Analysis of Adoption of Genetic Modification in Pork Production Chains

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Analysis of Adoption of Genetic Modification in Pork Production Chains Analysis of adoption of genetic modification in pork production chains PROMOTOR Prof. dr. ir. R.B.M. Huirne Hoogleraar Agrarische Bedrijfseconomie Wageningen Universiteit CO-PROMOTOREN Dr. ir. M.P.M. Meuwissen Senior onderzoeker bij Institute for Risk Management in Agriculture (IRMA) en Universitair docent bij de leerstoelgroep Bedrijfseconomie Wageningen Universiteit Dr. I.A.C.M. van der Lans Universitair docent bij de leerstoelgroep Marktkunde en Consumentengedrag Wageningen Universiteit SAMENSTELLING PROMOTIECOMMISSIE Prof. dr. ir. W. Verbeke Universiteit Gent, Belgi Dr.ir. G.B.C. Backus Landbouw Economisch Instituut, Den Haag Prof. dr. ir. L.A. den Hartog Wageningen Universiteit Prof.dr.ir. J.A.M. van Arendonk Wageningen Universiteit Dit onderzoek is uitgevoerd binnen de Mansholt Graduate School of Social Sciences Tatiana A. Novoselova Analysis of adoption of genetic modification in pork production chains Proefschrift ter verkrijging van de graad van doctor op gezag van de rector magnificus van Wageningen Universiteit, Prof. dr. M.J. Kropff in het openbaar te verdedigen op vrijdag 8 juni 2007 des namiddags te vier uur in de Aula Analysis of adoption of genetic modification in pork production chains PhD-thesis Wageningen University – with references – with summaries in English and Dutch Novoselova T.A., 2007 ISBN: 978-90-8504-666-0 Abstract During the past decades the agro-food sector has changed and developed due to the impact of new emerging technologies. Genetic modification (GM) presents one of the recently widely- discussed new technologies. The main objective of this study was to gain insight into adoption of genetic modification in the pork production chain. The project covered three important stages of the chain: the farrowing and fattening stages and the consumers. First, an integrating framework with important aspects for analysing the adoption of new technologies was proposed. Following this framework, consumers and chain participants and their concerns and benefits were analysed in an integrated way. First, consumer preferences for GM pork in general and in specific consumer segments were analysed. An attribute-based stated choice modelling approach (choice experiment) was used to investigate how consumers value certain GM applications in pork production chains, and whether and how consumers trade them off against the potential benefits. On average, the results indicate that conventional pork is preferred over GM pork. Among the four GM applications investigated, GM feed is preferred most. Furthermore, findings reveal that the attractiveness of different benefits offered does not influence consumer choices towards choosing GM pork over regular pork. It is only when consumers have already decided to choose GM pork that their further decisions regarding which GM pork to choose depend on the benefits offered. Next, five distinct consumer segments were obtained: “Anti-GM” (37.2%), “GM proponents” (29.3%), “Occasional eaters” (12.3%), “Application sensitive” (12.3%) and “Benefit seekers” (9.1%). Greater insight into consumer acceptance of GM pork in each segment was provided by profiling consumers regarding attitudes and socio-economic characteristics. Furthermore, the economic impact of GM applications for farmers was investigated in a farm-level model. The results showed that although GM applications improved output results in both stages, the GM applications considered have a limited economic impact. Overall, pork producers can expect reductions in their cost prices of 0.3% to 3.7% in the farrowing stage and of 0.2% to 2.4% in the fattening stage by using GM applications. The results obtained suggest that the current possible range of improvements in economic results due to the GM applications was rather limited and most likely would not be able to motivate farmers to introduce GM into their production system. Keywords: genetic modification, technology adoption, pork production chain, consumer acceptance, consumer preferences, stated choice modelling approach, segmentation, economic impact Preface Now my PhD thesis is done. It has been a long and edifying way for me, which I could not have completed without the help of many people who supported me during all these PhD years and directly or indirectly contributed to the success of this work. First, I would like to thank my supervisors Ruud Huirne, Miranda Meuwissen and Ivo van der Lans. I am very grateful to these people for their daily support and assistance that they provided during all these years and their criticism and encouragements. Ruud, without your “always active” approach I would not have began a PhD at Business Economics. Thanks a lot for your supervision, insightful comments and showing that there are no problems, at least in PhD, without an appropriate solution. Also, I would like to thank Miranda for always supporting me, for teaching me being an independent researcher and showing how to apply the scientific results to the real-life. Miranda, thanks a lot for your “geen dank” that I will always