GENETICALLY MODIFIED ORGANISMS

Group 7:Monica Hu

Leanne CastilloAndres Escobar

Angel LiuLeo Sato

What is a GMO or GM-food?

Genetically modified foods produced from organisms that have had specific changes introduced into their DNA using the method of genetic engineering.

Who are the players? Oligopoly

Government subsidy (pricing)

GMO examplesDo you know what you are eating?

The way we eat has changed more in the last 50 years than in the previous 10,000 !

Food availability all year long

Kid’s meals nowadays composed of 80% GMOs

WHAT ?! No way! Seriously?

How is this possible ?

Some other examples

Salmon vs. Franken-Salmon

GMO = inferior goods

Cheap, low quality goods and GMOs are inferior goods for many people.

If their income would increase, the amount of GMO based food would decrease and they would tend to buy healthier food (organic).

Use them or not?

The current debate over GMOs

Debate Pros Cons

(1)Healthier?

Lower calorie, lower fat, but higher nutrition.

Create new allergen from GM goods?

The current debate over GMOs

Debate Pros Cons

(2)Good for

Environment?

Increase ability of resisting insects for crops, and fewer consumption of pesticide.

Damage ecosystem? (ex. DDT, PCBs..)

The current debate over GMOs

Debate Pros Cons

(3)Biology

Create evolution?Plants & animals would genetically modify themselves.

Against Nature?Threaten the biological diversity, and reduce the choices of our food supply.

Debate Pros Cons(4)

Benefit or hurt farmers?

Cost-saving & more efficient due to less pests.

Widen the gap between Rich and Poor by using patenting genetically altered crops.

The current debate over GMOs

Cost of managing pests is decreasing

Debate Pros Cons

The current debate over GMOs

(5)Overwhelmed GMOs market?

High revenue support investment in costly R&D.

Underestimate possible health, socioeconomic, and environmental hazards.

Debate Pros Cons

The current debate over GMOs

(6)Loose regulation?

Biotech firms claim they ensure foods products meet federal safety standards.

Widely develop and deploy GM crops without adequate testing or public debate. FDA is too lax in their scrutiny and regulation.

GMO labeling

1997 first GMO soybean import to E.U.

1997/1998 start labeling(regulation EC No.258/97)

Impacts of GMO Labelling:

Increase consumer awareness Promoting informed decisions based on customer beliefs

and lifestyle needs Support small/local organic farms Encourages further studies and analysis of GMO traits and

consequences on all levels of the supply chain

Impacts of GMO Labelling:

May increase costs for suppliers due to new labeling production

Creation of stigma towards GMOs and the stores that offer such products

Small/Conventional Farmers may be unable to supply the increased demand

Possible barrier to enter/access foreign markets

GMO Labelling War

GMO Transparency? Whole Foods Market announced that, by 2018, all products

in its U.S. and Canadian stores must be labeled to indicate if they contain GMOs. Whole Foods Market is the first national grocery chain to set a deadline for full GMO transparency.

Whole Foods Market

One of the world’s largest retailer of natural and organic foods with stores throughout the US and UK.Store brand products: More than 2,600 natural and organic products under the Whole Foods Market, 365 Everyday Value and Whole Catch brandsSize: Eighth largest food and drug store in the U.S.Fortune 500 list: Number 232Stock Exchange symbol: WFM (NASDAQ), member since Jan. 23, 1992Sales: $12.9 billion in fiscal year 2013

Food Companies reaction to current trend: Competitors are Re Branding to organic Take over of small Organic stores by Food

Companies with established reputations Exit of suppliers from Whole Foods Entrance of up and coming organic stores

Monsanto A sustainable agriculture company? 1901 Monsanto was founded 1976 Roundup Herbicide is commercialized in the US 1982 First company to genetically modify a plant cell 1996-1998 Roundup Ready soybean, Canola, Cotton and corn

are introduced to farmers’ (1st Generation)Agricultural Seed Brands: Weed Control Brands:

Monsanto cont’d:

Food Industry Power

Summary

GMO usage has completely changed the way we eat

People that suffer the most are those with lower incomes

More and more countries are adopting mandatory labeling

Banning or regulating GMOs 93% of US consumers favor labeling

One thing’s for sure, the GMO debate is far from being over.

DISCUSSION QUESTIONS

How would your consumption change? How would your elasticity be modified?