Mexico GM corn ban sends mixed signals to organic market
Mexico’s proposed ban on genetically modified corn is sending mixed signals to organic grain markets.
Ryan Koory with Argus Media says for a more pessimistic situation, take $7 organic corn in the U.S.
“If you wind up with a situation where you have $6.50 non-GMO to ship to Mexico, well then you might start looking at that as an opportunity because you’re getting close to that price parity.”
If non-GMO prices are closer to $5 a bushel and organic is closer to $8, he tells Brownfield most buyers will look elsewhere.
“And I think what might actually be the real consequence if that’s the direction things go is organic has a premium because it is a more difficult crop to produce. It takes more labor, more time, so it fetches a higher premium as a result.”
Koory says non-GMO corn production is more difficult than conventional, but not as difficult or expensive as organic.