Analysis of GMO Food Products Companies: Financial Risks and Opportunities in the Global Agriculture Industry

African Journal of Economic and Sustainable Development, Vol. 6, No. 1, pp. 1-17, 2017

28 Pages Posted: 14 Apr 2017

See all articles by Hannah Russell

Hannah Russell

Texas A&M University (TAMU), College of Agriculture and Life Sciences, Department of Agricultural Economics, Students

David Durr

Murray State University - College of Business

Murphy Smith

Texas A&M University-Corpus Christi-Department of Accounting

Rachel Finke

Murray State University

Audie Cherry

Freed-Hardeman University, Students

Date Written: 2017

Abstract

One of the biggest issues facing the global agriculture industry is the use of genetically modified organisms (GMOs) in crops and food products. This study compares financial performance of major GMO food companies to other industries. Findings indicate that GMO companies had an average higher return on equity but also a higher level of risk. In addition, the study presents positive and negative perspectives toward GMO foods, along with a discussion of the risks and opportunities. Agricultural studies indicate that applying GMO technology is likely the most effective way to feed many of the world’s hungry. In addition, research supports the safety and nutritional benefits of GMO food products. However, concerns expressed by GMO opponents have been effective in limiting GMO acceptance by the public. Research indicates that the inconsistency between negative public opinion and positive scientific evidence supporting GM crops is at least partly the result of misrepresentations of GMOs. The ultimate acceptance or rejection of GMO foods will greatly affect food producers, distributors, retailers, and consumers.

Keywords: Agriculture Industry, Financial Performance, Genetically Modified Organism, GMO Food, Genetically Engineered Food

JEL Classification: N5, Q1, Q16, Q18

Suggested Citation

Russell, Hannah and Durr, David Wright and Smith, Murphy and Finke, Rachel and Cherry, Audie, Analysis of GMO Food Products Companies: Financial Risks and Opportunities in the Global Agriculture Industry (2017). African Journal of Economic and Sustainable Development, Vol. 6, No. 1, pp. 1-17, 2017. Available at SSRN: https://ssrn.com/abstract=2951391

Hannah Russell

Texas A&M University (TAMU), College of Agriculture and Life Sciences, Department of Agricultural Economics, Students ( email )

600 John Kimbrough Blvd
College Station, TX 77843
United States

David Wright Durr

Murray State University - College of Business ( email )

351 Business Building
Murray, KY 42071-3314
United States

Murphy Smith (Contact Author)

Texas A&M University-Corpus Christi-Department of Accounting ( email )

6300 Ocean Dr
Corpus Christi, TX 78412
United States

Rachel Finke

Murray State University ( email )

Murray, KY 42071-0009
United States

Audie Cherry

Freed-Hardeman University, Students ( email )

158 E Main Street
Henderson, TN 38340
United States

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