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Whole Foods Will Require GMO Labels

​According to a number of sources (such as this one), Whole Foods will, beginning in 2018, require labels on foods in their stores that contain GMOs.  

I wrote several several editorials arguing against the mandatory labeling initiative (Prop 37) in California in places like the Wall Street Journal, Forbes.com, Foxnews.com, and the Huffington Post.  As such, you might expect me to to come out against Whole Foods new policy.  You'd be wrong (well, at least not entirely right).     ​

What's the difference between the Whole Foods policy and Prop 37?  Whole Foods is a private company.  They can shelve whatever products they want and require their suppliers to meet whatever specifications they set.  You and I don't have to shop there.  Moreover, Frito-Lay doesn't have to supply Whole Foods if they so choose.  By contrast, Prop 37 was a mandate that required adherence from everyone no matter where you shopped, who you supplied, or whether it created 1 cent or $1 billion in extra cost.  

I personally couldn't give a rip whether the foods I eat contain GMOs.  I also think it is a tad misleading to add claims or labels that imply safety risks when there are virtually none.  But, if we are going live in a free society, I suppose GoDaddy.com using Danica Patrick to sell domain names is little different than Whole Foods pursing their own marketing strategy using somewhat tangential claims.  And, if Whole Foods wants to add labels to apples that say things like "Does not cause Tuberculosis" or "Contains H2O", that's their prerogative even though I personally think it would be stupid.     

Whole Foods has probably made the calculation that requiring GMO labels will help them pick up some additional market share at a cost that they and (by implication) their customers are willing to pay.  They may lose a few suppliers, and it is possible that they may add a bunch of extra costs to inform consumers of a technology that many ultimately find innocuousness.  They may tarnish their image by appearing "anti-science."   ​

I'm sure that they have thought about these issues and much more, and they're betting that the label requirement will ultimately add more to their bottom line. (If you agree, you can buy their stock - WFM - though I'll note that it was down 1.2% on Friday when the news was released; they also had a 10% drop back in mid February amid lower than expected sales).  That's their bet to make.  If it pays off, they'll make millions.  If they're wrong, I can still shop at Wal Mart or Safeway or Albertsons or any number of other places.  Oh yes, and Whole Foods can always change their mind if things don't work out.

So what it is that makes Whole Food's decision different than Prop 37?  Competition.  Reversibility.  And, the undeniable bottom-line that no political agenda can long ignore. ​

Assorted Links

Cargill has a new web site on ground beef (i was especially interested in the parts on sourcing/tracing and on lean-fine-textured beef - aka pink slime)​

The patent on the first generation of GMO ​soybeans is set to expire

Calls for GMO labeling hit the east coast

​The students were assigned to do this (lobby for soft drink bans) might want to also read this (its tough actually implementing these things)

Here is one creative way to solve a water shortage problem

​The comments section is unusually good in this NPR blog post asking whether it is humane to eat meat

New Country of Origin Rules

Today the USDA Ag Marketing Service announced new proposed rules for mandatory country of origin labeling.​  According to a couple sources:

Under the proposed rule, origin designations for animals slaughtered in the United States would be required to specify the production steps of birth, raising, and slaughter of the animal. In addition, this proposed rule would eliminate the allowance for any commingling of muscle cut covered commodities of different origins. These changes will provide consumers with more specific information about muscle cut covered commodities.

​Yes, consumers will have more specific information but isn't this going to be very costly?  It is certainly more costly than current mandatory labeling rules.  If consumers want this information and are willing to pay for it, why isn't there some enterprising meat packer already providing it?  

Don't get me wrong, consumers do value origin information.  That's not the issue.  The question is what it costs to provide it and whether there are any market failures that would prohibit origin labels to organically emerge were they to be sufficiently valued.

John Stossel's Fox News Special

Set your recorders to the Fox News Channel at 8pm (eastern time I think) this Sunday March 10.  I'm appearing in a John Stossel special entitled "Myths, Lies and Complete Stupidity" in a segment about the Food Police.  

We filmed the interview in NYC back in December, and I'm glad to hear that it is finally set to air!  

Does Sugar Consumption Drive Diabetes?

A recent article in the journal PLoS ONE by the anti-sugar crusader Robert Lustig and three other co-authors has created quite a stir by purporting to show that increased sugar consumption causes diabetes.  In the paper, the authors hold up just shy of saying "cause" but that is the inference drawn by many in the media (see for example this story in Bloomberg among other places) who say things like:

Excessive sugar consumption may be the main driver of a global rise in diabetes,

Moreover, on Mark Bittman's NYT Blog, the author, Lustig, is cited as saying:​

This study is proof enough that sugar is toxic. Now it’s time to do something about it.

There is no way a study like this (comparing differences across countries) can firmly establish causation.  So, at a minimum the study indicates an interesting (and perhaps suggestive) correlation that might warrant a randomized control trial.  Nonetheless, I was intrigued and wanted to check out the evidence for myself.  

The evidence by Lustig and colleagues comes by linking data on diabetes prevalence rates across countries (which I was able to easily find online here) and data from the UN FAO on the availability of calories from different food stuffs in different countries (after a bit of digging, I was also able to find it online here - go the the "food balance sheets").  After a bit of effort, I downloaded both data sets for the most recent years available, merged them, and checked out the claims made in the paper.  

