BioWorld International Correspondent

LONDON - Weak consumer demand means the current generation of genetically modified crops is of little economic value to the UK, according to a government study of their overall costs and benefits published last week.

While GM crops could offer some cost and convenience advantages to UK farmers, any economic benefits would be limited because very few crops are suited to UK conditions, and consumers are in any case hostile to GM produce, says the report, "Field Work: weighing up the costs and benefits of GM crops."

However, rejecting GM crops could have an adverse impact on biotechnology and other science-based industries, affecting the UK's international competitiveness. The report says, "The UK has a leading position in biotechnology in Europe. The UK also has a global reputation for wide scientific excellence, and science-based industries as a whole make an important contribution to national output." That could be affected if changes in the GM crops policy send out negative signals about the UK's attitude toward biotechnology.

Furthermore, future developments in GM crops do have the potential to offer significant benefits, including crops that are more suited to UK conditions, crops that provide health benefits such as reduced allergenicity or added nutrients, and plants that provide a source of pharmaceuticals or vaccines.

The study was commissioned by the government as one of three investigations into GM issues, along with a scientific review due to be published later this month and a national public debate that will report its findings in September. The results of field-scale trials of GM crops also are due to be published in September. Findings will be considered by the government in advance of an EU decision later this year on whether or not to lift the current ban on GM crops.

Environment Minister Elliott Morley said the report illustrated the tradeoffs that will be involved, whatever approach the UK adopts on GM crops over the next 10 to 15 years. But, he added, it highlighted that "GM crops are one area in which GM technology has significant potential to contribute to the UK's future economic prosperity and sustainability."

The only GM crops available at present that are suited to UK conditions are herbicide-tolerant varieties of maize, sugar beet and oil seed rape. They offer advantages to farmers but not to consumers. But GM versions of wheat and potatoes that are resistant to common pests and diseases would be beneficial. Costs and benefits will vary between crops and traits, and so each crop needs to be assessed separately.

It must also be recognized that decisions on GM crops will involve tradeoffs between costs in one area and benefits in another. A strict regulatory regime may reassure consumers, but it will have financial costs that will discourage companies from developing GM crops and farmers from growing them.

The cost-benefit picture is further muddied by the need to keep GM crops separate from non-GM and organic crops. Rules on growing GM crops are likely to increase costs for farmers, and may also mean non-GM and organic farmers face higher costs in ensuring their integrity of their produce.

The European Parliament is in the final stages of drawing up rules on traceability of GM produce, opening up the way to lifting the moratorium on approvals of GM crops. While these rules impose a heavy regulatory burden, industry groups are relieved that the ban will be ended. (See BioWorld International, July 9, 2003.)

The current EU moratorium means that commercial GM crop research in the UK has declined to the point where there is only one multinational crop research facility left in the country, and a very few small businesses working in the area. That means a GM crop policy that reduced the sector further would have little direct economic impact.

But academic crop research is strong and the commercial sector has the potential to expand. As a result, the report says, "There would be a significant opportunity cost if the UK lost its ability to research, develop and bring GM crops to market."