Source: UNIVERSITY OF ILLINOIS submitted to NRP
IMPACT ANALYSIS AND DECISION STRATEGIES FOR AGRICULTURAL RESEARCH
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
Reporting Frequency
Annual
Accession No.
0207501
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
NC-1034
Project Start Date
Oct 1, 2006
Project End Date
Sep 30, 2008
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF ILLINOIS
2001 S. Lincoln Ave.
URBANA,IL 61801
Performing Department
AGRICULTURAL AND CONSUMER ECONOMICS
Non Technical Summary
Critics of privately funded biotechnology research have pointed to a lack of product development to address consumer concerns, especially health. It is possible that private incentives are inadequate, as consumers may or may not reward such products in the marketplace. Past research has demonstrated the value of mandatory nutrition labeling in providing incentives for food product development. The proposed research will examine the impact of the new trans fat food labeling requirement for processed food products in creating incentives for oilseed varietal development with public health benefits. The labeling requirement has created short term substitutions away from soybean oil towards palm oil, but many food firms are experimenting with alternative formulations. Efforts are underway to re-engineer oilseeds such as soybeans and canola so that these plants contain oils with improved health characteristics. If these efforts can provide viable alternatives, then they will contribute to improved health in the U.S. population.
Animal Health Component
50%
Research Effort Categories
Basic
50%
Applied
50%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
60350103010100%
Knowledge Area
603 - Market Economics;

Subject Of Investigation
5010 - Food;

Field Of Science
3010 - Economics;
Goals / Objectives
1. To estimate the expected and actual flow of benefits and costs of research for agriculture, and related areas, including the incidence of their distribution.
Project Methods
The goal of the research will be to examine how closely public and private incentives align in meeting the demand for health characteristics in food. Interviews with major food processing firms and retail product introduction data from private vendors will be used to assess the substitutions taking place in the marketplace. The potential for new varieties of soy and canola to improve the health characteristics of processed products will provide the basis for an ex-ante assessment of the value of these health benefits, using standard health economics approaches. A comparison of the social benefits from improved health with the incentives in the marketplace to provide these new products will illuminate the value of mandatory labeling in providing incentives for new crop variety development with public health benefits.

Progress 10/01/06 to 09/30/08

Outputs
OUTPUTS: Outputs include publication of special issues in two different journals, resulting from organization of two conferences with diverse audiences. A special session was organized for the 11th Conference on Agricultural Biotechnologies: New Frontiers and Products-- Economics, Policies and Science, with presentations addressing the potential for biotechnology to contribute to better nutritional quality of foods. This conference was held in July, 2007 in Ravello, Italy and was attended by an international group of academics and industry representatives. Presentations and case studies are published in a special theme issue of the journal AgBioForum. A conference, Food Composition, Consumer Health, and Public Policy, was organized for U.S. industry, policy makers, and NGOs in Berkeley, CA, in April 2007. The role of research in reformulating food to create healthier diet outcomes was a major focus of the conference. The conference produced an issues summary and presentations are available on the Farm Foundation website. In addition, follow up research is being published in the journal Food Policy. PARTICIPANTS: Partner organizations include the Economic Research Service, USDA, the Bill and Melinda Gates Foundation, the Center for Science in the Public Interest, HarvestPlus, U.S. Food and Drug Administration, and the Grocery Manufacturers organization. TARGET AUDIENCES: Industry, policy makers, and NGOs with interests in food and nutrition.

Impacts
The research from this project illuminates where market failures occur in the development of crops and foods with better nutritional content. The research provides insights into how policies aimed at improving nutritional content of foods, such as mandatory nutrition lableing, create incentives for the food industry and the agricultural sector to produce healthier food products. Specifically, the federal regulation mandating disclosure of trans fat content, together with the local ban on trans fats in New York City restaurants, created strong incentives to remove trans fats from U.S. diets. These incentives spurred innovation that extended all the way back through the supply chain to investments in creating new oilseed varieties.

Publications

  • No publications reported this period


Progress 01/01/07 to 12/31/07

Outputs
OUTPUTS: Outputs include organization of two different conferences with diverse audiences. A special session was organized for the 11th Conference on Agricultural Biotechnologies: New Frontiers and Products-- Economics, Policies and Science, with presentations addressing the potential for biotechnology to contribute to better nutritional quality of foods. This conference was held in July, 2007 in Ravello, Italy and was attended by an international group of academics and industry representatives. Presentations and case studies are published in a special theme issue of the journal AgBioForum. A conference, Food Composition, Consumer Health, and Public Policy, was organized for U.S. industry, policy makers, and NGOs in Berkeley, CA, in April 2007. The role of research in reformulating food to create healthier diet outcomes was a major focus of the conference. The conference produced an issues summary and presentations are available on the Farm Foundation website. PARTICIPANTS: Partner organizations include the Economic Research Service, USDA; the Bill and Melinda Gates Foundation, the Center for Science in the Public Interest, HarvestPlus, U.S. Food and Drug Administration, and the Grocery Manufacturers organization. TARGET AUDIENCES: Industry, policy makers, and NGOs with interests in food and nutrition.

Impacts
Those participating in the two conference events obtained a better understanding of the potential role and limitations of crop improvement in furthering nutritional goals.

Publications

  • Food Product Composition, Consumer Health, and Public Policy. Farm Foundation Issue Report, August 2007.
  • Unnevehr, L.J., Pray, C., Paarlberg, R. 2007. Addressing micronutrient deficiencies: Alternative interventions and technologies. AgBioForum, 10(3), 2007.
  • Unnevehr, L.J. and Dawe, D. 2007. Crop case study: GMO golden rice in Asia with enhanced vitamin A benefits for consumers. AgBioForum, 10(3), 2007.


Progress 01/01/06 to 12/31/06

Outputs
A research project was completed examining the political landscape for biofortified food crops in developing countries, and publications are in progress. This builds on earlier work estimating the potential impact of golden rice. The recent research includes an updated understanding of the potential for new technology to deliver biofortification, and a survey of the progress towards development, use, and acceptance of genetically modified food crops. Evaluations were made of potential benefits from alternative strategies to alleviate malnutrition through biofortified foods. New research is underway to examine the role of food policy and new technologies in achieving healthier diets. The initial focus is an examination of the response to mandatory transfat labeling, and the subsequent adaptations in the food industry and the soy supply chain.

Impacts
Better understanding of the potential consumer benefits from new agricultural technologies will improve the policy dialogue about consumer acceptance.

Publications

  • No publications reported this period