When Justin Dammann enters his
southwestern Iowa cornfield this month, the 35-year-old farmer will sow something
these 2,400 acres have not seen in more than a decade — plants grown without
genetically modified seeds.
The corn, which will head to a
processor 20 miles down the road this fall, will likely make its way into tortilla
shells, corn chips and other consumable products made by companies taking
advantage of growing consumer demand for food without biotech ingredients.
For Dammann and other Midwest
farmers, the burgeoning interest in non-GMO foods has increased how much
they get paid to grow crops in fields once populated exclusively with genetically
modified corns and soybeans. The revenue hike is a welcome benefit at a
time when lower commodity prices are pushing farm income down to what’s
expected to be the lowest level in six years.
“We never really thought we would
go back to (non-GMO). But the consumer, in my opinion, has sent a clear message
that a certain percentage of our customers are willing to pay more for the
non-GMO lines,” Dammann said. “This non-GMO thing has seemed to take hold and
gain a lot of traction.” – Des Moines Register, April 18, 2015
This story is a marvelous example of consumer preferences
encouraging producers to change their behavior, without any government
intervention. Markets work – when we let them.
Monsanto and the other genetically modified seed companies
insist their products are safe. A substantial number of consumers have
their doubts. The number is large enough to have enticed GMO-free food companies
to step up their offerings. Alternatives are often more expensive than the
GMO versions, but they’re available.
Consumers in some states have tried to force labeling
requirements on GMO products. As we wrote a few weeks ago, the effort is facing
fierce
industry and political resistance.
If the trends in this article continue, it won’t matter. Consumers will
eventually get what they want.
Mandatory labeling would have been a blunt instrument. If
it had solved the problem, there would still have been other harmful side effects.
This is how government interventions usually work, however
well-intentioned they are.
The market may move slowly but it is far more precise.
Look what is happening. A significant number of consumers want foods
made from GMO-free grains. Food companies provided them.
The article mentions some examples. General Mills will
no longer use GMO cornstarch in Cheerios. Chipotle Mexican Grill wants to
eliminate GMOs from all its ingredients. Whole Foods will require GMO labeling
by 2018.
All this is happening without any state intervention.
The businesses are responding to their customers.
With demand growing but the supply of non-GMO grains relatively
tight, prices for those grains have gone up. The higher prices enticed farmers
like the one quoted in the Des Moines
Register. His concluding comment ought to send a chill up Monsanto
spines.
“Hopefully we deliver the right
product and people are passionate to buy (GMO free) — because that is the
direction we are moving,” he said.
Oddly, the GMO industry does not seem to be getting the
market’s message, still spending enormous amounts of money on campaigns to
convince the public GMO crops are safe.
They are missing the point. In marketing, perception is
far more important than truth. Whether the bioengineered products are safe
is irrelevant. Consumers rule. If they decide they don’t want your seeds in
their Cheerios, it does not matter if science is on your side.
Time will tell how the battle turns out. Maybe GMO and
non-GMO products can coexist peacefully and each serve their own consumers.
The companies and consumers will find out quickly — if they let the market
show them.
Related Posts
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http://agenda21news.com/2015/04/the-free-market-is-solving-the-gmo-problem/
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