How much food labelling is necessary?

Background and Objective

The gorverning parties agreed to expand the EU mandatory labeling to products derived from animals which are fed with genetically modified feed. So far it is unclear, which impact such a labeling requirement could have on the different actors along the value chain. Therefore the Thünen-Institute of Market Analysis along with the Federal Office of Consumer Protection and Food Safety (BVL) was asked by the Federal Ministry of Food and Agriculture (BMEL) to analyze the possible consequences of the GMO-labeling. The aim is not to evaluate the intended labeling, but rather to identify the necessary measures taken by companies and food safety authorities in order to fulfill the regulative requirements.

Target Group

Members of the German Bundestag, general public

Approach

Qualitative expert interviews with industrial associations, companies and food safety authorities.

Results

The extension of GMO-labeling would involve additional measures for the concerned companies and food safety authorities. The operational costs would be based primarily on increased documentation costs as well as on the required separation of labeled and unlabeled commodity flows. On the supply side economic consequences such as price-, availability- and trade shifts of animal feed would be expected. The degree of shifting depends on the demand-side market reaction to such labeling. Referring to the food safety authorities the expanded GMO-labeling is also associated with a high additional staff and operating budget. Especially the issue of analytical non-detectability of genetically modified feeds in animal products, which is connected with a significant potential for company fraud, should be considered while planning the GMO-labeling at EU level.