GM Crops: The First Ten Years - International Service for the ...

GM Crops: The First Ten Years
3.1.7 Romania
In 2005, Romania planted 87,500 ha of GM HT soybeans (total soybean area 130,000 ha). This
was its seventh year of commercial use of the technology.
The growing of GM HT soybeans in Romania has resulted in substantially greater net farm income
gains per hectare than any of the other countries using the technology:
• Yield gains of an average of 31% 23 have been recorded. This yield gain has arisen from the
substantial improvements in weed control 24 ;
• The cost of the technology to farmers in Romania has tended to be higher than other countries,
with seed being sold in conjunction with the herbicide. For example, in 2004, the average
cost of seed and herbicide per hectare was $130/ha. This relatively high cost however, has
not deterred adoption of the technology because of the major yield gains, improvements in
the quality of soybeans produced (less weed material in the beans sold to crushers which
resulted in price premia being obtained 25 ) and cost savings derived;
• The average net increase in gross margin in 2005 was $228/ha (an average of $170/ha over
the seven years of commercial use: Table 16);
• At the national level, the increase in farm income amounted to almost $20 million in 2005.
Cumulatively since 1999 the increase in farm income has been $60.7 million (in nominal
terms);
• The yield gains in 2005 were equivalent to an 21% increase in national production 26 (the
annual average increase in production over the six years is equal to 13%);
• In added value terms, the combined effect of higher yields, improved quality of beans and
reduced cost of production on farm income in 2005 was equivalent to an annual increase
in production of about 33% (83,000 tonnes).
3.1.8 Summary of global economic impact
In global terms, the farm level impact of using GM HT technology in soybeans was $2.28 billion in
2005 (Figure 8). If the second crop benefits arising in Argentina are included this rises to $2.84
billion. Cumulatively since 1996, the farm income benefit has been (in nominal terms) $11.7
billion ($14.4 billion if second crop gains in Argentina are included).
23 Source: Brookes (2003)
24 Weed infestation levels, particularly of difficult to control weeds such as Johnson grass have been very high in Romania. This is
largely a legacy of the economic transition during the 1990s which resulted in very low levels of farm income, abandonment of
land and very low levels of weed control. As a result, the weed bank developed substantially and has been subsequently very
difficult to control, until the GM HT soybean system became available (glyphosate has been the key to controlling difficult weeds
like Johnson grass)
25 Industry sources report that price premia for cleaner crops were no longer payable in 2005 by crushers and hence this element
has not been included in the 2005 analysis
26 Derived by calculating the yield gains made on the GM HT area and comparing this increase in production relative to total
soybean production
14