 and were planted in spring 2011. China imposed an embargo on corn imports from North America beginning on November 20, 2013, because of its zero‐tolerance policy with respect to unapproved genetic traits in imported crops. The embargo was not lifted until December 14, 2014. The embargo led to increased availability of North American corn and a reduction in the price of corn realized by Canadian producers. The relative price of a substitute method was applied to weekly data on Ontario corn prices and Saskatchewan feed barley prices. The Chinese embargo against MIR162 corn caused the corn price received by Canadian farmers to drop by an estimated 1.24% or 5.32 cents/bushel. But for the Chinese embargo against MIR162 corn, Canadian corn producers would have realized an estimated additional $29.7 million in revenue in 2013/2014.
Im Rahmen der Verhandlungen von transnationalen Handelsabkommen spielen regelmäßig auch gentechnisch veränderte Organismen (GVO) eine bedeutende Rolle. Vor allem die sog. „grüne Gentechnik“ steht im Zentrum der Aufmerksamkeit, da sie die Erzeugung neuartiger oder veränderter Pflanzen und Nahrungs- bzw. Lebensmittel umfasst. GVOs finden in der öffentlichen Wahrnehmung allerdings noch wenig Akzeptanz und werden zudem stark gesetzlich reguliert. Unklar ist bislang, welche Haftpflichtrisiken GVOs in sich bergen und aufgrund welcher potenziellen Schadenfälle deren Erzeuger in Anspruch genommen werden können. Ziel des Beitrags ist daher, zu beleuchten, inwiefern die grüne Gentechnik eine besondere Herausforderung für die Haftpflichtversicherung darstellt und welche möglichen Schadenszenarien Haftpflichtfälle auslösen können. Anhand einer Übersicht sollen die möglichen Schäden systematisiert und bewertet werden.
Modern biotechnology has huge potential for the betterment of the agricultural and food sector in Malaysia. However, there are many questions about the permissibility status of agro-biotechnology products such as genetically modified foods while others are concerned its impact on human health, environment and society. The objective of this paper is to assess the permissibility status of agro-biotechnology applications and products according to the five purposes of Islamic Law, Maqasid al-Shari'ah principles. The five purposes of al-Shari'ah that are also considered as the five purposes of agro-biotechnology are preservation of religion, preservation of health, preservation of progeny, preservation of intellect and preservation of wealth. The analysis showed that any agro-biotechnology application/product must fulfill one of the purposes if it is to be considered permissible. If any application/product violates any of the five purposes, it is deemed to be not permissible. In this paper, the principle of Maqasid al-Shari'ah is explained through the negative and positive aspects of agro-biotechnology and suggestions will be made on how to resolve the negative aspects. In conclusion, the application of Maqasid Al-Shari'ah is very important in any decision making related to the permissibility status of agro- biotechnology applications and products.
Over the last five years, we have conducted research on risk assessment of domestically developed genetically modified (GM) crops and found a number of factors which could delay risk assessment process. In this review, we described such cases and discussed the problem of transgene cassette integration, the lack of information on vectors, the poor quality control in seed production and absence of bioinformatic analysis on amino acid sequence homology before GM crop development. To solve these problems, we have suggested the introduction of the screening system of elite event before risk assessment process and quality control strategies for GM seed production. In addition, we suggested that the developers of GM crops should understand the importance of risk assessment and management for the commercialization of those crops and consider the biological and ecological characteristics of host plants. Consistent communications may need to be established between GM crop developers, risk assessors and risk managers at the initial stages of GM crop development to reduce trial-and-errors.
This paper considers public attitudes toward genetically modified plants in the fields or those soon to be planted. Analyzing
a regional public opinion survey of 680 respondents in Arkansas, Texas, Louisiana, New Mexico, and Oklahoma carried out in
the Spring—Summer of 2004, we look at the importance of public attitudes toward the three generations of agricultural biotechnology
in light of the changing regulatory environment. Specifically, we ask questions concerning the first generation of plants
with agronomic qualities, comparing our findings with previous studies, then look at perceptions of the second generation
of crops with product quality characteristics, and the third generation, which expresses industrial products and pharmaceutical
drugs. We look at perceived benefits, the likelihood, that these plants might accidentally enter the food supply, the likelihood
that these plants might be eaten by the respondent, as well as how worried and angry the respondent would be as a result.
Findings suggest that the public is still largely unaware of food biotechnology and genetically modified food products in
their life. When compared with the first and second generation agricultural biotechnology products, survey respondents indicated
that third generation products are not only likely to provide greater benefits, but are also potentially the source of more
worry and anger if accidentally eaten.
Despite the potential value of information technologies for supply chain management, they are not always adopted as expected. We examine coordination problems and corresponding incentive mechanisms between a manufacturer and a retailer for jointly investing in a new technology that has the potential to improve the efficiency and security of the supply chain. We show that depending on the relative strength of the efficiency and security concerns, supply chain stakeholders in a decentralized supply chain face two different coordination problems in investing in the new technology: (1) when security concerns are not strong enough to dominate efficiency concerns, stakeholders may not have a sufficient incentive to invest; therefore, at least one stakeholder under invests. Our analysis shows that internal incentive mechanisms, such as investment cost sharing between stakeholders, are not likely to resolve this underinvestment; instead, external financial incentive mechanisms, such as tax incentives, need to be considered. (2) When security concerns are strong enough to dominate efficiency concerns, stakeholders may not invest at all because of the uncertainty of other stakeholders’ behavior, rather than the lack of an incentive to invest in the technology. Our analysis shows that external interventions, such as imposing a penalty for a breach of security, can be used as a way of reducing such behavioral uncertainty.
Biotechnology, especially the development of genetically modified crops, offers many potential economic, nutritional and environmental benefits, but equally many potential hazards and risks. Approval procedures for the release of genetically modified organisms are established under the Gene Technology Act 2000 (Cth) . This article examines the methodology used to identify potential molecular risks associated with the use of biotechnology in food crop production. Evidence is presented which demonstrates the potential for molecular hazards to occur and brings into question the ability of risk assessment methods to identify these hazards. Despite appropriate regulations being in place, it appears that current hazard analysis procedures are not of sufficient sensitivity to ensure adequate protection for the Australian people and environment.
Many developing countries face the decision of whether to approve the testing and commercial use of insecticidal transgenic cotton and the task of developing adequate regulations for its use. In this review, we outline concepts and provide information to assist farmers, regulators and scientists in making decisions concerning this technology. We address seven critical topics: 1) molecular and breeding techniques used for the development of transgenic cotton cultivars, 2) properties of transgenic cotton cultivars and their efficacy against major insect pests, 3) agronomic performance of transgenic cotton in developing countries, 4) factors affecting transgene expression, 5) impact of gene flow between transgenic and non-transgenic cotton, 6) non-target effects of transgenic cotton, and 7) management of pest resistance to transgenic cotton.
In 2000, a genetically modified corn variety called StarLink that was not approved for human consumption was discovered in the food-corn supply. To estimate the price impact of this event on the U.S. corn market, we develop the relative price of a substitute method. This method applies not only to the StarLink event but also to rare events in other markets. We find that the contamination led to a 6.8% discount in corn prices and that the suppression of prices lasted for at least a year. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
StarLink corn, a variety not approved for human use, disrupted the marketing system in 2000 because of inadvertent commingling. This paper provides an overview of the economics of testing grain for biotech content. What are the risks facing buyers and sellers, and how are these influenced by testing protocols? How do market premiums and discounts, testing costs, and prior beliefs affect the incentives to test? A conceptual model is developed in which sellers choose whether to pre-test grain prior to shipment. Through simulation analysis, we illustrate the impact of market premiums and other variables on testing incentives and buyer risk.
The paper presents some results from a stated-preference study that compares three samples of urban consumers of extra-virgin olive oil from three representative Italian cities: Naples (South), Rome (Centre) and Milan (North). A series of multinomial logit models are estimated from choice experiments responses and tested for unobserved heterogeneity for EU labelling informing on PDO/PGI, organic and place of origin attributes. The consequences of such form of heterogeneity are flashed out with respect to issues of market segmentation on the basis of the pattern of correlation across preferences as estimated from mixed logit models. Results indicate that product origin matters differently in different cities, while the sample from Naples is the least heterogeneous the Milan and Rome samples display highest taste heterogeneity, but also stronger intensity of taste.
A partial-equilibrium, two-country model is developed to analyze implications from the introduction of genetically modified
(GM) products. In the model, innovators hold proprietary rights, farmers are (competitive) adopters, some consumers deem GM
food to be inferior in quality to traditional food, and the mere introduction of GM crops affects the costs of non-GM food
(because of costly identity preservation). Among the results derived, it is shown that, although GM innovations have the potential
to improve efficiency, some groups can be made worse off. Indeed, it is even possible that the costs induced by GM innovations
outweigh the efficiency gains.
Allen is an agricultural economist with the Economic Research Service, U.S. Department of Agriculture He received his postgraduate degree in economics from SUNY at Stony Brook in 1976. His focus is on international wheat and feed grains trade
- W Edward
Edward W. Allen is an agricultural economist with the Economic Research Service, U.S. Department of Agriculture, in Washington, DC. He received his postgraduate degree in economics from
SUNY at Stony Brook in 1976. His focus is on international wheat and feed grains trade.
EPA releases draft report on StarLink corn
- Environmental Protection Agency
Feed situation and outlook yearbook FDS
- U.S. Department of Agriculture, Economic Research Service
Agricultural statistics data base
- U.S. Department of Agriculture, National Agricultural Statistics Service
White paper on the possible presence of Cry9C Protein in processed human foods made from food fractions produced through the wet milling of corn
- Environmental Protection Agency
Speech presented at the North American Millers Association meeting San Antonio TX
- J A Wichtrich
Bushels of StarLink corn moved off-farm by grower prior to start of program. Data provided to the U.S. Department of Agriculture
- Aventis Cropscience
The StarLinkTMsituation
- N E Harl
- R G Ginder
- C R Hurburgh