THE AGBIOTECH BULLETIN
Volume 2 Issue 2 March/April 1994                              
Published by AG-WEST BIOTECH INC.


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R & D Finance - Growing Recognition

In the midst of a knowledge revolution when scientists are
making breakthroughs daily, we are seeing the rise of a whole
new breed of entrepreneurs. But who is willing to support
these vanguards of new industry when intellectual property is
all the collateral they bring to the table?

Lending institutions have always been too fond of seeing a few
concrete assets before they extend line of credit or grant
loans. If we are to be a knowledge based economy, how are we
going to get our agbiotech goods to market?

These are the questions people in the technology fields have
been asking, and happily banks are responding. "The program we
have been utilizing hits right on that [issue of assets],"
says Art Dubbeldam, Bank of Montreal vice-president, Kitchener
Waterloo. If a technology-based company is into a startup, has
a business plan and a product that is readily saleable and
needs working capital, Dubbeldam says the Bank of Montreal
will look seriously at their requirements.

Traditionally, banks would offer 10 cents on each dollar
required. But now account managers are looking at
knowledge-based business with a new eye, assessing capacity
rather than hard assets. Under the new approach the company's
ability to perform and generate cash becomes a major
consideration. If bankers are satisfied with the demonstration
of potential, the offer jumps to 50 cents on the dollar. That
allows clients to go to provincial and federal funding sources
with leverage. Dubbeldams managers know who to talk to at
government levels and they're willing to make introductions.
Armed with a 50-cent vote of confidence, there's a good chance
government will add another 25 cents to the pot.

With commitments now up to 75 cents, the business  can
approach a list of four or five reputable venture capital
groups recommended by the bank and known to have an appetite
for technology based enterprises. With a banker's letter
promising 50 cents and access to 25 cents government funding,
a venture capital company will probably come through with a
further 25 cents.

"For too long, traditional lending attitudes equated high tech
with high risk. We aim to change that," says Dubbeldam. And
they're doing it with considerable success, he says. Using a
different approach, strong relationships, and the consulting
services of accounting firms and legal firms well versed in
contracts and setting up companies, appropriate financing for
firms with science based products is becoming more achievable.

The Bank of Montreal also eases the road by financing R & D
tax credits, giving loans against receivables (which must have
good contracts) and even allowing companies to borrow against
their foreign accounts receivable, assets to which, in the
past, banks have attached little or no value. "Our bank's view
is that we must do this if we are to compete in a global
marketplace. Banks have got to get more imaginative. Advanced
technology companies represent the future of this country and
export 60 - 80% of what they do. We've got to help make it
happen with counsel and direction ."

Doug Finnie, manager of business banking at the Saskatoon
Royal Bank, voices a similar sentiment. "Knowledge-based
industry is the way of the future and the only way lending
institutions will survive is by becoming a part of it," he
says.

To that end, The Royal has organized focus groups, gathered
information, talked at length to knowledge-based businesses in
Saskatoon and designated account managers to specialize in
these areas.

The Royal Bank's program is still in the preliminary stages,
but strong foundations are being laid. Saskatoon has been
chosen as one of four knowledge-based business centres across
Canada that will serve as "laboratories" in assessing
knowledge-based company needs, says Finnie.

The Royal is also gathering information on funding sources
currently available so that it can help bring people together,
such as the Saskatchewan Growth Fund, ICAST, charter banks,
FBDB and venture capital companies.

Finnie is also in discussion with SRC, whose expertise in
proposal evaluation will be most valuable. A good product
alongside a strong marketing and financial plan gives a
knowledge-based company a lot of credibility, he says. Finnie
also mentions the possibility of borrowing against R & D tax
credits to access interim financing.

"We're learning from each other and it's an exciting process
with a lot of potential," says Finnie.

"We're seeing signs of the banking industry starting to
realize the importance of small, technology-based industries -
appreciating intangible assets such as proprietary knowledge
and patents," says John Cross, president of the
privately-owned, Saskatoon-based, agbiotechnology company
Philom Bios. "We're encouraged by these signs and hope they
will translate into practice ... in line of credit and short
term financing."

Financing isn't necessarily getting easier to access, says
Cross, but rather the small business sector has a better
understanding of the elements of successful financing and the
importance of having the right product. It is also recognizing
the importance of marketing strengths and the value of
strategic partners. Philom Bios is parmeted with two sizable
allies, DowElanco and the Saskatchewan Wheat Pool.

"We're better informed than we were ten years ago and that's
part of growth. You can't get dollars for nothing; the
offering has got to be solid and business-like. Biostar, a
Saskatoon producer of genetically engineered vaccines, is a
classic case of a sound approach to business and has attracted
multi-party financing," he says.

Biostar recently signed financial agreements for $10.9 million
which will build the new Biostar pharmaceutical manufacturing
facility in Saskatoon. The deal was assembled by MDS Health
Ventures in Toronto. MDS vice president Bill Garriock sees
over 200 proposals a year and a real variation in the quality
of business plans. The companies destined to attract funds, he
says, are those offering good platform technology (lead
products based on technology that can be applied to other
products) alongside sound management and marketing ability.

"From discovery to market can take eight to ten years. We've
got to know that the people taking the product to the next
stage have had some successful experience - that they've done
it before," he says.

Raising venture capital for pharmaceutical biotechnology
products tends to be less difficult than financing the
ag-biotech side which is seen as not having the same profit
margins, says Garriock.

As agbiotechnology becomes better known and better understood,
people will become more interested. And as companies develop
and become more sophisticated, they will find it easier to
access R & D dollars, says Roy Lloyd, member of the Ag-West
Biotech Board of Directors and partner, KPMG Management
Consulting. "It becomes a question of understanding what
agbiotechnology is. The industry must work to broaden people's
understanding so that they will recognize its opportunities
and potential in many areas."

