Do Consumers Really Care about Genetically Modified (GM) Food Label? What Do We Know? What Else Should We Know?

This paper employs household survey data to examine whether GM food labeling has an impact on consumers’ vegetable oil purchasing decision. Direct variables indicating consumers’ response to label regulation are employed to test labeling effect. We find that supermarket customers who concern GM label or GM material have respectively 4.1-7.5 percent and 9.8-12.3 percent lower probability of buying GM oil. Meanwhile, their probability of switching from GM oil to non-GM oil after labeling enforcement is higher by 10.5 percent and 12.7 percent respectively. The empirical results support our previous finding that in the short run the market share of GM oil decreased significantly by a small amount as a result of label enforcement. To capture a comprehensive picture of GM food labeling and the market trend in the long run, major concerns and needs for the future are discussed, including understanding the discrepancy between stated preferences and revealed preferences, influencing factors for aggregate market share incorporating other market channels, real decision body for food consumption, and other major marketing strategies.GM food labeling, household survey data, aggregate market share, China.

Actual Media Reports on GM Foods and Chinese Consumers' Willingness to Pay for GM Soybean Oil

Information has been proven to have significant impacts on consumers' behavior and willingness to pay (WTP). In this study, information on GM soybean oil is given in the form of real-life cases involving GM food. These cases recorded from actual media reports. Using a hybrid of the double-bounded and payment care elicitation approaches, Chinese consumers' WTP for soybean oil is examined both before and after these cases are presented to them. Results indicate that media reports on positive cases do not increase consumers' WTP significantly, while reports on negative cases drastically lower their WTP.Chinese consumers, double-bounded, soybean oil, willingness to pay, Consumer/Household Economics, Demand and Price Analysis,

How does biotech food labelling affect consumers’ purchasing preferences and the market? Evidence from urban China

This paper examines whether and how biotech labelling has had an impact on Chinese consumers’ vegetable oil purchasing decisions. The authors used sales data from Nanjing and household survey data from Jiangsu province. They found that the market share of biotech oils immediately decreased as a result, though the decrease was small in absolute terms (but statistically significant). In addition, the changes in the biotech oil market share were affected by the structural effect of the rich, while there was no apparent gross consumption effect of the poor, which could have been underestimated due to a series of factors concerning the two datasets applied

Crop insurance and agrochemical use in the Manasi Watershed, Xinjiang, China

This study investigates the environmental impact of a government subsidy program for crop insurance in China. It looks at how crop insurance scheme in Xinjiang province affects the way cotton farmers use fertilizers, pesticides and plastic agro-film. These three inputs cause significant environmental problems in the region and there is a need to ensure that their over-use is not encouraged. The study finds that crop insurance helps protect farmers from the economic impact of crop failures, with a minimal negative impact on the environment. The only significant impact is a potential slight increase in agro-film use. In fact, crop insurance helps reduce the amount of pesticides cotton growers use. In light of these findings, the study concludes that a government-subsidized crop insurance program is an acceptable policy and proposes a number of ideas for minimizing any residual environmental impact it might have

Commercialization of Herbicide-Tolerant Soybeans in China: Perverse Domestic and International Trade Effects

Replaced with revised version of paper 06/12/07.Crop Production/Industries, International Relations/Trade,

Key issues for freer agricultural trade from the perspective of developing countries

Almost eight years have passed since the Uruguay Round of multi-lateral negotiations were conducted under GATT, but developing countries are yet to see or benefit from the freer agricultural trade projected by most studies during the negotiations. Because most developing economies depend heavily on agricultural production and trade, the world agricultural market has a significant impact on their growth, as well as on their attitude towards the next round of negotiations. It was predicted that, following the completion of the Uruguay Round of negotiations and the establishment of the World Trade Organization (WTO), the prices of most farm products in the world market would greatly increase because of cuts in domestic price support and export subsidies in developed countries. As a result, developing countries – with the exception of the poorest and most food-deficient ones – would benefit significantly from freer trade in agriculture and see their GDP growth accelerate. In reality, however, this has not been the case. World prices for major farm products remain low, while trade volumes remain the same. The reason for this is not new: the developed countries have kept their domestic price support and export subsidies at the same high levels, though some have changed their forms. In addition, new barriers to agricultural trade have emerged in the form of ‘green’ criteria and other non-tariff measures, and the technological advances in genetically modified organisms (GMOs) and other biotech products may actually put developing countries in unfavourable positions in both production and trade. At the same time, developing countries have not seen any improvements in market access for the products of their labour-intensive manufacturing sectors, and they have not been able to increase the competitiveness of their agriculture by absorbing labourers from manufacturing. Since the agricultural sector plays such an important role in developing countries’ economies, the current situation raises the question of how developing countries can really benefit from the world trading system under the WTO. The low prices in the world market and the new barriers set up by developed countries have effectively thwarted developing countries’ efforts in economic growth, especially in the case of developing countries whose economies depend on exports of farm products. Meanwhile, importing countries find their agricultural sectors and the basic living conditions of a large portion of their populations threatened, though certain consumers may benefit. It is likely that issues such as these will be discussed in the next round of negotiations