Globalization’s unexpected impact on soybean production in South America: linkages between preferences for non-genetically modified crops, eco-certifications, and land use

In this study we provide empirical evidence that Brazil's continued production of non-genetically modified (GM) soybeans has increased its competitive advantage in European countries with preferences against GM foods. Brazil's strong trade relationship with European consumers has facilitated an upgrading of the soybean supply chain. Upgraded soybean supply chains create new conservation opportunities by allowing farmers to differentiate their products based on environmental quality in order to access premiums in niche markets in Europe. These interactions between GM preferences, trade flows, and supply chain structure help to explain why Brazilian soybean farmers have adopted environmental certification programs on a larger scale than Argentinian, Bolivian, Paraguayan, and Uruguayan soybean producers.