North Dakota Wheat Commission State MeetingDecember 2010
Biotechnology
• Messaging shared with customers
• Market Assessment Research
• International Participation
• Principles of Commercialization
• Outlook
Messaging - What is Biotech?• Bio-technologically derived crops can also be
referred to as:– Genetically modified organisms (GMO, GM)– Genetically enhanced (GE)– Transgenic (TG)– Transformation
• Using modern biotechnology to insert DNA from one species into the DNA of another species, for purposes of:– Addressing agronomic issues limiting yield or quality– Addressing processing or end product issues limiting
productivity, quality or nutrition – Production of nutraceuticals for human health
• Golden rice (vitamin A)
Messaging - Global Expansion of Biotech
Messaging - Countries With Biotech
Messaging - The Need for Biotech• World harvested Area, last 25 years: - World wheat harvested area down 2% - World corn harvested area up 20%
229.8
226.5
131.0
157.1
115.0
135.0
155.0
175.0
195.0
215.0
235.0
85/86 88/89 91/92 94/95 97/98 00/01 03/04 06/07 09/10
Mil
lio
n H
ecta
res
wheat corn
Messaging - The Need for Biotech
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18$0
$50
$100
$150
$200
$250
$300
$350
$400
Corn Wheat Soybeans
Net
Ret
urn
per
Acr
e
soybean
Source: USDA/ERS - Agricultural Baseline Projections
wheat
corn
U.S. National average return per hectare for major crops
Messaging - Non-biotech Markets• U.S. Wheat Associates will work with industry stake
holders to assure that non-biotech wheat is available to the market– Non biotech wheat will cost more over time due to the
yield/productivity lag.
• Testing and Handling Systems have been developed for non-biotech corn and soybeans– Similar systems will be developed for IP wheat
• The key is a functional tolerance for biotech wheat allowed in non-biotech wheat shipments– CODEX is considering establishment of such a tolerance for
Europe
Messaging - Where Do We Go From Here?
• At the end of the day biotech wheat has to benefit both the buyer and seller
(Consumer and Producers) – Working together we can make that happen through
(Communication and Understanding)– We can achieve mutual benefit, and assure
sustainable supplies of high quality wheat reasonably priced well into the future.
– The key will be a “tolerance” for biotech material in non-biotech shipments
Market Assessments
Market Assessments
• Criteria
• 23 organizations representing trade interests from around the world– Europe, Mexico, Canada, US, Australia, Brazil, India,
Argentina, Russia, China, Paraguay– Providing input to officials, NGOs, others on the
impact and risks regulations have on the trade of biotech products
– Low Level Presence, Adventitious Presence, Liabilities
Trilateral Biotech Statement
www.uswheat.org
- What We Do
- Biotechnology
Principles for Commercialization
1. The technology provider initiates an informative dialogue with the USW/NAWG Joint Biotechnology Committee (JBC) prior to submitting for regulatory approvals in the U.S.
2. Regulatory approvals for food and feed use must be secured in major wheat export markets that will be affected where a functioning regulatory system exists.
3. Commercialization of the trait must not impair the ability of non-transgenic wheat to meet commercially recognized thresholds for the low-level presence of transgenic traits. Appropriate international tolerances for transgenic wheat in non-transgenic shipments must be established and accepted in major export markets. Anticipated thresholds range from 0.9% to 5.0%.
Endorsed by U.S. Wheat Farmers
4. An accurate, economical and timely trait detection test must be provided by the trait developer prior to commercialization.
5. The primary responsibility for education and outreach for new traits will remain with the technology provider. USW and NAWG will actively help seek buyer acceptance and will provide guidance, assistance and resources.
6. The technology provider must demonstrate stewardship of the technology, including education and outreach to growers to assure compliance with agronomic and grower stewardship practices specific to the trait.
Principles for Commercialization (continued)
Endorsed by U.S. Wheat Farmers
Principles for Commercialization (continued)
7. We have examined both certified seed and point-of-delivery value capture models. While there are advantages and disadvantages of either approach, we believe the certified seed model will be most acceptable to the value chain and is the preferred approach. Investment in agricultural technology by private parties requires a return on that investment. We support the protection of intellectual property, including education about the importance of complying with seed and stewardship contract provisions and enforcement of those provisions when necessary. Technology traits should be encouraged for adaption into public wheat varieties.
Endorsed by U.S. Wheat Farmers
Needs and Opportunities
• Increased population– Not in major wheat producing regions
• Increased incomes– Developing countries– Per capita
• Increased trade opportunities– Increased production needed
World wheat consumption
660+ MMT
30 year down trend
+/- 900 MMTDemand in40 years
(+ 240 MMT)
229 MMT
239 MHA
World Population Growth: Projected to 2050
2050+/- 9.5 Billion
20106.8 Billion
Projected World Population Growth2010 to 2050 (From 6.8 to 9.5 billion?)
Southern Hemisphere Wheat Belt
Northern Hemisphere Wheat Belt
Mid-Latitude Demand Concentration
Latin America+ 300 Million
Africa+1 Billion
Asia+1.8 Billion
World Wheat Trade
81/8
284
/8587
/8890
/9193
/9496
/9799
/0002
/0305
/0608
/09
0
20
40
60
80
100
120
140
"Other"
MM
T
If only 50% of the 240 MMT increased demand is traded
internationally…
125 MMT
250 MMT
Trend in “other” importers denoted ( )
2020 2030 2040 2050
50 MMT
l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l
?
Information is updated regularly on the U.S. Wheat Associates and National Association of Wheat Growers websites and distributed via the both the U.S. Wheat and NAWG Wheat Letters
www.uswheat.org
www.wheatworld.org