Who Benefits from Biotechnology?

Sunday, 11 January 2009

The results presented here are from a cross-sectional study. Replicated, randomized plot studies by Pecinovsky also reached the same conclusions. (Iowa State University, 2001) Similar to this study, he found the Bt corn had higher yields whereas the herbicide tolerant soybeans had lower yields. Today the primary benefactors of biotechnology are the seed companies and chemical companies. Farmers appear to be receiving some non-pecuniary benefits. And, in spite of arguments to the contrary, there is only mixed evidence with respect to consumer benefits.  The primary reason for the first generation biotech applications was to focus on input traits. Given this approach it is not surprising that the input companies are the primary beneficiaries. Biotech applications that focus on output traits, as opposed to the input traits, may produce more widely dispersed benefits.  One of the issues that I have not addressed but that is a concern to many people pertains to the externalities associated with the use of biotechnology, especially as it has been applied to date. There is a question of unknown health effects from the genetically modified products. Health officials have assured the public that this should not a concern, but this is not an entirely satisfactory reassurance to many.  Several other externality issues surround the use of biotech crops. Insect and weed resistance will develop faster with the widespread use of these products. There also is the issue of pollen drift that affects people trying to grow either organic commodities or some other type of crop requiring segregation from biotech varieties.  Biotechnology is an extremely powerful tool. It has the potential to create many useful products as well as many unforeseen problems. As with any new technology, it must be evaluated carefully. It is not prudent to expect private companies to develop products for the public good. Companies are in the business of making money and the products they pursue are designed for that end. To expect any other result from private research is not appropriate or realistic.