GM crops: Reaping the benefits, but not in Europe - Europabio
GM crops: Reaping the benefits, but not in Europe - Europabio
GM crops: Reaping the benefits, but not in Europe - Europabio
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Patents and Royalties<br />
Biotech companies <strong>in</strong>vest very large sums <strong>in</strong> <strong>the</strong> development of <strong>the</strong> most useful new varieties.<br />
Just as with o<strong>the</strong>r technologies, this research is economically viable because <strong>the</strong> <strong>in</strong>ventions can be<br />
patented. Farmers have <strong>the</strong> choice between high performance <strong>GM</strong> seeds that can be more expensive<br />
than conventional seeds because royalties are built <strong>in</strong>to <strong>the</strong> price, or cheaper conventional seeds.<br />
Their choice will depend on <strong>the</strong>ir expected <strong>in</strong>dividual <strong>benefits</strong>.<br />
Royalties as a cost component of transgenic <strong>crops</strong><br />
Cost comparison - Conventional & Biotech Soy (Brasil)<br />
This graph shows why farmers <strong>in</strong> Brazil tend to choose biotech soy. Despite higher seed prices due to<br />
royalties, <strong>the</strong>y eventually save $ 48.80 per hectare, ma<strong>in</strong>ly due to reduced herbicide <strong>in</strong>put.<br />
US$ per hectare<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
Market concentration?<br />
US$ 48,80<br />
ROYALTY<br />
Conventional Transgenic<br />
SEEDS HERBICIDES<br />
MACHINE<br />
OPERATION<br />
OTHERS<br />
Source<br />
Conab/Abrasem/Celeres/<br />
ISAAA/Kleffmann<br />
Many <strong>GM</strong> seeds are be<strong>in</strong>g developed by mult<strong>in</strong>ational companies, though <strong>the</strong>re is extensive ongo<strong>in</strong>g<br />
research by SMEs and public universities. High R&D and regulatory costs and lead times constitute<br />
immense market entry barriers for smaller companies. A new advisory report to <strong>the</strong> Dutch government<br />
states that <strong>the</strong>re are no <strong>in</strong>dications whatsoever that market concentration is somehow <strong>in</strong>herent to <strong>GM</strong><br />
technology 15 .<br />
In India, <strong>the</strong> <strong>in</strong>troduction and widespread adoption of two Bt-cotton traits developed by mult<strong>in</strong>ational<br />
companies has opened <strong>the</strong> way to four Bt-cotton traits developed by Indian or Ch<strong>in</strong>ese companies. 16<br />
7