Labeling of genetically modified organisms and the producer's negative labeling decision under a voluntary labeling regime

During the past decade, there has been growing public attention and concern over consuming products containing or processed with genetically modified organisms (GMOs). Labeling of the food products derived from the use of GMOs has thereby been a contentious debate across the world. Currently, there are two systems with regard to labeling GMO-based products: mandatory versus voluntary. The purpose of this study was to survey the research on GMOs, its application in agriculture and the surrounding labeling issues. A theoretical model was developed to analyze non-GMO producers' labeling decisions under a voluntary labeling regime, aimed at providing a theoretical perspective for governments that are contemplating the adoption of a voluntary approach to regulate GMO food products. The analysis indicates that the size of labeling costs and consumers' preferences toward non-GMO products are critical factors that will impact on non-GMO producers' labeling decisions