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Economic Consequences of GM Food

Genetically modified (GM) crops are, as the name suggests, grown from seeds that are modified in laboratories at the genetic level. This modification can mean crops that are more resistant to weeds and pests, crops that require fewer fertilizers, crops that produce higher yields and crops that are more nutritious. The problems that arise are that the effect of these genetically modified crops on human health and the environment is, as yet, largely unknown and that the genes that produce them are patented by the companies that create them which makes the seeds more expensive.

  1. Short Term Gains

    • In the short term there may be some economic benefit to farmers using GM seeds. The seeds may be expensive but if the seeds can be grown with fewer pesticides, herbicides, fungicides and fertilizers this can result in a tremendous cost savings to farmers. If the crops also produce a higher yield, meaning that the seeds produce a larger harvest using the same amount of land, this will increase a farm's income. In addition to benefiting farmers, if genetically modified seeds produce more food with increased nutritional content it can be of tremendous benefit to the hundreds of millions of people worldwide who suffer from hunger and malnutrition.

    Patents and Pollination

    • Because the genes created for genetically modified seeds are patented by the manufacturers of the crops, the seeds cannot be grown without paying royalties to that company. A problem arises though due to pollination. When insects carry pollen between plants, genes are transferred along with the pollen. This can mean that non-GM crops begin showing the same genes as GM crops, which means that farmers who did not plant GM crops can be forced to pay the patent holders of the genes. One solution which has been proposed for this issue is making the GM seeds annual crops. This would mean that the GM crops do not go to seed and must be replanted annually. Doing so though would require farmers to buy new GM seeds annually which would cause a hardship for poorer farmers. Another problem created by the patents is that the patent holders can raise the price of growing GM crops at any time.

    Health and Environment

    • GM crops essentially constitute a new species introduced to ecosystems. The full consequences of doing this may not be known for many years. A 1999 study published in "Nature" showed high mortality rates among monarch butterflies that consumed GM pollen. In 2007 Spiegel International suggested that GM crops may be responsible for the global collapse in honeybee populations. A 2000 report by Deborah B. Whitman of Cambridge Information Group suggests that GM foods may be responsible for an increase in allergy rates, an increase in the severity of allergies and even new allergies, caused by the introduction of new foods. If it is determined that GM crops pose a significant environmental or health risk, the pest-resistant, weed-resistant, chemical-resistant plants may be very difficult and expensive to eliminate in areas where they have been grown for many years.

    Consumer Fears

    • Because so much is not known about GM foods, many consumers do not trust them. Although there are few restrictions in North America, many GM crops and foods containing GM crops are banned in Europe and all products containing GM crops must be labeled as such in Europe. Whether these fears are valid or not, consumer doubt may adversely effect the price of some GM crops. This is especially true of crops intended for export.

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