Surveying Mexican Consumers’ Outlook on Banning Genetically Modified Corn

The Problem

On Dec. 31, 2020, Mexican President Andres Manuel Lopez Obrador’s administration publicly called for the nation to phase out GM corn for animal and human consumption, along with the herbicide glyphosate, by early 2024. The Mexican government later exempted GM corn for animal feed, but the current president has indicated her administration will continue enforcing the national phase-out for human consumption.

Since over 90 percent of U.S. corn is GM, and Mexico is the second-largest importer of U.S. corn after China, the ban could impact American farmers. A majority of the corn grown in the United States is genetically modified to resist insect pests or tolerate herbicides. Mexico has been a top importer of U.S. corn.

The Work

The study aimed to investigate what Mexican consumers would be willing to pay in the ban’s aftermath. Researchers, led by Brandon McFadden, Professor of Agricultural Economics and Agribusiness and the Tyson Endowed Chair in Food Policy Economics, developed a consumer perception survey. The survey was conducted in April 2023 and included 1,301 Mexicans who were age 18 or over. About 5 percent of the sample did not consume all the food products included in the survey, so only 1,238 respondents completed the survey.

For consumers who could not pay the added cost for non-genetically modified corn, the research also aimed to estimate the burden the ban would place on them.

The Results

Over half of those surveyed were unaware of the ban, and many who were aware and supported it shifted their outlook when advised of how it could increase prices and lead to job losses.

Respondents, on average, were willing to pay significantly higher prices for chicken, eggs and tortillas produced with non-GM corn. The consumer willingness was even higher than the potential price increases estimated by a 2022 World Perspectives Study. Of those who responded to the survey and supported the ban, 85 percent cited human health as the reason. However, the proportion of those surveyed who were aware and supported the decree decreased from 77 to 46 percent when they were told of the potential job loss that could ensue. Similarly, news of the likelihood of increases in corn prices made decree support drop to 56 percent.

The Value

The work sheds light on safety perceptions and how they do not always align with federal guidance. Survey results showed a conflict between consumer perception and Food and Drug Administration guidance on genetically modified corn for chicken feed. Based on the findings of independent studies, the FDA says there is no difference in the health and safety impacts of GM and non-GM foods on animals. Results showed consumers did not think genetically modified products of corn were safe to eat in tortillas. However, they felt it was safer than eating poultry fed GM corn. Those surveyed also saw GM corn grown in Mexico as safer than that grown in the U.S.

These results also showed how consumers’ shifts in support for the decree reflect the threat of greater food insecurity and decreased jobs that the ban poses. Lower-income consumers would be forced to spend a larger portion of their income on foods, leading to less spending on other goods, a decreased gross domestic product for the country and consequent employment reduction. Timely, research-backed information about consumer preferences like that included in this study can help lead to more informed decision-making for policymakers and better policies.

About the Researcher