agricultural biotechnology marshall a. martin professor and associate head department of...
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Agricultural Biotechnology
Marshall A. Martin
Professor and Associate Head
Department of Agricultural Economics
Purdue University
March 2000
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What is biotechnology?
• New name for an old tool
• Molecular biology
• Genetic engineering
• Techniques of rDNA
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Medical applications of biotechnology
• Control of diabetes with Humalin or Humalog
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What are the new products of biotechnology?
• Food ingredients, e.g., chymosin
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What are the new products of agricultural biotechnology?
• Animal growth hormones, e.g., bST
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What are the new products of agricultural biotechnology?
• Herbicide tolerant crops, e.g., Roundup Ready soybeans and corn and Liberty Link corn
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What are the new products of agricultural biotechnology?
• Insect resistant crops commercially available, e.g., Bt corn, cotton, and potatoes
• Corn rootworm resistance in 2001?
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Biotechnology Adoption: 1999• Chymosin 80%
• Bst– Farmers 15%
– Herds 30%
• Crops – Corn 30%
– Cotton 50%
– soybeans 57%
Technology Adoption Rates
0
20
40
60
80
100
1 3 5 7 9 11 13 15 17 19
Years
- %
_
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What are the new products of agricultural biotechnology?
• Identity-preserved or specific-attribute crops (vaccines, higher oil or starch content, additional amino acids)
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Who are the stakeholders?
• Farmers
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Who are the stakeholders?
• Agribusiness
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Who are the stakeholders?
• Consumers
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Who are the stakeholders?
• Environmentalists
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Who are the stakeholders?
• International traders
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Who are the stakeholders?
• Policy makers
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Who are the stakeholders?
• Ethicists
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Biotechnology Critics
What are their concerns?
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Monarch Butterfly
• Cornell Universitylaboratory study of Btcorn pollen
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Monarch Butterfly
• Cornell Universitylaboratory study of Btcorn pollen
• Recent field researchsuggests very fewadverseeffects fromBt corn
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“Superweed”
• Cross pollination
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“Superweed”
• Cross pollination
• Laboratory study ofcanola and mustardweed
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“Superweed”
• Cross pollination
• Laboratory study ofcanola and mustardweed
• Not likely a majorproblem butis possible
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Food Safety
• Allergenicity
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Food Safety
• Allergenicity
• Unknown diseases orfuture health consequences
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Food Safety
• Allergenicity
• Unknown diseases orfuture health consequences
• Safety of animal productsfrom livestock thatconsumeGMO-feed
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Structure of Agriculture
• Corporate control ofthe food system
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Structure of Agriculture
• Corporate control ofthe food system
• Ownership ofintellectual propertyrights
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Structure of Agriculture
• Corporate control ofthe food system
• Ownership ofintellectual propertyrights
• Further decline in therole of the family farm
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Xenotransplant
• Use of animals such asmilk-goats as bio-factories
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Xenotransplant
• Use of animals such asmilk-goats as bio-factories
• Organ transplant suchas pig heart into ahuman
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Who regulates agricultural biotechnology?
• U.S. Department of Agriculture’s Animal and Plant Health Inspection Service
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Who regulates agricultural biotechnology?
• Environmental Protection Agency
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Who regulates agricultural biotechnology?
• Food and Drug Administration
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The International Trade Controversy over GMOs
• Who are our customers for agricultural commodities?
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U.S. Corn Use 1999
• Exports 21%
• Feed 59%
• Food, Seed,& Industrial20%
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U.S. Shelled Corn Exports 1999
• Canada 2%• Mexico 11%• South America 8%• EU-15 <1%• Asia 60%• (Japan) (30%)
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U.S. Corn By-Products Exports 1999
• Canada 1%• Mexico 3%• South America 1%• EU-15 88%• Asia 6%• (Japan) (2%)
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U.S. Soybean Use 1999
• Exports 31%
• Crush 61%
• Seed & Residual 8%
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U.S. Soybean Exports1999
• Canada 1%• Mexico 15%• South America 1%• EU-15 26%• Asia 52%• (Japan) (16%)
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U.S. Soybean Meal Exports1999
• Canada 13%• Mexico 2%• South America 15%• EU-15 7%• Asia 33%• (Japan) (4%)
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Many Europeans uneasy about biotechnology
• Strong environmental movement
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Many Europeans uneasy about biotechnology
• Strong environmental movement• No coherent regulatory system
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Many Europeans uneasy about biotechnology
• Strong environmental movement• No coherent regulatory system• Weak public trust in government
since mad cow disease
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Many Europeans uneasy about biotechnology
• Strong environmental movement• No coherent regulatory system• Weak public trust in government
since mad cow disease• EU consumers perceive no
benefits with potential risk
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Many Europeans uneasy about agricultural biotechnology
• Strong environmental movement• No coherent regulatory system• Weak public trust in government
since mad cow disease• EU consumers perceive no
benefits with potential risk• Protectionist farm policies
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Many Europeans uneasy about agricultural biotechnology
• Strong environmental movement• No coherent regulatory system• Weak public trust in government
since mad cow disease• EU consumers perceive no
benefits with potential risk• Protectionist farm policies• Strong support for
labeling
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Geographic diversity in views
• Least support in Austria, Germany, Denmark, Sweden, and Luxembourg
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Geographic diversity in views
• Least support in Austria, Germany, Denmark, Sweden, and Luxembourg
• More support in Portugal, Spain, Belgium, Finland, and Greece
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U.S. Consumer Attitudes towards Food Biotechnology
• About 3/4 Americans have heard of biotechnology
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U.S. Consumer Attitudes towards Food Biotechnology
• About 3/4 Americans have heard of biotechnology
• About 1 out of 3 consumers know that GMO foods are now in our supermarkets
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U.S. Consumer Attitudes towards Food Biotechnology
• About 3/4 would buy a GMO food if less pesticide use
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U.S. Consumer Attitudes towards Food Biotechnology
• About 3/4 would buy a GMO food if less pesticide use
• About 3/4 support FDA labeling of biotechnology foods with health and nutrition information
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Montreal Agreement• “Precautionary principle”-
allows refusal of import without scientific basis
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Montreal Agreement• “Precautionary principle”-
allows refusal of import without scientific basis
• Establishes Clearing House for GMO seeds
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Montreal Agreement• “Precautionary principle”-
allows refusal of import without scientific basis
• Establishes Clearing House for GMO seeds
• Label “may contain” GMOs for food and feed
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Montreal Agreement• “Precautionary principle”-allows
refusal of import without scientific basis
• Establishes Clearing House for GMO seeds
• Label “may contain” GMOs for food and feed
• Segregation still likely until 2002 when negotiators must meet again
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What should I consider before adopting GMO crops?
• Technology fee
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What should I consider before adopting GMO crops?
• Technology fee• Probability of a pest
problem
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What should I consider before adopting GMO crops?
• Technology fee• Probability of a pest
problem• Per acre return of
GMO vs non-GMO
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What should I consider before adopting GMO crops?
• Technology fee• Probability of a pest
problem• Per acre return of
GMO vs non-GMO • Is there a market?
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What should I consider before adopting GMO crops?
• Technology fee• Probability of a pest
problem• Per acre return of
GMO vs non-GMO • Is there a market?• Will I need to
segregate the crop?
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Should I adopt GMO crops in Indiana in 2000?
• Bt corn?– No in most Indiana
locations due to low probability of ECB infestation
• ID-219 “Economics of Bt Corn”
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Should I adopt GMO crops in Indiana in 2000?
• Roundup soybeans?– Maybe, depending on weed
pressure, soil erosion concerns, input costs, and expected markets
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Your Questions