Many of the world’s farmers, particularly those in developing countries, are indifferent to the controversy that persists over GM crops, and give scant regard to the current enthusiasm for organic food. They simply wish to improve their income. However, Steve Lewis reports that farmers in Latin America are increasingly realising that organic methods can help them meet their profit targets while sidestepping concerns related to biotechnology.
On the surface it appears that there is little linkage between the controversy surrounding GM crops and the acceptance of organic growing techniques, but an inverse relationship between the two is emerging. For farmers in developing nations, who represent the great majority of the world’s total, GM and organic crops are simply two means to the same end: improving income. However farmers have a growing awareness that organic production can meet their profitability goals while sidestepping growing concerns related to biotechnology.
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There is a fundamental difference in how consumers and farmers view GM and organic foods. The opinions of farmers are generally based on practical factors like crop performance and sales price, both of which directly link to profitability. Consumer opinion is increasingly shaped by groups with an anti-GM agenda that operate under the guise of “consumer protection” agencies. In Europe and other regions of the world, anti-GM activists have swayed a growing number of consumers to the point of view that the contrast between the two kinds of foods is like black and white, or good (organic) and evil (GM).
Two strategies for improving competitiveness
Only three nations of the world (Argentina, Canada, and the United States) have made serious commitments to cultivating and marketing GM food crops. In the rest of the world, farmers and their respective governments are still wrestling with the GM issue. The great majority of farmers in developing countries are not linked to either the GM or organic movements. They are caught up in a desperate struggle to remain competitive in a global market that pits them against their well-equipped and highly subsidised counterparts in developing nations.
“GM crops can cut production costs anywhere from 15% to30% “ |
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By GlobalDataThe two most promising strategies for increasing their competitiveness and profitability are planting GM crops or adopting organic production techniques. From the viewpoint of farmers, biotechnology companies make a very strong argument for their products. By increasing yields or substantially reducing the need for commercial chemicals, GM crops can cut production costs anywhere from 15% to30% in most cases. Considering the slim profit margins of farmers in developing nations, it is hard to ignore such an advantage.
As with most new technologies in the Americas, biotechnology was well advanced in North America before it spread to the developing nations of Latin America. Early acceptance of GM crops in the north came before the anti-GM movement came into play. By the time the advantages of biotechnology became known to farmers in developing nations, they were already offset by two movements: the anti-GM movement and the pro-organics movement.
The impact of activists
Activists who are shaping opinions related to GM and organic production can be divided into two camps. The “seeds of death” camp is attempting to sway the opinions of (mainly urban) consumers through poorly substantiated claims that GM foods represent an immediate and serious threat to the well-being of humans and their environment. By contrast, the relatively low-key “logical persuasion” camp focuses on showing farmers and agricultural authorities that organic foods represent an attractive alternative to genetic engineering.
Both camps of activists made their presence felt in South America within the past few months. One gained global attention when it broke into a Monsanto research facility in Brazil, painted the slogan “seeds of death” on the walls, and destroyed years worth of genetic research by decimating experimental plantings. Another group called Probioma received almost no publicity when it convinced Peru’s agriculture ministry to abandon experimental plantings of GM soybeans and cotton by demonstrating the advantages of its own organic plantings.
Rather than make a frontal attack on biotechnology, groups like Probioma are winning over farmers in developing nations by showing that organic production can open up lucrative export markets. In March of this year, Probioma released the results of its experimentation with organic soybeans. The results showed that cost of producing organic soybeans is similar to that of conventional crops, although the market value is roughly double.
A financial trade off
The financial advantages that GM crops offer farmers are more direct and visible than those of organic production. Farmers can easily make the transition to GM crops using production techniques similar to those for conventional crops. Assuming that the market value of GM crops is on par with traditional crops, farmers who adopt them are very likely to increase their profits as of the first harvest.
“A substantial decline in the prices paid for GM crops will cause farmers to opt for organic production” |
Until recently, uniform pricing of GM and non-GM crops was a safe assumption, but doubts are beginning to emerge. A growing number of nations require labelling of GM food products and a system for traceability. Both of these requirements portend a two-tier marketing and distribution network for GM and non-GM products. A substantial decline in the prices paid for GM crops will cause farmers to opt for organic production.
Given the need to increase agricultural competitiveness in developing nations, a large number of farmers are going to opt for either GM or organic crops in the near future. To a great degree, their decision will be shaped by the problems that plague biotechnology. If consumer sentiment in export markets continues to shift away from GM foods and the trend toward restrictive legislation increases, organic production will emerge as the winner.
By Steve Lewis, just-food.com correspondent
