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BIOTECHNOLOGIES/
GM SEEDS
source: www.isaaa.org/kc/
bin/ESummary/index.htm
www.bio.davidson.edu/people/
kabernd/seminar/2004/
GMevents/HN/HN%20Page%203.html
www.i-sis.org.uk/
biotechfever.php?printing=yes
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Genetically engineered crops are controversial on many fronts. There are raging debates over whether the developing world needs them to feed their growing populations…- The commercial market for Genetically Modified (GM) seeds has expanded dramatically in scale and geographic scope. The International Seed Federation has estimated that the world market for GM seeds will reach US$6 billion by 2005;
- according to a report released in January 2004 by ISAAA, a non-profit organisation that provides information on agricultural biotechnology, the global area of biotech crops continued to grow for the ninth consecutive year at a sustained double-digit growth rate of 20%, compared with 15% in 2003. The estimated global area of approved biotech crops for 2004 was 81.0 million hectares, equivalent to 200 million acres, up from 67.7 million hectares or 167 million acres in 2003;
- in 2004, there were 14 biotech mega-countries (compared with 10 in 2003), growing 50,000 hectares or more, 9 developing countries and 5 industrial countries; they were, in order of hectarage, USA, Argentina, Canada, Brazil, China, Paraguay, India, South Africa, Uruguay, Australia, Romania, Mexico, Spain and the Philippines;
- the US industry started selling GM seeds in 1996 and the acreage planted with GM seeds has increased 30 times since then. The US Department of Agriculture reports that in the United States use of GM seeds for corn, soybean, and cotton will be 32%, 74%, and 71% respectively of total US acreage by 2005;
- while the US currently dominates the global biotech market, other international competitors are making significant investments to try and become players in the global biotech market. Europe is the next largest competitor with 20% of the global market, followed by Canada and the Asia/Pacific region;
- Asia is aggressively pursuing biotechnology. Asia's large untapped markets, combined with large government investments, lead many analysts to predict that the continent will experience the largest increase in overall growth in the next 10 years.
- China, for instance, is developing the largest plant biotechnology capacity outside North America, according to a report in Science. Government funding predominates. Plant biotech funding increased eight-fold from 1986 to 1999. The total budget is estimated to be US$112 million. China accounts for more than half of the developing world’s expenditures on plant biotech, but it is less than 5% of the total annual expenditure in industrialised countries (estimated to be about US$2 to US$3 billion, 45% of which is public). Thus, China supports more than 10% of publicly funded agro-biotech. In early 2001, China announced plans to raise plant biotech research budgets by 400% before 2005. If that is achieved, it could account for nearly 1/3 of the world’s public plant biotech expenditure; (1)
- Malaysia too, sees biotechnology as one of the five core technologies that will transform it into a highly industrialised nation by 2020, and is investing up to 4 billion RM (about US$1.45 billion) on a ‘Bio-Valley’. (2)
- Biotechnology companies and the US Government have been pushing to expand the production of GM crops, arguing that GM technology offers huge potential to provide increased resistance to disease, pests, and environmental conditions thereby increasing yields and productivity. There is still some way to go before GM crops provide the answer to food shortages in developing countries;
- groups such as Oxfam are not convinced that the benefits of GM technology outweigh the risks, particularly in terms of socio-economic factors. They argue that the development of drought and pest-resistant varieties of staple crops offer little financial incentive for research and development by private companies;
- there are growing concerns about the consequences of the power and influence wielded by the big agricultural biotech corporations. The big four companies are led at the moment by Monsanto which currently has about 80% of the genetically engineered crop market - the herbicide tolerant varieties and those engineered to produce their own insecticide. After Monsanto, the dominant corporations are Dupont, Aventis and Syngenta;
- Monsanto estimates that it takes about 10 years and US$300 million to produce a commercial product; therefore, the replanting of seeds by farmers prevents biotechnology companies for being compensated for their large investment. They argue that the current patents and laws prohibiting the replanting of harvested seeds are ineffective at controlling re-sowing of harvested seeds;
- the use of ‘terminator seeds' in farming contains strong arguments from both advocates and critics of the technology. Agricultural companies view their ‘technology protection system’ as a method to safeguard their interests. Opponents of the seeds, on the other hand, fear that it has the potential of harming food security and causing environmental problems;
- last but not least, according to a new study in the United States, biotechnology is a risky business. The study looks at the growth and decline of biotech centres in the 51 major metropolitan areas in the US. It finds that the industry is highly volatile (half of the biotech companies formed in the 1970s have folded or merged with other companies). The typical biotech firm spent about US$8.4 million on research & development and earned revenues of just US$2.5 million in 1998.
(1) "Biopolis or Bio-Bubble? Asia’s Choice" Ian Ferguson, Business on Line Special Report May 2002, 20-25 www.bolweb.com and Huang J, Rozelle S, Pray C and Wang Q. Plant biotechnology in China. Science 2002, 295, 674-7.
(2) "Biotechnology in Malaysia" Briefing paper, Ministry of Science, Technology and the Environment, Malaysia.
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