1. Food Policy & International Markets
Konstantinos Giannakas, Ph.D.
Department of Agricultural Economics
University of Nebraska-Lincoln

2. Industrialization of the Agri-Food System
Move from commodities to differentiated products
• Changes in Consumer Preferences
• Technological Progress
Product Variety
• Global Competition Differentiation Quality
•  Gov’t Support to Agriculture
Innovation

3. Examples of New (and “New”) Products
• Genetically Modified
• Organic (a.k.a. Biological)
• Sustainable
• Natural Key: Differentiating
• rBST-Free Milk Attributes are Credence
Process Attributes
• Cage-Free Eggs
• Dolphin-Safe Tuna
• Fair-Trade Coffee, Cocoa, Sugar, Bananas
• Functional Foods & Neutraceuticals
• Origin-Labeled Products

4. Certification & Labeling Critical for:
• Co-existence & Separation of the Different Products
• Enabling Consumers to Make Informed Decisions
• Enabling Producers to Capture Price Premia

5. Labeling Policy also Critical for:
• Research & Development
• Access of Domestic Products to Int’nal Markets
• Acceptance of Domestic Products in Int’nal Markets

6. Labeling of Genetically Modified Products (GMPs)
Highly Controversial
US: No Labeling (“substantial equivalence” of GMPs &
conventional products)
EU: Mandatory Labeling (“precautionary principal” and
consumer opposition)

7. Mandatory Labeling Standards
EU: > 0.9% biotech material
South Korea: > 2% GM food ingredients
Japan: > 5% GM food ingredients

8. Differences in Labeling Policies affect:
• Trade of GM Products
• Incentives for R&D
• Type of R&D
• Developing Countries’ Regulatory Decisions
• Food Security
• Political Stability

9. Critical
• Policy Harmonization
-- 2nd Generation, Consumer-Oriented GMPs Labeled as
Not Substantially Equivalent to Conventional Products
• Importance of Innovation for Food Security

10. Food Policy Research at UNL
• Effects of, and Optimal Regulatory Response to Ag Biotech
• Mandatory Country-Of-Origin-Labeling
• National Organic Program
• Purity Standards in Food Labeling Laws
• Food Safety & Optimal Regulation of Credence Goods

11. Food Policy Research at UNL
• Impact of Public Firms & Co-ops on Innovation & Food Quality
• Genetic Use Restriction Technologies (Terminator Genes)
• Impact of Length & Breadth of IPRs Protection on Innovation
• Impact of GMOs & IPRs Policies on Hunger

12. Impact of GMOs & IPRs on Hunger
Hunger can be reduced through increased quantities of nutritional
food offered at affordable prices
• Impact of different types of GMOs on quantity, quality & price
• Impact of IPRs policies on innovation and adoption incentives
• Role of NGOs
• Determination of optimal GMOs & IPRs policies