The Agbiotech Bulletin
Volume 4 Issue 6 June 1996
Published by AG-WEST BIOTECH INC.
Code Number: NL96015
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AgBiotech: Foundation for the Future
Saskatoon, Canada Participants from around the globe
have assembled in Saskatoon for North America's first major
international symposium dedicated exclusively to the world's
agricultural biotechnology industry.
'Growth in the agbiotech industry has exploded in Canada and
around the world,' says Conference Chair Murray McLaughlin,
founding President of Saskatoon's Ag-West Biotech and
Saskatchewan's Deputy Minister of Agriculture. 'The diversity
of
agbiotech research now being done made it impossible to
continue
to cover our complete industry within the context of existing
multi-disciplinary biotech conferences.'
In response, the Agricultural Biotechnology International
Conference, dubbed ABIC '96, was created as a joint venture of
Canada's Department of Western Economic Diversification, the
Canadian Institute of Biotechnology, Saskatchewan Agriculture
and
Food, and Ag-West Biotech Inc. In total, 40 major corporate
and
institutional sponsors were involved in staging the event,
demonstrating the broad support for the agbiotech industry in
Saskatoon, Saskatchewan, and Western Canada.
Ninety-two expert speakers from 17 countries have come to
Saskatoon to address some 600 delegates from June 11-14, 1996
on
a wide range of agbiotech issues from leading edge research
through commercialization. Organized in five concurrent
streams
Animal Science; Crop Development; Microbials; Technology
Transfer; and Business each presentations will address the
overarching theme running through the four-day conference and
two-day exhibition, 'AgBiotech: Foundation for the
Future.'
Biotech Key to a Prosperous, Sustainable Agriculture, Says
ABIC's Keynote Speaker
The world's burgeoning population poses a staggering problem
for
the agriculture industry: How can it produce enough food in a
profitable and socially acceptable way without irreversibly
destroying the natural environment?
This is the fundamental question facing the key players in the
world's agbiotech community who have assembled in Saskatoon
for
ABIC '96. The question was articulated in the opening address
to
the conference by Dr. Jeff Schell of the Max Planck
Institute of Cologne, Germany.
Biotechnology is a key to resolving this question, Dr.
Schell asserted. 'The agriculture industry will have to
urgently develop and intelligently exploit biotech's powerful
methods if agriculture is to produce the food, energy, and
feed-
stocks required by a rapidly expanding human population.'
Dr. Schell is well-known in the agbiotech field for his
work
in molecular biology and genetic engineering in plants. He
played
a key role in the elucidation of the molecular basis of crown-
gall formation on plants by Agrobacterium tumefaciens
and
coined the concept of 'genetic colonization' to describe this
phenomenon. In addition to his role as Director of the
Department
of Genetic Principles of Plant Breeding at Max Planck, he is
also
Professor of Plant Molecular Biology at the College de France,
Paris.
In reviewing the current state of biotechnology for ABIC '96,
Schell noted that methods are well developed to
introduce
well defined single genes or defined combinations of genes in
plants. 'In principle the heritable properties of all plants
can
therefore be better adapted to agricultural, industrial, and
environmental needs by the use of these molecular methods. The
biological source of the genetic information that can thus be
introduced in plants is not limited to genetic traits derived
from closely related species. Indeed research in the molecular
biology of plants allows any genetic trait, whether from other
plants or from bacteria, yeasts, fungi or animals to be
transferred and expressed in plants and to be transmitted to
the
progeny through seeds.'
Biotechnology Essentially Safe
Schell stressed that the introduction of single, well defined
genes in crops can be achieved without necessarily modifying
their general biological properties in an unexpected or
uncontrollable way. 'Because of this aspect plant breeding by
genetic engineering must be considered to have a very high
degree
of ecological predictability and therefore safety, and the
release of well characterized and tested transgenic plants can
therefore in no way be compared to the release of whole
foreign
organisms in a new ecological context.'
Biotechnologies have been used successfully to produce plants
that are naturally resistant to viral diseases or to attack by
insects. Schell said that research is in progress to similarly
develop plants resistant to bacterial and fungal diseases, to
attack by nematodes, and also to climatic and environmental
stresses such as drought, cold, and toxic chemicals.
'Present research is also likely to lead to the production of
plants with increased nutritional value or with modified
growth
habits,' Schell adds. 'Finally plants could be produced with
high
yields of tailor made feed stocks (oils, carbohydrates,
proteins)
or producing highly valuable chemicals such as pharmaceutical
products or biodegradable plastics.'
Based on the experience gained from a large number of
controlled
field experiments with transgenic plants, one must conclude
that
genetically-modified plants will not pose any unforeseen
ecological problems and have the potential to drastically
improve
the environmental impact and productivity of agriculture.
