THE GREAT DEBATE ON GMO'S


Kendell W. Keith
Summary

The biotechnology revolution has come to mainstream agriculture in the form of GMOs (Genetically Modified Organisms), and with it, shock waves of adjustment for conventional commodity markets and the grain-based food system that represent agriculture's primary customers. U.S. agriculture has not been confronted with a problem with such potential for disruption of markets since the embargoes of the 1970s or the misguided acreage idling programs of the 1980s. Further disruptions threaten U.S. agriculture's ability to serve its diverse customer base. Government approvals and consumer acceptance of GMOs have not come as quickly as the industry would like.

The diverse industry cultures that are now linking to form the "new U.S. food system" come from vastly different perspectives. The grain-food system based in traditional commodities has been highly transparent. Meanwhile, the new biotech/seed industry has placed great emphasis on protection of intellectual property rights and private marketing strategies. Is there a general standard of "right to know" that applies to the grain/food marketing system? Or must the world simply adjust to the "new" U.S. commodity system where agricultural commodities are clearly biotech and customers who want something different have to find a different source? Should the same marketplace disciplines that drive the grain shipper to deliver tight specifications on whole grains and oilseeds apply equally to the seed industry? If not, what needs to change.

It appears that traditional industry strategies need to change. More adjustments need to take place in the biotech/seed industry to avoid governmental regulation. The grain/food industry will not accept the risk of major market-induced shocks from unknown sources that shrink the U.S. customer base. The biotech and seed industries should define the terms of market transparency for their products. Greater transparency has been viewed as a risk by developers of biotech seeds. The risk is thought to be that biotech products will be treated differently in the marketplace. The nature of the commodity marketplace makes it unlikely that conventional and biotech products will be treated alike except under unusual circumstances.

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