A GM case study – building community capital Paula Fitzgerald Trade and Strategy William Farrer • Born in 1845 • Began studying medicine – moved to Australia at 25 - tutor at sheep station – qualified as surveyor (Department of Lands) – moved to a farm – became a wheat experimentalist with the Department of Agriculture • Believed the types of wheat grown were unsuitable for Australian conditions • In 1882 he began selecting individual plants which showed superior qualities. This soon included foreign wheats – relied on overseas correspondence/networks • Aimed to improve rust resistance and baking quality (focus on the latter, as well as agronomic, was unique) • Viewed by some as wasting time on “pocket handkerchief wheat plots” • Millers initially resisted … • “Father of Australian wheat” – for contribution to wheat quality & yield; but also science. Global GM statistics - cultivation • 18 years old • 170.3 million hectares of GM crops were planted in 2012 • 100-fold increase from 1996 when GM crops were first commercialised • 28 countries grew GM crops in 2012 – 20 developing countries and 8 industrial. • 17.3 million farmers grew GM crops in 2012. Over 90% of these, or 15 million farmers, are in resource-poor countries. • Five EU countries (Spain, Portugal, Czechia, Slovakia and Romania) planted GM insect resistant corn. Global GM situation - 2012 Country Area* Crops 1 USA 69.5 Corn, soybean, cotton, canola, sugarbeet, alfalfa (lucerne), papaya, squash 2 Brazil 36.6 Soybean, corn, cotton 3 Argentina 23.9 Soybean, corn, cotton 4 Canada 11.6 Canola, corn, soybean, sugarbeet 5 India 10.8 Cotton 6 China 4.0 Cotton, papaya, poplar, tomato, sweet pepper 7 Paraguay 3.4 Soybean, corn, cotton 8 South Africa 2.9 Corn, soybean, cotton 9 Pakistan 2.8 Cotton 10 Uruguay 1.4 Soybean, corn 11 Bolivia 1.0 Soybean 12 Philippines 0.8 Corn 13 Australia 0.7 Cotton, canola (and carnations) * Million hectares GM crops under development in Australia Most commodities in Australia have GM investments. The OGTR has granted licences for field trials of GM: • • • • • • • • • • • Banana Barley Canola Cotton Lupins Pineapple Safflower Sugarcane Ryegrass Wheat White clover • (carnations) Most advanced Australian R&D Entity Licence Crop Details Vic DPI DIR 89 (2008) White clover AMV resistant Vic DPI DIR 82 (2007) Ryegrass & tall fescue Improved forage qualities Vic DPI DIR 47 (2003) White clover AMV resistant Entity Licence Crop Details BSES DIR 96 (2009) Sugarcane Herbicide tolerance BSES DIR 95 (2009) Sugarcane Altered plant growth, enhanced drought tolerance, enhanced nitrogen use efficiency, altered sucrose accumulation, and improved cellulosic ethanol production from sugarcane biomass UQ DIR 78 (2008) Sugarcane Altered sugar production BSES DIR 70 (2007) Sugarcane Altered plant architecture, enhanced water or improved nitrogen use efficiency UQ DIR 51 (2005) Sugarcane Expressing sucrose isomerase Most advanced Australian R&D Entity Licence Crop Details Vic DEPI DIR 122 (2013) Wheat Abiotic stress tolerance, yield CSIRO DIR 117 (2012) Wheat & barley Wheat - altered grain composition, enhanced nutrient utilisation efficiency Barley - enhanced nutrient utilisation efficiency CSIRO DIR 112 (2012) Wheat & barley Altered grain composition and nutrient utilisation efficiency CSIRO DIR 111 (2012) Wheat & barley Altered grain composition, nutrient utilisation efficiency, disease resistance or stress tolerance Adelaide University DIR 102 (2010) Wheat & barley Enhanced nutrient utilization & abiotic stress tolerance CSIRO DIR 99 (2010) Wheat & barley Growth & yield characteristics CSIRO DIR 94 (2009) Wheat & barley Enhanced nutrient efficiency CSIRO DIR 93 (2009) Wheat & barley Altered starch CSIRO DIR 92 (2009) Wheat Altered grain Vic DPI DIR 80 (2008) Wheat Modified for drought tolerance Adelaide University DIR 77 (2008) Wheat & barley Enhanced tolerance to environmental stress or increased dietary fibre GM ryegrass? • What? High energy (high fructan) ryegrass • How? Two additional ryegrass genes have been added – storage of sugar in the leaf and the stem • It is different to other ‘high sugar’ grasses as it has a higher energy content without any yield penalties. • Should allow for a reduction in other energy sources (wheat, barley) • So what? Modelling suggests $300 per hectare per year – equating to at peak use (of 70%) $196 million annual benefit What do our consumers think? • Males, younger people and those who live in capital cities are more likely to accept GM foods. • People are more supportive of GM foods that have health outcomes or are cheaper, and find lasting longer or tasting better only a minor benefit. • Support for GM foods and crops has remained fairly consistent over the past few years, with about 60 per cent of the population willing to eat most GM foods and about 25 per cent not willing. However this figure changes depending on the type of food being modified, whether there are benefits to the consumer and perception of effective regulation. • Australian concerns about GM foods are not top of mind. GM opponents – celebrities, costumes, chaos! Farm business fitness • • • • • Management capability and tactical flexibility Cost control Efficient utilisation of home grown feed High levels of labour efficiency Business structure – debt related to production costs Potential challenges • • • • • GM crops/GM pasture Water Animal welfare Sustainable land use/practices Healthiness of our product What is “community capital”? “Social licence” People Transparent Connectedness – dialogue Building relationships through strategic engagement Local and global family, neighbours, community, governments TRUST Listening Freedom to Operate Aussie kids - 2000 What kids know about agriculture: 1. 