Genetic Engineering's Effect on the Economy
Since 2000, the USDA has been spending up to two hundred and twenty million dollars annually on any research related to biotechnology or genetic engineering.
Genetically Modified Foods vs.
Non-Genetically Modified Foods
The discovery of genetically modified food leads to many questions in the changes in the economy. It has been predicted, with the popularity of genetic modification that two markets will evolve. One market will be of all genetically modified products and the other will be of all genetically modified free food products. Will genetically modified food products have a bigger demand than genetically modified free food products? There’s vagueness in the genetically modified foods, where people don’t know what goes into genetically modified foods, therefore more and more people prefer to buy genetically modified free foods. More food processors and retailers choose to produce more genetically modified foods based on consumer aversion. Consumer aversion is the perception of the consumer on genetically modified foods. More people choose genetically modified free food over genetically modified foods.
Labeling
Once a store decides to sell genetically modified foods, they are required to have a label on those products. People need to know what’s in their food before they buy it. Usually the label will be made to specify how much genetic material, in percentage, is in the product. Since 1997, more than fifteen countries have implemented labeling requirements into genetically modified contents. These countries include Russia, China, Argentina, and the United States. These regulations in the labeling have brought about some problems though. Food processors in many European countries are not ready to introduce genetically modified foods into marketing businesses because the consumers are not ready for genetically modified foods. Some of these Europeans have already been selling genetically modified food products without a label. Now with the labeling requirements, retailers are pressured into fear. Some decided to change the ingredient in the food products to therefore go with the labeling while others decided to stop selling genetically modified foods materials. Not only will labeling the products affect consumerism but labeling the products will distinctively affect the profit between genetically modified products and non-genetically modified products.
Because genetically modified products have a less consumer demand, stores have decided to sell it at a lower price than the genetically modified free products. It has been established that the genetically modified free products will be sold at premium price and there will be a standard label on all non-genetically modified foods saying that it is a genetically modified free product.
Because genetically modified products have a less consumer demand, stores have decided to sell it at a lower price than the genetically modified free products. It has been established that the genetically modified free products will be sold at premium price and there will be a standard label on all non-genetically modified foods saying that it is a genetically modified free product.
Organic Farming
Another factor that arose since the introduction of genetic engineering is organic farming. Organic farming allows for three times the production of crops on the same amount of land in developed countries than the traditional way of farming. A population growth will spur out of this and an increase in consumerism will be the result. With the increase in consumerism the money in the economy will flow better. The country that chooses organic farming usually benefits from it.