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Global impact of Biotech crops: economic & environmental effects 1996-2006 Graham Brookes PG Economics UK www.pgeconomics.co.uk ©PG Economics Ltd 2008.

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Presentation on theme: "Global impact of Biotech crops: economic & environmental effects 1996-2006 Graham Brookes PG Economics UK www.pgeconomics.co.uk ©PG Economics Ltd 2008."— Presentation transcript:

1 Global impact of Biotech crops: economic & environmental effects Graham Brookes PG Economics UK ©PG Economics Ltd 2008

2 Coverage Report is in peer reviewed journal: AgbioForum (2008) 11, (1) Also peer reviewed paper on impact of bt maize in Europe in Journal of Biotechnology vol 10 2/ Report is in peer reviewed journal: AgbioForum (2008) 11, (1) Also peer reviewed paper on impact of bt maize in Europe in Journal of Biotechnology vol 10 2/3 2008www.agbioforum.org Impact on farm income, yield, production Impact on farm income, yield, production Environmental impact from pesticide use Environmental impact from pesticide use Environmental impact - greenhouse gas emissions Environmental impact - greenhouse gas emissions ©PG Economics Ltd 2008

3 Methodology Large literature review of economic impact in each country Large literature review of economic impact in each country Review of pesticide usage Review of pesticide usage Review of literature on carbon impacts – fuel changes and soil carbon Review of literature on carbon impacts – fuel changes and soil carbon ©PG Economics Ltd 2008

4 Key Findings Pesticide Reduction Pesticide Reduction Carbon Emissions Global Farm Income Global Farm Income 286 million kg reduction in pesticides & 15.4% cut in associated environmental impact 2006 = cut of 14.8 billion kg co2 release; equiv to taking 6.6 million cars off the road $33.8 billion increase After 11 years of widespread use, biotech crops have yielded a net increase in farm income while significantly reducing environmental impact. ©PG Economics Ltd 2008

5 Farm level economic impact 2006: farm income benefit $6.9 billion 2006: farm income benefit $6.9 billion 2006: equiv to adding value to global production of soybeans, corn, cotton and canola of 3.8% 2006: equiv to adding value to global production of soybeans, corn, cotton and canola of 3.8% 53% of farm income gain in 2006 to farmers in developing countries 53% of farm income gain in 2006 to farmers in developing countries ©PG Economics Ltd 2008

6 Farm income gains: by country: million $ Mexico $71 million increase China $5.8 billion increase United States $15.8 billion increase South Africa $156 million increase — Argentina $6.6 billion increase Canada $1.2 billion increase — Paraguay $349 million increase — Brazil $1.9 billion increase India $1.3 billion increase Australia $184 million increase Since 1996, biotech crops have increased farm income $33.8 billion. Philippines $18 million increase ©PG Economics Ltd 2008 EU (to 2007) $69 million increase

7 Farm income benefit (update to 2007): EU IR corn Area 2007 (million hectares) 0.11 Average farm income gain ($/ha) 253 Average yield gain (tonnes/ha) 0.89 (+10%) Total income gain ($)28 million ©PG Economics Ltd 2008

8 Other farm level benefits GM HT cropsGM IR crops Makes farming easierReduces risk of crop losses Helps farmers switch from a plough to no tillage production system Energy cost savings Cleaner crops = lower harvest cost & higher price Machinery use savings Less damage in follow on cropsMakes farming easier Improved crop quality Improved health for farmers/workers – less exposure to insecticides ©PG Economics Ltd 2008

9 Yield gains versus cost savings 43% ($14.54 billion) of total farm income gain due to yield gains % ($14.54 billion) of total farm income gain due to yield gains Balance due to cost savings Balance due to cost savings ©PG Economics Ltd 2008

10 IR corn: yield & production impacts of biotechnology Philippines (2003) Trait area: 0.25 m ha (2% of total crop) Yield +24.1% Production: m tonnes United States (1996) Trait area: 87.6 m ha (23% of total crop) Yield: +5% corn borer & +5% rootworm Production: m tonnes South Africa (2000) Trait area: 2.4 m ha (11% of total crop) Yield: +14.5% Production: +1 m tonnes — Argentina (1998) Trait area: 10 m ha (42% of total crop) Yield: +7.6% Production: +4.9 m tonnes Canada (1996) Trait area: 4.27 m ha (32% of total crop) Yield: +5% corn borer & +5% rootworm Production: +1.6 m tonnes Uruguay (2004) Trait area: 0.1 m ha (54% of total crop) Yield: +6.1% Production:+0.03 m tonnes Spain (1998) Trait area: 0.3 m ha (8%) Yield: +7.6% Production: m tonnes Since 1996, average yield impact +5.7% & m tonnes ©PG Economics Ltd 2008

11 IR cotton: yield & production impacts of biotechnology Australia (1996) Trait area: 1.35 m ha (35% of total crop) Yield: no change China (1997) Trait area: 19.7 m ha (42% of total crop) Yield +9.9% Production: +21 m tonnes Mexico (1996) Trait area: 0.36 m ha (23% of total crop) Yield: +10.4% Production: +40,000 tonnes South Africa (1998) Trait area: 0.13 m ha (24% of total crop) Yield: +24.1% Production: +54,000 tonnes — Argentina (1998) Trait area: 0.8 m ha (26% of total crop) Yield: +27% Production: +82,000 tonnes US (1996) Trait area: 21.9 m ha (35% of total crop) Yield: +9.7% Production: +17 m tonnes Brazil (2004) Trait area: 0.13 m ha (13% of total crop) Yield: +6.2% Production:+11,000 tonnes India (2002) Trait area: 5.7 m ha (14% of total crop) Yield: +54.1% Production: +1 m tonnes Since 1996, average yield impact +11.1% & +4.9 m tonnes ©PG Economics Ltd 2008

12 Herbicide tolerant traits yield & production impacts of biotechnology ©PG Economics Ltd 2008 Philippines (2006) Crop: corn +15% to yield for early adopters Romania ( ) Crop: soybeans Yield: +31% Production: m tonnes — Argentina (1996) Crop: facilitation of 2 nd crop soybeans: m tonnes Crop: corn – first used in % to yield for early adopters Canada & US (1996 & 1999) Crop: canola +10% & +6% on yield respectively. Production +3.2 m tonnes Paraguay (1999) Crop: facilitation of 2 nd crop soybeans: +2.2 m tonnes

13 Impact on pesticide use Since 1996 use of pesticides down by 286 m kg (-7.9%) & associated environmental impact % - equivalent to total EU (27) pesticide active ingredient use on arable crops in one year Since 1996 use of pesticides down by 286 m kg (-7.9%) & associated environmental impact % - equivalent to total EU (27) pesticide active ingredient use on arable crops in one year Largest environmental gains from GM IR cotton: savings of 5.6 million kg insecticide use & 25% reduction in associated environmental impact of insecticides Largest environmental gains from GM IR cotton: savings of 5.6 million kg insecticide use & 25% reduction in associated environmental impact of insecticides ©PG Economics Ltd 2008

14 Impact on greenhouse gas emissions Lower GHG emissions: 2 main sources: Reduced fuel use (less spraying & soil cultivation) Reduced fuel use (less spraying & soil cultivation) GM HT crops facilitate no till systems = less soil preparation = additional soil carbon sequestration GM HT crops facilitate no till systems = less soil preparation = additional soil carbon sequestration ©PG Economics Ltd 2008

15 Reduced GHG emissions: 2006 Reduced fuel use (less spraying & tillage) = 1.2 billion kg less carbon dioxide Reduced fuel use (less spraying & tillage) = 1.2 billion kg less carbon dioxide Facilitation of no/low till systems = 13.5 billion kg of carbon dioxide not released into atmosphere Facilitation of no/low till systems = 13.5 billion kg of carbon dioxide not released into atmosphere = Equivalent to removing 6.56 million cars — 25% of cars registered in the United Kingdom — from the road for one year ©PG Economics Ltd 2008

16 Concluding comments Technology used by over 10 m farmers on 100 m ha (2006) – 12 m farmers on 114 m ha in 2007 Technology used by over 10 m farmers on 100 m ha (2006) – 12 m farmers on 114 m ha in 2007 Delivered important economic & environmental benefits Delivered important economic & environmental benefits + $33.8 billion to farm income since $33.8 billion to farm income since m kg pesticides & 15.4% reduction in env impact associated with pesticide use since m kg pesticides & 15.4% reduction in env impact associated with pesticide use since 1996 Carbon dioxide emissions down by billion kg in 2006: equal to 6.56 m cars off the road for a year Carbon dioxide emissions down by billion kg in 2006: equal to 6.56 m cars off the road for a year ©PG Economics Ltd 2008

17 Concluding comments GM IR technology: improved profits & env gains from less insecticide use GM IR technology: improved profits & env gains from less insecticide use GM HT technology: combination of direct benefits (mostly cost reductions) & helping changes to no tillage farming = major GHG emission gains GM HT technology: combination of direct benefits (mostly cost reductions) & helping changes to no tillage farming = major GHG emission gains Additional production = more trade on world markets = world prices lower than if technology not used Additional production = more trade on world markets = world prices lower than if technology not used ©PG Economics Ltd 2008

18 EU 27 Farm users of Bt corn getting important economic and environmental gains Farm users of Bt corn getting important economic and environmental gains Bt corn delivering better quality (lower mycotoxins) grain (we feed it to animals not humans!) Bt corn delivering better quality (lower mycotoxins) grain (we feed it to animals not humans!) Most EU farmers not getting benefit of higher yields and lower costs Most EU farmers not getting benefit of higher yields and lower costs EU farm sector losing out competitively with imports and on world markets EU farm sector losing out competitively with imports and on world markets EU citizens missing out on environmental benefits EU citizens missing out on environmental benefits Co-existence rules mostly not based on science = indirect moratorium on planting Co-existence rules mostly not based on science = indirect moratorium on planting ©PG Economics Ltd 2008


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