Seed Synergy Collaboration Project The Thinking So Far

Transcription

1 Seed Synergy Collaboration Project The Thinking So Far Over the last year the six Seed Synergy Collaboration Project organizations the Canadian Seed Growers Association (CSGA), Canadian Seed Trade Association (CSTA), Canadian Seed Institute (CSI), Commercial Seed Analysts Association of Canada (CSAAC), Canadian Plant Technology Agency (CPTA) and CropLife Canada have invested significant effort in building strong working relationships with each other, coming to a common understanding of the seed system of today, and developing a high level vision for the next generation seed system. That vision is: The Next Generation Seed System in Canada is a system that is optimally structured and organized to deliver value and predictability for the entire value chain: A strong, competitive and profitable sector that attracts investment, research and innovation, and that is valued for its significant contribution to society. An industry-led system that is cost-effective, market driven, agile and responsive, and that enables Canada to do business globally. A system that meets the needs of all stakeholders along the entire value chain. A system that instils trust and that garners a high degree of support. In discussions with members and industry stakeholders we have generated broad agreement on the vision and characteristics of the next generation seed system. The most frequent comment we heard was: this sounds good, but what will this vision look like in reality? What needs to change? In response, the Seed Synergy team worked together to develop more specific options for the four functions Research & Development, Market Entry, Production & Processing, and Sales & Distribution that would start to show how the high level vision for a next generation seed system could become reality. The team held an intensive working session on May to further elaborate on its vision, and from this meeting emerged the two documents you will find in this package: 1. Memorandum from the Seed Synergy Collaboration Project team to the boards of the six organizations This document is a summary of the collective vision of the group and a snapshot of the proposed big picture direction. 2. Seed Synergy Collaboration Project Discussion Paper This longer piece elaborates on the ideas of the memo, provides the context and the case for change, and describes the latest thinking on the future of the four functions, as well as a possible model for how the six organizations could work together in the future. WHAT THESE DOCUMENTS ARE These two documents are a record of the early thinking of the Seed Synergy Collaboration partners on what a next generation seed system MIGHT look like in the future, as of May They are intended to provide a sense of the potential direction and stimulate discussion throughout the seed industry on the big ideas at issue. WHAT THESE DOCUMENTS ARE NOT These documents are not a final say on where the Seed Synergy Collaboration Project is headed, or what goals it will ultimately achieve. Moreover, these ideas have not been reviewed by all Boards, and have not been approved by any of the Synergy organizations Boards of Directors. WHAT S NEXT? The Seed Synergy Collaboration team has launched an engagement process to gather ideas and reactions from members, industry stakeholders, and their boards of directors, to test preliminary ideas and refine the proposals. We will use the input received to continue to evolve ideas and options for a next generation seed system and prepare a more detailed White Paper that will be shared broadly to further refine the Seed Synergy Collaboration direction. Thank you for your engagement, and we look forward to hearing your ideas! - The Seed Synergy Collaboration Project Team

2 Memorandum to: Directors of the Boards of the Seed Synergy Collaboration Organizations The Seed Synergy Executive Directors and leaders team met in Toronto on May 4-5, 2017 to talk about distilling the high-level Seed Synergy Collaboration vision down to a more concrete and actionable program for the next phase of the project. We are pleased to report that we have made real progress, and have together defined a concrete vision supported by every member of the team and will shortly present to you a brief paper outlining the case for change, a vision and first steps for each of the Synergy functions: Research & Development, Market Entry, Production & Processing, and Sales & Distribution, as well as a bold and realistic plan for a future organizational model to support the Synergy vision. The case for change is clear, and agreed upon by all parties. Today our collective system suppresses innovation with a regulatory regime that now must become more predictable, timelier, and more transparent. Where new innovation does occur it is often slow to enter the market, and this hurts not just the seed industry, but the entire Canadian agricultural value chain that depends on innovation to realize profits in an increasingly competitive global market. The competitiveness of the seed industry and the agriculture sector as a whole is limited by a fragmented national system for assuring genetic identity, origin, and traceability. We know that cutting edge research and innovation depends on a system that provides a fair return on investment, and we need better mechanisms to return a share of the value we create to R&D to help the innovators recoup their investment and encourage them to continue their valuable work. Finally, the seed system involves a web of organizations at a low state of integration, which dilutes our voice, and passes on the costs of inefficiency to our members. The Seed Synergy Collaboration group has provided a clear vision to guide action in this context, address challenges, and seize opportunities: a next generation seed system offering Quality, Choice, and Safety. What does this mean in practice? We now have a proposed answer, and a model of the seed system of the future: An industry-led, government-enabled, reformed regulatory system that effectively expedites innovation and attracts investment. An integrated, lynch pin, product profile system for all seed products, capturing all varietal identity, regulatory, and market information in one place. Broad agreement on the core functions of identity and traceability, and single window information services that eliminates duplication and overlap, and gets new products into the market faster. A complete model that sees all sold seed situated on a progressive system of varietal identity and purity standards, from the most basic to the most stringent for niche customers with trait or variety-specific markets. World-leading identity and traceability facilitated by product profiles - as part of system that drives growth for the Canadian agriculture sector and offers seed innovators a fair return on their investment. We know that any discussion about the future function of the seed system naturally raises questions about the form or institutional organization of that system. It s the elephant in the room, and we propose to address it directly. Our collective vision is: A future seed system governed by one, integrated organization (i.e. Seeds Canada or the Canadian Seeds Association), that performs the regulatory, member services, advocacy, communications, training, and other services present in the system today, and that strengthens each of those functions. This is a vision of everyone in the seed system today cooperating in one organization to realize a vision that will benefit them all. The first phase of Seed Synergy Collaboration was about deciding where to go. Phase Two will be about getting there, and we have developed some proposed first steps to begin that journey: Targeted short term regulatory reform, in partnership with government (about making the system perform better, not just reworking the rules) Beginning to integrate our information systems Professional recognition for seed industry professionals, and the beginning of reforms to allow recognized professionals to play a larger role Development of an integrated database for stewardship program requirements Shared work planning amongst all of the Synergy organizations What s Next? We will provide you with a more detailed picture of the vision and priorities for action that we have here described, for your review and comment. This will take the form of a short discussion paper, which will be completed by the end of May. Our aim is to secure the approval of each Synergy group member Board to test this evolving Seed Synergy Collaboration vision with members, starting at the end of May. Following this, and enabled by AAFC Agri-risk funding on which we expect a decision by late June we would also like Board approval to proceed with Phase Two of the Seed Synergy Project: making our vision happen. We wish to note that the vision we have described here is one shared by all members of the team, and one that we strongly believe will benefit all of our existing organization s mandates and functions into the future, but more effectively. We came to this consensus after an intensive period since 2015 of building shared understanding and trust amongst the six national seed organizations working together on the Seed Synergy Collaboration Project, and we view this trust as the bedrock upon which our future success will sit. Glyn Chancey Crosby Devitt Krista Erickson Lorne Hadley Roy van Wyk Stephen Yarrow

3 Seed Synergy Collaboration Project Discussion Paper Context Agriculture is a highly competitive, innovative business, and Canadian producers compete in a dynamic, and increasingly integrated global marketplace. Seed is the driver of much of the innovation upon which Canadian producers depend in order increase efficiency, adapting to changing conditions, and drive profitability. Over the past 100 years Canada has developed a seed system that strives to ensure the quality, safety, and availability of seed for planting in Canada, and for export to other countries. At its inception, the seed system was designed to fulfill a simple task: assure buyers that the bag of seed they were purchasing really was the crop or variety it was purported to be. In the intervening years in lockstep with fundamental transformations in the regulatory, scientific, and information fields the seed system has evolved to become a sophisticated enabler of the entire agriculture sector. Over the years new organizations have developed to meet the diverse needs of the many players that make the modern seed system work, and today a range of government and industry partners work together to ensure a healthy seed sector. Of course, time waits for no one, and change continues apace. The six major seed industry organizations collectively saw an opportunity to develop a shared vision of the next generation seed system in Canada. Together, these six organizations the Canadian Seed Growers Association (CSGA), Canadian Seed Trade Association (CSTA), Canadian Seed Institute (CSI), Commercial Seed Analysts Association of Canada (CSAAC), Canadian Plant Technology Agency (CPTA) and CropLife Canada have formed the Seed Synergy Collaboration Project, intended to design a vision of the future Canadian seed system. directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 1

