Cost implications of alternative tolerance levels: Non-genetically modified wheat in western Canada

Modern developments in agricultural biotechnology are leading to the creation of supply chains involving identity preservation (IP) of genetically modified (GM) and non-GM crops. This study defines a basic farm model together with other major features of three Supply Chain Systems for non-GM wheat. System 1 involves elevators which receive both GM and non-GM wheat, System 2 involves designated non-GM only elevators and System 3 entails the use of containers. Agricultural industry specialists are surveyed as to their estimates of differences in incremental costs of IP as the levels of tolerance for GM material within non-GM wheat are varied.; Results suggest that there are alternative methods for managing an IP system for non-GM wheat, that tolerance levels for GM content have an appreciable effect on IP costs, and that on-farm costs are particularly sensitive to different tolerance levels.