AbstractThis chapter analyses the ex ante welfare effects of the adoption of herbicide tolerant sugarbeet in the sugar industry using a model. The geographical distribution of production and trade of sugar is analysed. A welfare framework shaped to the European sugar sector to assess the size and distribution of the benefits of transgenic sugar beet adoption in the European Union (EU) and the rest of the world (ROW) is developed. Model results suggest that ROW captures the largest share of the benefits (53%), followed by the EU (30%), The lowest percentage accrues to seed suppliers and gene developers.