PG Economics
Search PG Economics

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

Share on Twitter
Share on Facebook
Share on Google +
Share on LinkedIn

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
 

What Is (risk) Appropriate Regulation Of Gene Editing Technology?

Despite the much-hyped expectation that Europe was on course to follow other parts of the world in removing GMO-style regulatory requirements from gene edited (GE) crops, with EU elections looming and no agreement in sight the bloc now risks slipping back towards precautionary inertia. Summarising their recent peer-reviewed paper exploring risk-appropriate regulation for gene editing, agricultural economists Graham Brookes and Stuart Smyth warn that we must learn the lessons from past experience of divergent international regulation of agricultural innovations. The impact of over-precautionary EU regulation of gene editing will not only disadvantage European agriculture, but will also compromise global efforts to address urgent climate, biodiversity and food security challenges, they argue.

Feeding The Uk Sustainably: Time For Policy Inaction To End

As Ministers prepare to unveil a new land use framework for England this autumn, the scientific evidence behind land sparing as the most effective farm policy for delivering food production, climate and biodiversity goals is compelling. Why then does the UK government continue to favour a land sharing approach through its environmental land management schemes? The recent ‘re-interpretation’ of an expert land use report for the large, land-owning NGOs who commissioned it may provide some clues, writes agricultural economist Graham Brookes.

European Court Ruling On Neonicotinoids Further Highlights Muddle Created By Ongoing Eu Regulatory Inconsistency And Dysfunction

The recent Court of Justice of the European Union (CJEU) ruling that EU Member States can no longer grant derogations (exemptions) for the use of neonicotinoid seed treatments to control pests in arable crops like sugar beet and oilseed rape raises a number of important questions and highlights the regulatory inconsistency and muddle that the European Union (EU) has created for itself

Feeding The World Sustainably: Crop Biotechnology Continues To Make A Significant Contribution, Concludes New Research

GM crop technology continues to make an important contribution to reducing the environmental footprint of agriculture and securing global food supplies in a sustainable way. It has reduced pressure to bring new land into agriculture, which is vital if the world is to maintain and restore the natural habitats and vegetation that are best for many species of plants and animal life and for storing carbon” said Graham Brookes, director of PG Economics, author of the research.