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Balance Sheet 2020 |
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By Juliet
McFarlane, 2005
I’ve called this a balance
sheet really to draw
attention to what is
essential to all of us and
that is profitability.
Whether self employed
farmers, retailers or wage
earners, we all need money.
For self employed people
profitability is the bottom
line and that won’t change
in 20 or even 100 years.
The reason farmers like
me are questioning GM food
crops is basically due to
concerns about
profitability. We need to
look at the things which
affect profitability and
which are affected by
profitability both now and
in 2020.
I’ll start with
productivity in a GM
scenario for 2020.
By then GM food crops are
still predominately
herbicide tolerant - these
have proven to be the most
lucrative for the
developers, as they require
farmers to buy their seeds
and their chemicals and to
pay royalties, even thought
in effect this is really
just another weed management
tool. Promised increases in
yield have failed to
materialise, which didn’t
surprise growers considering
the Biotech companies
refusal to release agronomic
data before commercial
release was granted in 2006.
As global warming kicks in
and as Australia’s Autumn
break comes later, GM crops
perform worse than
conventional ones, again we
knew this was coming as the
Biotech companies refused to
sow trials in 2004 citing
drought as a major reason.
They are less stable than
mendelian bred varieties
forcing farmers to buy new
varieties each year, there
is an increased use of more
toxic chemicals as
resistance to key chemical
groups has increased, patent
costs have gone up, there
are monopolies on seed and
chemicals resulting in less
competition; you need to
bear in mind that by 2005
Monsanto already owned over
90% of the world’s GM seed;
and there is widespread and
irreversible contamination.
The chemical companies
learnt a lesson from
glyphosate. i.e. when the
patent ran out it was copied
by China at a reduced price
so they learned to rely on
binding farmers through
contract, not just patents.
After the introduction of
GM canola in 2006,
segregation and Identity
Preservation, (being
testing, extra time/money
for machinery clean downs
etc.,) costs went from
$50p/h to $70p/h and then as
contamination became
widespread the segregation
of GM and non GM was
abandoned. Unfortunately the
segregation costs were not
dropped and the bulk
handling companies, who also
have monopolies gave this
saving to the share
holders.. As non GM growers
were landed with all the
segregation and IP costs and
all the liabilities, many
have been forced out of the
industry, just as organic
farmers have found it more
and more difficult to exist.
Farmers haven’t be spared
in the litigious climate
created by attempts at
segregation, >-lost markets,
diminished productivity and
profits, so non GM farmers
have sought equity from the
only legal avenue available
and that is to sue GM
farmers. As a result many
are tied up in costly
litigation they can ill
afford.
So we can see that all
input costs increased for
all growers since the
introduction of GM food
crops. |
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Markets in 2020 under a
GM regime
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As consumers become more
resistant to GM food, GM
grain becomes more difficult
to sell on the world market.
Europe has remained GM free
and the 103 countries which
signed the Cartagena
Protocol in 2004 have held
and this includes many of
our Asian markets..
Australia has lost her clean
green image and are now back
to competing with the US and
Canada which are even more
heavily subsidised. Aust. is
finding it difficult to
export dairy products, beef,
honey wheat, barley and
canola and compete against
subsidised GM countries. In
2005, of Australian imports
3% of that was agricultural
products and exports were
13%. After the adoption of
GM crops, coupled with
elimination of ‘country of
origin’ labels, as
recommended by FSANZ in
April 2004, this figure was
reversed as domestic
consumers couldn’t choose
Made in Australia.
Supermarkets bought in
subsidised food and more
importantly, most of the GM
crops were owned by
multinationals which meant
they reap the benefits of
Australian agriculture, but
sent all the income out of
the country. In 2005 17%
of our workforce was
employed directly or
indirectly in the
agricultural sector, by 2020
this has dwindled to 10% as
Biotech companies dominate
seed production. These
monopolies in the industry
impact on scientific
researchers, private seed
companies, and other
employees in the industry
are finding it increasingly
difficult to find work.
