Back to Library

Biotechnology in Agriculture: Implications for Farm-Level Risk Management

Published by:
Document
Download
Publication date
23/06/2001
Number of Pages
17
Language:
English
Type of Publication:
Articles & Journals
Focus Region:
North America
Focus Topic:
Information Technologies
Type of Risk:
Logistical & infrastructural
Type of Risk Managment Option:
Risk reduction/mitigation
Commodity:
Crops
Author
Shiva S. Makki, Agapi Somwaru, Joy Harwood
Organization
Journal of Agribusiness

This study examines the risks associated with adoption of biotech crops and discusses their implications for risk management at the farm level. We develop an analytical risk evaluation matrix framework to illustrate changes in production and marketing risks of biotech and non-biotech crops. Price uncertainty generated by consumer concerns is the major risk facing biotech farmers, while cross-pollination with biotech crops and preservation of non-biotech status are major concerns for non-biotech farmers. Improved market infrastructure to handle biotech products and modification of the current risk management tools to accommodate new risks are essential in reducing the farm-level risks.