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Starlink: Impacts On The U.S. Corn Market And World Trade

Author

Listed:
  • Lin, William W.
  • Price, Gregory K.
  • Allen, Edward W.

Abstract

StarLink disrupted the U.S. corn market during the marketing year of 2000/01 as a result of inadvertent commingling. The potential volume of marketed StarLink-commingled corn from the 2000 crop located in areas near wet and dry millers prior to October 1, 2000, is estimated at 124 million bushels. Price differentials between StarLink-free and StarLink-commingled corn existed during the early stage of the incident, but eroded quickly. While StarLink has had a negative impact on U.S. corn exports, most of the reduction in exports to Japan and South Korea during November 2000 and March 2002 is due to Japan's increased purchases from South Africa, China's decision to continue to subsidize exports, increased competition from the large back-to-back crops in Argentina, and a record Brazilian crop.

Suggested Citation

  • Lin, William W. & Price, Gregory K. & Allen, Edward W., 2002. "Starlink: Impacts On The U.S. Corn Market And World Trade," 2002 Annual meeting, July 28-31, Long Beach, CA 19715, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea02:19715
    DOI: 10.22004/ag.econ.19715
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    Cited by:

    1. Mulvaney, Dustin & Krupnik, Timothy J., 2014. "Zero-tolerance for genetic pollution: Rice farming, pharm rice, and the risks of coexistence in California," Food Policy, Elsevier, vol. 45(C), pages 125-131.
    2. Kalaitzandonakes, Nicholas & Kaufman, James & Miller, Douglas, 2014. "Potential economic impacts of zero thresholds for unapproved GMOs: The EU case," Food Policy, Elsevier, vol. 45(C), pages 146-157.
    3. Harvey E. Lapan & Giancarlo Moschini, 2004. "Innovation and Trade with Endogenous Market Failure: The Case of Genetically Modified Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 634-648.
    4. Colin A. Carter & Aaron Smith, 2007. "Estimating the Market Effect of a Food Scare: The Case of Genetically Modified StarLink Corn," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 522-533, August.
    5. Schmitz, Troy G. & Schmitz, Andrew & Moss, Charles B., 2004. "Two Approaches To Measuring The Economic Impact Of Starlink Corn On U.S. Producers," 2004 Annual meeting, August 1-4, Denver, CO 20306, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Johnson, D. Demcey & Lin, William W., 2004. "The Economics of Testing for Biotech Grain: Application to StarLink Corn," 2004 Annual meeting, August 1-4, Denver, CO 20044, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Troy G. Schmitz & Andrew Schmitz & Charles B. Moss, 2005. "The economic impact of StarLink corn," Agribusiness, John Wiley & Sons, Ltd., vol. 21(3), pages 391-407.
    8. Lee, Jongkuk & Palekar, Udatta S. & Qualls, William, 2011. "Supply chain efficiency and security: Coordination for collaborative investment in technology," European Journal of Operational Research, Elsevier, vol. 210(3), pages 568-578, May.
    9. Carter, Colin A. & Smith, Aaron D., 2004. "The Market Effect of a Food Scare: The Case of Genetically Modified StarLink Corn," Working Papers 11997, University of California, Davis, Department of Agricultural and Resource Economics.
    10. Magnier, Alexandre & Konduru, Srinivasa & Kalaitzandonakes, Nicholas G., 2009. "Market and Welfare Effects of Trade Disruptions from Unapproved Biotech Crops," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49592, Agricultural and Applied Economics Association.
    11. 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.
    12. Schmitz Troy G. & Schmitz Andrew & Moss Charles B., 2004. "Did StarLink Reduce Import Demand for Corn?," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 2(2), pages 1-16, May.

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