Labelling of food has become more extensive. Partly, this development is a response to market forces; partly it is caused by a more extensive mandatory labelling.

Some of the recent mandatory labelling differs from previous labelling requirements as it does not necessarily inform the consumer about of the physical attributes of the product. Instead it provides information of how the product is produced even though the information reveals nothing about the product itself. Such labelling poses new demands on the documentation of the product, as the product itself does not reveal the reliability of the labelling.

In the summer of 2001, the EU Commission proposed new labelling requisites concerning GM products, requiring documentation and enabling traceability of the GM ingredients. In this study we analyse how these labelling requirements will affect decisions in affected companies. By interviews with key persons, we are able to understand how prices, patterns of trade and the development of products are affected by the new EU regulation. SLI has also published a report on the effects of the new labelling from a socio economic perspective.