GMO Crops, Trade Wars, and a New Site Specific Mutagensis System. A. Lawrence Christy, Ph.D.
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1 GMO Crops, Trade Wars, and a New Site Specific Mutagensis System A. Lawrence Christy, Ph.D.
2 Background PhD in Plant Physiology from Ohio State University 12 years with Monsanto R&D in PGR s and herbicides 5 years with USDA National program leader for weed science 6 years with Crop Genetics Intl. Co-founder of AgriTech in 1996 CTO, VP of Operations, and board member of Entek, Inc Co-Founder and President of PhyGenics, LLC Consultant on Bio-Tech regulation and Herbicide tolerance
3 Commercialization of GMO or Transgenic Crops GMO crops have revolutionized agriculture in North America Major impact on the agricultural chemical business Trait development to date Herbicide tolerance Insect resistance Factors other than technology affect commercialization Government Regulation Consumer acceptance Weed control or product efficacy Patents and contracts
4 Growth of Transgenic Crops Millions of Acres Total Industrial Developing
5 Transgenic crops by country 120 Acres (Millions) US Argentina Canada China S. Africa Australia
6 Growth of Transgenic Crops Millions of Acres Soybean Corn Cotton Canola
7 Market penetration of Roundup Ready in US Soybeans Technology Market Penetration Percent RR Soybeans DVD Players VCR Decks Years
8 Growth of Transgenic Crops by Trait Millions of Acres Total Herbicide Tolerance Insect Resistance Both
9 Herbicide Tolerant Crops Herbicide tolerant crops can be treated with a nonselective herbicide (e.g. Roundup, Liberty) that controls most weeds without damage to the crop. Conventional weed control requires: Two or more herbicides Narrow application window, as little as one day Higher cost
10 Growth of Herbicide Tolerant Traits 140 Millions of Acres Roundup Ready Liberty Link Clearfield STS/Sulfonylurea Sethoxydim BXN * Roundup Ready = glyphosate tolerance
11 Benefits and Advantages of Herbicide Tolerant Crops Increased yields Reduced input costs Improved net returns Reduced herbicide use and environmental impact Performance excellent weed control Simplicity single product Rotation crop flexibility Fewer weather and timing problems
12 Soybean Weed Control Profits Shifting to Seed Technology fee per acre Roundup cost / Roundup cost / gal Farmer cost for weed control per acre Estimate of Monsanto profit on Roundup Ready Soybeans in 2002 Net sales = $520 MM Net revenue = $ 370 MM
13 Weed Control Profits Shifting to Seed Monsanto Gross Profit Transititon Millions Seeds and Traits Roundup Herbicide * Source Monsanto 2003 Annual Report *Estimated
14 Market Potential of Several Crops CROP Treatable Acres (MM) Herbicide Tolerance Value ($/A) HT Trait Market Potential ($MM) PhyGenics Share in 2011 (%) PhyGenics Potential Market Opportunity ($MM) Spring Wheat % 90.1 Winter Wheat % Rice % Sugarcane % 79.3 Totals , * Spring Wheat US, Canada Winter Wheat US, Europe Rice US, Japan. Brazil Sugarcane US, Brazil, S. Africa
15 Biotechnology Research Platforms Monsanto Syngenta DuPont Dow BASF Bayer Commercially Available Traits RR maize, cotton, canola and soybean B.t. maize, B.t. cotton, Stacked gene (RR/IR) crops B.t. maize Licenced in RR and B.t. maize and Herculex I B.t. maize and Herculex I maize LL canola and maize Development traits Inputs RR wheat Stacked gene crops Disease resistance Enhanced Roundup Ready tolerance Glyphosate tolerance Corn rootworm resistant maize Disease resistance Stacked gene crops Disease resistance maize Soybean cyst nematode resistance WideStrike cotton Corn rootworm resistant maize Herculex II maize Disease resistance Other LL crops Output traits Agronomic traits High fermentable starch maize Soybean with low linolenic content Increased yield in soybean and maize Improved grain size and yield in maize Stress tolerance Enhanced shelf life banana Microbial phytase Soybean with high oleic content Soybean with low linolenic content Drought tolerant maize Maize with high oil content Canola with high oleic content High oil content Vitamin content Stress tolerance Altered oil content in canola Novel carbohydrate production Stress tolerance Note: CRW = corn rootworm; LL = Liberty Link; RR- Roundup Ready; IR = Insect resistant
16 Study of the Impact of GMO crops on Agriculture National Center for Food and Agriculture Policy - NCFAP 40 Biotech Case Studies Herbicide Tolerant Insect Resistant Fungal Resistant Nematode Resistant Viral Resistant Bacterial Resistant 27 Crops in 47 States Literature Review (1100 citations) Interview/Survey of Researchers (180) Written Case Studies Sent to Outside Reviewers (80)
17 Impact of GMO crops in 2001 Food and Fiber Production + 4 Billion Lbs. Farm Income + $ 1.4 Billion Pesticide Use - 52 Million Lbs.
