The impact of biotechnology on developing countries - presentation of a briefing

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1 The impact of biotechnology on developing countries - presentation of a briefing Christiane Gerstetter Ecologic Institute Presenting a briefing written by Timo Kaphengst Lucy O. Smith

2 Table of content The GMO debate some cautionary remarks Overview of factual findings on economic impact of GMOs in developing countries Policy implications 2/20/2013 The impact of biotechnology on developing countries Christiane Gerstetter 2

3 Findings on impact of GMOs some cautionary notes Studies on genetically modified organisms (GMOs) and their environmental, economic, health and social impact are (often) controversial and definite conclusions are difficult, because The long-term (environmental and other) effects of GMOs under real-life, field conditions have not yet been fully assessed in cross-country, comparative, large-scale studies. Economic impact of GMOs is difficult to assess, because a variety of (disparate) factors are usually involved in producing this impact and it is methodologically difficult to isolate the impact of GMOs. Results are usually case-specific. There are vested interests in the debate. Choices pro/anti GMOs are related to larger choices on agricultural & development models that are themselves controversial. Result: few generalisable and reliable insights on impact of GMOs 2/20/2013 The impact of biotechnology on developing countries Christiane Gerstetter 3

4 Background for GMO debate Need to feed growing world population and lack of progress in eradicating hunger Food crisis in recent years Food production increasingly affected by climate change GMOs to have beneficial impact on development would need to benefit in particular smallholder farmers in developing countries. 2/20/2013 The impact of biotechnology on developing countries Christiane Gerstetter 4

5 GMOs in developing countries 2011: 160 mio hectares cultivated with GM crops in 29 countries; half of that area in developing countries Four varieties (soy, maize, cotton, canola) dominate global market Two main traits: GM crops with insecticide effect (BT, only maize and cotton) and with herbicide tolerance (HT, all four crops) 2/20/2013 The impact of biotechnology on developing countries Christiane Gerstetter 5

6 Potential economic impact of GMOs a debate Increased yield Improved resistance to pests and diseases and less need for pesticides/herbicides etc. Tolerance to environmental stresses Reduced labour/fuel costs Price premium, e.g. because of enhanced nutritional value Higher price for seed Dependence on commercial seed providers Changes in macro-economic structures GM crops may develop new types of resistance and require increased use of chemicals 2/20/2013 The impact of biotechnology on developing countries Christiane Gerstetter 6

7 Factors influencing economic impact of GMOs Factors at farm-level: Farm-size, suitability of crop for local environmental conditions, skill-level of farmers Factors at national level Regulatory framework on intellectual property rights/seed exchange, institutional support for farmers, regulatory oversight of GM use, public sector research landscape International level Trade policy of important trading partners (e.g. bans on GMOs) 2/20/2013 The impact of biotechnology on developing countries Christiane Gerstetter 7

8 Policy implications There is no strong case for promoting GMOs in development cooperation, i.e. projects aimed at fostering GMOs should not be a priority of EU development cooperation rather focus e.g. on organic farming involving small-holders, capacity-building etc. Invest in public sector research to help satisfy food needs in developing countries on the basis of food produced in the country, not on soy, cotton and canola, but traditional staple foods, e.g. support CGIAR institutes Invest in long-term, comparative research on the impact of GMOs Use the precautionary principle incorporated in Art. 191(2) TFEU EU should not promote legislation on intellectual property rights in developing countries that forbids farmers to exchange seeds and breed their own variety 2/20/2013 The impact of biotechnology on developing countries Christiane Gerstetter 8

9 Thank you for listening. Christiane Gerstetter Ecologic Institute, Pfalzburger Str , D Berlin Tel. +49 (30) , Fax +49 (30) /20/2013 The impact of biotechnology on developing countries Christiane Gerstetter 9

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