Posted May 19, 2014
A new study from Cornell University reports on the added costs that the food industry would pass down to consumers for mandatory labeling of genetically modified (GMO) food in New York, according to an article by Farm Futures available here. AgProfessional also reported on the story here.
Vermont’s recently passed GMO food labeling bill was signed into law by the Governor last week. The food industry now intends to file suit over the law. More information on the Vermont law is available hereand here.
The Cornell study concluded that mandatory GMO label could cost consumers up to $800 per year.
The study, by Professor Bill Lesser of the Dyson School of Applied Economics and Management at Cornell University, concluded that mandatory labeling would impact “virtually every aspect of the food production industry-from seed to store shelf.”
The study concluded that between 60-66 percent of foods sold in New York State would be exempted. The remaining 40 percent of foods would make up 50-58 percent of items available in supermarkets.
The study outlines three approaches for companies to comply with mandatory labeling:
First, companies can label the items or use ingredients below the specified GM threshold of 0.9 percent. The estimated cost of this approach for a family of four would be $64-48 per year. Second, the companies could use non-GM ingredients. Products are more costly and identity preservation on non-GM products adds an additional cost for handling a recordkeeping. The estimated cost for a family of four ranges from $44 to $412. Third, the companies could use organic ingredients. The cost for this option would range between $360 and $1,552.
Additional regulatory costs would also be borne by the state. Adding “one dollar per capita for all those costs brings the maximum range of cost, for a four person household, to $48 to $1,556 with a midpoint of $800.”
For more information on food labeling, please visit the National Agricultural Law Center’s website here.
Share: