Genetically Modified Foods: Are They Safe?

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1 Genetically Modified Foods: Are They Safe? W.F. Kee Industry Analyst Technical Insights Group AGRI-FOOD SAFETY AND STANDARDS SEMINAR 2010 Berjaya Times Square Hotel & Convention Centre, Kuala Lumpur January 26, 2010

2 Agenda Who is Frost & Sullivan? Introduction to GMO Key Drivers and Challenges, Key Players 4 Overview of GM Industry and Trends 5 Malaysia s Biosafety Act Conclusion 2

3 1 Who is Frost & Sullivan? The Growth Consulting Company Over 1,700 employees across 31 global locations in 22 countries. Over 10,000 clients worldwide including emerging companies, the global 1000 and the investment community Founded in 1961 Developers of the Growth Acceleration System, which includes the CEO s 360 Degree Perspective, CEO s Growth Team, Growth Model, Growth Excellence Matrix and Growth Workshop. 3

4 1 Frost & Sullivan s Industry Coverage 1. Aerospace & Defense 2. Automotive & Transportation 3. Chemicals, Materials & Food 4. Electronics & Security 5. Energy & Power Systems 6. Environmental & Building Technologies 7. Healthcare 8. Industrial Automation & Process Control 9. Information & Communications Technologies 10. Measurement & Instrumentation 4

5 2 Introduction to GMO Definition of GMO: A genetically modified organism (GMO) whose genetic material material has been altered using genetic engineering techniques. Genetic engineering techniques include gene targeting, gene splicing, gene silencing, gene transfer, etc. Rank Country Area (million hectares) Types of Crops 1 USA 62.5 Soybean, corn, cotton, canola, squash, papaya, alfalfa, sugarbeet 2 Argentina 21.0 Soybean, corn, cotton 3 Brazil 15.8 Soybean, corn, cotton 4 India 7.6 Cotton 5 Canada 7.6 Canola, corn, soybean, sugarbeet 6 China 3.8 Cotton, tomato, poplar, petunia, papaya, sweet pepper 7 Paraguay 2.7 Soybean 8 South Africa 1.8 Corn, soybean, cotton 9 Uruguay 0.7 Soybean, corn 10 Bolivia 0.6 Soybean Source: ISAAA,

6 3 Key Drivers Food Security High Price of Food Sustainability Alleviation of Poverty and Hunger Climate Change Source: Frost & Sullivan. 6

7 3 Key Challenges Difficulty in Obtaining Biological Sequences Intellectual Property Rights Prohibitive Costs Ecological Concerns Safety of GMO on Human Health Source: Frost & Sullivan. 7

8 3 Key Players Monsanto Syngenta Dow Agrosciences GM Seeds DuPont Bayer Bioscience (division of Bayer Cropscience) BASF Plant Science Source: Frost & Sullivan. 8

9 4 Desired Crop Traits Soil Tolerance Herbicide Tolerance Delayed Ripening Insect Resistance Crop Traits Drought Tolerance Virus Resistance Enhanced Nutrition Stacked Traits Source: Frost & Sullivan. 9

10 4 GM Crops Soybean 70% (65.8 million has.) of total global soybean planted is GM Countries growing GM soybean: Argentina, Bolivia, Brazil, Canada, Chile, Mexico, Paraguay, Uruguay, South Africa, and the USA. Corn 24% (37.3 million has.) of total global corn planted is GM Countries growing GM corn: Argentina, Brazil, Canada, Chile, Czech Republic, Egypt, Germany, Honduras, Philippines, Poland, Portugal, Romania, Slovakia, South Africa, Spain, Uruguay, and the USA. 20% (5.9 million has.) of total global canola planted is GM Countries growing GM canola: Canada, Chile, and the USA. Canola 46% (15.5 million has.) of total global cotton planted is GM Cotton Countries growing GM cotton: Argentina, Australia, Brazil, Burkina Faso, China, Colombia, India, Mexico, South Africa, and the USA. 10

11 4 Breakdown of GM Crops 12% 5% Soybean Corn 53% Cotton Canola 30% Source: ISAAA,

12 4 Countries Growing GM Crops Source: Clive James,

13 4 Varieties of GM Crops Crop Soybean Corn Rapeseed / Canola Cotton Papaya Tomato Potato Sugar cane Sugar beet Rice GM Property Herbicide resistant, different lipid profile Herbicide and insect resistant, vitamin enriched Herbicide resistant, different lipid profile Pest resistant Virus resistant Delayed ripening Higher starch content High sucrose content, pesticide resistant Herbicide resistant Vitamin A enriched ( golden rice ) 13

14 4 Technology Trends in GM Crops Future Past Patent-protected food crops (herbicide resistant) First commercialized in the 1990s Present Disease resistant Insect resistant Stacked trait seeds Stress tolerant Enhanced nutrition Multiple traits Therapeutic crops Source: Frost & Sullivan. 14

15 5 Malaysia s Biosafety Act 2007 According to the Act, a living modified organism " means any living organism that possesses a novel combination of genetic material obtained through the use of modern biotechnology The Act calls for the establishment of the Genetic Modification Advisory Committee, whose function is to provide scientific, technical and other relevant advice to the Minister or the Board With regards to GM labelling, the Act requires that all living modified organisms, items containing living modified organisms and products of such organisms shall be clearly identified and labelled 15

16 6 Conclusion GMOs are increasingly viewed as one of the best solutions to end world hunger, as genetically enhanced crops typically provides higher yields than conventional crops It is increasingly difficult to determine whether a consumable product contains GMOs or not. For example, GM corn could easily be used to produce corn syrup or even alcohol, which is then inserted into various types of foods and beverages. It is predicted that GMOs will become a mainstream food product on a global scale by the end of the decade, and acceptance of GMOs, especially by the developing world, will increase. 16

17 Q & A W.F. Kee Senior Industry Analyst Technical Insights Asia Pacific (+603) Bernard Weber Sales Manager Technical Insights North America & Europe ( ) 17

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