For more infotvnation contact.
An Dubbeldam, Bank of Montreal, Kitchener Waterloo
Tel: (519) 885-9207 Fax: (519) 885-9224
Doug Finnie, Royal Bank, Saskatoon
Tel: (306) 933-3401 Fax: (306) 665-0112


                              *


Are Investors Fleeing the Biotech Markets?

The US Clinton administration is very pro-biotechnology from
an industrial policy perspective; and this industry has been
identified as one that is critical to maintaining
competitiveness as the US moves into the next century. Concern
is growing, however, that the Clinton administration's desire
to restrain health care costs may result in the imposition of
price controls on new pharmaceuticals. Carl Feldbaum,
President, Biotechnology Industry Organization believes that
this could be disastrous for the fragile biotechnology
industry. He was recently quoted as saying "US biotech
companies are almost totally dependent on private sector
investment for their research costs. With only 22 biotech
drugs on the markets, there are no revenues, no profits.
Already, just the talk of price control has forced investors
to flee the biotech markets."

There is no doubt that uncertainties such as this have had an
effect on the biotech market during 1993. Health care reform
and the failure of companies such as Centoxin have effectively
put a scare into investors. Concern over insufficiency or
inaccessibility of capital is the single biggest factor
heightening CEO's uncertainty, especially in the health care
segment. Still, there continues to be an increase in the
number of public companies entering the market which has had
the effect of improving the industry market overall. With each
success story investors will return to the market but they
will be more discriminating in their choices. Steven Burrill,
former National Director of the Ernst & Young US
Manufacturing/High Tech Industry Practice, believes that the
entire industry is increasingly being judged on the ability of
new products to lower overall health care costs. Rather than
hindering the sector, international health care reform will
enable companies that can prove their products save the system
money to do well. Buying decisions will increasingly have to
be weighed on costs versus the expected health and economic
benefits.

Some analysts believe that the Canadian biotechnology stocks
should rebound in early 1994 and mirror the rising trend in
the US. However, while several Canadian companies have
recently raised money by selling shares to public investors,
there are too many companies going after the increasingly wary
investor and there is not enough dollars for all. A growing
trend for both Canadian and US companies is the use of
strategic partnerships to replace infusions of private
investor capital in an effort to bring their products to the
market. The industry has demonstrated its ability to create
products of value and it seems dear that it will continue to
develop new and creative financing instrnments to raise the
necessary capital to bring these products to the market.

For more information contact: Shelley Brown at Ernst & Young
Tel: (306) 652-6594   Fax: (306) 653-1553


                              *


Summary: Hypotheses, or Just Hype?

Some environmentalists argue that human population growth and
technological advances threaten wildlife populations. Although
it is important to preserve the environment, we must be wary
of exaggerated fears that may prevent us from identifying the
real problems and finding practical solutions that will
preserve biodiversity.

Although the human population will soon double, this does not
imply that wildlife habitats will be lost. The vast majority
of these people will live in cities, which currently occupy
only 1.4% of the earth's surface. Although tropical
deforestation is a problem, these forests are not disappearing
nearly as rapidly as naturalists fear. Nor is logging of
forests the main cause of the loss of wildfire habitats.
Reports that lost species foreshadow the demise of life on
each have questionable scientific credibility. No one wants to
lose wildfire species, but sensationalizing the problem
threatens the credibility of efforts to preserve biodiversity.

Contrary to some naturalists' beliefs, the real culprit in
wildlife destruction is not industrialization but traditional
agriculture. The threat to wildlife lies in the loss of
habitat, and the human endeavor that uses land most
intensively is agriculture. Farm subsidies in the First World
have encouraged farmers to amass farmland, and the lack of
technology in the Third World has forced farmers to misuse
land. Government efforts to preserve wildlife often
countermand more efficient private and local efforts. Communal
land ownership has bred disregard for the land. Indeed, it is
the lack of job creation in the Third World that drives people
to clear land for farming rather than enter more productive
occupations.

The key to feeding a growing population without harming
wildlife habitats is research in high-yield farm techniques
and biotechnology. The problem with organic farming is that it
uses more lard for farming than it preserves from chemicals.
We can save biodiversity through biotechnology, and we will
almost certainly decrease biodiversity if we refrain from
using the technology already available.

Biotechnology has already established itself as a boon to
biodiversity. Pesticides have been significantly improved
since Rachel Carson's Silent Spring was published in 1962.
Plant genetics have produced more resilient and bountiful
strains of basic grains. Improved farming techniques minimize
water contamination during irrigation and conserve soil by use
of new tillage and planting systems. Innovations in forestry
have provided alternatives to cutting down tropical forests,
without restricting our consumption of products derived from
trees.

Future biotechnology will be even more helpful if we support
its progress. Gene banks allow quicker results in breeding
more efficient strains. Those who oppose biotechnology fear
that it will be misused, but such opposition misunderstands
the risks involved. The accuracy of genetic engineering
compared to traditional selective breeding renders it safer
and more predictable than conventional selective breeding. The
probable medical and agricultural benefits outweigh the
possible dangers.

Efforts to preserve biodiversity should concentrate on the
Third World. Environmental losses are occurring much more
rapidly there than in the First World, particularly because of
Third World government policies that discourage private
initiative, stifle economic growth, and foster unproductive
agriculture. The Third World can develop economically while
protecting the environment by privatizing commons and
eliminating farm trade barriers. The burgeoning economic
growth of Asia under GATT testifies to the ability of trade
liberalization to improve the productivity of these countries
without sacrificing land and wildlife.

Humans and wildfire can coexist successfully. Furthermore, the
preservation of biodiversity depends on the success of humans
in developing more productive economies and technologies so
that we do not have to sacrifice wildlife habitats to satisfy
our needs. Biotechnology can provide the agricultural
improvements we need to stimulate the growth of forests,
wildfire, and human progress.