4 The Case for Change and Collaboration It would be simple to locate the main driver for change, and for the Seed Synergy project, in the government s stated intention to review the regulations under the Seeds Act, as well as the renewal of the Agricultural Policy Framework. However, these are really just opportunities to effect reforms. The case for change runs much deeper, and is much more compelling than just government legislative review. Government has, over some thirty years, progressively withdrawn from many of its roles and responsibilities within the seed system. In the past, public investment drove research and development. Today the federal government plays almost no such role, and it is industry that drives innovation. As well, government once played a large formal role in the inspection of seed crops. Today inspections are conducted by private sector operators. These, and other changes represent a seismic shift in the role of government in the seed sector, and just as importantly a shift in who bears the cost of the modern seed system. Government has transferred responsibility, but not resources, to many of the other players in the system, and this dynamic creates significant tension today. We know that the seed industry is important to the overall Canadian agriculture sector. However, seed research, and our collective ability to bring innovations to market efficiently will be even more important in light of climate change. Changing climates will present new opportunities and risks for Canadian agriculture: longer growing seasons, more severe weather, new pests, new diseases, and changes that we won t anticipate. A thriving seed system will be critical for ensuring that Canada is a leader in adapting to climate change, and in overcoming the evolving challenges it will present. Technology has advanced in ways that even the previous generation might not have thought possible. Gene editing techniques, and other cutting edge plant science innovations are not theoretical, they are here, and they are pushing the rules, regulations, and practices of a seed system designed for a previous era. This is an even more pronounced need in the context of a globally integrated market where Canada faces a host of new and emerging competitors all vying for investment in leading research and development. Technological change in information management is another major driver for change. Today a seed grower can transfer money across the world, order new clothes, and communicate with virtually anyone, all while standing in a field using only a telephone. But that same producer cannot efficiently access his/her own electronic planting and inspection records. Information is a major commodity driving radical changes in every sector of the economy. For the seed sector this means significant change in how players access, interact with, and use the vast stores of information available to them, to inform better decisions throughout the value chain. Finally, margins for all players within the agriculture industry are razor thin, and competition is fierce. Today the many seed sector organizations deliver vital advocacy, regulatory, communications, information and other services to their members. However, some of these functions overlap, and some individuals or companies are members of multiple organizations that share the same goals. The result is a diffused voice for the seed sector, and greater costs for members. Today s seed system is a successful one, but it faces real challenges that require significant change and action in order to continue success and profitability for the future. As alluded to above, the sector has a perfect opportunity now, in light of pending government review, to make real change. The Seed Synergy Vision The first steps taken by the Seed Synergy group toward answering the case for change have come in the form of a high level vision. The six organizations invested significant time and energy in developing a principled vision of the future seed system in Canada as shown on the following page. directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 2

