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Impact of the Chinese embargo against MIR162 corn on Canadian corn producers

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  • Troy G. Schmitz

Abstract

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. En 2009, Syngenta a créé deux nouvelles variétés de maïs résistantes aux insectes, appelées Agrisure Viptera et Agrisure Duracade, qui contiennent le caractère génétique MIR162 renforcé par biotechnologie. Ces variétés ont été approuvées pour être commercialisées en Amérique du Nord en 2010 et ont été plantées au printemps 2011. La Chine a imposé un embargo sur les importations de maïs d'Amérique du Nord à compter du 20 novembre 2013 en raison de sa politique de tolérance zéro à l′égard des caractères génétiques non approuvés des cultures importées. L'embargo n'a été levé que le 14 décembre 2014. L'embargo a entraîné une augmentation de la disponibilité du maïs nord‐américain et une réduction du prix du maïs cultivé par les producteurs canadiens. Le prix relatif par une méthode de substitution a été appliqué aux données hebdomadaires sur les prix du maïs en Ontario et sur les prix de l'orge fourragère en Saskatchewan. L'embargo chinois contre le maïs MIR162 a fait baisser le prix du maïs reçu par les agriculteurs canadiens d'environ 1,24% ou 5,32 cents le boisseau. Si ce n’était de l'embargo chinois contre le maïs MIR162, les producteurs de maïs canadiens auraient réalisé des revenues supplémentaires estimées à 29,7 millions de dollars en 2013/2014.

Suggested Citation

  • Troy G. Schmitz, 2018. "Impact of the Chinese embargo against MIR162 corn on Canadian corn producers," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 571-586, December.
    • Handle: RePEc:bla:canjag:v:66:y:2018:i:4:p:571-586
    DOI: 10.1111/cjag.12185
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    3. Sven Anders & Wuyang Hu, 2018. "Introduction to the special issue on food consumption and marketing in Canada, the United States, and China: An intertwined system," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(4), pages 537-538, December.
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    5. Jakub Horak, 2021. "Sanctions as a Catalyst for Russia’s and China’s Balance of Trade: Business Opportunity," JRFM, MDPI, vol. 14(1), pages 1-26, January.
    6. Gao, Yixuan & Malone, Trey & Schaefer, K. Aleks & Myers, Robert J., 2023. "Disentangling Short-Run COVID-19 Price Impact Pathways in the US Corn Market," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(2), May.
    7. McKendree, Melissa G. S. & Saitone, Tina L. & Schaefer, K Aleks, 2020. "Cattle Cycle Dynamics in a Modern Agricultural Market: Competition in Holstein Cattle Procurement," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304380, Agricultural and Applied Economics Association.
    8. Adjemian, Michael K. & Smith, Aaron & He, Wendi, 2021. "Estimating the market effect of a trade war: The case of soybean tariffs," Food Policy, Elsevier, vol. 105(C).

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