Mandatory labeling for food containing genetically altered material would cost the food system billions of dollars and sharply reduce farm incomes, Canadian Alliance MPs said last week.
During an all-day House of Commons debate, British Columbia Canadian Alliance MP Reed Elley said the accounting firm KPMG had studied the potential cost of such a scheme in Australia and New Zealand.
That report estimated the cost of mandatory labeling to the food industry would be $3 billion in the first year and $1.5 billion in each subsequent year, he said.
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“This amounts to a six percent tax on all food products.”
He said such a food price hike to pay for the segregation, testing and monitoring costs would alienate many consumers. It also would increase government meddling in the industry.
“I am led to believe that mandatory labeling of all genetically modified organisms leads to a food supply that is overregulated by bureaucrats and subject to the whims of government,” he said.
Voluntary said better
Voluntary labeling of GMO-free products would be a better solution.
CA agriculture critic Howard Hilstrom said the result would be another blow to farm income.
“Because of the increased cost, the product price for consumers would rise and the net commodity price for farmers would fall,” he said.
“Farmers have traditionally never been able to pass along the costs. I don’t see how this would be any different if mandatory labeling were required.”
He said farmer choices in what to grow would also shrink.
“Because of the increased costs, farmers would have fewer commodity varieties to choose from,” said Hilstrom.
Consumers also would find less variety in their food stores as companies shied away from products that would require costly segregation and labeling.
“Without having genetically modified crops available, all these options would be taken away and we would all be poorer for it,” said the Manitoba MP and cattle producer.
