Genetically Modified Foods Economics

GMO Speaking Notes

Thank you all for your time today. Our team is here to discuss the nature of genetically modified and engineered foods in order to evaluate their role in food service and consumption today. We have several presenters here to discuss the various elements of the presentation, all of whom will walk you through different aspects of the current environment. I will be discussing the economic factors surrounding the increased use of genetically modified foods.

The high prevalence of genetically modified and engineered foods is a relatively recent phenomenon. As seen in this graph, prior to the late 1990s, there was much lower rates of genetically modified foods in the market. 1997 actually proved a crucial year, proving to be the beginning of a steady incline of the use of genetic engineering for use in the agricultural and food industries.

One of the first crops to see significant increases in GMO status are soybeans. There was a sharp increase in the rate of genetically modified soybeans from 1997, and these rates have continued to grow dramatically since then.

The second highest product has proven to be cotton.

Yet, it is clear by the graph that most crops today have seen huge increases in the rate of genetically modified products. HT corn was one of the last products to see this massive increase, but has since joined the rest of the products. Rates of genetically modified foods in 2007 were the highest in recorded history, illustrating a trend of continuing growth.

Slide 4

As seen in this slide, some countries have been quicker to adapt genetically modified practices in their agricultural strategies than others. One of the world's leading nations to grow genetically modified crops is the United States, where 69 million hectares of crops were genetically modified, primarily being maize, soybean, cotton, alfalfa, papaya, and squash.

Brazil is the second largest nation, with around 30 million hectares of maize, soybean, and cotton being grown as genetically modified. Argentina, another Latin American country sees the rate of around 23.7 hectares.

Canada and India are also major producers of genetically modified crops. Canada grew around 10.4 million hectares, with India growing around 10.6 million hectares.

Many European countries have opted out of the trend. In fact, most European countries have seen relatively little growth of genetically modified crops, especially in comparison to North and South American countries.

Slide 5

Increasing use of genetically modified crops around the world has continued to grow. The trend is highest in North and South America, yet this graph clearly shows that it is still a major force in the modern agricultural market. The amount of acreage devoted to genetically modified foods has increased ten fold over the past two decades. In 1996, less than 10 million acres grew genetically modified crops. By 1999, this number had exploded to near 100 million acres growing genetically modified crops around the world. Undoubtedly, this trend has continued to increase in recent years as well.