remember. To you Ivo, I am indebted not only for crucial comments and suggestions regarding methodology and multivariate data techniques but also for always having time for me, even without an official appointment. I am very grateful to all colleagues that were always with me in Farm Management Group and later at Business Economics. Dear colleagues, thank you so much for the very friendly atmosphere which supported me a lot during my PhD. In particular, I would like to thank Marian for all the assistance I got (also from the beginning of my MSc study here in Wageningen), for very prompt actions, advises and personal care. Martin thanks a lot for being not only an ICT manager, but a caring person. Lan, Paul, Lusine and Argirys I enjoyed very much our coffee breaks and pleasant chats. Special thanks also go to Monique, Vitya and Svetlana for being very nice officemates. Anne and Karin thanks for arranging all the practical matters. Specific gratitude goes to Egbert Kanis for always having time for me to discuss my work and willingness to explain difficult technical things in simple words. Also, I would like to thank the members of my scientific committee, Karel de Greef and Ge Backus, for their critical questions and comments and useful suggestions and discussions. I thank the consumers who were willing to participate in my survey. Also, I am very grateful to all the experts Age Jongbloed, Loek Jonker, Egbert Kanis, Aart Mul and Johan Turkstra who were willing to spend their time discussing peculiarities of the topic studied. Age thanks a lot for the calculations you made for me. For the funding of this project I would like to thank the Institute for Risk Management in Agriculture and Mansholt Graduate School of Social Sciences. I am very grateful to all my friends who supported me a lot from a distance (from Moscow) and here (in Wageningen). Natasha and Ira thank you for being always there for me. Alena and Anya thanks for all your encouraging letters and support I got. Trudi, hartelijk bedankt voor je ondersteuning. My special thanks go to Igor for his great help. Finally, I would like to thank my family. My dearest mama and papa, and another mama and papa, Masha and Maksim thank you very much for your help, encouragement and support through all these years. , . Last but not least I would like to thank my husband Zhenya. Zhenya, thanks a lot for sharing ups and downs with me, for learning to see things in a perspective, for always supporting me. Without you I would not have done so much. Tatiana Novoselova, 2007 Contents Page Abstract Preface Chapter 1 General Introduction 1 Chapter 2 Adoption of GM technology in livestock production chains: an 7 integrating framework Chapter 3 Analysis of consumer acceptance of genetically modified applications in 41 the pork production chain Chapter 4 Heterogeneity in consumer acceptance of GM applications in pork 71 production: attitudinal and socio-economic determinants Chapter 5 A feasibility study of GM pork production in the Netherlands 97 Chapter 6 General Discussion 115 Summary 129 Samenvatting 137 List of Publications 145 Curriculum Vitae 147 Training and Supervision Plan 149 Chapter 1 General Introduction General Introduction 1. Introduction During the past decades the agro-food sector has changed and developed very drastically and rapidly (Gray, Boehlje, Amanor-Boadu & Fulton, 2004; Harwood, Day-Rubenstein, Dunahay, Heisey, Hoffman, Klotz-Ingram et al., 2001). The undergone major changes involved the creation of new and expanded international markets (FAO, 2001a), applying “sustainable” farming systems (Van Calker, Berentsen, Romero, Giesen & Huirne, 2006), improving food safety (Valeeva, Meuwissen, Lansink & Huirne, 2005) and adopting new technological developments (FAO, 2001b). The nature of agro-production has changed, and will change further, due to the impact of new emerging technologies (Brinkhorst, 2000). A considerable number of new technological developments are related to food production. The emerging technologies, aiming at improving current food production systems, bring special values to either the producers or consumers or both. Along with the benefits provided, such technologies have raised controversy and “arguments for and against their implementation” (FAO, 2001b). Genetic modification (GM) presents one of the recently widely-discussed new technologies. The commercial application of GM began in the early 1990s. Advances in GM technology varied among different products as to which technology was applied. The majority of the technical developments refers to crop production, in particular, i.e. to insect-resistant (e.g. Bacillus thuriengensis (Bt) cotton and corn) and herbicide-tolerant (e.g. Roundup ReadyTM soybeans) crops. Up to now the GM crops have been the most successful application of genetic modification in agro-production (Moschini, 2000). Another example of a commercial application of genetic modification is the production of food ingredients, including enzymes, vitamins and other food additives. Over 60% of all industrial enzymes, including enzymes for food production, are produced in genetically modified organisms (Gilissen & Nap, 2000).
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