At first blush, I find very similar results to the ones reported in the paper.  Holding constant total calories available, a simple linear regression shows that for every 100 kcal increase in sugar availability, the prevalence of diabetes goes up by 1.3 percentage points (say from 8.5% (the sample mean) to 9.8%).  The estimated equation is:  ​

(% with diabetes)=​1.067+0.013*(per-capita available sugar kcal)+0.001*(per capita total available kcal)

My estimate is a little higher than the one reported in the paper probably because I'm not controlling for other factors (like GDP, kcal intake from meat, etc.) as the authors did.  Moreover, I'm using data on diabetes from 2012 whereas the authors used 2011 and older data (note: I use data from 174 countries in my estimates).  The only coefficient significant at the p=0.05 level in the above equation is the 0.013 estimate associated with sugar.   

So far so good - the correlation is confirmed.  

But let's get to the nitty gritty of the interpretation.  The data is at the country level.  So, what this implies is that a country that increases per-capita sugar availability by 100kcal will tend to have a 1.3 percentage point increase in the percent of the population with diabetes. 

But, we don't really care about countries per se.  We care about people.  There are a lot more people in some countries than others.  ​In the data set, the range is from a low of 0.00066 million adults to 980 million adults.  Shouldn't this factor into the analysis?  If we care about how many people in the world have diabetes, we'd better pay a lot more attention to China than to Luxembourg.  

We know from the mini-scandal associated with the claim that small schools outperform larger ones (see one account here)​ that outcomes from small schools (or small countries) tends to be a lot more variable (with more outliers) than data from large schools (or large countries).  That's just basic statistics.  

Intuitively, we should want a larger country to count more than a smaller one.  After all, there are many more people in larger countries - so if we want to think about the prevalence of diabetes in the world (rather than the average prevalence rate across countries)​, we'd want to calculate a weighted average, where larger countries get more weight (because they have more people).  The more people, the higher the weight.

Likewise, when we want to run analyses like the one above, we want to give more weight to countries with more people.  We can do this by running a weighted regression, where each country gets a weight proportional to it's population size.  This converts the equation to one about how countries differ to one about how individuals differ.  ​Stated differently, the weighted regression places the estimates at the level of the individual (picked at random from any country) rather than the level of the country (picked at random from a group of countries).

Here is the equation I get when I weight by a country's adult population:​

(% with diabetes)=0.692+0.002*(total available sugar kcal)+0.002*(total available kcal)

Now, the effect of sugar falls dramatically (and most importantly, it is no longer statistically significant at standard levels; the p-value is 0.074).  A 100 kcal increase in per-capita sugar availability only increases the % with diabetes by 0.2 (rather than 1.3 as previously estimated).  Moreover, total energy from all sources is now significant and roughly the same magnitude as sugar.  Thus, what matters in this framework is total kcal from any food source.  Moreover this regression suggests that a sugar calorie is roughly the same as any other calorie insofar as affecting diabetes.    ​

The paper at PLoS ONE says "regressions are population weighted."  But, I'm wondering that is indeed the case.  It could be true.  I don't have access to all their data and I'm not including all their controls.  

I'm happy to share the data and SAS code with anybody who cares to see it.​

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Addendum

​The nice thing about the web is that you get feedback.  Here's an update.  The source that reports diabetes prevalence actually reported three measures.  In the regressions above, I used national prevalence (total number with diabetes divided by total population).  However, as indicated at the data source here, they also report some sort of age adjusted measure that is likely more useful in comparing across countries that might have different mean ages.  

​When I use this "IGT comparative prevalence" measure, as they call it, then I get exactly the opposite of the results mentioned above.  When the data are NOT weighted, the sugar coefficient is only 0.0019 (p-value 0.27).  But, when the data ARE weighted by adult population, the sugar coefficient is 0.01277 (p-value < 0.001).  

So, there is an interesting mix of things going on here between the population, weighting, and age adjustment.  Just out of curiosity, and for some robustness checks, I did two things.  First, I re-ran the "preferred" model with population weighting using "IGT comparative prevalence" diabetes but included population as an explanatory variable. When I do this, sugar is no longer statistically significant (the estimate is 0.00242 with a p-value of 0.107), but population is (the estimate suggests larger populations have lower diabetes prevalence).  I can't quite figure out what is going on here but there has to be something weird going on in the sense that the model is  weighting by population and the dependent variable (and independent variables) are per-capita (i.e., are divided by population), that might be producing some unexpected results.    

Second, I ran a quantile regression to see how the results hold up at the median (rather than the mean, which is more sensitive to outliers), I find that (using IGT comparative prevalence and adult population as a weight with only sugar and total calories as explanatory vars) the sugar effect, at the median, is 0.0148 but the 95% confidence interval is (-0.0191, 0.0217) when using the SAS default rank method of calculating standard errors.  The 95% confidence interval changes to (0.0041, 0.0254) when using an alternative resampling method.  So, whether the median effect is statistically significant depends on which method of calculating standard errors is used.

Here is the plot of the "sugar effect" at each quantile.  The first shows the 95% confidence intervals determined by the resampling method and the second uses the SAS default (I have to admit that I'm not sure which method is preferred in this case). 

sugarquantile.JPG
sugarquantile2.JPG