Between 1995 and 2004, after
Canada adopted GM canola and
signed an FTA with the US,
13% of farmers went to the
wall. Canadian farmers held
rallies in 2005 in Canada to
get their subsidies
increased. The Australian
Govt. does not support
subsidies in 2020 so the
same has happened in
Australia and many farmers
here and all their knowledge
disappeared |
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Viability,
sustainability and the
environment - under a GM
regime
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As costs escalate, as market
demand diminishes and prices
for GM products drop, the
viability of many Australian
farmers is in peril. Grain
growers selling on a world
market are unable to recoup
the burden of higher GM
input costs coupled with
lower yields and
sustainability is
threatened. Due to the
increase use of glyphosate,
soil fungus is rampant,
affecting wheat yields, and
widespread resistance to
this once important weed
management tool, renders
glyphosate almost useless
and the resistance of wild
radish to 2,4-d first
identified in 2005 has
escalated. Farmers are
having to resort to more
toxic chemicals to control
unwanted GM Herbicide
Tolerant volunteers. As the
use of hormone sprays
increases, biodiversity
decreases as many native
species, including many
trees planted under the
Landcare umbrella die under
the onslaught of continuous
use of these hormone based
chemicals.
As farmers’ incomes are
reduced, there is little
money left to spend on the
environment and projects
such as salt reduction,
erosion remediation and tree
plantings are abandoned.
New Zealand released a GM
virus in 2007 into their
possum population in order
to eradicate this pest. This
has jumped the Tasman and
has all but eradicated our
own possums, as well it has
jumped species and we are
finding other marsupials
numbers also declining - a
huge potential threat to our
tourist industry.
Grasses genetically
engineered to stop growing
at 2inches designed for golf
links, football and cricket
fields, to eliminate the
need for mowing, has been
planted throughout
metropolitan Sydney. Turf
grasses, in most cases,
are varitities of grasses
used for pasture. These GM
turf grasses have cross
pollinated with pasture
species rendering the
Cumberland plain- area
outside Sydney virtually
unproductive.
In 2021 the Federal
Government changed the
legislation and included
economics & productivity as
well as the current Health,
Safety and the Environment.
Strict liability was also
imposed. It cost the
taxpayer millions of dollars
in remediation and it took
Australia 16 years to return
to a GM free status. |
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Productivity -GM free
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Without GMs by 2020 we have
none of costs previously
mentioned and no liability
problems. Conventional seed
breeding is a healthy
independent industry
attracting overseas buyers
as well as domestic for
drought resistance,
stability, herbicide
tolerance and other
essential input traits are
developed like rust and
blackleg resistant varieties
in response to farmers and
consumers wishes. Australia
is leading the world in the
genome programme and
research into this non-GM
gene identity programme
continues to flourish.
Farmers are able to
incorporate the best, most
cost effective and
environmentally friendly way
to manage weeds
incorporating chemicals,
tillage and livestock to
control weeds. Resistance is
still problematic, but
slowed by allowing farmers
to chose a variety of
different chemicals.
In comparison , this
is what the markets would
look like in 2020 if we
remain GM free
by 2020, Australia is the
biggest GM free grain export
country in the world. With
unfettered access, our
products are highly sought
after with a premium being
passed to growers.
Governments are realising
the value of independent
research and that, coupled
with private research is
leading to innovative,
stable varieties which meet
the needs of growers and
consumers. Diversity in
plant breeding is increasing
as Australia’s GM free
reputation grows in demand
both domestically and for
export markets boosting both
the national and rural
economies.
In contrast, this
is what would happen to
viability, sustainability,
and the environment if
Australia stays GM FREE
As world demand for GM
free cops grow, farmers,
both organic and
conventional are financially
rewarded and our
sustainability is ensured.
Farmers incomes stabilise,
the physical environment is
better cared for, our trees
are healthy, our soils are
healthy, our crops are
healthy and so too our
livestock. A healthy return
for farmers means a healthy
social environment with
viable rural communities.
This flourishing
agricultural business
attracts more scientists,
agronomists and others
workers into the industry.
All this happened because we
did our sums in 2005 and
adopted the not just the
best practices, but the most
profitable farming practices
for all of us, where all get
a share of the cake. We
realised that we needed to
understand, that regardless
of claims of reduced
chemicals, increased yields,
health giving input traits,
unless there is proof of
profitability for farmers,
then they are useless tools.
In 2005 the Gene
Technology Act was reviewed
and subsequently amended in
2006 to include,
productivity and economics
and strict liability. This
ensured a future where any
innovations in genetic
engineering which was under
consideration for commercial
licence had to meet the
following criteria. The
applicant had to provide
independent agronomic data,
independent markets
research, be legally
responsible for liabilities
for loss of income to non GM
farmers, validated testing
systems and all costs
revealed. These amendments
ensured a profitable and
equitable future was
guaranteed for everyone in
the agricultural industry
and Australia led the way in
independent research,
biodiversity, non GM
genomics and GM technology. |
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