Biotech crop commercialization has resulted in significant global
economic and environmental benefits and is making important
contributions to global food security.
"Since 1996, biotech crop adoption has contributed to reducing the
release of greenhouse gas emissions from agriculture, decreased
pesticide spraying and significantly boosted farmers' incomes," said
Graham Brookes, director of PG Economics, co-author of the
report. "The technology has also made important contributions to
increasing the yields of many farmers, raising global production and
trading volumes of key crops. World price levels of crops like corn
and soybeans would also probably be higher than the current (record
high) levels if this technology had not been widely adopted by
farmers. These economic and environmental gains have also been
greatest in developing countries"
Previewing the findings of the comprehensive study, the key findings
are:
• Biotech crops have contributed to significantly reducing the
release of greenhouse gas emissions from agricultural practices. This
results from less fuel use and additional soil carbon storage from
reduced tillage with biotech crops. In 2006, this was equivalent to
removing 14.8 billion kg of carbon dioxide from the atmosphere or
equal to removing nearly 6.6 million cars from the road for one year;
• Biotech crops have reduced pesticide spraying by 286 million
kg (-7.8%: equivalent to about 40% of the annual volume of pesticide
active ingredient applied to arable crops in the European Union) and
as a result decreased the environmental impact associated with
herbicide and insecticide use on the area planted to biotech crops by
15.4%;
• There have been substantial net economic benefits at the farm
level amounting to nearly $7 billion in 2006 and $33.8 billion for
the eleven year period. The farm income gains in 2006 is equivalent
to adding 3.8% to the value of global production of the four main
biotech crops of soybeans, corn, canola and cotton;
• Of the total farm income benefit, 43% ($14.54 billion) has
been due to yield gains, with the balance arising from reductions in
the cost of production. Two thirds of the yield gain derive from
adoption of insect resistant crops and the balance from herbicide
tolerant crops;
• Farmers in developing countries obtained the largest share of
the farm income gains in 2006 (54%) and over the eleven year period
obtained 49% of the total ($33.8 billion) gains;
• The cost farmers paid for accessing GM technology in 2006 was
equal to 28% of the total technology gains (a total of $9.6 billion
inclusive of farm income gains ($6.91 billion) plus cost of the
technology payable to the seed supply chain ($2.7 billion ));
• For farmers in developing countries the total cost of
accessing the technology in 2006 was equal to about 17% of total
technology gains, whilst for farmers in developed countries the cost
was 38% of the total technology gains. Whilst circumstances vary
between countries, the higher share of total technology gains
accounted for by farm income gains in developing countries relative
to the farm income share in developed countries reflects factors such
as weaker provision and enforcement of intellectual property rights
in developing countries;
• In terms of additional production – in 2006 global production
of soybeans, corn, cotton and canola were respectively +5%, +1.4%,
+5.2% and +0.5% higher than levels would have otherwise been if GM
technology had not been used by farmers. This amounted to additional
volumes of production of +11.6 million tonnes of soybeans, +9.65
million tonnes of corn, +1.38 million tonnes of cotton lint and +0.21
million tonnes of canola;
• In terms of area equivalents – if the GM technology used by
farmers in 2006 had not been available, maintaining global production
levels at the 2006 levels would have required additional plantings of
3.9 million ha of soybeans, 1 million ha of corn, 1.8 million ha of
cotton and 0.15 million ha of canola;
• Whilst the additional volumes of food and fibre production
arising from the use of GM technology suggest a small impact relative
to global production, these volumes are far more significant in terms
of global trade in these commodities – equal to +17% of global trade
on soybeans, +11% of global trade in corn, +14%of global trade in
cotton lint and +3% of global trade in canola. This means that
global trade levels in these crops are probably significantly higher
than the levels would have been in the absence of use of GM
technology and therefore world prices of these traded crops in 2006
were probably lower than they would otherwise have been. In other
words, GM technology is having an important impact on contributing to
global supplies of these food, feed and fibre commodities and to
limiting the level of price increases that have occurred in the last
2-3 years.
Graham Brookes
PG Economics
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