Study: EU’s ‘GM avoidance’ policy will increase food prices

A study examining the feasibility and costs of the EU avoiding GMOs in food and feed claims that this policy will result in higher consumer food prices.

A recent study examining the feasibility and cost implications of maintaining ‘GM avoidance’ policies in the EU food and feed supply chains states that “in the next 1-3 years, supply availability of non-GM material in the key soybean and derivative sector is likely to decline and the price differential between GM and non-GM material widen”. 

This price differential could result in an unsustainable increase in feed costs for the producers of livestock products (e.g. meat, milk, dairy products). The extra costs would be passed onto retailers and ultimately consumers, resulting in more expensive end products, such as poultry meat.

The report, conducted for Agricultural Biotechnology in Europe (ABE), a body representing agricultural biotechnology companies, also points out that “to date, consumers have rarely been given the option of a choice between GM and non-GM alternatives of the same product or faced price differentials between the two”. 

On 20 September 2005 the Council failed, again, to reach a qualified majority on the Commission’s proposal to allow import and use of GMO maize line 1507 in feed. EU ministers for agriculture from eleven countries rejected the proposal while nine countries voted for. According to the rules of comitology, as the Council has failed to decide – the Commission now has the right to adopt the proposed measures and authorise the import of GM maize 1507. 

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