Segregating biotech and non-biotech wheat supplies in marketing channels is still a major stumbling block in market acceptance of genetically modified wheat, according to an updated analysis from
"If a low-cost acceptable segregation system could be developed, that would increase the likelihood of market acceptance of GM wheat. With the low tolerances allowed for GM food ingredients in some foreign markets, effective market segregation to meet those low tolerances would be important if negative impacts on export demand from commercializing GM wheat at this time are to be avoided," Wisner writes in his update to his October 2003 report, Market Risks of Genetically Modified Wheat.
Exports account for 56% of the market for
The acreage shift
A number of organizations and businesses associated with the
At the same time, the wheat industry participants stressed that careful attention will be given to ensuring that resulting products are accepted by consumers. At this stage, there is no way of knowing for certain whether genetically modified varieties of wheat would halt or reverse the decline in
"The decline has occurred in response to major government policy changes, as well as accelerated growth in demand for alternative crops and development of varieties of alternative crops more suited to the short growing season of the Northern Plains," Wisner reports. "It also has been influenced by a sharp increase in wheat exports from former Soviet republics. By western standards, wheat yields in these countries are not very impressive. But the shift to a market-oriented economy has encouraged farmers in the region to produce crops for which they have a comparative advantage in world markets."
Comparing to other crops
Wisner says in the next several years,
So far in the
The report was prepared by Wisner for the Western Organization of Resources Councils and the Dakota Resource Council. Read the report online at Potential Market Impacts from Commercializing Roundup Ready Wheat, September 2006 Update.