Why So Few Biotech Crops?Issues for California

Kent J. BradfordDept. of Vegetable Crops

Seed Biotechnology CenterUC Davis

Non-transgenic Applications of Biotech

• Many products on the market have used non-traditional (not transgenic) methods– Embryo rescue, protoplast fusion, somaclonal

variation, chromosome doubling, etc.

• Molecular-assisted breeding/genomics– Extremely valuable tools– Will enhance products

even without transgenics

Biotech (Transgenic) Crops in the Market

C. James (2001) Global review of commercialized transgenic crops. 2001. ISAAA Briefs No. 24.www.isaaa.org

USA 68%Argentina 22%Canada 6%China 3%

Soybean

68%Maize

22%Cotton

6%Canola

3%

Herbicide

77%Insect

15%Both

8%

Horticultural Biotech Crops in the Market

• Papaya – virus resistant• Squash – virus resistant

Courtesy of D. Gonsalves

Biotech Crops Formerly in the Market

• FlavrSavr tomato – long shelf life• Poor varieties• Business failure

• Potatoes – insect and virus resistant• 4% of national acreage in 1999• Withdrawn due to marketing issues

• Sweet corn – insect-resistant• Up to 3000 acres in Florida after introduction• Only scattered planting now due to marketing

issues

Biotech Crops Potentially in the Market

• Herbicide resistance• Sugarbeets• Rice• Lettuce• Tomato• Alfalfa• Wheat• Strawberries

• Insect resistance• Broccoli• Apples• Walnuts

Biotech Crops Potentially in the Market

• Virus resistance• Pumpkin, watermelon, tomato, pepper • Raspberries – bushy dwarf virus• Stone fruits – plum pox virus• Citrus – tristeza virus

• Bacteria resistance• Grapes – Pierce’s disease • Citrus – Bacterial canker• Apples – Fire blight

• Fungi, nematodes• Various crops

Potential Impact of Biotech Crops for CA

A study on pest control released by the National Center for Food and Agricultural Policy in June 2002 found that:

• Case studies of 32 biotech crops “in the pipeline” could reduce grower costs by $400 million and reduce pesticide use by 117 million lbs/year.

• California would potentially benefit the most, with estimated economic benefits of $206 million and 66 million fewer lbs of pesticides applied per year.

www.ncfap.org

Why Aren’t Biotech Crops in the CA Market?

• Market resistance• US consumers relatively unconcerned• Marketers/retailers very concerned• Why risk being picketed?• Brand name protection• Regardless of production benefits, they don’t

outweigh the potential negatives in the market• Waiting for “consumer traits” to pull products

through the market• Much more difficult to engineer• Value uncertain in the market• Foregoes benefits from input traits

Why Aren’t Biotech Crops in the CA Market?

• Intellectual property issues• Enabling technologies owned by large

companies• Licensing required for entry into market• Technology owners/providers may not be

interested in minor crops

• Stewardship issues• Concerns about diffusion of technology• Liability issues• Post-commercialization stewardship can be

very expensive

Why Aren’t Biotech Crops in the CA Market?

• Market size• Small markets cannot recoup development and

registration costs on seed sales alone• Require market differentiation and movement

up the value chain (i.e., output traits)• Alternative example: New root worm-resistant

maize variety from Monsanto:

• 6 years of development since transformation

• At least $25 million spent before launch (largest fraction in regulatory activities)

• But estimated $1 billion yield loss worldwide• Large market is sufficient to repay investment

Why Aren’t Biotech Crops in the CA Market?

• Regulatory issues• Current regulatory data requirements are not

economical for small market crops (Alan McHughen to discuss)

• Each transformation event must be separately registered

• Less of an issue for vegetatively propagated crops with relatively few varieties

• Significant issue for seed-propagated crops utilizing many varieties, e.g. lettuce, tomato

• Registration in Japan and other markets may be expected before release

Why Aren’t Biotech Crops in the CA Market?

• Biological diversity• Diversity of crops has delayed development for CA

• Market acceptance• Supply chains have not accepted them• Anti-biotech campaigns have been effective

• Intellectual property• A significant issue, but may not be the major one now• Some alternatives in the public sector under

development

• Stewardship• Now the major issue for the technology providers• Likely will be difficult for small companies to afford

• Regulatory requirements• Costs out of proportion to potential market size

Workshop on Biotechnology for Horticultural Crops

Challenges & Opportunities Monterey Plaza Hotel & Spa

Monterey, California March 7-9, 2002

Papers from the Workshop are being prepared for publication as a special issue of California Agriculture which should appear in Spring 2003.

Special California Agriculture Issue

Seed Biotechnology CenterAgricultural Issues Center