Genetically Modified Foods Economics

Geneticly-Modified Crop Economics

Genetically-Modified Crop Economics

Economic Issues: Consider production, consumption, costs, variables of supply-demand, corporations, private enterprise, impact on the nation's economy (employment, displacement, outsourcing).

Are certain industries impacted more than others?

As it relates to genetically-modified foods and crops, there are several major industries involved. Obviously, the main industry involved would be agriculture. The genetically-modified crops are used for a variety of reasons. First, the modified crops can be used to discourage or stop certain insect infestations or disease infestations in the crops. Another reason for the modifications can be to get good yield as well as large units on the crops such as larger tomatoes, more wheat and so forth. Some agencies and people in general are very leery or even hostile towards genetically modified crops and they actively resist the free flow and sale of these goods and/or they want warnings to be posted on the crops to let consumers know proactively that their crops are genetically modified (Klein, 2013).

The other main industry affected would be the retail industry as a good share of the genetically modified crops would be sold in retail and grocery outlets both in the United States and around the world. To a lesser extent, other industries impacted would be food manufacturers that use genetically modified crops as component materials or restaurants that do the same thing in the dishes they prepare and serve. Basically, any company that creates or uses the genetically-modified goods would be affected to some extent or another with the makers facing more impacts and challenges than the people that just use the goods (Klein, 2013).

Look up financial projections -- expectations for growth, startup companies, the stock exchange, etc. -- anything related to business and the U.S. And global economy. Who are the chief players in the business environment, and what is their role?

One major player in the United States economy, as was proven in spades during the recent "Great Recession" is the banking industry. These big banks are one of the major players that help fund the farms that buy and produce the genetically modified crops. Another big player in the business sphere are the retailers and markets that sell goods because purchase of consumer goods is eastily the majority of economic output in the United States. Another player, even if the financial impact varies quite a bit, are the public agencies at the state and federal level that heavily regulate and in many cases subsidize the agricultural industry (Klein, 2013).

How much has been invested in research and development? How will the price fluctuate?

Research and development is heavy in the agricultural industry. One major reason is that if disease or insects gut a crop, it can literally ruin a farmer that is smaller to medium in size. It also has to be ascertained whether the crop is safe for human consumptions and whether it has a clear advantage, overall, compared to regular crops that are not genetically modified and/or have been in the market for a while with established success (Klein, 2013).

What economic trends are to be observed? Who will make money from the technology?

In the case of subsidies, it is actually a loss to the taxpayers to protect the farmers. It begs the question why farms are making, or are being paid not to make, crops that are not needed and/or have no market value, but it's obviously deemed a good thing for farms that are the beneficiary. As for more effective crop types, there is obviously a lot of money to be made for the farms, the government (in terms of tax revenue), the retailers, restaurants and so forth that use the advantages of the modified crops to sell more goods and present them in a more appealing way than is possible with non-modified crops that are smaller and not as high-quality (perception or not) as other goods (Klein, 2013).

Who is funding the research and development? Who controls the purse strings, and why?

For the most part, the funders of research and development related to genetically modified crops would be the United States taxpayer (government-funded research), the mid-size to larger seed and agriculture companies and the universities that are agriculturally-based in whole or in part. Just one example of such a university would be Kansas State University (K-State, 2013). As noted above, the government agency research as well as the public university research both come from government grants and other sources funded by taxpayer dollars and those grants can come from the federal and state governments of the United States (Klein, 2013).