Rationale for the report

Strong anti-GM technology sentiment in some parts of Europe has been influencing the food and feed supply chains across Europe for 3-4 years.  This has contributed to the development of distinct non GM derived food and feed markets and effectively halted the EU wide approvals process for GMOs. 

On the 17th October 2002 new rules governing the safety approval of field trials and the growing of genetically modified (GM) crops came into force in the European Union (EU).  Many people believe that this legislation is an important new step in facilitating the wider commercialization of GM crops in Europe.   

The new directive (2001/18/EC) approved in April 2001 upgrades existing legislation on crops which have been genetically altered, by more clearly laying down requirements; for providing information to the public; the monitoring of possible long term effects on the environment and human health; and the labelling and tracing of GMOs.  This legislation (and further regulations on labelling and traceability likely to be approved in the coming months), should lead to the better functioning of markets as European farmers will, for the first time, be able to choose whether to plant GM crops or not based on their benefits/costs relative to the market incentives offered in the non GM derived alternative. 

The new legislation should also pave the way for European farmers and supply chain users to plan for their introduction over the coming years.  The possibility of increased cultivation of GM crops in Europe will have major implications for all stakeholders in the European food/feed chains.  Experience from the USA and South America has demonstrated that GM crop technology can be adopted at an extremely fast rate resulting in changes to farm and crop protection practices, cropping systems, agrochemical prices, food/feed distribution and prices. 

Our approach will be to take into consideration the respective merits of GM crops and non GM crops and provide an objective and balanced assessment of the likely future development of GM crops in Europe. 

The report will support decision-making/strategic planning and provide a central resource on the key issues, the products in development, the timetables and the potential impacts.  The report will be researched and written by PG Economics and follows on from the successful and widely taken up series of Crop Specific Reports 'GM Crops: economic and strategic issues through the food chain' and forward looking reports on global markets for GM soybeans & derivatives and GM rice. 

Objectives

PG Economics is publishing this report to provide GM technology providers, input suppliers, the animal feed industries, farmers, oilseed crushers, food manufacturers, slaughterers/processors, distributors, traders, retailers, consumer groups and lobby groups with sound analysis of the economic and market dynamics that are developing and will shape the future adoption of GM crops in Europe. 

The report provides insights into the economic and commercial reasons why GM technology has been so rapidly adopted and how this will affect the European marketplace for all the major user sectors.  This will assist the planning and communication of business strategies in global, European and national agricultural and food markets.  Core strategic market information on arable crop-specific biotechnology will be presented and specific economic, market and strategic issues will be analysed. 

Key questions answered

Senior management and key decision takers need to have answers to the following crucial questions that will be addressed in the report: 

> What GM crops are currently being grown in Europe?

> What GM crops are under development for the European farmer and when will they be introduced?

> Why have many farmers in North and South America and parts of Europe rapidly taken up planting of GM crops?

> What has been the impact on cropping patterns, distribution and trading?

> What are the key new rules & regulations impacting on GM crops and what will they mean in practice?

> How will the markets for non GM derived products develop?

> What will be the balance between GM and non GM derived markets and crop plantings?

> Who will be the winners and losers? 

PUBLICATION DATE: FEBRUARY 2003 

Publisher: Agricultural Biotechnology Consultancy Reports

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