Economic Consequences for UK Farmers of Growing GM Herbicide Tolerant Sugar Beet

February, 2003

The first analysis of the potential economic benefit of commercial production of a GM herbcide tolerant (GMHT) crop in the UK has been published by Broom's Barn Research Station (the national centre for sugar beet research) in Suffolk. The study specifically concerns sugar beet and the key finding is that overall savings, net of technology fee included in the seed price, would be £150 / ha / year, or £23m per year if GMHT crops were grown exclusively. A major part of this saving is the 80% reduction in expenditure on herbicides. The paper has been published in the peer reviewed scientific journal, Annals of Applied Biology 142, 41-48.

Commenting on the findings, Mike May, Senior Liaison Officer at Broom's Barn said: "Research results reported earlier this year showed that management of GMHT sugar beet had the potential to provide environmental benefit. This economic analysis now quantifies the potential financial benefits of growing GMHT beet and thus the positive impact on industry competitiveness and affordability of agri-environment measures. Broadly similar cost savings could also be realised in much of Europe. The potential saving that GM herbicide tolerant (GMHT) sugar beet provides could be critical to the future competitiveness of the UK sugar beet industry.

The current EU regime ends in 2006 and it is expected that the price for sugar beet will reduce. Sugar beet is a major spring sown break crop and if production declines as a consequence of reduced profitability, this could intensify winter cropping in the UK with possible environmental consequences and less scope for integrated crop management practices.

The reduced cost of beet production if GMHT were adopted could be critical to the establishment and economic viability of an ethanol based biofuel induestry in the UK, boosting the rural economy and helping the UK to meet its EU and Kyoto Protocol greenhouse gas emission commitments."

A study of the potential economic benefit of commercial production of a GM herbicide tolerant (GMHT)
crop in the UK suggests that it could save the industry £23 M per year, if the crop was grown
exclusively. The study conducted by Mike May, Broom's Barn Research Station in UK estimates that
overall savings, net of technology fee included in the seed price, would be £150 per hectare per year.
A major part of this saving is the 80% reduction in expenditure on herbicides.
 

Broom's Barn Research Station news item
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