5 FUNCTIONS OF THE NEXT GENERATION SEED SYSTEM 1. RESEARCH & DEVELOPMENT Purpose: To develop new traits, and seed varieties. R & D encompasses all activities required to develop new or improved seeds (e.g. innovation, trait and variety development, technology, germplasm, etc.) for minor and major crops domestically and internationally. NEXT GENERATION SEED SYSTEM 2. MARKET ENTRY Purpose: to enable new seed varieties for market, based on seed identity and/or performance or quality criteria. CHOICE The system encourages a diversity of seed kinds, varieties, and suppliers. QUALITY The system ensures all seed in Canada is of known quality. SAFETY Through good stewardship, the system continues to ensure that all seed is safe for humans, animals and the environment. 4. SALES & DISTRIBUTION Purpose: to distribute seeds to customers, and ensure that the identity/ quality of the seed crop is preserved throughout the movement, storage and delivery processes. INDUSTRY-LED GOVERNMENT ENABLED 3. PRODUCTION & PROCESSING Purpose: To produce seed and ensure that the identity/quality of the seed crop is preserved throughout the production cycle, and ensure that identity/quality is preserved throughout the processing cycle (e.g. seed applied technology, treatment, packaging, etc.). CHARACTERISTICS OF THE SEED SYSTEM Innovation and competition The system fosters continuous improvement through innovation and drives choice and competition. The system enables Canada to be competitive on international markets. Industry-led and government enabled The system is managed by industry and supported by government; it fosters accountability for all players. Science-based The system is built on strong scientific and technical foundations. Transparency The system is transparent to industry and the public. Value to industry and customers The system delivers greater value to the industry and to customers across the value chain, provides great value at a reasonable cost and ensures viability for the industry. Responsiveness, agility and adaptability The system is simple and easy to navigate. It is responsive and adapts to emerging issues, market needs and technology in a timely manner. It responds to customer requirements and meets the evolving needs of domestic and international markets. Harmonization and international leadership The system enables Canada to take a global leadership role, and facilitates market access by aligning with other national systems. Respect for Intellectual Property The system fosters compliance with intellectual property. Traceability The system facilitates traceability across the seed value chain. Human Capital The system encourages ongoing professionalization of the industry, through continuous training and education. directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 3

6 Action to Realize Our Vision This high level vision would be difficult to disagree with. But what does it mean at a more practical level? To answer this question the Seed Synergy group has broken down the seed system into four major functions: Research & Development Market Entry Production & Processing Sales & Distribution This paper will provide, for each of these functions, a short description of the case for change, the vision for the future, and some real and concrete first steps to start making that vision a reality. We have purposely focused on the functions of the current and future seed system, and not on the organizations who currently perform them. Why? Because we did not want to limit the scope of our vision to the institutions and practices of today. At the same time, we know that the very first question asked by most people in the face of a major reform is: who does what? For this reason we have begun to sketch out how the future seed system in Canada might be organized. This is, of course, a critical consideration, but we do consider questions around organizational responsibility to be a limiting factor on the ambition of the Seed Synergy vision. directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 4

7 RESEARCH & DEVELOPMENT Purpose: To develop new traits, and seed varieties. R & D encompasses all activities required to develop new or improved seeds (e.g. innovation, trait and variety development, technology, germplasm, etc.) for minor and major crops domestically and internationally. Context and Case for Change Plant breeders are in the business of creating new variations of plant characteristics, including quality, disease and pest resistance traits. Today we have access to plant breeding tools that are more precise, efficient, flexible and cost effective than ever before, creating excellent opportunities across the entire seed industry, and benefitting the entire agriculture sector. Government plays a role in ensuring that new products are safe, as Canadians would expect. However, government approval of new varieties is effected via a system under the Seeds Act and its Regulations that triggers risk assessments based on novel traits. And novel traits are the entire purpose of any plant breeding program. The result? Every new variety, regardless of relative risk, is subject to the same standards of government review, field testing, and approval. Moreover, regulatory triggers and requirements are unclear and poorly understood by government and industry alike. As a result, well-meaning risk aversion has crept into the system, whereby the regulator tends to apply similar processes to all products regardless of risk, and where the regulator may seek more information and assurance than is even required by regulation. Ultimately the innovative potential of the Canadian seed industry and the value it creates for the agriculture sector is limited by the application of a regulatory regime more focused on process than good outcomes, and we risk losing out on important investment as small operators simply cannot afford to engage in uncertain regulatory processes, and multi-national companies choose to do business in jurisdictions with more predictable regulatory processes. Vision for Research & Development That Canada maintain leadership in protecting the public and the environment, with a regulatory pathway for the commercialization of the latest seed innovations that is timely, predictable and transparent. Doing so will make Canada a destination of choice for investment, enable better products in our fields and on our shelves, and benefit all Canadians. This is not a vision of deregulation. It is a vision of a system that achieves regulatory goals in a targeted and more efficient manner. First Steps Engage CFIA and AAFC immediately to reform the performance of the regulatory system. This does not mean re-writing regulations or altering legislation. This is about industry and government working together to better define how today s regulations are implemented. Specifically, what are and are not the obligations of industry? and where are the bottlenecks that can be addressed? Beyond this we can envision a tiered, intelligent system of assessment and regulatory approval, so that new all new varieties are subject to assessment and review commensurate with their level of risk. Other jurisdictions are moving in this direction, and Canada already uses risk-based assessments for other product types. directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 5

