IDEAS home Printed from https://ideas.repec.org/p/cdi/wpaper/1818.html
   My bibliography  Save this paper

Is GM Soybean Cultivation in Argentina Sustainable?

Author

Listed:
  • Johanna CHOUMERT

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Pascale PHELINAS

Abstract

This paper explores the long term sustainability of Argentina’s specialization in genetically modified soybean cultivation. It is conceived as an evidence-based assessment of the most relevant economic, social, and environmental, implications of the “soybeanization” of Argentinian agriculture. We combine 2 sources of primary and secondary quantitative data: the National Agricultural Census, and farm level data from a field survey carried out in 2 provinces of the Argentinian Pampas. Our results suggest a major conflict between the success of the “soybeanization” of Argentinian agriculture measured in terms of production and profit records, and the social, economic, and environmental sustainability of this new model of production. GM soybean package adoption has increased farm productivity, and has reduced the costs per unit produced. The resulting dramatic increase in profits constituted a strong incentive to extend the scale of production. The development of companies comprising actors from both agricultural and non-agricultural sectors, constituted a good way to extend the scale of production. But this technological innovation in agriculture has been the source of numerous criticisms. It is widely held among Argentinian researchers, in particular, that soybean expansion has increased land inequality and displaced labor. However overall we find a mixed empirical picture of changing land distribution patterns and labor displacement resulting from the soybean expansion. The environmental implications of agricultural biotechnology are alarming, and the long-term sustainability of GM crops can seriously be questioned. In a context where GM soybean production has become one of the strategic components of Argentina’s economy, as well as in the country’s international positioning, our results suggest that it is highly unlikely that the government will implement policies against this precious crop and its by-products. However, promoting sustainable agricultural growth has become not only desirable, but necessary.

Suggested Citation

  • Johanna CHOUMERT & Pascale PHELINAS, 2016. "Is GM Soybean Cultivation in Argentina Sustainable?," Working Papers 201614, CERDI.
  • Handle: RePEc:cdi:wpaper:1818
    as