18 Impact of 6 GMO Trait and Crop Combinations Crop Trait Acres Total Net Value Pesticide Use ($000/year) (pounds/year) Canola Herbicide Tol. 871,000 11, ,000 Soybean Herbicide Tol. 50,016,000 1,010,765-28,703,001 Field Corn Insect Res. 14,927, ,356-2,603,456 Field Corn Herbicide Tol. 5,805,000 58,050-5,805,000 Cotton Insect Res. 5,144, ,968-5,144,000 Cotton Herbicide Tol. 9,301, ,676-9,301,000 Totals 86,064,000 1,440,815-52,087,457
19 Potential Impact of an additional 20 crops Food and Fiber Production + 10 Billion Lbs. Farm Income + $ 1 Billion Pesticide Use Million Lbs.
20 Why do Environmentalists oppose GMO crops? More pesticide use Insertion of foreign genes Foreign promoters disrupt normal gene expression Fear of technology Lack a balanced view Do not play by the rules $$$$$ - follow the money
21 Some recent headlines US seeks $1.6 B from EU over GMO ban EPA extends registration on Monsanto s Bt corn UDV seeks talks on GMO future Venezuela to prohibit transgenic crops Vermont becomes first state with GE seeds labeling law GM maize: EU ministers fail to agree on safety Europe gripped by phantom fears over GM, business chief says
22 Are there some valid concerns??? Pests become resistant to valuable pest control technology Bt insecticide Glyphosate Gene flow to other species development of super weeds or pests Can be prevented Harm non-targeted or beneficial organisms Enhanced allergenicity in food GMO crops are carefully tested
23 Consumer and Trade Issues Food processors not receptive All risk - no benefit from the technology Identity preservation Fear of Frankenfoods Risk vs. benefits drives decisions Indirect benefits to consumers Trade issues/regulation EU food safety issue Food labeling being used to keep crops and products out
24 Regulation of transgenic crops US 3 to 5 years and as much as $50 million USDA APHIS Transgenics are regulated Mutations and classical breeding are not regulated FDA novel food and feed EPA pesticidial traits only, i.e., Bt Canada 2 to 4 years, $10 to 25 million CFIA ALL traits are considered novel traits and are regulated The more exotic they are the more it costs and the longer it takes, ie., transgenic s take longer than mutations or classical breeding
25 Regulation of transgenic crops European Union (EU) - many years many $$$ Directive 2001/18 Deliberate release into the environment of a genetically modified organism Transgenics are regulated Mutations and classical breeding are not regulated Regulation 258/97 - Concerning novel foods and food ingredients Recently approved first GMO Other countries Brazil - Regulated by CTNBio Recently approved first GMO India - starting to loosen up Cotton Japan - Number of imports approved no crops in production Australia similar to US
26 Discussion So what do you think? Are the environmentalists right or are they just out to make a buck? Is the truth some where in the middle? Consumer acceptance?
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