Excerpted from Biodiversity: Saving Species with
Biotechnology. Reprinted with permission from Hudson Institute
Inc. copyright 1993. For a copy of the briefing contact Hudson
Institute Tel: (317) 545-1000


                              *


The Pros of Consortia

There's strength in co-operation and nowhere is this more true
than in the fast-changing world of technology. Many savvy
businesses are banding together to form research consortia
sharing the risks and broadening their access to technology so
that they can throw a wide R&  net.

Given the cost of R& , the rapid rate of technology
development and the tenuous economic environment, consortia
and strategic alliances are the new way of doing business,
says Mac Evans, president of PRECARN Associates, focused on
intelligent systems. "World-wide," he says "people are
recognizing that cooperation can make everybody a winner."

Government, says Evans, must be a key supporter of consortia
development in Canada. Such arms-length support may suit
government very well.  While government recognizes the
significant role that science and technology must play in our
economic future and has made that evident in generous funding,
it does not need the publicity of the inevitable failed
projects on its doorstep. So there is a trend developing in
Ottawa of distancing government from the day-to-day management
of specific projects in favor of concentrating on overall
program results.

Combine government's strong support of science and technology
and industry's increasing willingness to form strategic
alliances and overall program results should prove most
rewarding.


                              *


Strong Potential for Biopolymers

Biopolymers, a new class of renewable, biodegradable and
biocompatible materials are rapidly moving toward
commercialization.

Polymers are substances composed of repeating structural units
that are linked together to form long chains. The US Office of
Technology Assessment (OTA) says biopolymers have potential
applications in virtually every industrial sector and could
provide an environmentally sustainable approach to meeting the
needs of an expanding economy.

The versatile biopolymers can be used as adhesives,
lubricants, soil conditioners, cosmetics, food additives,
textiles; any number of products. Most are still in the
development stage, but applications are emerging in the areas
of packaging, food production and biomedicine. Millions of
pounds of biopolymer materials are being made from cornstarch
and lactic acid (a dairy product).

OTA notes that though the US is well positioned for large
scale polymer development (strong agricultural base, expertise
in polymer engineering and active biotech base), US govemment
programs are relatively limited in scope compared Japanese and
European efforts. OTA attributes this to research barriers and
recommends bringing greater coherence to the R&  efforts of
different federal agencies.

Copies of a recent report, "Biopolymers, Making Materials
Natures Way" cost $5.50 and may be ordered from the
Superintendent of Documents, US Government Printing Office, PO
Box 371954, Pittsburgh, PA 15250-7954. Ph:202-783-3238. GPO
stock #052-003-01352-5.


                              *


NETWORK NOTES


NABC

The Annual Meeting of the National Agricultural Biotechnology
Council titled Agricultural Biotechnology and the Public Good
will be held May 23-24th at Michigan State University. Contact
Michael Thomashow (517) 355-2299


Innovation

A Sustainable Alternatives for Agriculture conference will be
held March 18 & 19th in Saskatoon. The focus will be
Innovation Production & Marketing Systems. Contact Grant Wood
at the University of Saskatchewan (306) 966-5586


BST Hotline

The Canadian Animal Health Institute has set up a BST info
line. The number for consumers is 800-363-3613.


1994 ATCC laboratory Workshops

The American Type Culture Collection (ATCC) is an
international repository for biological cultures. It offers a
laboratory Workshops Program that provides professional
training for laboratory techniques in Bacteriology, Cell
Culture, Molecular & Plasmid Biology, Mycology, Protistology
and Virology. For complete information contact: Workshop
Manager (301) 231-5566

ATCC is also holding its Twelfth Annual Biotechnology Patent
Conference May 9 & 10th in Arlington, VA. Call the number
listed above for details.


Vetrogen Corp Acquires Labstat Veterinary Services

Vetrogen Corp. of London, Ontario has acquired Labstat
Veterinary Services, a veterinary diagnostic laboratory with
facilities in London, Kitchener and Toronto, Ontario. The deal
is part of Vetrogen's strategy to establish a presence in new
markets and facilitate the commercialization of its R & D
efforts.

Founded in 1989, Vetrogen Corporation is a privately-held
biotechnology company with a research and development focus in
reproductive tissue diagnostics and therapeutics. The company
recently announced a major research collaboration with Wayne
State University, in prostate cancer therapeutics and is also
involved in various research projects with the University of
Western Ontario, Brock University, University of Manitoba and
BioFill Produtos Biotecnologicos S.A. (Brazil).

For more information contact Vetrogen's president
Dr. Chandra Panchal Tel: (519) 652-3758


Canadian Inovotech Formed

BC based, Canadian Lysozyme Inc. and Vanderpol's Eggs Ltd.
have jointed together to create Canadian Inovotech which will
market lysozyme, an antibacterial protein in egg whites. The
product is used by food-processing and pharmaceutical
companies.


Sask Agriculture Development Fund

The semi-annual deadlines for research and development funding
applications are April 1st and October 1st. For details on
application requirements and qualifications contact the ADF
office at (306) 787-5960.


NSERC Grants

The 1993 Strategic Grants by the National Sciences and
Engineering Research Council (NSERC) totaled $41.0 million. In
the areas of biotechnology; food, agriculture and aquaculture;
and forestry there were a total of 158 projects awarded $13.2
million. A few of the projects supported were:

1. Dr. R.J. Mapletort, Herd Medicine,
   Veterinary College, University of Saskatchewan     
   "Manipulation of Ovarian Follicular Development in Cattle."

2. Dr. CW. Forsberg, Microbiology, University of Guelph
   "Transgenic Manipulation of Swine for Improved Feed
   Utilization Efficiency."

3. Dr. M.B. Isman, Plant Science, University of British
   Columbia 
   "Development of Botanical Insecticides and Derivatives."

