Spain: GM soybean imports save 55,000 million euros between 2000-2014
The import of genetically modified soybean (MG) by Spain before the alternative of having only conventional soybeans imported during the period from 2000 to 2014 resulted in a saving for producers of at least 55,000 million euros. A savings from higher cost than would have been the import of conventional soybeans because of its high price relative.
This follows the report ‘GM Soy: an irreplaceable raw material in the European Union. Evaluation of alternatives and economic impact for the feed industry and for the livestock sector in Spain ‘developed by Dr. Francisco J. Areal (University of Reading, UK) for Antama Foundation and presented this morning in the Hall the Ministry of Agriculture, Food and Environment (MAGRAMA).
Soybean is a key to the production of animal feed because of its high protein content and high price competitiveness of the protein raw material. This study analyzes the importance of GM soybean as an irreplaceable raw material in the feed industry, in a situation where the European Union (EU) to block access to it. The paper evaluates a number of alternatives and the impact that these alternatives will have on the price of soybeans and feed industry and various livestock industries in Spain are measured. The study international trade in soybean is described, focusing on soybean imports from Europe and Spain.
The study concludes that the attempt to replace GM soybean imports for conventional soybeans would be a lack of supply of raw material for feed manufacturing industry. This would result in an increase in short-term price of soybeans and soybean meal of 291% and 301%, respectively.
The attempt to replace GM soybean imports for conventional soybeans would also cause an increase in the cost of production of feed ingredients for beef, pork and poultry 49%, 54% and 85%, respectively. The increase in soybean prices have an impact on feed production of 11.3% and a final impact on the cost of production of eggs, poultry, pork and beef 7.1 %, 8.0%, 8.1% and 4.6%, respectively.
The possibility of replacing protein from soybeans by increased production of other crops such as beans, peas, lupins or sunflower in Spain is considered unfeasible due to the huge amounts of farmland that would be needed to cover production necessary protein that currently comes from GM soybean.
This impossibility of supply of raw materials for feed production industry means that there is a risk of a possible dismantling of industry in the European Union. In particular this would affect an industry with 28,762 Spanish companies, which billed the 88.673 million euros and employed 439,760 workers in 2013.
The possible shortage of feed for the livestock industry, to be restricted access to GM soy by European industry could not be offset by the import of feed from third countries, as these are mostly from genetically modified raw materials, what use would also be restricted.
Source: ANTAMA
