American Crystal Sugar: Genetically Enhanced Sugarbeets?*

Biotechnology affords new risks and opportunities for food processing firms. This decision case involves a cooperative that is considering whether to allow members to grow sugarbeet varieties that are genetically enhanced for herbicide tolerance. Sugarbeet farmer-members of American Crystal Sugar Company support the use of genetically enhanced (GE) varieties. However, there are risks for the cooperative, especially related to market acceptability of sugar and by-products. The cooperative's competitive environment is analyzed as a part of the decision-making process. The key decision turns on how approving the use of genetically enhanced sugarbeet varieties would impact the cooperative, its partners and competitors, and participants throughout the marketing channel. Copyright 2005 American Agricultural Economics Association