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The Promise of Ag Biotechnology Global Adoption and the Future The Benefits of Ag Biotechnology Summary and Conclusions Agenda


The Promise of Ag Biotechnology Growing more food in a “Sustainable” way Today the tools and info of Biotech are providing NEW opportunities for science and society to better understand plant genetics. We have just started applying this knowledge for the benefit of our environment and population.


Global Population Growth Sources: United Nations Population Division and Population Reference Bureau


Population Growth Unevenly Distributed 1.6 1.8 1.4 1.1 1.1 0.5 1.1 0.3 0.6 0.6 0.4 1.2 1990 2020 UN regional forecast Billions of people 5.6 8.1 Developed countries Latin America West Asia and North Africa Sub-Saharan Africa South Asia East Asia Today: 2 billion people lack reliable access to food 800 million people today are chronically malnourished 300 million of these are children


Population and Income Growth will Fuel Increased Food Demand Increased food demand matrix Caloric shift to meat products High Medium Low Population X income growth Year 2020 Demand +75% Population growth +45% Increased meat consumption +30% Shift to “healthy” and specialized foods Low Medium High 61% 88% 147% 51% 76% Base Case 100% 39% 61% 88% Projection (75%) Source: IFPRI, FAO In India, the gains from the “Green Revolution” are getting saturated


Ag Biotechnology has the potential… To significantly contribute towards Poverty alleviation Rural Development Strengthened trade and economic competitiveness Agricultural sustainability and Nutritionally improved food availability While delivering direct benefits to the farmers and consumers


Revolution in Agriculture Underway Today's agricultural sector Information availability (precision agriculture) Increasing demand, especially outside the U.S. Biotechnology Grower consolidation Effects of discontinuities Declining government subsidies Larger, sophisticated growers Higher yields Value shift from chemicals to seeds Differentiated crops Integration of industry participants: - Seed - Chemicals - Biotechnology - Food ingredients - Food processing New relationships with growers


1800’s Mendel’s Pea, Darwin’s Species, Pasteur’s Microbes 1950-1980 Watson & Crick, Gene Sequencing & Green Revolution 1900-1950 Antibiotic Microbes, Plant Breeding 6000BC Fermented Beverages & Leavening of Bread Biotechnology Builds on Centuries of Science * Photo credit: AAAS, ARS, Nature 2001 Human Genome & Golden Rice 1980 – 2000 Biotech Crops & Human Insulin Biotechnology is a collection of scientific tools used to enhance plants, animals, and microorganisms for the benefit of humans


Global Adoption and the Future


Source : ISAAA, 1999, 2000, 2001 Biotech planted area has grown > 30 fold since 1996 introduction The number of countries planting biotech crops reached 13 Biotech acreage share: GLOBAL U.S. Soybean 46% 74% Cotton 20% 76% Canola 11% 67% Corn 7% 27% 2002 USDA biotech report indicates 13% US increase other crops canola cotton corn soybean 0 20 40 60 80 100 120 140 1996 1997 1998 1999 2000 2001 130 Ma Acres 5.5 million farmers planted biotech crops in 2001 (more than 75% of them from resource poor nations) The Global Adoption of Biotech Crops has Been Rapid


Global Regulatory Progress Significant advancement in regulatory arena: Science policy is shaping Regulatory approvals in 33 countries including EU Approvals for field trials in 51 countries Biotech acceptance is growing through extensive: Scientific networks Technical Publications Academic studies demonstrating environmental, farmer and consumer benefits • • Actively granting approvals • Pre-commercial field trials Commercialization delayed 2002 Global Regulatory Situation


A Glimpse into the Future Today, researchers are working on higher yielding strains of staple crops; food with enhanced nutrition; plants and produce that lasts longer and are resistant to devastating virus; crops that are more hardier; etc


Industry Follows Both Development Paths Functional Genomics Germplasm Structural Genomics Learn what genes do Identify Genes Crop Varieties with Good Genes Transgenic Development Breeding Enhancement New Traits & Markets Better Varieties, Faster Genomics Engine


Genomics leads are advancing Screen Yield Photosynthesis Seed development Plant form Nutrient utilization Harvest ability Nutrient Utilization (More Root Hairs) Control + Gene A Photosynthesis (More Biomass) Target Pest Quality Yield Stress Stress Heat tolerance Cold tolerance Drought tolerance Nutrient conversion Environmental Stress (Drought Stress) Control + Gene C


Quality Traits Target Consumer Benefits and Downstream Partners Consumer Needs Taste Convenience Health Choice Price


