Riesgos, oportunidades y beneficios de la biotecnologa para los pases de las Amricas

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Riesgos, oportunidades y beneficios de la
biotecnologíapara los países de las Américas

• Greg Traxler
• Auburn University
• El Foro Técnico Riesgos, oportunidades y
  beneficios de la biotecnología para los países de
  las Américas --convocado por el Instituto
  Interamericano de Cooperación para la Agricultura
  (IICA) el martes 11 de diciembre, 2007

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Outline

• Introduction
• The context and experience of Biotechnology in
  LAC
• A model of biotechnology research and access
• The Risks Necessary Institutions and
  Institutional Capacity in LAC
• Conclusions

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Opportunities What is Biotechnology?

• GMOs
• Most visible (notorious) aspect
• Widespread public interest concern from some
• Most studied aspect of biotechnology most data
• Focus of this presentation
• Molecular Techniques for Genetic Improvement
• Marker Assisted Selection, cellular biology
• Vaccines and Diagnostic Tools for Animal
  agriculture
• Advances in Basic Science
• New avenues of science new scientific horizon

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LAC had 78 of the total DC GMO area in
2006 Near doubling in GMO area in 5 years, Use
still concentrated in temperate/subtropical South
Cone
5
GMO Impact studies have been completed in more
than a dozen countries Findings consistent in
reporting Large economic and environmental
benefits, large benefits to farmers
Benefit distribution, 1997-1998
Monsanto
16
Source Traxler, et al., 2004
Pesticide use and benefit distribution from Bt
cotton in Mexico
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Broad Summary on GMO impacts A Paradox

• Large benefits from GMOs
• Economic benefits broadly distributed among
  producers and industry
• Large Environmental Benefits from reduced
  pesticide use and facilitation of reduced tillage
• But
• High geographic and crop concentration in access
  to GMOs
• Three crops
• Seven countries out 34 in LAC
• What guidance does this paradox give for
  accessing the potential of biotechnology science?

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A model of biotechnology research and access
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A three step model to analyze biotec Risks and
Opportunities
Genetic Improvement Research Technology Roles
Technology Delivery
Applied Adaptive Research
Basic Science
Seed Distribution
Low
High
Research cost and Spillover potential
Spillover definition The use of technology that
was developed elsewhere, thereby avoiding or
reducing RD investment costs. Example RR
soybean in Argentina developed in US
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Genetic Improvement Research Technology Roles
Technology Delivery
Applied Adaptive Research
Basic Science
Seed Distribution
Institutions with primary responsibility for
research in each area
Multinationals
Local private sector Farm input companies
CGIAR Centers
NARSs
Large NARSs
Indust. Country RD
Regional networks, etc.
Farmer-Farmer
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Genetic Improvement Research Technology Roles
Technology Delivery
Applied Adaptive Research
Basic Science
Seed Distribution
Institutions with primary responsibility for
research in each area
Multinationals
CGIAR Centers
NARSs
Local private sector
Large NARSs
Farmer-Farmer
Indust. Country RD
Regional mechanism, etc.
Critical Institutional Capacities for
biotechnology

• Basic Science capacity
• Applied Science capacity
• Biosafety Regulatory institutions
• Investment Capital
• IPR institutions / incentives for technology
  sharing

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The Risks Necessary Institutions and
Institutional Capacities in LAC

• Basic Science Capacity
• Applied (agricultural) science capacity
• Biosafety regulatory institutions
• Research Investment capital
• Public sector
• Private sector
• IPR institutions / financial incentives for
  technology discovery

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Tremendous Diversity in Size of LAC Systems, 1996

• Three countries account for 85 of LAC
  expenditures
• 2/3 have less than 100 agricultural scientists

Brazil
Argentina
Mexico
Source Beintema and Pardey
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Research Output Basic Science and Applied
Science publications in LAC(Annual Average
1997-2006)
Source SCOPUS online database
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Implications of the great diversity in size and
capacity among LAC countries

• Institutions that facilitate the sharing of
  research discoveries are critical given the
  country-country discrepancies in capacity.
• IP sharing is a key issue given the number of
  small countries with limited research capacity.
• Public sector lagging the private sector in
  progress in sharing IP. Intense amount of
  licensing of IP within the private sector.-

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The Risks Necessary Institutions and
Institutional Capacities in LAC

• Basic Science Capacity
• Applied (agricultural) science capacity
• Biosafety regulatory institutions
• Legislation
• Experience in overseeing biosafety field trials
• Research Investment capital
• Public sector
• Private sector
• IPR institutions / financial incentives for
  technology discovery

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Status of Biosafety legislation in LAC Countries
Source Tewolde
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Experience in overseeing biosafety field
trials Concentrated in a few countries
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7 LAC countries have approved at least one GMO
event for commercial use
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Same data as previous slide GMO commercial
approvals by year
No increase in the pace of GMO approvals over time
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Private sector has conducted 89 of all field
trials
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The Risks Necessary Institutions and
Institutional Capacities in LAC

