Search PG Economics

Use the search below to search our website, if you can't find what you're looking for then contact us and we will do our best to help you.

 

 

Turkey’s biosafety law causing significant economic harm to agri-food chain

Published on: 2nd May 2012
Published By PG Economics



May 2nd 2012: A new Economic Impact Assessment of Turkey’s Biosafety Law finds that the way in which this Law is being implemented has resulted in substantial negative economic impacts for the important Turkish importing, feed and food manufacturing and livestock production sectors.

“There is clear evidence of major economic damage and market disruption having been caused by the way in which Turkey’s Biosafety Law is being implemented” said Graham Brookes, lead author of the report. “This situation can be expected to get progressively worse, threatening the viability of many Turkish businesses (notably small-and medium-sized enterprises) and risking the export of jobs and investment from the country, unless a timely and science-based Turkish GMO approval system is operated”

Previewing the study, the key findings are:

  • The implementation of the Law has caused considerable trade and market disruption, which to date amounts to over $0.8 billion. This is roughly equal to between 33% and 50% of the total annual net profitability of the Turkish food and drink sector;
  • The on-going annual cost (assuming no change to current policy) can reasonably be expected to be between $0.7 billion and $1 billion (and could be higher);
  • With an expected widening discrepancy between the timing and nature of new GM event approvals in Turkey compared to major cereal and oilseed raw material supplying countries, and the rapidly-increasing ‘pipeline’ of new traits and combinations of existing/new ‘stacked’ traits being approved for use in global agriculture, the negative impact is likely to get progressively worse;
  • The implementation of the Law has significantly increased legal and business uncertainty, reducing business confidence and adding further to negative economic impact and outlook;
  • The reduced levels of profitability, increased uncertainty and market disruption may result in re-location of processing facilities outside Turkey, leading to lower levels of income and employment generation, as Turkish jobs and investment are exported;
  • Those at greatest risk are small and medium-sized businesses that dominate the Turkish food sector;
  • There has been trade diversion away from traditional raw material suppliers (GMO producing countries). This raises the potential of a World Trade Organisation (WTO) complaint/challenge being launched against Turkey that could currently be worth over $1.1 billion.

If these significant negative economic impacts are to be avoided, the Turkish GMO regulations need to be implemented through timely application of a science-based approval system.

For additional information, contact Graham Brookes Tel +44(0) 1531 650123. www.pgeconomics.co.uk

PG Economics: 2nd May 2012 10:30:00

| Download Full Report
 

New Paper Highlights Substantial Environmental And Economic Losses That Would Arise If Restrictions On Glyphosate Use Resulted In Glyphosate-tolerant Crops No Longer Being Grown

A new paper published in the journal GM Crops and Food (1) points to significant increases in carbon emissions and a worse environmental impact associated with weed control practices, if farmers around the world stopped planting glyphosate-tolerant crops.

New Report Highlights 20 Years Of Economic And Environmental Benefits From Using Biotech Gm Crops

5 June 2017 Dorchester, UK: A new report released today by PG Economics has found that over the last 20 years, crop biotechnology has significantly reduced agriculture’s environmental impact and stimulated economic growth in the 26 countries where the technology is used.

Global Economic Benefits Of Gm Crops Reach $150 Billion

Press release: 31 May 2016: Dorchester, UK: In the nineteenth year of widespread adoption, crop biotechnology has continued to provide substantial economic and environmental benefits, allowing farmers to grow more, with fewer resources, whilst delivering important environmental benefits for all citizens (1).

Another Year Of Consistent And Positive Gm Crop Impacts (1)

7 May 2015 Dorchester, UK: Crop biotechnology continues to provide substantial economic and environmental benefits, and allow farmers, especially those in developing countries to grow more, using fewer resources.