4. Dr: D.D. Lefebvre, Biology, Queen's University 
   "Cloning Genes Involved in Salt Resistance."

5. Dr. M.M. Moloney, Biological Sciences, University of
   Calgary
   "Jasmologs: Novel Regulators of Plant Development." 

6. Dr. G.G. Brown, Biology, McGill University
   "Map Based Cloning of Restorer Genes for Cytoplasmic Male
   Sterility in Brassica."

7. Dr. L.D. Campbell, Animal Science, University of Manitoba
   "Indole Glucosinolates and Canola Meal Quality."

8. Dr. van Drunen Littel, VIDO, Saskatoon 
   "Immunization with Functional DNA."


This is just a cross section of the many excellent projects
related to agricultural biotech. For a complete listing
contact NSERC via fax (613) 992-533Z


AgrEvo Official

Hoechst Canada and Schering AG's Nor-Am merged January 1 under
the name AgrEvo. The company will concentrate on crop
protection, environmental health and plant biotechnology. It's
North American headquarters are based in Regina. Maurice
Delage has been named President and CEO.


UBC: Forest Sciences Centre

The BC government is supplying a $2.5 million grant to assist
UBC with plans for the development of a new Forest Sciences
Centre. The new Forestry complex would accommodate 11
classrooms, a lecture theater and seven teaching laboratories.
Most of the building will be devoted to UBC's Faculty of
Forestry but the school plans to reserve space in the Centre
for Geographic Information Systems/Remote Sensing, the Centre
for Applied Conservation Biology, the Forest Economics &
Policy Analysis University, and the BC Forestry Continuing
Studies Network.

The Centre would also work closely with Forintek Canada Corp.,
the Pulp & Paper Research Institute of Canada, and the Forest
Engineering Research Institute of Canada. Construction of the
new facility will begin in fiscal 1996.


U of S: Bioprocess Engineering Group

The University of Saskatchewan College of Engineering has
formed the Bioprocess Engineering Group which will work
closely with the biotechnology industry, developing the
processes and equipment needed to take biotechnology materials
to market.

The production of alternative fuels, food, fiber and
pharmaceuticals - concentrated, dehydrated, whatever process
is required - all needs engineering input, says group head
Shahab Sokhansanj. The group will research and develop the
capability to take products from lab scale to large scale
production.

This is the first alliance of its type at the U of S and
Sokhansanj sees this interdisciplinary approach as a great
opportunity for students in an important emerging field.

For industry, it is also a tremendous benefit, he says. It
will expand the potential for the production of agbiotech
value-added foods.


BST Update

The European Commission has withheld approval of BST on the
grounds that it would be contrary to Common Agriculture Policy
(CAP), in particular the milk quota scheme. Though the
European Commission concedes that two Bovine Somatotropin
(BST) containing products satisfy the criteria for
authorization of "quality", "safety", and "efficacy" and the
Group of ethical advisors could find no ethical objections.

The EC concedes BST to be a "very special case" in which they
felt obliged to consider the community policies and
objectives. The decision does not signal a position on other
agbiotech products.

It is interesting to note that the Group of Advisors on
Ethical aspects of Biotechnology for the Commission concluded
"that the use of BST to increase lactation in cows is
ethically unobjectionable and safe for both humans and animals
..." The group made several recommendations to ensure
responsible use of BST which ensure the health of animals,
request monitored use of somatic cells and recommend labeling
"if it becomes possible to distinguish milk derived from
BST-tested cows."


Calgene Pacific

Calgene Pacific has moved to extend its horticultural research
and commercialization capabilities. The company has purchased
Florigene BV, a Dutch agbiotech company working on genetic
transformation of flowers and has entered into a joint venture
to develop fungal resistance in flowers and ornamentals with
MOGEN International NV of the Netherlands.


Tower Phytochemicals Ltd.

Tower Phytochemicals, a biotech firm which develops products
for health care, is constructing an extractor facility in
British Columbia.

Tower is currently focusing on the research and development of
taxol an anti-cancer agent derived from the bark of the yew
tree. The new extractor will be used to produce clinical grade
taxol which will be handled through a joint venture with
Vestar Inc., an American pharmaceutical company.


PGS

PGS International N.V., Belgium and Proagro Seed Company Ltd.,
India, announced that they have established a joint venture to
develop, product and market hybrid oilseed rape (OSR, also
know as canola) and hybrid vegetable seeds for the Asian
market. The joint venture, to be known as Proagro-PGS India
(Pvt.) Ltd., will be headquartered in Gurgaon near New Delhi,
India.


University of Guelph

The Guelph Food Technology Centre will receive $15 million
from the Ontario government to build R & D labs and a pilot
plant for product development testing.

Contact K. Cooper Tel (519) 824-4210


Micronizing for More Convenient Foods and Alternative Feeds

A new company, InfraReady Products Ltd, will use micronizing
technology (infra-red energy) to rapidly stabilize or roast a
wide array of agricultural products.

Micronizing will add value to food products such as wheat
germ, lentils, wild rice and hot cereal by reducing cooking
time, increasing shelf life and improving texture and flavor.
The technology will also improve the utilization of feed
ingredients.

For the Saskatchewan agbiotechnoiogy community, this
processing capability in the province offers interesting
possibilities. If agbiotech produces, for example, a high
protein product, says Mark Pickard, head of product research
for the Saskatchewan Wheat Pool, InfraReady will be able to
process it in a form that meets the needs of the human food
and feed markets.

In the case of animal feed, a high protein product can be
processed to have a higher rumen bypass value, allowing the
protein to be directly absorbed into the digestive system of
the ruminant.

If biotechnology produced high starch wheats, InfraReady could
process them to produce very high fermentable extract
material. Moreover, micronizing grain rather than heating it
in water is more rapid and efficient.