• Basic Science Capacity
• Applied (agricultural) science capacity
• Biosafety regulatory institutions
• Legislation
• Experience in overseeing biosafety field trials
• Research Investment capital
• Public sector
• Private sector
• IPR institutions / financial incentives for
  technology discovery

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Global RD Expenditures on Crop biotechnology,
2001-Concentrated in Industrial
Countries-Dominated by the private sector
Source James, 2003
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GMO royalties generated (US million)
US total 1,043
942
745
Argentina
Other DCs
SourceNASS/USDA and authors calculations
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2000 Annual Expenditures on Agricultural Research
Total annual Public Expenditures higher in
Developing Countries than developed countries
Public sector spending
12
10
DC spending skewed by large investments by Super
Nars (Brazil, India, China)
8
Billions 2000 int.
6
4
2
0
Industrialized
Developing
Source Pardey (2006)
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BUT, Near Absence of Private Funding in
Developing countries means that total ag research
is nearly twice as high in industrial countries
Public sector spending
Private sector spending
12
10
8
Billions 2000 int.
6
4
2
0
Industrialized
Industrialized
Developing
Developing
Source Pardey (2006)
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Total ag research spending Public and Private
Industrialized
Total research expenditures far higher in
Industrialized countries because of private
sector investments. Private investments are a
compliment to public investment, not a substitute
Developing
12
10
8
Billions 2000 int.
6
4
0
2
Source Pardey (2006)
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Agricultural Expenditures by Public or Private
Sector
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The Risks Necessary Institutions and
Institutional Capacities in LAC

• Capital for Research Investment
• Public sector
• Private sector
• Basic Science Capacity
• Applied (agricultural) science capacity
• Biosafety regulatory
• Ability to generate revenues from seed use

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Mobilizing resources to Finance Biotechnology and
Seed research The Traditional Way
Research leading to a transformation event
Biotech Companies
Field Testing
Regulatory/Biosafety Approval

IP negotiation
Seed Markets (Royalty collection)
Adapted Transgenic Variety
Genetic Resources
Plant Breeding
Farmers

Seed Companies
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Difficulty in collecting royalties in developing
countries blocks private sector investment
Research leading to a transformation event
Biotech Companies
Field Testing
X
Regulatory/Biosafety Approval

IP negotiation
Seed Markets (Royalty collection)
X
Adapted Transgenic Variety
Genetic Resources
Plant Breeding
Farmers
X

Seed Companies
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Institutional Innovation End Point Royalty
Scheme - IP Royalties Collected When Grain is
Sold
Transformation event

1. Biotechnology Research
Regulatory/Biosafety Approval
IP negotiation
End point Royalties
X
Royalty collection
Adapted Transgenic Variety
Genetic Resources
Plant Breeding
Grain Dealers
Farmers
End point Royalties

2. Plant breeding Research
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Seed Sale versus Endpoint Royalty collection
scheme

• Seed Sales
• Royalty included as part of seed price
• Seed companies pay GM gene license fee to
  Monsanto
• Bolsa Blanca seed sales destroy private sector
  investment incentive

• Royalty Collection at Grain Sale (endpoint)
• Royalty collected at elevator when grain sold
• Royalty based on of grain value
• Administrative fee paid to elevators for
  collecting fee
• Examples Australia, France, UK, South Cone GMOs

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Royalties in Paraguay

• Adoption 50 (1.8 million ha)
• Collection begun in 2005
• 3 - 6 ton, increasing over time
• Distribution of Royalties
• 53 Monsanto
• 17 Seed Companies
• 8 Grain handlers (50 firms)
• 10 Public Research Foundation
• 12 Administrative expenses

• Source http//www.inbio-paraguay.org/html/acuerdo
  _marco.htm

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Summary Necessary Institutions and Institutional
Capacities in LAC

• Basic Science Capacity
• Applied (agricultural) science capacity
• Biosafety regulatory institutions
• Legislation
• Experience in overseeing biosafety field trials
• Research Investment capital
• Public sector
• Private sector
• IPR institutions / financial incentives for
  technology discovery

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Perspective Opportunities to Support
Biotechnology

• Support for new mechanisms for mobilizing private
  sector RD investment
• Endpoint royalties is one experiment
• Improved institutions/mechanisms for
  Public-Public sharing of IP
• Public sector has more difficulty sharing IP
  than private sectot
• Continued support for biosafety capacity
• Public sector agricultural research must not be
  reduced, even if private sector investment
  increases Distinct roles for each class of
  institution
• Large opportunities for payoffs from
  biotechnology research in areas other than GMOs,
  but data on impacts to date lacking
• Molecular Techniques for Genetic Improvement
• Vaccines and Diagnostic Tools for Animal
  agriculture
• Advances in Basic Science

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Gracias