Posted May 19, 2014
A new study from Cornell University reports on the
added costs that the food industry would pass down to consumers for mandatory
labeling of genetically modified (GMO) food in New York, according to an article by Farm Futures available here. AgProfessional also reported on the story here.
Vermont’s recently passed GMO food labeling bill was
signed into law by the Governor last week.
The food industry now intends to file suit over the law. More information on the Vermont law is
available here
and here.
The Cornell study concluded that mandatory GMO label
could cost consumers up to $800 per year.
The study, by Professor Bill Lesser of the Dyson School
of Applied Economics and Management at Cornell University, concluded that
mandatory labeling would impact “virtually every aspect of the food production industry-from
seed to store shelf.”
The study concluded that between 60-66 percent of foods
sold in New York State would be exempted.
The remaining 40 percent of foods would make up 50-58 percent of items available
in supermarkets.
The study outlines three approaches for companies to
comply with mandatory labeling:
First, companies can label the items or use ingredients
below the specified GM threshold of 0.9 percent. The estimated cost of this approach for a
family of four would be $64-48 per year.
Second, the companies could use non-GM ingredients. Products are more costly and identity
preservation on non-GM products adds an additional cost for handling a
recordkeeping. The estimated cost for a
family of four ranges from $44 to $412. Third,
the companies could use organic ingredients.
The cost for this option would range between $360 and $1,552.
Additional regulatory costs would also be borne by the
state. Adding “one dollar per capita for
all those costs brings the maximum range of cost, for a four person household,
to $48 to $1,556 with a midpoint of $800.”
For more information on food labeling, please visit the
National Agricultural Law Center’s website here.