Pickard says, InfraReady Products sees its primary role as the
link between production and utilization in the mainstream of
food processing, whereas biotechnology is the leading edge of
production of new material supplies. InfraReady will also
provide an important link between the products of
agbiotechnology and their utilization.

Saskatchewan Wheat Pool is the parent company for InfraReady.


                              *


INTERNATIONAL NOTES


British Report on the Ethics of Genetic Modification and Food
Use

A recent UK government report is seen as a positive step
forward for agbiotechnology. Commenting on the report,
Agriculture Minister Gillian Shephard said, "Genetic
modification has the potential to provide significant benefits
to farmers, food producers and consumers by extending the
quality and range of food available. However, public knowledge
of this technology is relatively limited at present. Public
confidence should increase as the process becomes more widely
applied, debated and understood. I believe the publication of
the Committee's report will contribute significantly to this
process."

Indeed the Committee's work was an important step in raising
concerns and creating an opportunity to dispel misconceptions.
Made up of members chosen for their expertise in various
relevant fields including genetic modification, ethics,
retailing and consumer affairs, the Committee sought the views
of about 180 interested organizations and individuals from
religious, consumer and industrial sectors.

In particular, the committee considered the consumption of
foods containing "human genes", foods containing genes from
animals (such as cattle or pigs) which are not considered
appropriate food by some religious groups, and plants
containing animal genes, which may be of concern to some
vegetarians. Such foods are not yet on the U.K. market, but
their production is becoming technically possible.

The term "human genes", potentially alarming, is somewhat
misleading. These are in fact copy genes and not derived
directly from the donor organism. The Committee saw no ethical
objection to the use of copy genes in food but recommended
that foods containing transgenic material should be labeled in
order to allow consumers an informed choice.

The Committee also suggested that a number of ethical
objections might be removed if the genes were entirely
"synthetic". There would then be no impedient scientific
advance on the basis of religious beliefs.

The Committee also recommended to the Food Advisory Committee
(FAC) that "derived products of specific, non-genetic nature"
need not be labeled.


The International Farm Forestry Training Centre (IFFTC)

China is well-known in many fields of farm forestry research.
IFFTC, established April 1992 and funded by the International
Development Research Center of Canada (IDRC) is run by
Professor Zhu Zhaohua of the Chinese Academy of Forestry
(CAF).

Backed by 11 research institutes and experimental centers of
CAE IFFTC offers theory, principles of design and management
required in establishing farm forestry, community forestry,
social forestry and comprehensive agricultural systems; degree
and non-degree training.


Biotechnology in the Netherlands

A report published by the TNO Centre for Technology and Policy
Studies indicates that Biotechnology R&  in the Netherlands
will grow at 5% a year over the next five years; primarily in
the pharmaceutical, agricultural and environmental sectors and
particularly in small and medium-sized companies. Biotech in
the food sector is unlikely to grow and may even diminish.


                              *



CONSUMER ATTITUDES


U.K. Public Debate on Plant Biotech

The Agricultural and Food Research Council will fund the
U.K.'s first consensus conference on plant biotechnology.
Since an AFRC study found the public has little understanding
of biotechnology and feels it has little control over its
applications, the aim of this conference is to offer an
opportunity for greater understanding by bringing together lay
people and experts to debate scientific issues publicly.

The AFRC feels that the public's lack of knowledge presents a
serious obstacle to commercialization of biotechnology that
could be overcome by education.


Consumer Acceptance of Food Biotechnology

The Dutch consumer research organization SWOKA, has
published a second report on "Consumer Acceptance of Food
Biotechnology: The Relation between Product Evaluation and
Acceptance"

The main conclusions of the 125-page study are:

* Consumers are likely to find genetically engineered food
acceptable but not with animals, not with products with
benefits only for the producer and not if adverse effects are
to be expected.
* Moral values and beliefs about nature play a role in the
evaluation. 
* Consumer acceptance of products will be best understood and
perhaps predicted, when using the product ratings on a set of
perceived product characteristics.
* Genetically engineered foods are on average less favoured
than those of traditional biotechnology; but they may be more
acceptable than products made with chemical technology.


New European Study

A survey of Europeans carried out by the Commission of the
European Communities looked at attitudes toward biotechnology
and genetic engineering. The results show some interesting
trends relative to an earlier survey carried out in 1991.

* 48% of survey respondents felt that biotechnology will
improve "our way of life in the next 20 years"; 15% felt it
would not improve life. Genetic engineering was an exception
in this category where it did not receive strong support. The
report indicates that the level of optimism regarding genetic
engineering has been reduced since 1971. This may be related
to the findings that the term genetic engineering is less well
known and has a more negative connotation than biotechnology.

* demand for govemment control of biotechnology and genetic
engineering is very strong but somewhat reduced from 1991.

* with regard to research which involved humans, three out of
four respondents felt "there should be clear ethical rules"
indicating when research should not be carried out.

* global support for biotechnology/genetic research
applications has dropped slightly since '91 but assessment of
global risk remained constant.

* most respondents tended to agree that many types of research
into biotech/genetic engineering are "worthwhile and should be
encouraged". This is consistent with '91 findings.


                              *


ISSUES IN EDUCATION


Opportunities for Biotech Graduates with Commercial Skills

Since biotechnology emphasizes the commercialization of
biological science, most graduates would naturally expect to
find high-level jobs in manufacturing, environmental areas or
public works. However, the reality is that scientific know-how
is not enough and most graduates lack the commercial skills
required to do this work.

Until relatively recently, there has been little commercial
training for science students. Most science faculties aim to
provide training in academic research rather than vocational
training for industry. However, some universities are now
recognizing the need and the opportunities; offering business
education, making industry links and equipping scientists for
the workplace.

Kelvin Hopper commenting in Australasian Biotechnology offers
some insights into what is happening in industry and what
industry wants.

