Problem

Biotechnology has provided Illinois and Missouri corn and soybean producers substantially enhanced agronomic capabilities. However, anticipated benefits in terms of new market and business opportunities have not developed. Main reason: Concerns advanced by other countries have resulted in a narrowing of the global market.

Proposal

This purpose of this research is to conduct a systems-based analysis of marketing structures so as to enhance the likelihood that agricultural biotechnology will contribute to the development in Central America and provide economic benefits to US producers.

Background

Central America is a region of particular importance because of the current negotiations to establish a Central America Free Trade Agreement (CAFTA) between the United States and the region's five nations. However, because of alleged adverse consequences of the North American Free Trade Agreement (NAFTA) on Mexican corn producers, there are calls for action to restrict access to U.S. staple crops in the CAFTA region.

Of concern is that access to the CAFTA market for U.S. corn soybeans should not be assumed. Because of the increasing resistance to U.S. GMO grain exports within Central America, it is imperative that the industry begin to develop mutually beneficial business models. There is fear that U.S. GMO grain exports will displace numerous small Central American grain producers. Therefore, trade controls over U.S. imports, are a real potential. Illinois and Missouri producers stand to loose substantially if this occurs.

Research Objectives

1. Develop a system dynamics model documenting the current knowledge relative to successful efforts to market value added agricultural products from developed countries into the United States.
2. Explore key linkages and impediments identified in achieving objective 1 through applied case study analyses.
3. Specify a conceptual model detailing how producers of biotechnology-enhanced corn and soybeans could leverage their strategic capabilities to lead in the development of CAFTA-based food supply chains for differentiated agricultural products.

Expected Outcomes

The overall purpose of the research is to enhance our understanding of the dynamics by which GMO-based grains produced in the United States can be linked as production inputs and as key organizational factors to expand value-added opportunities under CAFTA. The results of the research will contribute to the policy debate that surrounds the CAFTA implementation process and to the knowledge base of private sector decision makers in the U.S. and in Central America.