Canada is falling behind in private wheat breeding research

[gustgd]

26 August 2010
INTERGRAIN AND MONSANTO ANNOUNCE NEW WHEAT BREEDING COLLABORATION
Monsanto to share technology, germplasm with Australian breeding leader; makes equity investment
InterGrain Pty Ltd and Monsanto Company (NYSE: MON) today announced a technology collaboration
agreement expected to lead to significant new advances in wheat technology for Australian growers. In
connection with the collaboration, Monsanto has acquired a 19.9 % minority interest in InterGrain, a
leading cereal breeder in Australia. The WA State Government remains the majority shareholder, with
the Grains Research and Development Corporation (GRDC) remaining a shareholder as well.
Monsanto and InterGrain will exchange certain wheat germplasm for breeding, with InterGrain gaining
access to breeding technology tools and services for genotyping and marker development. This is
expected to deliver increased genetic gain which will ultimately provide Australian wheat farmers with
the ability to achieve higher yields.
¡°This is a very exciting development for Australian wheat farmers, with the partnering of Australia¡¯s
leading wheat breeder and germplasm developer and the world¡¯s no. 1 technology provider,¡± InterGrain
Chairman Dale Baker said. ¡°InterGrain has been actively seeking a partner to grow our wheat breeding
program for some time, and is very pleased to reach this agreement with Monsanto, the world¡¯s leader
in this regard. It will open the doors to a vast new library of germplasm and powerful technology
capacity which Australian wheat growers have not previously had access to, which we expect will
translate to more rapid improvements in wheat yields and performance.¡±
Baker said the collaboration would potentially allow advances in areas such as yield performance,
disease resistance and drought tolerance, as well as improved end use qualities.
InterGrain is a leading Australian crop breeding company with highly successful wheat and barley
breeding programs which target the major cereal growing areas of Australia. InterGrain Pty Ltd was
established in 2007 by the State Government of Western Australia and the GRDC.
¡°This collaboration, and the associated funding and access to advanced breeding tools it brings, will
support the acceleration of genetic gain for wheat, which is a promising development for wheat growers
around the world ¨C especially those in Australia,¡± said Robb Fraley, Monsanto¡¯s Chief Technology
Officer. ¡°InterGrain has an excellent team of breeders, and with the breeding and technology expertise
Monsanto brings to this collaboration, together we expect to deliver significant benefits to Australian
wheat growers.¡±
Australia is a major wheat©producing country and exporter. Wheat is its most important crop
domestically, and significant public and private research and development is occurring in wheat
breeding and biotechnology.
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¡°Monsanto has a strong history of investment in technology collaborations, and as we look for
opportunities to enhance our wheat business, this is a natural fit for us,¡± Fraley said. ¡°We are
committed to developing advances in breeding and biotechnology to deliver improved wheat yield and
productivity and are pleased to be partnering with a market leader which has demonstrated both its
expertise and commitment to enhancing the productivity of the Australian grains industry.¡±
Longer term, the collaboration also will provide InterGrain with access to biotechnology traits currently
being developed for wheat, which Monsanto would expect to introduce in the next decade, pending
appropriate regulatory approvals. Monsanto is working on developing important traits for wheat
farmers around the globe including drought tolerance and yield improvement.
Monsanto¡¯s recent work in wheat began in 2009 with the acquisition of the WestBred U.S. wheatbreeding
business and the company¡¯s near© erm focus is on launching better varieties of wheat through
its conventional and marker©assisted breeding investments.
Through its technologies, Monsanto sees an opportunity to bolster the sustainability of wheat
cultivation by helping wheat farmers improve yields while reducing the use of input resources, such as
water, land and energy. Monsanto earlier this year announced the expansion of its yield and stress
collaboration with BASF to include wheat.

[gustgd]

Media Release
For Immediate Release: August 27, 2010



Canada is falling behind in private wheat breeding research

The Western Canadian Wheat Growers Association is calling on the Canadian government to create a more favourable investment climate for wheat breeding research in Canada. The decision by Monsanto to invest in a public/private wheat breeding company in Australia is a clear sign that Australia has a more attractive research investment climate. If our country doesn’t attract private investment to specifically address Canadian climate and production challenges, then Canadian farmers are at risk of falling behind our international competitors.

“While we have strong public breeding programs in Canada, financed in good measure by farmers, we have very little private sector investment in wheat research,” says Gerrid Gust, Chair of the Wheat Growers. “The Wheat Growers believe we need a good mix of public and private research to ensure Canadian farmers remain competitive in our wheat production.”

The Wheat Growers note that Canada does not have an attractive investment climate for the development of private wheat research. A 2007 survey by the Canadian Seed Trade Association noted that only 6% of private dollars invested in seed research in Canada was earmarked for all cereals. Investment in canola, soybeans and corn far outstrips investment in wheat and other cereals.

The threat posed by Bill C-474 is placing a further chill on private investment in Canada. If passed, Bill C-474 would move Canada away from a science-based regulatory approval system, and politicize a process that is currently founded on objective health and environmental risk assessments.

Monsanto’s announcement in Australia is focused primarily on the development of varieties that will improve agronomic traits including yield, nitrogen use efficiency and drought tolerance.