8 MARKET ENTRY Purpose: to enable new seed varieties for market, based on seed identity and/or performance or quality criteria. Context and Case for Change The Research & Development function is about building a strong climate for attracting investment and driving innovation. Market Entry is focused on commercializing the results of research and development, and getting new products into the field. Today bringing a new seed product to market involves a web of rules and organizations, looking at many facets of the product: variety registration (if required, and subject to distinct and different variety testing by crop), Plant with Novel trait requirements, IPR applications (Plant Breeder s Rights or Patents), stewardship requirements, designation to grain class and multi-country and process group market qualification, and food safety and nutritional specifications. Navigating this system is difficult and time consuming, all the moreso because different requirements are administrated by different organizations, like the Canadian Seed Growers Association, the Variety Registration Office, and more. Often these different organizations will ask for the same information multiple times, or worse will ask for the same information in different ways, using inconsistent units or standards. This creates headaches for regulators and variety developers, and for producers the outcome is no less unsatisfying. There exists no single set of authoritative information about seed products. Vision for Market Entry An Integrated Product Profile, with all relevant product information stemming from all regulatory and quasi-regulatory processes, enabled by an efficient one-stop single window for all information requests. In this way new seed products will get to market far more efficiently, and seed customers will be enabled to make more educated choices about the products they produce. First Steps Immediately begin building a single window into intellectual property and eligibility for certification information. This single window, potentially involving (ORGANIZA- TIONS TBD) would eliminate duplication of requests for information, and make the process of bringing new varieties to market more efficient. This single window would at the very least be a consolidated front end (i.e. enter information once to enable many uses), and could even extend to a unified back end (i.e. information entered once and stored in one place, used by different players). directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 6

9 PRODUCTION & PROCESSING Purpose: To produce seed and ensure that the identity/quality of the seed crop is preserved throughout the production cycle, and ensure that identity/quality is preserved throughout the processing cycle (e.g. seed applied technology, treatment, packaging, etc.). Context and Case for Change With respect to production and processing CFIA is the overall seed authority in Canada. However, over the years CFIA has progressively delegated more and more components under its authority to various parties throughout the system. CSGA prescribes the seed crop production standards and certifies the seed production crops. Seed labs and their accredited analysts, CSAAC members, conduct official germ and purity tests on seed. CSI, on behalf of CFIA, provides oversight of the seed labs, seed facilities and personnel who clean, process, import, and label certified seed with the CFIA s official seed certification labels. And CropLife s AWSA prescribes and enforces a voluntary seed treatment standard. The overall quality of outcomes in ensuring seed quality and identity throughout the production and processing cycle is very high. Canada is internationally recognized for having a high quality seed program, and we enjoy a high degree of trust and confidence in international markets. However, the myriad organizations and functions lead to increasing costs. As government has withdrawn and delegated, new organizations have stepped up to do the job. Multiple organizations entail multiple fees, fee structures, and administration, and some players are members of more than one organization. Vision for Production & Processing That all seed sold in Canada is situated on a progressive system of varietal identity and purity standards, from the most basic to the most stringent, and that seed industry professionals play a larger role in ensuring that all seed products are assessed and situated on a standards and certification continuum. This means moving away from the outdated common/pedigreed distinction, and toward a universal system that includes all seed products. First Steps Put in place a voluntary recognition program for seed industry professionals. Such a program would allow accredited professionals to conduct verification, backstopped by an audit framework. Develop a profile of the skills, knowledge, and competencies required to produce and process seed, and design training and other resources to ensure that the industry realizes high standards of performance for the long term. This fragmentation isn t just about costs, either. The result of having many different organizations performing various complementary roles is that Canada does not have a single national system of tracking and traceability, and some seed is sold with no confirmation of its identity, and without any recovery of research investments. directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 7

