Cost Implications of Alternative GM Tolerance Levels: Non-Genetically Modified Wheat in Western Canada

Abstract

Modern agricultural biotechnology is leading to the creation of supply chains involving identity preservation of genetically modified (GM) and non-GM crops. Cost differences are estimated for three selected supply chain systems for Canadian non-GM wheat at different levels of tolerance for GM material. The selected systems extend from the farm to export port and include use of both mixed and dedicated country and export elevators as well as farm-level containerization of wheat. There is an appreciable increase in the costs of identity preserved marketing of non-GM wheat within each system as threshold levels tighten from 5% to 0.1%.