Biotechnology –New Zealand’s Economic Future?

The Govt is promoting the adoption of biotechnology as a way to boost NZ’s future economic performance but what are the risks?

Biotechnology is nothing new. Farmers have been using fertilizer, selective breeding, herbicides, insecticides, artificial insemination and grafting for years.
The arrival of Genetic modification (GM) has opened a Pandora’s box of religious and ethical issues to be considered along with the economic and environmental risks and rewards.

The way forward – A moratorium is in place on commercial GM release until October 2003. In the mean time GM food products can be imported and some field trials are under way.

Govt has a clear duty to steer the way forward. While NZ is at a crossroads choosing between GM and organic the Royal commission concluded there are a range of options in between. While organic farmers maintain the two cannot co-exist countries including the US, Canada and Australia have both.

Pros and cons of adopting GM n Sales of organically produced food have been growing by 20% a year in America and by up to 40% a year in Europe n The organic food market in the US exceeded US$8 billion – more than double NZ’s entire agricultural export value. n Future productivity of organic farming is unknown – it poses its own environmental issues such as deforestation and waste. n GM offers the potential to lessen the impact of farming on the environment and increase nutrition n GM has the potential to decrease production costs n Consumers may reject GM products

Risks in not adopting n NZ is in a holding pattern leaving it unable to compete against other nations adopting GM crop n The risk of only allowing lab research but not commercial crops means intellectual capital will go elsewhere.

22nd April 2003
Source: WestpacTrust