REGINA -- Growing genetically modified (GM) wheat could cost Canadian farmers $185 million a year in lost sales because many consumers are leery of biotechnology, according to new research from the University of Saskatchewan.
Four new studies from the university found the technology could result in cost savings of $6.67 an acre over conventional wheat. It could also increase yields. But the studies found Canadian wheat would potentially lose several major export markets if GM wheat was grown here but not segregated from conventional wheat. The researchers estimate this would cost producers about 8 1/2 per cent of their sales revenue. In addition, producers would have to pay to use the technology, further decreasing the net benefit to farmers.
For Richard Gray, a University of Saskatchewan researcher, the studies suggest Canada should not approve GM wheat until customers want the technology. Gray notes once GM wheat is introduced, there is no going back.
"It doesn't make sense to introduce it until the uncertainties in the marketplace are addressed," said Gray.
"Whenever you are faced with an irreversible investment and the future is uncertain there is a value to wait until more information is revealed."
GM wheat is still under development, although at least one biotechnology company expects it will be ready for production as early as 2005.
Although GM wheat would be expensive for producers, it would mean substantial profits for biotechnology companies. The estimated value of the technology for biotech company Monsanto is as high as $7 billion, Gray says.
Despite the tone of the study, Gray said he is an advocate of biotechnology. He argues GM crops can help feed a growing world population. Consumers who block the use of biotechnology are putting global food security at risk, he said. But those who oppose the technology touted the study as proof that GM wheat will benefit no one but Monsanto.
"Farmers are seeing the math, they're coming forward and saying it's not good for their pocketbooks and consumers aren't comfortable with it," said Fred Tait, vice-president of the National Farmer's Union.
A spokesperson from Monsanto, the company that is closest to developing GM wheat, said Monsanto has always wanted to introduce the product in a responsible manner. Trish Jordan said GM wheat will not be introduced without a segregation system and some international tolerance of the technology.
"We know if we can't bring value to everyone from the baker to the farmer, the technology won't be much good to anyone," said Jordan.
Last summer more than 300 organizations wrote the prime minister urging government not to approve GM wheat. They argued it would destroy the industry's export market.
Government officials said they will take a closer look at the issue.:
