Biotechnology role in agribusiness value chain
Biotechnology is an umbrella term which covers both genetic modification (GM) of crops, where new genes are introduced which could not occur naturally, and advanced breeding techniques such as marker-assisted selection, which accelerate the development of naturally occurring genes, or ‘native traits’. Whereas GM was the initial focus of the biotechnology revolution, increasing emphasis has recently been accorded to the native traits approach.
Despite opposition from some quarters which continues to exclude significant GM penetration in the EU, the former Soviet Union and Africa, the rise of GM has been rapid (see below). GM crops now account for 82 percent of the global cotton area (herbicide tolerance and insect resistance), 75 percent of soybeans (herbicide tolerance), 32 percent of maize (herbicide tolerance and insect resistance), and
26 percent of rapeseed/canola (herbicide tolerance).
GM’s rate of growth shows no sign of abating:
There are many markets where existing traits have yet to be launched but the necessary political and/or regulatory framework does not yet exist.
The industry pipeline is full of new traits and the level of R&D investment (over 10 percent of sales) remains higher than any other sector apart from pharmaceuticals.
Fundamental research into crop genomics is resulting in an ever increasing number of crops having their genomes mapped – around 20 at the last count – and providing the basis of understanding upon which further new traits can be developed.
The main barriers to an even faster rate of GM crop penetration are the absence of bio-safety regimes in some countries – for example most countries in Africa – and the continued opposition from many NGOs. In several countries, the necessary bio-safety evaluation systems are in place and GM crops have been approved as safe to plant but introductions have been delayed by political opposition.
So far, no GM trait has been introduced into a major food crop. [Maize, soybeans and canola are used mainly for animal feed]. However, traits for rice already exist and are awaiting approval, while wheat is increasingly becoming a research target.
One consequence of the continuing concern over GM crops is that it is encouraging the spread of identity-preserved channels. In order to extract value from their new consumer traits, such as enhanced oil quality in oilseeds, input companies are having to set up production contracts with farmers and traders. In the EU, GM crops must be labeled, creating a need for tracking and traceability. In the US, a proposal to label GM traits in California (Proposition 37) was rejected in 2012.
