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Strategy Unit publishes its report on the costs and benfits of GM crops (11/6/2003)

The Strategy Unit has today published its report into the overall costs and benefits of GM crops.

'Field Work: Weighing up the costs and benefits of GM crops' sets out the Strategy Unit's analysis of the overall costs and benefits of commercial cultivation - or non-cultivation - of GM crops in the UK. It looks at crops that are currently available and at possible developments over the next 10-15 years.

The Strategy Unit project was commissioned by the Secretary of State for the Environment, Food and Rural Affairs, Margaret Beckett, as one of three strands of work on GM issues, along with the Public Debate 'GM Nation?' and the Science Review.

The Strategy Unit report - and any responses to it - will inform Government decision-making and policy on GM crops and foods, alongside the outcomes of the other two strands. However, the report does not contain specific recommendations for Government.

The Strategy Unit's central conclusions are that:

• existing GM crops could offer some cost and convenience advantages to UK farmers;
• however, any economic benefit to the UK is likely to be limited, at least in the short-term - only a narrow range of existing GM crops are currently suited to UK conditions, and weak consumer demand is likely to limit take-up;
• looking to the longer term, future developments in GM crops have the potential to offer more wide-ranging benefits, to farmers and to consumers - possibilities include GM crops with agronomic benefits more suited to the UK; GM crops delivering direct health benefits (e.g. delivering foods with reduced allergenicity or added nutrients); or non-food GM crops used as a source of pharmaceuticals and vaccines;
• however, the overall balance of future costs and benefits will depend on public attitudes, and on the ability of the regulatory system to manage uncertainties.

Environment Minister, Elliott Morley said:

'The Strategy Unit has explored the economics of GM crops in a very open and transparent manner. I am particularly pleased that they involved experts and stakeholders from all shades of opinion to ensure there was balance and rigour when examining this important issue.

'The report highlights that GM crops are one area in which GM technology has significant potential to contribute to the UK's future economic prosperity and sustainability. But it also points out that GM crops are just one possible tool for achieving our goals - important advances in crop production will also come from conventional and organic techniques.

'The report sets out a range of potential futures for GM crops in the UK. These helpfully illustrate the trade-offs that will be involved whatever approach the UK adopts to GM crops over the next 10-15 years. But quite rightly, the report reiterates that consumers and retailers will play an important part in shaping the future role for GM crops.

'We would very much welcome views and comments on the Strategy Unit's report and conclusions.'

Main conclusions of the report

The Strategy Unit study has recognised that neither GM crops nor the alternatives to GM crops can be considered as ends in themselves. GM crops are useful only if they are able to play a role in meeting desirable objectives - environmental, social and economic - without imposing unacceptable costs. It is on this basis that the Strategy Unit has undertaken its analysis.

The Strategy Unit's main conclusions are that:

• GM crops could offer some cost and convenience advantages to UK farmers now, and that future developments in GM crops have the potential to offer more wide-ranging benefits both to farmers and consumers. However, at least in the short-term, weak consumer demand is expected to limit the demand for products containing GM foods, and therefore the economic value of the current generation of GM crops. In the long-term, public attitudes and the ability of the regulatory system to effectively manage uncertainties, will be key determinants of costs and benefits.
• Only a narrow range of crops and traits (herbicide tolerant varieties of maize, sugar beet and oilseed rape) are available and suited to UK conditions in the immediate future. While offering some benefits to farmers, these crops do not yet offer discernible benefits to consumers. But looking ahead, GM varieties of a wider range of crops could be developed that are relevant to the UK - such as wheat and potatoes. And future beneficial traits could include GM crops resistant to common UK pests and plant diseases; foods with reduced allergenicity or added nutrients; as well as the production of pharmaceuticals or vaccines from non-food crops. Some of the same developments might also come from conventional and organic techniques.
• Future decisions on GM crops will involve trade-offs between costs in one area, and benefits in another. For example, a strict regulatory regime reduces risks - which is important to the consumer - but also carries financial costs, which may discourage companies from developing GM crops and farmers from growing them.
• The potential impact of GM crop cultivation on non-GM and organic farmers could also create trade-offs. The nature of the rules on the growing of GM crops will determine how effectively they can be kept separate from non-GM crops at the farm level. It will also determine the level of costs faced by those growing GM crops, and the extent to which non-GM and organic farmers may have to incur costs themselves in ensuring the integrity of their products.
• Costs and benefits will vary between crops and traits, and the Strategy Unit's overview analysis needs to be accompanied by case by case assessments.
• GM decision-making could impact on the UK's wider science based industries, which make an important contribution to national output. Decisions about GM will also impact on our international competitiveness, and on the ability of developing countries to make informed choices on GM.

The Strategy Unit will be collating and publishing responses to its report on its website. All the responses will be passed to DEFRA.

Send responses to GMCrops@cabinet-office.x.gsi.gov.uk or GM Crops Project Team, Strategy Unit, 4th Floor, Admiralty Arch, The Mall, London SW1A 2WH, by Friday, 17 October 2003.

Notes to editors

Copies of 'Field Work: Weighing up the Costs and Benefits of GM crops' are available on the Strategy Unit website or by telephoning 020 7276 1881.

A review of the scientific issues led by Professor Sir David King is expected to be published later this month. The independent steering board which is managing the public debate GM 'GM Nation?' is due to submit is report to Government in September.

The Strategy Unit study was announced by the Project's Sponsor Minister, Margaret Beckett, Secretary of State for the Environment, Food and Rural Affairs, on 26 July 2002.

DEFRA will take lead responsibility for the report's dissemination and for ensuring that the report's analysis is reflected in future policy decisions. Ministerial responsibility will rest with the Secretary of State for the Environment, Food and Rural Affairs, reporting to the SCI(BIO) Cabinet Committee.

The Strategy Unit provides the Prime Minister and Government departments with a capacity to analyse major cross-cutting and strategic policy issues and to design solutions to problems. It was formed following a merger of the Performance and Innovation Unit (PIU) and the Prime Minister's Forward Strategy Unit in July 2002.