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Evidence of price premiums for non-GM grains in world markets

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  • Foster, Max

Abstract

World markets for a number of grains (soybeans, corn, canola and cottonseed) have become differentiated into GM, certified non-GM and organic segments, which has created opportunities and challenges for grain market participants. This paper summarises the evidence to date on the extent of price premiums for non-GM products throughout the world. A broad economic framework is employed to explain the observed pattern of price premiums. The key conclusion of the analysis is that world grains markets for which there are GM variants are dominated by GM grains, but there are niches for certified non-GM and organically produced grains, for which price premiums are paid. With some certified non-GM grains for a specific purpose, price premiums appear to be increasing. Apart from consumer attitudes, the key drivers of price premiums are mandatory labelling of GM products in some key grain consuming countries (particularly high income countries), higher production costs for non-GM crops and the cost of identity preservation.

Suggested Citation

  • Foster, Max, 2010. "Evidence of price premiums for non-GM grains in world markets," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59079, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare10:59079
    DOI: 10.22004/ag.econ.59079
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    References listed on IDEAS

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    1. Greene, Catherine R. & Dimitri, Carolyn & Lin, Biing-Hwan & McBride, William D. & Oberholtzer, Lydia & Smith, Travis A., 2009. "Emerging Issues in the U.S. Organic Industry," Economic Information Bulletin 58617, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    2. Wesseler, Justus, 2014. "Biotechnologies and agrifood strategies: opportunities, threats and economic implications," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(3), pages 1-18, December.

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    Demand and Price Analysis;

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