In the past 10 years, many traditional industries have
encompassed elements of biotechnology. But as biotech science
has moved swiftly along, non-science managers have often had
difficulty contributing effectively to technology-related
business decisions. There is an opportunity, says Hopper, for
science graduates with business knowledge.

Students may not need to complete an MBA, but they do need
some knowledge of the principles and grounding in the methods.
It is obvious that both practical industry experience and some
formal training are needed, he says.

Work experience is best chosen by the student and industry
partner and facilitated by the university department, he says.
The real benefits are the practical instruction, adaptation to
the work environment, the ability to select the most
attractive career and the potential of a job continuing on at
a senior level after the course is completed. Establishing a
network of contacts and cultivating a mentor relationship are
some of the most important long term benefits of work
experience.

For industry to continue to support work experience, it must
see the student as a benefit, not a cost. This may be partly
offset by Government support as it is in the Teaching Company
Scheme in Australia, primarily aimed to help small businesses
gain access to university expertise.

The drive for exports is increasing the need for effective,
world competitive manufacturing, says Hopper, and with it, the
need for more people with knowledge in management, finance,
quality, regulatory areas and marketing.


Science in Decline

Britain is producing more graduates, but no more scientists
(New Scientist, Dec. 1993). While the number of 18 years olds
taking A levels (the main qualifying exams for university
entrance) has grown, the number of students taking physics,
chemistry and maths has dropped dramatically, though biology
seems to be holding its own. The prime reason for this
decline, it seems, it that students are forced to choose
between science and arts at the age of 16 and too few choose
to pursue science at A level.

Understandably, John Patten, Secretary of State for Education,
is worried. There is not yet a shortage of scientists, he
says, but there has been a flurry of initiatives to attract
kids to science, including a £500 bonus added to grants for
science majors.

Attempts to remedy the situation have had limited success.
Combined science courses for students up to age 16 has greatly
increased the number of students taking science, especially
among girls, but Patten doubts if this prepares students for
the rigors of science at advanced levels.

It seems there needs to be a new and radical science
curriculum experiment, producing a totally new product.

One UK company, Novo Nordisk, has recognized this and has
created an award to encourage teachers of genetic engineering
to design more compelling programs. It was developed in
conjunction with the National Centre for Biotechnology
Education. The first winner was Derek White of Royton &
Crompton Comprehensive School in Oldham.

Collaboration between industry and education can enhance the
future advancement scientific endeavour by creating a strong
interest in the sciences among students.


Making Biotech a Household Word

The United States Govemment (US) and the Commission of the
European Communities (EC) co-sponsored a US-EC workshop on
Methods of Communicating Biotechnology with the Public with a
view to finding practical ways to improve the dialogue with
the public on biotechnology issues and create awareness of the
role of biotech in fostering economic development.

The participants were assigned to five panels.

The Role of the Media
Many of the panelists said the public has both an obligation
and the right to shape the development of new technologies and
the media is key to providing information on biotechnology to
the public. Panelists expressed the need for developing data
bases to monitor the relationship between media coverage and
public understanding and attitudes. They recommended further
studies of public interest in science and finding ways to
improve the dialogue between scientists and the public; also
making better use of communication specialists and scientific
institutions.

The Role of Scientists
The panel recommended that 1. scientific societies include
social issues on their agenda 2. provide incentives for
scientists to participate in interdisciplinary projects aimed
at the science-society-environment interface 3. provide
scientists with media training and encourage increased
interaction with the public 4. encourage increased emphasis on
professional responsibility to communicate as an intrinsic
part of scientific education.

The Role of the Public and Public Interest Groups
Noting that public discussion of biotechnology currently can
be characterized by imperfect communication, panel members
recommended that the US and EC and national governments 1.
organize a task force to discuss a more integrated approach to
communicating to the public research and technological
developments 2. fund assessment studies and basic research on
issues identified by the task force 3. involve citizen groups
in discussing research priorities and objectives 4. establish
adequate participatory mechanisms 5. encourage private
companies to confer with citizen advisory panels 6. increase
availability of information to citizen groups and encourage
scientist/citizen interaction.

The Role of Government Institutions
The panel noted that public perception of biotechnology
results from complex interplays of ethical, social, economic
and environmental consequences. The government role should be
that of a conduit for information, demonstrating
trustworthiness and accountability. In a clearinghouse role,
governments should also provide, disseminate, document and
monitor biotechnology information. Further, governments must
insure that a balance is achieved through a wide spectrum of
opinions. Communication between government bodies also needs
improvement, especially regarding regulatory issues.

The Role of Educators
The panel identified a number of opportunities, including
teacher training, modern information systems, using various
cultures as models for further learning, and using
biotechnology education to teach how to interact in a modern,
complex world.

A number of problem areas were identified including the rapid
pace of scientific research compared to the slower pace of
societal learning, the lack of interdisciplinary approaches to
integrating science and ethics, poor quality teaching, fear of
biotechnology, and lack of basic research on methods of
teaching biotechnology.

Participants recommended that the US-EC should provide support
for pilot projects encouraging interdisciplinary approaches to
biotech education, aimed at both secondary and higher
education levels, and encourage govemment agencies and
industry to use their capabilities for communication with the
public about the many dimensions of agbiotech. A full copy of
this report can be obtained from the Office of Agricultural
Biotechnology, United States Department of Agriculture.


Risk Communication Sensitive

A recent paper titled "Constructing Reality: A Comparative
Analysis of Print Media Interpretations of Messages Regarding
Technological Risk" explores the issues related to print media
coverage of scientific issues. The document explores the
relationships among public, regulatory and scientific
communities and identifies a number of challenges in dealing
with risk communication.

As society is increasingly affected by the impact of
technological change, the need has never been greater for
public understanding of science and technology. One author
cited in the paper, D. Nelkin believes that science journalism
in the print media often replaces content with imagery and
offers little discussion of the scientific questions being
posed. She claims that issues are covered as a series of
dramatic events, that different message providers are
intensely competitive with one another and that scientists
themselves are increasingly seeking favorable press coverage
to enhance research support.

