Commercial release of first-generation genetically modified food products in New Zealand: using a partial equilibrium trade model to assess the impact on producer returns in New Zealand

Saunders C., Cagatay S.

AUSTRALIAN JOURNAL OF AGRICULTURAL AND RESOURCE ECONOMICS, vol.47, no.2, pp.233-259, 2003 (SCI-Expanded) identifier identifier


In the present paper, the impact of genetically modified (GM) food production on producers, consumers and trade in New Zealand is simulated under various scenarios using the Lincoln Trade and Environment Model (LTEM). The LTEM simulates, against various assumptions of proportions of GM/GM-free production, the impact of various scenarios relating to preference for or against GM production. The results from this preliminary analysis show that the greatest positive impact on New Zealand income is from following a GM-free strategy, where it is assumed such markets as the European Union and Japan have a large switch in preference away from GM food, followed by the scenario when there is a 20% preference for GM-free.