10 SALES & DISTRIBUTION Purpose: to distribute seeds to customers, and ensure that the identity/quality of the seed crop is preserved throughout the movement, storage and delivery processes. Context and Case for Change Sales are the goal of any production system, and seed is no exception. In the seed business, the most important factor driving sales is trust, and the current system for pedigreed seed is a successful model for delivering products that consumers trust and depend on. However, today s seed system faces real pressure from the sale and use of common seed, for two reasons. First, common seed sales are not connected to the broader value chain; when common seed is sold none of the players researchers, breeders, seed growers, etc. who created the value in that product receive a share. Second, and most importantly, common seed sales undermine trust in the seed system overall, as seed is sold that may not possess the traits it is purported to, and may even threaten the marketability of pedigreed seed varieties, if customers do not believe that they can expect to get what they have paid for. Vision for Sales & Distribution A seed listing system, whereby everyone in Canada who wishes to sell seed, of any type, must register the sale in an easy to use system (linked to the entire certification system). In this system all seed sold would be subject to some minimum information requirements. In addition, this vision would enable value capture for all sold seed products, to ensure fair and sustainable funding for future innovation. First Steps Creation of a database of stewardship requirements, so that all stakeholders and customers can see a simple, easy to follow picture of their stewardship obligations. This is a first step toward maximizing trust in the system, beyond certification processes. Ultimately, then, we face two fundamental challenges: creating a means of value creation and capture that reinforces the economic incentives for innovation, and increasing the integrity of the entire seed system in Canada, beyond the bounds of the current pedigreed non-pedigreed structure. directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 8

11 ROLES & RESPONSIBILITIES IN THE NEXT GENERATION SEED SYSTEM How Will We Organize Ourselves to Deliver? In examining the case for change in each of the major functions of the current seed system, and in designing first steps toward realizing the collective vision for the future, we have highlighted a simple fact: the system of today is fragmented between several organizations. These organizations have their own distinct roles and mandates they do not simply duplicate each other however, looking at the big picture it is clear that no one would design the system as it is today. Approaches are fragmented, administrative costs are higher, information sharing is low, and the voice of the sector is diluted. Our approach has been to focus on the functions of the seed system, and to envision a bold future. We have not focused on designing the seed organizations of the future. One of the biggest pitfalls in effecting major change is to focus on structures and organizational charts, to the exclusion of results. At the same time, we know that many of the issues we have identified beg the question: what organizational alignments are necessary to address these challenges? We envision a single, integrated Canadian Seed Association, performing the current roles of all six organizations and more. Change of this magnitude is challenging, and the road ahead will no doubt feature many obstacles. As we begin working to realize our vision we may very well discover that certain aspects cannot be amalgamated, or that the functions we desire require a completely different sort of enabling organizational structure. If and when that occurs, we must be ready and willing to adjust. The point is that the Seed Synergy vision is a vision for the seed system and its outcomes, not one of an organizational structure. Nonetheless, we feell that an integrated Canadian Seed Association is a goal worth striving for, and that in starting down this road we will flesh out the detailed considerations that will shape the form of the future of the seed system. The vision we have defined does not depend on any particular organizational model. It does, however, depend entirely on close collaboration, and integrated systems and approaches. Would this coordination be best achieved via a single organization responsible for the regulatory, advocacy, communications, and other roles now performed by the six Seed Synergy organizations? Our answer is yes. directly or implicitly, by the boards of directors of the six Seed Synergy organizations. 9