Analysis Shows There Are No Price Premiums Under the South Australian GM Crop Moratorium

A report titled ‘Analysis of price premiums under the South Australian GM moratorium’ released today provides clear facts and evidence that the moratorium on genetically modified (GM) crops in South Australia does not deliver price premiums to any farmer in the state and if repealed, would not cause any loss to non-GM farmers.

The report by independent expert market analysts Mecardo, commissioned by the Agricultural Biotechnology Council of Australia (ABCA) and Grain Producers South Australia, has been released to provide facts and evidence on the presumed trade and marketing premiums achieved by farmers through the South Australian ban on GM crops in what to date has been a discussion based on hearsay and anecdotes.

The analysis compares, on a ‘like for like’ basis, agricultural commodity prices in South Australia against comparable markets in states where the cultivation of GM crops is permissible, such as Victoria and Western Australia. To ensure a thorough examination of the presumed premiums available to food and fibre producers in South Australia, the report analyses a wide range of agricultural commodities based on the value to the South Australian economy.

In direct comparison with similar markets in Victoria and Western Australia, where both GM and non-GM crops are grown, South Australian farmers do not achieve higher prices for their non-GM canola, wheat, barley, wine grapes, wool, cattle, or sheep and lamb. The report is clear that should the ban on GM crops be removed, non-GM farmers would not be affected in any way.

With a GM crop moratorium in place in the state, Mecardo’s analysis provides evidence that not only is the ban not facilitating South Australian farmers achieving any price premiums, but farmers also don’t have the opportunity to experience the economic and environmental benefits of growing safe and approved genetically modified canola.

The report is further evidence that co-existence between non-GM and GM farmers is working in Australia and that different production systems can exist side-by-side. The strength and diversity of Australian agriculture brings great value to our country. This exists because of the range of farming systems we are allowed to use. If only one system could flourish this would seriously damage the sector as a whole. There is room for all.

ABCA’s mission is to ensure that the public policy and regulatory environment is guided by scientifically credible and factually correct information regarding the full benefits that agricultural biotechnology offers to Australian farming as the world’s farming sector seeks to double production to meet the food and nutritional requirements of the growing global population.

To download your copy of the report ‘Analysis of price premiums under the South Australian GM moratorium’ visit