31 March 2008

GM crops: potential benefits to Australian agriculture

GM oilseed and wheat crops, if adopted, could provide significant benefits to Australian agriculture, according to a new ABARE report GM crops in emerging economies: impacts on Australian agriculture. "The uptake of GM oilseeds and wheat could lead to a gain of $912 million in the Australian economy by 2018 relative to what would otherwise be the case," Phillip Glyde, ABARE Executive Director, said on releasing the report. The economic benefit of GM crops is estimated under the assumptions that imports of GM crops are not restricted in foreign markets and the emerging economies of Argentina, Brazil, India and China will fully adopt these GM crops by 2018. "Australia will forgo significant economic gains by delaying the introduction of GM oilseeds and wheat if emerging economies continue to increase their uptake of GM crops," Mr Glyde said. Argentina, Brazil, India and China, in aggregate, account for around 39 per cent of the world"s total GM crop plantings and this share is expected to increase as they continue to introduce GM crops at a faster pace than other countries. The increase in GM crop adoption has increased on-farm productivity, farm incomes and reduced input use in these emerging economies. Under an alternative scenario where it is assumed that the European Union bans the importation of GM crops from GM adopting countries, the estimated gain to the Australian economy of adopting GM oilseeds and wheat would reduce to $732 million in 2018, compared with what would otherwise be the case.

For media interviews and comment, please contact Jammie Penm, Agriculture Trade and Data Resources Branch Manager on 02 6272 2030, mobile 0408 686 219 or email jpenm@abare.gov.au For free downloads of the report GM crops in emerging economies: impacts on Australian agriculture please visit the ABARE website www.abare.gov.au or phone Publications on 02 6272 2010. For general media enquiries, contact Maree Finnegan, Media Coordinator on 02 6272 2260, mobile 0417 689 567 or email mfinnegan@abare.gov.au.