The Benefits of Ag Biotechnology A Global View Bt Cotton in India


Biotech Growth has Been Driven by Farmer Benefits Increase grain & fiber yield (quantity) Decreased operating costs (economics) Enhanced water conservation (contill) Reduced soil erosion (2 tons/year/acre) Decreased pesticide spraying (exposure) Additional Net Return/Ha* HT SOYBEAN $ 30 HT CANOLA $ 39 BT CORN $ 67 BT COTTON $ 133 *Source: CLIVE JAMES, GLOBAL REVIEW OF COMMERCIALIZED TRANSGENIC CROPS Moschini, et al., (Sept. 1999) Iowa Agriculture and Home Economics Experiment Station


Source: CAST (Council for Agricultural Science & Technology), June 2002. Performance of Biotechnology-derived Crops vs. Traditional Crops Biotech Crops Deliver Unique Environmental Benefits


BIOTECH CROPS PRODUCE MORE FOOD ON LESS LAND WITH FEWER INPUTS... Insect Tolerant Cotton Insect Tolerant Potato Less land use Less Insecticide use , exposure and runoff Improved Integrated Pest Management More Yield More Safety over conventional methods


Benefits of Insect Protected Crops Economics and Production Increased income Convenience of the System Potential to have less spray equipments Better Insect Control Environmental Less Pesticide impact More beneficial/predatory bugs, spiders,insects Potential to improve water quality Reduced energy use For Small Holder Farmers Macro economic benefit Economic benefit Social Benefit Reduced spraying


1.5 M hectares of Bt cotton in 2001 Net revenues increased by $357-549 USD/hectare in last 3 years of use Insecticide applications reduced by 59-80% in last 3 years of use Exposure to pesticides reduced with Bt cotton Source: Pray, C., Huang, J., Hu, R., Rozelle, S. 2002. Five Years of Bt Cotton in China – The Benefits Continue. The Plant Journal. 31(4): 423-430. China – Economic, Environmental and Health Benefits of Bt cotton


Benefits of Herbicide Tolerant Crops Economics and Production Increased income Reduced labour Convenience and simplicity Potential to have less spray equipments Better system of Weed Control Environmental Less Pesticide impact Conservation Tillage Potential to improve water quality Reduced energy use


TOTAL 14 Billion lb $ 2.5 Billion 163 Million lb ai CURRENT CROPS 4 Billion lb $ 1.5 Billion 46 Million lb ai FUTURE CROPS 10 Billion lb $ 1.0 Billion 117 Million lb ai Yield Increase Net Economics Pesticide Reduction Overall Impact of Biotechnology in Pest Management 40 Case Studies Gianessi et al, 2002. Plant Biotechnology: Current and Potential Impact for Improving Pest Management in US Agriculture. An Analysis of 40 Case Studies. National Center for Food and Agricultural Policy. CURRENT AND POTENTIAL IMPACT FOR IMPROVING PEST MANAGEMENT WITH PLANT BIOTECHNOLOGY Higher Yields Grower Savings Less Pesticide Use


How B.t. cotton can helps Indian farmer Bt cotton provides in built protection to cotton against lepidopteran pests Can significantly reduce the number of sprays for boll worm therefore reducing farmers costs Good potential for yield increase Is completely safe to crop and environment Fits well into the IPM strategy in India Peace of Mind


Current status of Bt cotton in India 55000 farmers have planted Bt cotton on approx. 1 Lac acres Three hybrids grown MECH162Bt, MECH184Bt and MECH12Bt Six states: Maharashtra, AP, MP, Karnataka, Andhra Pradesh, Tamilnadu Good control of bollworm complex observed in Bt cotton v/s non Bt cotton Early maturity of crop could facilitate one additional crop In most areas two pickings have been completed On going interaction with State Government officials, ICAR and other government bodies


Summary and Conclusions


Biotechnology is a good Ag. option… It is accurate, predictable, faster, scientific and safe Technology is in “seed”- does not differentiate large and small farmers Provides significant benefits to all stakeholders: Farmers, Consumers, Government and the Environment Fits very well with the “IPM” package Is sustainable


Biotech is delivering on its Promise Biotechnology has delivered significant environmental benefits: - insecticide reduction - soil conservation and enhanced productivity - improved water quality - enhanced sustainability - promotion of reduced risk herbicides and insecticides - improved feed quality Many of these benefits are consistent with Biotech’s primary goals Biotech Crops have significantly improved farm competitiveness

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