GMO crops contribute to a third of Uruguayan economy

Date:11-21-2016

The adoption of genetically modified corn and soybeans, associated with the no-tillage system, accounted for a third of the economic growth in Uruguay from 2003 to 2015, according to a study made by the agricultural consultancy Seragro.

According to the survey, the technology represented a strong impact on production and a direct financial return for the sector. Besides, the indirect form of gains obtained from GMOs was indirectly used with activities in other sectors, creating between 20,000 and 40,000 well-paid jobs during the period.

During the 12 years of analysis, the GMO crops represented a gain of US$ 12.077 billion in comparison to the conventional crops. According to Seragro agronomist Nicolás Lussich, the adoption of GMOs responds to 1.7% of the GDP increase between 2004 and 2015, a period in which the Uruguayan economy grew by 5%.

The use of transgenic soybeans generated an additional income of US$ 4.44 billion between 2004 and 2015 in the oilseed scenario without this technology. The major difference was seen from 2012 to 2013, when exports reached US$ 1.9 billion and the difference was US$ 927 million, Lussich explained.

In the case of corn, the extra income coming from transgenic crops represented US$ 305 million during this 12-year period. The soybean and corn crops had a direct impact on the economic sector, generating US$ 4.3 billion during 2014/2015 period. The indirect income represented US$ 7.7 billion, because of the jobs generated not only in the agricultural sector but also in trade and the industry sectors. Lusich highlighted that since 2012, there were no new GMO events approved in Uruguay.

On the other hand, countries in the region continued to incorporate more varieties with new events. So Uruguay tends to stay on the side of not just new products but the latest varieties, which would mean a delay in agricultural yields, Lussich said.