It is therefore not surprising that uncertainty in scientific
assessments more often than not translates into apprehension
in the public arena.

For the agbiotechnology community this is an important area of
concern. The paper written by Douglas Powell, Norman Ball and
Mansel Griffiths concludes that food presents a special
application area for risk communication theory, particularly
because of the rituals, mythologies and cultural significance
associated with meals.

While many scientific communities are looking to risk
communication techniques to bridge the gap between scientific
and lay perceptions of risk, the paper states that there are
major concerns that risk communication is a misleading term
because is suggests that communication by experts is the key
to trust. Contributors argue that experts themselves need to
be educated about their own biases and how they evaluate risk.

Sharon Begley, science editor at Newsweek writes that if
journalism is history on the run, then risk assessment is
often science on the run. More often than not, it falls to the
journalist to interpret that uncertainty.

In the final analysis, much of the truth in any communication
comes down to intent. So one must ask, what is the purpose of
risk communication? Is it to "reassure" the public, even if
there is a real problem? Is it a shield for inaction? Is it a
process for manipulation of public opinion? Or is it policy
decisions and public discussion based on the best information
available?

If the last is the intent, scientists and citizens alike must
become more public about the confusion, ambivalence and
limitations which characterize technological change. If the
science of risk assessment cannot avoid uncertainties, society
must engage in meaningful discussions about risk to human
health and safety. Carefully worded risk messages, created
with open and honest intent offer a beginning.

But no matter how open and honest the information, it can lose
in the translation between rational thought and the subtle
historical and cultural factors that influence risk
perception. There is no blueprint, it seems, for risk
communication and no substitute for close empathetic
connections between the scientific community and the people
whose lives they touch.


                              *


LEGAL NOTES

New patent laws are being considered in the US which would
adjust the length of patent term to cover 20 years from the
date the application is filed rather than 17 years from the
date the patent is granted. There may also be provision
allowed for up to five years of extension to cover time lost
during patent review.


From Hand to Mouse - Canada Automates its Patent System

The Canadian Intellectual Property Office (CIPO), home of the
Canadian Patent Office, is in the first phase of automating
Canada's patent system.  Over the next few months, TECHSOURCE
will undergo a feasibility test in which a core of patent
examiners, classifiers and patent support staff will use the
automated system and determine its performance.

If is passes muster, the system will be installed throughout
the patent operations starting mid-1994 to be completed by
March 1995. The final phase will provide public access to
patent information, including foreign patent data by 1996.

For the patent profession in Canada, TECHSOURCE will mean that
applicants will have direct electronic access to information
on their applications, updates on maintenance fees and other
administrative details presently difficult to track.

Plans also include a more comprehensive Patent Office Record
(POR) to be published each week on CD-ROM, allowing patent
agents to browse through laid open patent applications and
granted patents in their offices at their leisure.

By about 1996, patent applications will be able to be flied
electronically with CIPO. In the future, TECHSOURCE could
accommodate direct dialogue between patent examiners and
agents.

As the process proceeds, CIPO will provide automation guidance
so that the profession can harmonize with international
requirements at minimum cost.


Canada/US Regulatory Harmonization Moves

US and Canadian pesticide regulatory authorities are
collaborating to reduce duplication and improve efficiency by
exchanging reviews of data submitted in support of
registration applications. There is some industry concern
regarding confidential information. Interest groups in both
countries will be kept abreast of progress and continue to
have say in future discussions.


Lickety-Split Labeling

The food industry can expect an easier time getting product
labels reviewed, thanks to a new Single Access Labeling
Service which consolidates responsibilities previously divided
between Agriculture and Agri-Food Canada and the Department of
Consumer and Corporate Affairs.

Label assessments will now be turned around in 10 working days
and all requests can be directed to one office in each region.

For more information contact Jon Hutton, Agriculture and Agri-
Food Canada. Tel:(819)994-0246. Fax:(819)953-0969



Alberta Regulates Biotechnology Through New Environmental
Legislation

Although jurisdiction over the environment is shared between
the federal government and the provinces, Alberta has
exercised its option to regulate certain biotechnological
activities within its boundaries through the enactment of the
Environmental Protection and Enhancement Act (AEPEA). In the
past, the regulation of potential environmental impacts of
genetically modified microbes, plants and animals has been
dealt with through federal legislation such as the Canadian
Environmental Protection Act.

According to the AEPEA, the province must issue an approval
before the construction, operation or reclamation of a plant
for the manufacture or use of biotechnology products. A
biotechnology manufacturing plant is defined in the
regulations as a plant that produces products using the
application of science and engineering in the direct or
indirect use of living organisms or parts or products of
living organisms in their natural or modified form, but does
not include a facility that engages solely in research.

This definition is broad enough to cover bakeries and
breweries but it seems unlikely that the province wants to
cast the regulatory net so wide. The Alberta government has
yet to issue any regulations or guidelines specifying which
biotechnology operations will require approvals or what
information must be submitted to obtain such an approval.
However, any company that is operating or plans to operate a
biotechnology plant in Alberta should be aware that this law
is in place.

Contributed by Dr. Glennis M. Lewis, Ogilvie and Company
Edmonton, Alberta (403) 421-1818


                              *


SOURCES


BST Digest Volume 5

Issues of interest addressed in this volume include: 
FDA approval of the use of BST for milk production in the US
Consumer reaction to BST
Economic impact of BST
Antibiotic residues in milk
Labeling of milk products from BST-supplemented cows.

For a copy of this volume contact Tern Clark P.Ag Manager,
Market Development, Provel Division, Eli Lilly Canada Inc.
Tel: (519) 681-9424



English Is Not Always the Language of Business    

International market expansion affects many sectors of the
Canadian economy, Summer Centre for Intemational Languages and
Seminars for Communication in International Languages (SCIL),
at the University of Regina, has seen this growth first-hand
over the past two years, as the demand for its language
classes and other support services (seminars and translations)
increased annually by 30%.

