Stuart J. Smyth

Competitors co-operating: establishing a supply chain to manage genetically modified canola

Identity preserving production and marketing (IPPM) systems are used extensively in the Canadian canola industry to segregate varieties with different traits from the commodity stream. This paper examines one use of identify preserved production and marketing systems for genetically modified (GM) canola. A number of transgenic herbicide tolerant (HT) varieties have been approved for release in Canada since 1995 but delays in approval in other countries led the Canadian canola sector to use IPPM systems to segregate these varieties and direct them toward accepted markets. This paper looks at a number of systems developed for input-trait GM canola, with a focus on the governance mechanisms used.

Changes in Herbicide Use after Adoption of HR Canola in Western Canada

Abstract This article examines the changes in herbicide use in relation to canola production in Western Canada, comparing 1995 and 2006. The commercialization and widespread adoption of herbicide-resistant (HR) canola has changed weed management practices in Western Canada. Before the introduction of HR canola, weeds were controlled by herbicides and tillage as the leading herbicides at that time required tillage to allow for soil incorporation of the herbicide. Much of the tillage associated with HR canola production has been eliminated as 64% of producers are now using zero or minimum tillage as their preferred form of crop and soil management. Additionally, there have been significant changes regarding the use and application of herbicides for weed control in canola. This research shows that when comparing canola production in 1995 and 2006, the environmental impact of herbicides applied to canola decreased 53%, producer exposure to chemicals decreased 56%, and quantity of active ingredient applied decreased 1.3 million kg. The cumulative environmental impact was reduced almost 50% with the use of HR herbicides. If HR canola had not been developed and Canadian canola farmers continued to use previous production technologies, the amount of active ingredient applied to control weeds in 2007 would have been 60% above what was actually applied. Nomenclature: 2,4-D; clopyralid; ethalfluralin; ethametsulfuron; glufosinate; glyphosate; imazamox; imazethapyr; sethoxydim; trifluralin; Brassica napus L

Closing markets to biotechnology: does it pose an economic risk if markets are globalised?

This paper compares international trading patterns for canola, corn and soybean varieties prior to commercialisation of the Genetically Modified (GM) varieties with present trading patterns that include GM varieties. Any marketplace changes that have occurred are analysed to determine the cause for any market shifts. GM canola, corn and soybeans entered the marketplace successfully, but some international markets were lost because of the commercialisation of the GM varieties. The paper examines if these industries were able to successfully identify any new marketplace opportunities and shift commodity exports into new markets.

Regulating the liabilities of agricultural biotechnology.

Liability and transformative technology Consumer responses to GM foods Social amplification of risk Regulating transformative technologies International Governance of liabilities Biological mechanisms to control GM liabilties Supply chain responses to liability Product differentiation strategies Liability of plant made pharmaceuticals Handling liabilities from transformative technologies

Handbook on Agriculture, Biotechnology and Development

This book is a compendium of knowledge, experience and insight on agriculture, biotechnology and development. Beginning with an account of GM crop adoptions and attitudes towards them, the book assesses numerous crucial processes, concluding with detailed insights into GM products. Drawing on expert perspectives of leading authors from 57 different institutions in 16 countries, it provides a unique, global overview of agbiotech following 20 years of adoption. Many consider GM crops the most rapid agricultural innovation adopted in the history of agriculture. This book provides insights as to why the adoption has occurred globally at such a rapid rate.

Labeling to manage marketing of GM foods

Biotechnology has the potential to introduce new food safety risks, liabilities and benefits, and although privately managed supply chains (involving proactive management of the production of branded products) are effective at providing, managing and communicating adequate information about products with well understood risks, products with uncertain risks pose a greater challenge. The demand for increased product information regarding genetically modified content, in particular, places new constraints on food supply chains, frequently resulting in communication failures. Here we assess and reject mandatory labeling as an appropriate response.

Managing the value of new‐trait varieties in the canola supply chain in Canada

Identifies the drivers, classifies the structures, examines the governance systems and estimates the relative economic costs and benefits of various identity‐preserved production and marketing (IPPM) systems that have evolved in the Canadian canola industry. The systems vary significantly, depending on whether they are managing input‐ or output‐based, traditionally bred or biotechnology‐based traits. Combines transaction costs and principal‐agent theory in a synthesized transaction cost‐agency model that allows for predictions regarding the organizational form of vertical integration based on the degree of asset specificity, task programmability and non‐separability. Transactions for new, proprietary, novel‐trait canola varieties require a more extensive set of institutions than traditional varieties. Identity‐preserved production and marketing systems appear technically feasible for smaller units of production, but it is unclear whether they are economically viable for long‐term or larger‐scale operations. IPPM systems can provide an effective and proven method of controlling risks and liabilities.

Investment, regulation, and uncertainty: Managing new plant breeding techniques

As with any technological innovation, time refines the technology, improving upon the original version of the innovative product. The initial GM crops had single traits for either herbicide tolerance or insect resistance. Current varieties have both of these traits stacked together and in many cases other abiotic and biotic traits have also been stacked. This innovation requires investment. While this is relatively straight forward, certain conditions need to exist such that investments can be facilitated. The principle requirement for investment is that regulatory frameworks render consistent and timely decisions. If the certainty of regulatory outcomes weakens, the potential for changes in investment patterns increases. This article provides a summary background to the leading plant breeding technologies that are either currently being used to develop new crop varieties or are in the pipeline to be applied to plant breeding within the next few years. Challenges for existing regulatory systems are highlighted. Utilizing an option value approach from investment literature, an assessment of uncertainty regarding the regulatory approval for these varying techniques is undertaken. This research highlights which technology development options have the greatest degree of uncertainty and hence, which ones might be expected to see an investment decline.

Risk, regulation and biotechnology: the case of GM crops.

The global regulation of products of biotechnology is increasingly divided. Regulatory decisions for genetically modified (GM) crops in North America are predictable and efficient, with numerous countries in Latin and South America, Australia and Asia following this lead. While it might have been possible to argue that Europes regulations were at one time based on real concerns about minimizing risks and ensuring health and safety, it is increasingly apparent that the entire European Union (EU) regulatory system for GM crops and foods is now driven by political agendas. Countries within the EU are at odds with each other as some have commercial production of GM crops, while others refuse to even develop regulations that could provide for the commercial release of GM crops. This divide in regulatory decision-making is affecting international grain trade, creating challenges for feeding an increasing global population.

Intellectual property sharing agreements in gene technology: implications for research and commercialisation

In the early 1980s, countries began to allow patenting of biotechnological processes and products, creating technology advancements and rapid development of private industry. Part of the industry development that ensued was a consolidation of small firms and the creation of a few, large life science companies, each owning the requisite intellectual property (IP) and having freedom-to-operate. Despite the ability and potential gains from doing so, for many years there was very little apparent flow of IP between firms, separating potentially complementary technologies. A recent development in the ag-biotech industry, has been the increase in gene trait cross-licensing agreements. While these agreements hold much promise as means to facilitate the much needed sharing of IP, they raise additional concerns with respect to market concentration. This article examines publicly accessible information about the nature of these IP sharing agreements and the incentives they may create.