Wednesday, November 24, 2004

GM Crops

China is set to open the GM Genie out of their bottle, but I am predicting how it's all going to end. It will be just another way for agriculturally protective countries to keep barriers high to ag imports for another generation! This will be a big boon for Australia's organic agriculture industry. EU is used to high prices, and with a lack of other countries to import from, and a lack of the right climate for certain crops and animals, the incentive for Aus is to keep the genie in the bottle as long as possible to gain maximum benefit from the prejudice of Europeans against GM foods. Strategically, I think Australia would be crazy to start using GM crops before they are endemic world-wide. Prejudice, especially in Europe is so high that it has made a huge market distortion in the industry, offsetting all possible yield and other benefits for the forseeable future.

1 comment:

Dr. Clam said...

You are right, GM crops will provide another excuse for the agricultural protectionists (who are second only to abortionists on my 'evil people' list). But I do think your Economist-reading has left you with an exaggerated sense of the importance of Europe- where East Asia goes, the 21st century will follow...