TY - JOUR
T1 - Impact of the Chinese embargo against MIR162 corn on Canadian corn producers
AU - Schmitz, Troy
N1 - Funding Information:
informationW. P. Carey School of Business at Arizona State University provided partial funding for this paper through the “Dean's Award For Excellence” 2017 Summer Research Grant Program.The author would like to thank Dr. Amy Hillman, Dean of the W. P. Carey School of Business at Arizona State University, for providing partial funding for this paper through the “Dean's Award For Excellence” 2017 Summer Research Grant Program. The author would like to acknowledge Professor Aaron Smith at the University of California, Davis, for providing clarifying comments regarding implementation of the relative price of a substitute method. The author would also like to thank three anonymous reviewers for helpful comments which significantly improved the revised version of this paper.
Publisher Copyright:
© 2018 Canadian Agricultural Economics Society
PY - 2018/12
Y1 - 2018/12
N2 - 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.
AB - 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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U2 - 10.1111/cjag.12185
DO - 10.1111/cjag.12185
M3 - Article
AN - SCOPUS:85052840555
SN - 0008-3976
VL - 66
SP - 571
EP - 586
JO - Canadian Journal of Agricultural Economics
JF - Canadian Journal of Agricultural Economics
IS - 4
ER -