Impact of the Chinese embargo against MIR162 corn on Canadian corn producers

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2 Citations (Scopus)

Abstract

In 2009, Syngenta created two new insect-resistant corn varieties known as Agrisure Viptera and Agrisure Duracade, which contain the MIR162 biotechnology-enhanced genetic trait. These varieties were approved for commercial release in North America in 2010 and were planted in spring 2011. China imposed an embargo on corn imports from North America beginning on November 20, 2013, because of its zero-tolerance policy with respect to unapproved genetic traits in imported crops. The embargo was not lifted until December 14, 2014. The embargo led to increased availability of North American corn and a reduction in the price of corn realized by Canadian producers. The relative price of a substitute method was applied to weekly data on Ontario corn prices and Saskatchewan feed barley prices. The Chinese embargo against MIR162 corn caused the corn price received by Canadian farmers to drop by an estimated 1.24% or 5.32 cents/bushel. But for the Chinese embargo against MIR162 corn, Canadian corn producers would have realized an estimated additional $29.7 million in revenue in 2013/2014.

Original languageEnglish (US)
JournalCanadian Journal of Agricultural Economics
DOIs
StateAccepted/In press - Jan 1 2018

Fingerprint

maize
corn
genetic traits
zero tolerance
Corn
feed barley
Saskatchewan
biotechnology
barley
imports
Ontario
import
income
tolerance
price
insect
farmers
insects
crop
China

ASJC Scopus subject areas

  • Global and Planetary Change
  • Ecology
  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

Cite this

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abstract = "In 2009, Syngenta created two new insect-resistant corn varieties known as Agrisure Viptera and Agrisure Duracade, which contain the MIR162 biotechnology-enhanced genetic trait. These varieties were approved for commercial release in North America in 2010 and were planted in spring 2011. China imposed an embargo on corn imports from North America beginning on November 20, 2013, because of its zero-tolerance policy with respect to unapproved genetic traits in imported crops. The embargo was not lifted until December 14, 2014. The embargo led to increased availability of North American corn and a reduction in the price of corn realized by Canadian producers. The relative price of a substitute method was applied to weekly data on Ontario corn prices and Saskatchewan feed barley prices. The Chinese embargo against MIR162 corn caused the corn price received by Canadian farmers to drop by an estimated 1.24{\%} or 5.32 cents/bushel. But for the Chinese embargo against MIR162 corn, Canadian corn producers would have realized an estimated additional $29.7 million in revenue in 2013/2014.",
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