2. 3. 4. 5. 58% of city children didn’t know that cotton comes from a plant Almost half the children surveyed didn’t know that pasta comes from wheat 81% of children didn’t know that leather products come from cattle 50% of city kids think farmers never use computers or fax machines Almost one in every three city children are completely unsure about why farmers use pesticides Source: Kondinin Group Aussie kids – 2011 Understanding of agriculture: 1. 75% of year 6 students thought cotton socks were an animal product 2. 45% could not identify that everyday lunchbox items originated from a farm – bananas, bread and cheese 3. 40% of year 10 students believe farming damages the environment 4. 28% of year 10 students thought natural fibres only came from plants 5. Only 57% of students linked scientific research to farming 6. Only 45% of students linked innovation to farming Source: Primary Industries Education Foundation UK Kids ... “The white bread is “A lemon is from “Rhubarb is like carrots, it’s made with milk Birmingham andeat. it grows what kangaroos in thethe ground that’s and brown Sometimes theyand grow on a kiwi grows seeds” in the ground treesitwithout bread is made with and it’s from Jamaica” wheat” Having profile Profile? Peter Waterhouse - 2002 the Victor Chang Medal; 2003 The Bulletin's 'Top Ten Smartest Scientists in Australia’; 2005 CSIRO Chairman's Medal; 2007 Prime Minister’s Prize for Science. Key area of work: gene silencing – plants (viruses/plant health), animals and medicine The GM DAIRY story PLANT CELL DNA carrying new gene with plant chromosome REWARDED FARMER PLANT WITH NEW TRAIT More sugar/ higher energy MORE MILK Milk is milk! Five essential elements for community support: • Developed by a trustworthy public agency • Includes a gene from the same species • Has a consumer benefit • Is labelled or differentiated • Has strong evidence of safety/regulation REGULATORY SCRUTINY AND APPROVALS HAPPY COW EATS ‘HIGH ENERGY’ PASTURE MILK ON SHELVES Global grassroots support Aussie GM canola support Grains Council of Australia Flour Millers’ Council of Australia Build dairy community capital? Our story … • Australian dairy is a $13 billion farm, manufacturing and export industry. • Australia’s 6700 dairy farmers produce around 9.5 billion litres of milk a year. • The Australian dairy industry directly employs 43,000 Australians on farms and in factories, while more than 100,000 Australians are indirectly employed in related service industries. • Australia is the fourth largest dairy exporter in the world, accounting for 7% of global trade. • Australia would save $2 billion a year in healthcare costs if every Australian consumed the minimum recommended daily dairy intake. • Dairy farmers are environmental caretakers. The industry has a strong record of continuous improvement in water and energy efficiency, and protecting soils and biodiversity. Further information Paula Fitzgerald Manager Biotechnology & Strategic Initiatives Dairy Australia Tel: 03 9694 3775 Email: pfitzgerald@dairyaustralia.com.au A national approach? The Federal Regulator – the Office of the Gene Technology Regulator (OGTR) – oversees human health and safety, and safety of the environment in relation to GM products, while State Governments make decisions on ‘market and trade’ grounds. NT: OGTR legislation only WA: Moratorium on all GM crops. GM cotton (in the Ord) & canola grown by exemption QLD: OGTR legislation only. GM cotton grown NSW: Moratorium on commercial cultivation of GM food crops. ‘System’ for agriculture minister to grant approval. GM cotton & canola grown SA: Moratorium on commercial cultivation of GM food crops until 2019 ACT: Moratorium on commercial cultivation of all GM crops until 2006+ Vic: OGTR legislation only. GM canola grown Tas: Moratorium on commercial cultivation of all GM crops. (Government has just announced indefinite extension) Market choice (GM canola model) 29 supply chain organisations endorsed GM canola commercialisation as a result of the following: Step Action 1 Australian regulatory approval gained for GM varieties 2 Market requirements identified -Need for segregation to meet the various requirements of domestic and international consumers 3 Threshold levels established -Australian AP thresholds established for the presence of GM traits in canola at 0.5% for seed(Australian Seed Federation) and 0.9% for grain (NACMA CSO1 Canola standard) -AP thresholds established in key trading partners, such as Japan (5%) and Europe (0.9%), for contractual or labelling purposes 4 Importing market approvals in place -GM varieties have approvals in key importing countries 5 Supply chain processes to meet market requirements -Protocols available to segregate throughout the supply chain Status