    Download full text from publisher

    File URL: http://publi.cerdi.org/ed/2016/2016.14.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Giancarlo Moschini & Harvey Lapan & Andrei Sobolevsky, 2000. "Roundup ready® soybeans and welfare effects in the soybean complex," Agribusiness, John Wiley & Sons, Ltd., vol. 16(1), pages 33-55.
    2. Johanna CHOUMERT & Pascale PHELINAS, 2015. "Farmland Rental Values in GM Soybean Areas of Argentina: Do Contractual Arrangements Matter?," Working Papers 201532, CERDI.
    3. Rótolo, G.C. & Montico, S. & Francis, C.A. & Ulgiati, S., 2015. "How land allocation and technology innovation affect the sustainability of agriculture in Argentina Pampas: An expanded life cycle analysis," Agricultural Systems, Elsevier, vol. 141(C), pages 79-93.
    4. Kalifi Ferretti-Gallon and Jonah Busch, 2014. "What Drives Deforestation and What Stops It? A Meta-Analysis of Spatially Explicit Econometric Studies - Working Paper 361," Working Papers 361, Center for Global Development.
    5. Arancibia, Florencia, 2013. "Challenging the bioeconomy: The dynamics of collective action in Argentina," Technology in Society, Elsevier, vol. 35(2), pages 79-92.
    6. Pohl Nielsen, Chantal & Robinson, Sherman & Thierfelder, Karen, 2001. "Genetic Engineering and Trade: Panacea or Dilemma for Developing Countries," World Development, Elsevier, vol. 29(8), pages 1307-1324, August.
    7. Bekerman, Marta & Dulcich, Federico, 2013. "The international trade position of Argentina. Towards a process of export diversification?," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    8. Wilhelm Klümper & Matin Qaim, 2014. "A Meta-Analysis of the Impacts of Genetically Modified Crops," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-7, November.
    9. Sarah Velten & Julia Leventon & Nicolas Jager & Jens Newig, 2015. "What Is Sustainable Agriculture? A Systematic Review," Sustainability, MDPI, vol. 7(6), pages 1-33, June.
    10. Choumert, Johanna & Phélinas, Pascale, 2015. "Determinants of agricultural land values in Argentina," Ecological Economics, Elsevier, vol. 110(C), pages 134-140.
    11. Pretty, Jules N., 1995. "Participatory learning for sustainable agriculture," World Development, Elsevier, vol. 23(8), pages 1247-1263, August.
    12. Filomeno, Felipe Amin, 2013. "State capacity and intellectual property regimes: Lessons from South American soybean agriculture," Technology in Society, Elsevier, vol. 35(2), pages 139-152.
    13. Pellegrini, Pablo A., 2013. "What risks and for whom? Argentina's regulatory policies and global commercial interests in GMOs," Technology in Society, Elsevier, vol. 35(2), pages 129-138.
    14. Viglizzo, Ernesto F. & Frank, Federico C., 2006. "Land-use options for Del Plata Basin in South America: Tradeoffs analysis based on ecosystem service provision," Ecological Economics, Elsevier, vol. 57(1), pages 140-151, April.
    15. Cabrini, Silvina M. & Calcaterra, Carlos P., 2016. "Modeling economic-environmental decision making for agricultural land use in Argentinean Pampas," Agricultural Systems, Elsevier, vol. 143(C), pages 183-194.
    16. Chisari, Omar O. & Fanelli, JoseMaria & Frenkel, Roberto, 1996. "Argentina: Growth resumption, sustainability, and environment," World Development, Elsevier, vol. 24(2), pages 227-240, February.
    17. Arora, Poonam & Bert, Federico & Podesta, Guillermo & Krantz, David H., 2015. "Ownership effect in the wild: Influence of land ownership on agribusiness goals and decisions in the Argentine Pampas," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 58(C), pages 162-170.
    18. Haggblade, Steven & Hazell, Peter, 1989. "Agricultural technology and farm-nonfarm growth linkages," Agricultural Economics, Blackwell, vol. 3(4), pages 345-364, December.
    19. Robert Finger & Nadja El Benni & Timo Kaphengst & Clive Evans & Sophie Herbert & Bernard Lehmann & Stephen Morse & Nataliya Stupak, 2011. "A Meta Analysis on Farm-Level Costs and Benefits of GM Crops," Sustainability, MDPI, vol. 3(5), pages 1-20, May.
    20. Matin Qaim & Greg Traxler, 2005. "Roundup Ready soybeans in Argentina: farm level and aggregate welfare effects," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 73-86, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bequet, Ludovic, 2021. "Agricultural productivity and land inequality. Evidence from the Philippines," MPRA Paper 108131, University Library of Munich, Germany.
    2. Antoci, Angelo & Galdi, Giulio & Russu, Paolo, 2022. "Environmental degradation and comparative advantage reversal," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    3. Marlène GUILLON & Jacky MATHONNAT, 2017. "Is there a strategy in China’s health official development assistance to African countries?," Working Papers 201720, CERDI.
    4. Shwu-Pyng Joanna Chen & Man-Wah Li & Ho-Yan Wong & Fuk-Ling Wong & Tingting Wu & Junyi Gai & Tianfu Han & Hon-Ming Lam, 2022. "The Seed Quality Assurance Regulations and Certification System in Soybean Production—A Chinese and International Perspective," Agriculture, MDPI, vol. 12(5), pages 1-14, April.
    5. Ludovic Bequet, 2022. "Agricultural productivity and land inequality. Evidence from the Philippines," DeFiPP Working Papers 2203, University of Namur, Development Finance and Public Policies.
    6. Pascale PHELINAS & Sonia SCHWARTZ, 2017. "Regulating transgenic soybean production in Argentina," Working Papers 201721, CERDI.
    7. Virginia, Aparicio & Zamora, Martín & Barbera, Agustín & Castro-Franco, Mauricio & Domenech, Marisa & De Gerónimo, Eduardo & Costa, José Luis, 2018. "Industrial agriculture and agroecological transition systems: A comparative analysis of productivity results, organic matter and glyphosate in soil," Agricultural Systems, Elsevier, vol. 167(C), pages 103-112.
    8. Jimena Gonzalez-Ramirez & Poonam Arora & Guillermo Podesta, 2018. "Using Insights from Prospect Theory to Enhance Sustainable Decision Making by Agribusinesses in Argentina," Sustainability, MDPI, vol. 10(8), pages 1-15, August.
