Freakonomics: “How California’s GMO Labeling Law Could Limit Your Food Choices and Hurt the Poor”

There’s an excellent article posted today by Steve Sexton on the Freakonomics website titled “How California’s GMO Labeling Law Could Limit Your Food Choices and Hurt the Poor.”  Here’s a snippet:

More devastating than the label itself, could be the cost of avoiding the label on non-GE foods that may nevertheless contain trace amounts of GE material. In the U.S., the highest-grade corn can contain as much as 2% foreign material, like crop residues. In Europe, a food product can containas much as 0.9% genetically engineered material and avoid a GE label. But the California law would impose a nearly twice as stringent purity standard, tolerating only 0.5% GE content in non-GE food.

Such a high purity standard would likely require farmers to invest in separate planting, harvesting, storage, hauling, processing, and packaging equipment for GE production in order to avoid revenue losses and liability from contaminating their non-GE operations or those of competitors. Because the costs of risk reduction generally increase exponentially in the level of safety, California’s stringent purity standard may be a death sentence to GE producers who could spread the high fixed costs of contamination avoidance across only the low levels of production that the market would initially support.

Please read the entire piece in full here.

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