SCIL is the only centre of its kind in Canada and attracts
both academics and professionals from across Canada and
abroad. The Summer Centre offers intensive language training
in up to 11 languages during the spring and summer. The
Seminar Centre offers customized programs to prepare Canadians
to live and work overseas, as well as translation services.
For more information call Nancy Lee, University of Regina
(306) 585-5300


Bioline Publications

Bioline Publications provides full text and graphics of a wide
range of publications including the AgBiotech Bulletin.
Contents lists, abstracts and summaries of material are
available through the Internet free of charge and without
registration. Access to full text and graphics requires
registration.

For further information, contact:
Bioline Publications, Stainfield House, Stainfield, Bourne,
Lincolnshire, PE10 0RS, UK Tel: 44 778 570618
E-mail: bio@biostrat.demon.co.uk


The United Nations Food and Agriculture Organization

The United Nations Food and Agriculture Organization has
published a 39-page document entitled Biotechnology in
Agriculture, Forestry and Fisheries. The publication examines
patterns of biotechnological development in developed and
developing countries and the application, impacts and
potential of biotechnologies in agriculture, forestry and
fisheries. It also analyses opportunities, constraints and
concerns in biotechnology. For more information contact
Publications Division, FAO, United Nations, Vialie delle Terme
di Caracalla, IT-00100 Rome.


An Educational Kit On Genetic Engineering

An Educational Kit On Genetic Engineering designed by
Australia's research organization CSIRO, looks at the
controversial issues of genetic engineering with videos, print
and practical exercises. The kit is designed for upper
secondary school students working under teacher supervision.
Cost is US$125. CSIRO Publications PO Box 89, East Melbourne
VIC 3002, Australia. Ph: 61-3-418-7217, or Fax 61-3-419-4096


                              *


PEOPLE WATCH

ADF Board Changes

Three new appointments have been made to the Saskatchewan
Agricultural Development Fund Board.

Dr. Betty Althouse, is a veterinarian and hog farmer from
Muenster who works extensively with the livestock industry.

Meg Claxton, is president of Signature Public Relations. She
works as a consultant to the agricultural sector with
specialization in alternate livestock (elk, bison and deer)
and agbiotechnology. Subsequent to her appointment to the
board she was elected to its executive committee. She is the
publisher of several agriculture publications including the
Agbiotech Bulletin.

Terry Scott is Assistant Deputy Minister for Saskatchewan
Agriculture and Food in Regina.


CIAT Names New Deputy Director General

Dr. William Robert Scowcroft is the new deputy director
general for Germplasm Development Research at Centre
International Agriculture Tropical (CIAT).

Scowcroft is the former director of the Victorian Institute
for Dryland Agriculture, Horsham, Australia. He worked at
senior agricultural research and management positions in the
state and federal governments of Australia, including the
Commonwealth Scientific and Industrial Research Organization
(CSIRO). He also has worked for the private sector in Canada
and acted as an advisor to the Canadian government.


CAB International Appoints Director General

Dr. Douglas Laing, who was the deputy director general of CIAT
for almost 13 years, is now director general of CAB
International of the United Kingdom.


Australasian Biotechnology Association

Dr. David Fisher, Managing Director of Peptide Technology Ltd,
Sydney, has been elected Vice-President of the Australasian
Biotechnology Association (ABA).


Director General of UN FAO

Jacques Diouf from Senegal has been elected as the next
director general of the UN Food and Agriculture Organization.
Diouf, the first African to hold the post, will serve a
six-year term which started 1994.


National Hydrology Research Centre

R.A. Halliday has been appointed director of the National
Hydrology Research Centre in Saskatoon. He was formerly with
Inland Waters Directorate in Regina. Phone (306) 975-5750.


New Face in FACS

Adele Buettner is the new executive director for the
Foundation for Animal Care - Saskatchewan (FACS).


Burrill & Craves

G. Steven Burrill has left Ernst & Young where he headed the
high-tech group, to form Burrill & Craves, consultants to
biotechnology companies in legal and regulatory affairs,
finance, marketing and manufacturing. Contact (415) 399-4360.


University of Alberta

Jim Murray is the new director of the University of Alberta's
Intellectual Property and Contracts Office. He can be reached
at (403) 492-4730.


UW- Madison

Dr. Steven Price has been appointed Director of the University
Research Program at the University of Wisconsin. He will be
responsible for technology transfer activities at UW.


                              *


Articles, announcements and suggestions are welcome.

For additional infonnation or correspondence contact:

Dr. Murray McLaughlin, President 
Ag-West Biotech Inc.
222-111 Research Drive Saskatoon, Saskatchewan
Canada S7N 3R2 
phone: (306) 975-1939 
fax:  (306) 975-1966


The AgBiotech Bulletin is published by

Westcross House Publications 
608 Duchess Street
Saskatoon, Sk. Canada S7K 0R1 
phone: (306) 934-1772 
fax:   (306) 664-6615

Funding assistance is provided by The Saskatchewan Agriculture
Development Fund



Ag-West Biotech Inc. Board of Directors

Dr. Suzanne Abrams
National Research Council - PBI

Mr. Ron Howarth 
Agriculture Canada

Dr. Dennis Johnson
University of Saskatchewan

Mr. Roy Lloyd
Peat Marwick Stevenson & Kellogg

Mr. Ed Makowski
Hoechst Canada Inc.

Dr. Jack Manns, Chairman 
Biostar Inc.

Mr. Robert Morgan
Saskatchewan Wheat Pool

Mr. Len Penner 
Cargill Ltd.

Mr. Dale Sigurdson
Saskatchewan Agriculture and Food