Although
there are no GM crops in the ground in Sweden (and Kenth beer, containing
GM-maize, is the only genetically modified food product currently on sale),
the prospects are looking up.
Four GM crops which could possibly be grown in the country within the next
10-15 years are rapeseed, corn, potatoes and sugar beets, with markets in
the feed industry (rapeseed, maize), starch industry (potato) and for bioenergy
(sugar beets, rapeseed and maize).
There would be an increase in profitability for Swedish farmers ranging from
4% up to some 12% for potatoes although the numbers are still uncertain because
the Swedish government has not yet published coexistence guidelines; without
them parts of the calculation cannot be completed. As long as GM crops are
not commercially grown, business analysis such as the one in the report can
give no more than limited insights.
Production profit comparisons are complemented by an economic analysis. Innovations
normally reduce production costs and consumer prices which, in the long run,
benefits both consumers and society at large. The welfare effects of GM production
are dependent on: the costs of special instructions for GM-production, the
extent of separating capacity in food production, costs of labelling and traceability,
the price of GM crops compared with those of conventionally and ecologically
grown crops as well as the proportion of producers and consumers accepting
or rejecting GM crops. The net welfare effects of society are liable to be
small if the costs of co-existence, separating, labelling and traceability
are large compared with enhanced profits from decreasing production costs.
It is worth noting that the voting record of the Swedish government in the
EU has been generally favourable towards agricultural biotechnology.
Sources:
1. Lena Fredriksson (March 2007). Growing genetically modified crops -
an alternative for Swedish farmers? SLI (Livsmedelsekonomiska Institutet/Swedish
Institute for Food and Agricultural Economics) (http://www.sli.lu.se/eng_item_detail.asp?activity_id=112).
The full report (in Swedish only) may be downloaded from this website.
2. Asa Lexmon (30.65.07). GM crops good for Swedish farm economy.
Truth about Trade & Technology (http://www.truthabouttrade.org/article.asp?id=7463)
3. Family-run brewery serves up GM beer (15.7.05). CNN (http://www.cnn.com/2005/TECH/07/15/gm.foods/index.html)
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