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People are talking
Why all GE foods
should be labeled
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Economic issues and Oregon ballot measure 27: Labeling
of genetically modified foods
By William K. Jaeger, economist and Extension agricultural and
resource policy specialist, Oregon State University
Read
the full five-page report (PDF)
Summary:
- The evidence suggests that mandatory GM labeling need not be
highly costly to consumers and government. Several economic analyses
for other countries estimate total annual costs ranging from 23
cents per person to about $10 per person. Measure 27 is similar
to other strict proposals with estimated annual costs of $3 to
$10 per person. One study generated much higher cost estimates
-- $35 to $48 per person per year.
- Annual fiscal (government) costs are estimated to be between
3 cents and 37 cents per person. For Oregon's population, the
total annual government cost would be $100,000 to $1.25 million.
- Given the specific requirements of Measure 27, the costs may
be many times higher than for other labeling options. The reasons
are the stringent 0.1 percent threshold on contamination and the
inclusion of all foods for which genetic engineering was used
in production or processing.
- Measure 27 may generate additional costs for producers and distributors
due to the requirement for labeling of foods not destined for
Oregon markets. This effect would depend largely on whether consumers
in other markets avoid Oregon's GM-labeled products.
- Measure 27's cost may be lower than the above estimates to the
extent that product segregation, identity preservation, and labeling
are already becoming routine for exporters to foreign markets
where GM labeling is required.
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