“Gaining access to new technologies would allow us to boost production per acre and farm our land in a more sustainable way,” says Gust, who also serves as the WCWGA’s representative to the board of the Western Grains Research Foundation. “Our agronomic challenges may be different than those faced in Australia, but regardless, to keep pace we need to make sure research dollars are being spent here.”

The Wheat Growers also note that Canada’s legislation regarding intellectual property rights on new seed varieties needs to be updated. Canada has not ratified UPOV 91, the international convention to help protect against the theft of the innovation efforts of public and private plant breeders. The Wheat Growers urge the government to enact legislation ratifying the convention, including provisions that maintain the farmer’s ability to save seed for their own use.

“Many developed countries, including Australia, have modernized their Plant Breeders Rights, says Gust. “Canada’s failure to bring our legislation in line with other advanced countries is contributing to the lack of investment in private research in cereal grains in Canada.”

For further comment, please contact:

Gerrid Gust
Chair

[gustgd]

Couple questions from me.

Does it matter to you does research as long as it gets done? public/private/ combination?

Do plant breeders deserve to get paid for their work? How much?

What traits would you hope to see, personally RR is not the first trait I would look for, frost tolerance, nutrient efficiency, improved milling qualities??



I won't be that quick on replies full on thrashing these days. But please take some time to think about this issue and then share your thoughts.
thanks
G

[silverback]

After a year like this how about shorter season length, shorter straw, ergot resistance, rust resistance, nitrogen fixation, cheaper seed prices, oops did that slip in there?

[Hopperbin]

How about flood resistance? Anyways no shit my 5 year old seed performs better than certified. I rest my case.

[wmoebis]

Cross it with grass. Seed once every ten yrs or so. Chokes out weeds. Top dress with fert and harvest, usually early.

[SASKFARMER3]

We used the frozen shit from 04 for three years for seed and it did awsome. Yield and seed vigor. So the only reason monsanto or any one wants that market is the dollar figure to the companies would be trillions. Its all about the money and how to get every single penny. You want to see farmers get poorer let that one happen.

[checking]

It's a horrible thought that through risk comes reward, yet this free rein research which farmers will get to pay for appears to want to eliminate that concept. When there is a need for an extra ship load of cereals that can't be produced with our current methods, then please come and revisit why I should embrace the produce more to receive less concept.

[bucket]

In western canada we have are falling behind in wheat marketing research.

The saudis bought early at bargain basement prices and the chinese got in on the action as well.

Every excellent quality and yield crop I have ever produced has been sold for less money per bushel than the small, poorer crops.

Research for better varieties just seems like someone wants into my wallet, when you consider that the world is adequately supplied with wheat.

[agstar77]

When producers are adequately compensated for what they grow, research money will flow. That should be the main priority, to make sure there will be another generation of producers, not Monsanto earning more.

[Fransisco]

"When producers are adequately compensated for what they grow"

And that's not going to happen as long as we've got a government legislated monopoly on wheat sales.

[charliep]

Perhaps this question relates to competiveness.

I note the two different models for canola and wheat. Canola is
driven by private investment in plant breeding research. Its Canadian
acres and yields are increasing at a rapid pace. Much can be
explained by the demand side (growth is because there is a market
demanding canola oil) but I would argue plant breeding research has
supported this.

Canadian wheat (you can extent to all North America by the way) has
been driven by public breeding where investment is dropping. North
American share of world wheat production and trade is shrinking and
being replaced by the new exporters. As a crop in prairie rotations,
wheat (and cereals in general) are less profitable and being dropped
out of acres except for rotation (you guys may argue that).

Off topic on the above. The original question relates to a lot of the
work I am doing these days. How to attract investment in agricultural
research and in particular plant breeding. Can we afford to sit back
as low cost producers in eastern Europe, Ukraine, Russia, etc adopt
our technology? Europe and Australia continue to do research with
well funded and focused plant breeding initiatives (two very different
models by the way).

I seem to be killer of discussion but a very interesting topic to think
about when you are busy harvesting.

[charliep]

Gerrid

I will add onto your list of questions.

Does our regulatory system allow for research and innovation among a
wide group of companies (small and big)? Or have we (maybe
broadening to North America) created a situation where only the big
boys (Monsanto, Dow, Syngenta, etc.) have the money to do R & D or
the capability to take on the risk?

Are there more effective ways for farmers/government to capture value
for their investment in R & D including plant breeding? The Aussie
model?

[wmoebis]

Why such a differance between grain and livestock. If you want to cross breed, pure bred or inter bred there are no rules. You just have to show papers if you want top dollar for pure bred.

As example: It is the market that demands your breeding program. If the market didn't like angus X char it would pay less. If market didn't like cutlass X golden there wouldn't be a market.

There are no rules for livestock producers that say you have to raise only stock from purebred parentage or it has to work in the oven or look a certain way. They can breed thier cows to it's brother and as long as it survives it can go into market place. Even if it has three ears and five legs.

Livestock breeders pay for thier own breeding programs and make money buy selling thier product. Supply and demand keeps them going.

On my plate what is the diff between meat, potatoes, peas and bread when it comes to breeding program?

[vvalk]

No one forces you to buy the seed. It it gives you a ROI then buy it. There's no conspiracy here. You have a choice. Agstar talking about getting full value for our wheat made me LOL.