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

Max Foster

No 59079, 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia from Australian Agricultural and Resource Economics Society

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.

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 16
Date: 2010
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare10:59079

DOI: 10.22004/ag.econ.59079

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