Report Suggests Biotech Wheat Bad for U.S. Prices
International acceptance of biotech wheat needed.
Compiled by staff
Published: Jan 29, 2010
According to a report issued this week by the Western Organization of Resource Councils, U.S. wheat prices could drop 40% or more if efforts to develop a biotech wheat are successful. The report cites opposition to genetically modified wheat in Europe, Japan and other Asian countries, suggesting buyers in those countries would shift purchases to GM-free wheat from other nations if GM wheat is commercialized here. The report's author, former Ohio State University Research Economist Neal Blue, called the introduction of genetically modified wheat in the U.S. a risky proposition.
The report predicts hard red spring wheat prices would fall 40% with prices for durum wheat dropping 57%. Todd Leake, a wheat farmer and member of the Dakota Resource Council, says this suggests those in the industry that seem intent on pushing genetically modified wheat should be very cautious and listen to the customer.
U.S. Wheat Associates spokesman Steve Mercer, who said his group was not familiar with the report, said several in the industry are working to improve international acceptance of biotech wheat in advance of commercial introductions, which are still several years away. He said the market will have to sort it out, but noted the market is committed to providing the kind of wheat customers want.
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Tagged: wheat, spring wheat, U.S. Wheat Associates
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