Indeed, the data suggest consumers will still want to avoid products with GMO labels, which provides incentives for food retailers and manufacturers to find ways to avoid GMO ingredients.
Colin Carter and Aleks Schaefer just published an interesting new study in the American Journal of Agricultural Economics, which powerfully shows that mandatory GMO labels are already having significant market impacts. They found a creative way to explore this issue by focusing on the market for sugar. They provide the following background:
This summary data they provide on prices of sugar from cane and beet sources suggests “something” change around the same time as the Vermont mandatory GMO labeling law.
Here are the main findings.
These changes in raw ingredient prices will ultimately have impacts on retail food prices. All this is suggests that mandatory labels aren’t a free lunch.