    9. Maria Eugenia Giraudo & Jean Grugel, 2022. "Imaginaries of Soy and the Costs of Commodity‐led Development: Reflections from Argentina," Development and Change, International Institute of Social Studies, vol. 53(4), pages 796-826, July.
    10. Antonio A. R. Ioris, 2018. "The Politics of Agribusiness and the Business of Sustainability," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    11. Jochen Dürr & Marcelo Sili, 2022. "New or Traditional Approaches in Argentina’s Bioeconomy? Biomass and Biotechnology Use, Local Embeddedness, and Sustainability Outcomes of Bioeconomic Ventures," Sustainability, MDPI, vol. 14(21), pages 1-28, November.
    12. Marcelo Sili & Jochen Dürr, 2022. "Bioeconomic Entrepreneurship and Key Factors of Development: Lessons from Argentina," Sustainability, MDPI, vol. 14(4), pages 1-28, February.
    13. Antoci, Angelo & Borghesi, Simone & Iannucci, Gianluca & Ticci, Elisa, 2019. "Land use and pollution in a two-sector evolutionary model," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 114-125.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jimena Gonzalez-Ramirez & Poonam Arora & Guillermo Podesta, 2018. "Using Insights from Prospect Theory to Enhance Sustainable Decision Making by Agribusinesses in Argentina," Sustainability, MDPI, vol. 10(8), pages 1-15, August.
    2. Pascale Phelinas & Sonia Schwartz, 2017. "Regulating transgenic soybean production in Argentina," Working Papers halshs-01656924, HAL.
    3. Smyth, Stuart J. & Falck-Zepeda, Jose & Ludlow, Karinne, 2016. "The Costs of Regulatory Delays for Genetically Modified Crops," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 17(2), pages 1-23, December.
    4. Marlène GUILLON & Jacky MATHONNAT, 2017. "Is there a strategy in China’s health official development assistance to African countries?," Working Papers 201720, CERDI.
    5. John Herbert Ainembabazi & Leena Tripathi & Joseph Rusike & Tahirou Abdoulaye & Victor Manyong, 2015. "Ex-Ante Economic Impact Assessment of Genetically Modified Banana Resistant to Xanthomonas Wilt in the Great Lakes Region of Africa," PLOS ONE, Public Library of Science, vol. 10(9), pages 1-21, September.
    6. Bequet, Ludovic, 2020. "Biotech Crops, Input Use and Landslides Case Study of Herbicide Tolerant Corn in the Philippine Highlands," Ecological Economics, Elsevier, vol. 177(C).
    7. Graham Brookes & Tun-Hsiang (Edward) Yu & Simla Tokgoz & Amani Elobeid, 2010. "Production and Price Impact of Biotech Crops, The," Food and Agricultural Policy Research Institute (FAPRI) Publications (archive only) 10-wp503, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. Nielsen, Chantal Pohl & Robinson, Sherman & Thierfelder, Karen, 2002. "Trade in genetically modified food: A survey of empirical studies," TMD discussion papers 106, International Food Policy Research Institute (IFPRI).
    9. Johanna CHOUMERT & Pascale PHELINAS, 2015. "Farmland Rental Values in GM Soybean Areas of Argentina: Do Contractual Arrangements Matter?," Working Papers 201532, CERDI.
    10. GianCarlo Moschini & Harun Bulut & Luigi Cembalo, 2005. "On the Segregation of Genetically Modified, Conventional and Organic Products in European Agriculture: A Multi‐market Equilibrium Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 347-372, December.
    11. Mehta, N., 2015. "Changing Inter-Sectoral Linkages: Role of Technology Adoption in Agricultural Growth," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 28(Conferenc).
    12. Hervouet, Adrien & Langinier, Corinne, 2018. "Plant Breeders’ Rights, Patents, and Incentives to Innovate," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(1), January.
    13. Bullock, David S. & D'Arcangelo, Filippo Maria & Desquilbet, Marion, 2018. "A discussion of the market and policy failures associated with the adoption of herbicide-tolerant crops," TSE Working Papers 18-959, Toulouse School of Economics (TSE), revised Aug 2019.
    14. Wilhelm Klümper & Matin Qaim, 2014. "A Meta-Analysis of the Impacts of Genetically Modified Crops," PLOS ONE, Public Library of Science, vol. 9(11), pages 1-7, November.
    15. Matty Demont & Koen Dillen & Erik Mathijs & Eric Tollens, 2007. "GM Crops in Europe: How Much Value and for Whom? Les cultures génétiquement modifiées en Europe : quels avantages et pour qui? Genetisch veränderte Feldfrüchte in Europa: Welcher Wert und für wen?," EuroChoices, The Agricultural Economics Society, vol. 6(3), pages 46-53, December.
    16. Sarah Velten & Nicolas W. Jager & Jens Newig, 2021. "Success of collaboration for sustainable agriculture: a case study meta-analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14619-14641, October.
    17. Trigo, Ana & Marta-Costa, Ana & Fragoso, Rui, 2023. "Improving sustainability assessment: A context-oriented classification analysis for the wine industry," Land Use Policy, Elsevier, vol. 126(C).
    18. Ana Trigo & Ana Marta-Costa & Rui Fragoso, 2021. "Principles of Sustainable Agriculture: Defining Standardized Reference Points," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    19. Dillen, Koen & Demont, Matty & Tollens, Eric, 2008. "Modelling heterogeneity to estimate the ex ante value of biotechnology innovations," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43945, European Association of Agricultural Economists.
    20. Traxler, Greg, 2004. "The Economic Impacts of Biotechnology-Based Technological Innovations," ESA Working Papers 23806, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).

    More about this item

    Keywords

    Latin America; Argentina; GM soybean; Sustainability; Agribusiness;
    All these keywords.

    JEL classification:

    • N56 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Latin America; Caribbean
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdi:wpaper:1818. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vincent Mazenod (email available below). General contact details of provider: https://edirc.repec.org/data/ceauvfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.