De-commodification of grain

Wilson, Dale (WILSONDO@phibred.com)
Wed, 5 May 1999 09:27:36 -0500

Colibri@west.net (sorry, I don't remember your name) has been forwarding
many interesting news tidbits on genetic engineering. The posting of May 4
from Colibri was from AgAnswers, Purdue, on Glickman's speech.

> The EU wants processed foods to be labeled if they are made from
> genetically engineered crops, Sporleder says...
> "It would affect farmers ultimately," Sporleder says. "Our food
> system is totally interdependent, and you would have a ripple effect
> back to that field of corn."....
> The pricing structure could get complicated as more genetic traits
> are added to conventional hybrids....
> "There's no end to what could happen, if each of these traits have
> some market value," he says. "In the long term, I don't think it's
> going to be a problem because the market will adjust to it."

In a previous post Colibri forwarded on 3/17, Deborah MacKenzie wrote:

> Buckwell presented his findings in Brussels earlier this month.
> He says that similarly stringent segregation--although not on
> the basis of genetic modification--is already widespread.
> "Different varieties of wheat, for bread or pasta, are already
> strictly separated from farm gate to production plant," he says.
> And in the US, soya growers already distinguish beans used
> in different kinds of tofu for export to Japan.

As specific, value-added traits, especially quality traits are incorporated
in grain varieties (transgenically or by traditional breeding), a major
concern in the seed industry is how to capture some of that value. Grain as
a standard commodity does not make it very easy for the seed industry to
capture value from many kinds of improvements.

I believe that public fear of genetic engineering and the desire of the
milling and seed industries for identity-preserved grain, will work together
to gradually decommodify grain crops. I think this may improve the lot of
the small farmer, by distinguishing products in the marketplace, and by
creating opportunities to manage crops to specifically enhance an end-use
property.

Dale

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