Can biotechnology be a bad thing? My textbook (Economic Issues and Policy by Jacqueline Murray Brux) says:


  In addition to health and environmental concerns about biotechnology,
  the most likely economic effects will be large increases in world food production, causing lower prices of agricultural products and
  preventing poor farmers from succeeding in agriculture. And it is the
  latter outcome that may serve to increase, rather than decrease, world
  hunger.


This statement seems utterly nonsensical to me. Are we actually to believe that large increases in world food production may serve to increase world hunger? Poor farmers using outdated technology may be forced to upgrade or find other jobs, but the lower prices will surely help non-farmers. Thus they (non-farmers) will have more money and this will create new demand and thereby new jobs for farmers who have lost their jobs.

Am I right? This isn't the first error I've encountered in this textbook.
You are right to be sceptical of this statement.  Let's take it step by step.

Will developments in biotechnology increase world food production?  Almost certainly yes, provided other things are equal.  But the reality is that other things are not equal.  Climate change is likely, other things being equal to reduce agricultural productivity in some parts of the world. Whether the positive effect of biotechnology will more than offset the negative effect of climate change is unclear.

If world food production increases, will prices of agricultural products fall? Not necessarily.  Demand for food is rising due to rising population and to rising incomes in much of the world. Again, the net effect (of rising supply and rising demand) is unclear.

If agricultural prices fall, could this increase hunger for some people? Yes, this is certainly possible.  Those most at risk would be people in poor countries who have relied on farming for their income and, due to limited education and training and/or location, have limited opportunities for alternative employment or other income sources.  The book is right to imply that hunger is as much due to low incomes as to food supply.  But the argument that the overall effect of biotechnology will be to increase world hunger is unconvincing.