The generalized acceptance
of genetically modified (GM) crops by Argentinean farmers is reminiscent of
a similar trend in the United States in recent years. GM crops have been cultivated
for over five years in Argentina and farmers have clearly benefited through
higher yields and lower production costs. Everything seemed to be going smoothly
until anti-GM activists at home and abroad started demanding tighter controls
on the distribution and consumption of GM crops.
The GM issue was discussed
from a farmer’s perspective in October of this year when state agriculture ministers
met with the Association of Argentinean
Co-operatives. One concern voiced during the session was that prices of GM crops
will decline due to rising production and declining
consumption. Among the conclusions released following the meeting is that “(growers)
can not overlook the commercial factors involved and sooner or later they will
have an impact on their pocketbooks. Rising yields have proven to be a two-edged
sword for growers; on the one hand they increase the size of harvests, but on the
other they lead to surpluses which depress commodity prices.”
Go deeper with GlobalData
|
“Rising yields have proven to be a two-edged sword for growers; on the one hand they increase the size of harvests, but on the other they lead to surpluses which depress commodity prices.“ |
The worst scenario for nations
such as Argentina would be a two-tier market in which GM crops are sold separately
and at a lower price than non-modified crops. “A two-tier commodities market
would be costly if not downright impossible to manage, given the current level
of concern over the use of certain GM crops for human consumption. It would
be necessary to have completely separate storage and transportation systems
for GM and non-GM varieties. Any mixing of the two could result in costly product
recalls”, explained Steven Lewis, editor of Market: Latin America.
A bill submitted to Argentina’s
federal legislature in the last week of July 2000 calls for foods containing
GM crops to be labelled as such. The requirement would apply to all human and
animal foods containing genetically engineered substances or their derivatives.
Passage of such legislation would be the first step towards creating a two-tier
market. Argentinean consumers are not basing food purchase decisions on the
presence or absence of GM ingredients at this point in time, yet consumer advocates
and environmentalists who actively oppose consumption of GM substances by humans
could ultimately sway public opinion in their direction.
Rather than rely on conflicting
findings from foreign studies related to the effects of GM foods on humans,
the faculty of law at the University of Buenos Aires and Argentina’s Centre
for Advanced Studies have undertaken a 3-month study based on GM foods that
are consumed in Argentina. In a public statement regarding the study, researcher
Roque Pedache cautioned that “no scientist can be sure what will happen in the
long term.”
Brazil’s relatively strong
stance against the importation of GM crops for human consumption has already
caused serious problems for Argentina’s producers of GM maize. Trade frictions
between the two nations were exacerbated recently when Brazilian officials refused
to allow disembarkation of 46,000 tonnes of GM maize from Argentina. The maize
had been ordered by a group of 60 poultry farmers in Pernambuco, Brazil for
use as animal feed. Brazilian authorities at the north-eastern port of Recife
insisted that the maize could not be imported because the purchasers had not
previously submitted a certificate ensuring that it would not be used for human
consumption.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData|
“Ultimately the volume of GM crops cultivated in Argentina will be dictated by market forces both at home and abroad“ |
Brazilian customs officials
called for a team of technical experts from the agriculture ministry to analyse
the ship’s cargo. Initial results showed that the entire shipment of maize was
genetically modified. During the second week of October, the case was turned
over to the Brazilian justice department for consideration. This is not the
first time that the importation of GM maize has been blocked at the port of
Recife. According to the customs department, a shipment of 38,000 tonnes of
maize was returned to Argentina on 24 June of this year.
“Ultimately the volume of
GM crops cultivated in Argentina will be dictated by market forces both at home
and abroad,” Lewis stated. The preference for GM crops on the part of Argentinean
farmers has increased dramatically over the past five years. The stakes are
particularly high for Argentina, which in 1999 ranked as the world’s second
largest producer of GM crops with 4.3 million hectares under cultivation. Argentina’s
farmers are not likely to back away from GM crops in the short term, but will
brace themselves for change as the world’s leading markets struggle to achieve
consensus on the GM issue.