Presently Schell and his collaborators at the Max
Planck
Institute are using molecular and gene transfer techniques to
elucidate the mechanism of action of genes involved in the
control of growth, development, and differentiation in plants.
Crop Development Stream
The rich Crop Development Stream at ABIC '96 features 19
outstanding speakers from eight countries. Topics range from
transgenics in cereals, Brassicas, and legumes; insect and
disease resistance; the modification of vegetable oils and
fats;
and the production of enzymes and medicinals in plants. The
following summary of Dr. Maurice Moloney's presentation is
typical of the high quality of papers presented in this
stream.
Molecular Farming Yields Novel Products from Canola
Dr. Maurice Moloney, formerly a principal scientist at Calgene
Inc. in Davis, California, is currently full professor at the
University of Calgary, where he holds the NSERC/DowElanco
Chair
in Plant Biotechnology.
'Genetic modification of plants by gene transfer is enabling
us
to broaden dramatically the range of products available from
plants,' according to Dr. Maurice Moloney of the
University of Calgary. Speaking to the Crop Development Stream
at ABIC '96, Moloney described current transgenic
research
activity on Canola and related species activity which is
beginning to yield valuable new products.
Moloney says that it is now possible to 'persuade' Canola
to
accumulate alternative products using gene transfer.
'Production
of these novel molecules by genetically modified plants has
become known as molecular farming'.'
Moloney has been involved in developing molecular farming
since the early 1980s. He was principal scientist at Calgene
Inc.
in Davis, California from 1982 to 1986. During that time,
Moloney and his colleagues performed the first
successful
transformation experiments on Brassica napus (canola),
for
which two US patents have been awarded. In 1986,
Moloney
moved to the University of Calgary. In 1994 he founded
SemBioSys
Genetics Inc., a plant protein manufacturing company.
In describing the potential of molecular farming,
Moloney
said that a leading-edge research initiative involves
persuading
plants to produce useful, but decidedly non-plant products. An
example of this is the production of a biodegradable plastic
such
as polyhydroxybutyrate (PHB) in plants.
'PHB is a biopolymer produced in certain bacteria. PHB
production
requires the intervention of three enzymes. Plants lack these
enzymes, but the bacterial genes specifying these biochemical
conversions have been expressed in plants. The result is that
a
significant amount of carbon metabolism is re-routed into the
production of PHB.'
'One of the main factors limiting the wide use of PHB polymers
as an environmentally benign plastic is cost of production in
microorganisms,' comments Moloney. 'Production in
plants
could address this problem and render PHB an economically
viable
material for production of milk containers, plastic bags, and
a
variety of disposable packaging.'
At the most esoteric end of the scale, plants such as Canola
are
ideal vehicles for the production of proteins and peptides of
pharmaceutical interest. Examples of such biologically active
proteins being produced in Canola include the leech-derived,
blood anti-coagulant, hirudin. Transgenic Canola or related
Brassica species are amenable to such genetic
modifications and could prove to be ideal vehicles from the
viewpoint of processing.
Extracting Enhanced-Value Proteins from Plants
Although plants are relatively inexpensive to cultivate (two
to
three hundred dollars per tonne in the case of Canola seed)
the
costs of extracting and purifying novel products can be a very
significant factor in the overall process, according to
Moloney.
As plants must compete with other methods for production of
proteins and peptides, in particular with fermentation
technology, it is critical that costs are minimized. 'In our
laboratories, we have developed procedures that address the
key
question of separation and purification using the natural
partitioning of oil and water phases in oilseed extracts.'
Use of Canola and its relatives in molecular farming
Because Canola is a food crop, Moloney believes the
best
applications of biotechnology to the crop will be related to
food
and feed markets. Most prominent among these applications are
improved feed meal, modified edible oils, and food processing
enzymes that are already part of the food chain. Feed meal for
monogastric animals could be greatly improved by expressing
protein supplements rich in essential amino acids in the meal
fraction. Novel strategies with this objective include the
expression of ruminant digestive enzymes in seeds destined for
feed meal. 'These benign enzymes would assist in the
digestibility of the meal for hogs and chickens, particularly
in
rendering fibre more digestible or releasing sequestered
phosphate.'
To produce high-value pharmaceutical proteins, Moloney
contends that 'it will be advisable to perform these
experiments in a related species such as Brassica
carinata, Sinapis alba, or Eruca sativa. In
these species, cultivation is very similar to Canola from the
producer's viewpoint, but the plants are sexually isolated
from
conventional Canola. This strategy has already been tried
successfully with Brassica carinata.
Precautions such as genetic and physical isolation of some of
these applications will ensure that in both reality and
perception, Canola will be exclusively a food crop, while
other
applications can be adequately handled in a variety of species
which share much of the biology learned from studies in
Canola.
Continuing Success in Canola Industry Requires
Collaboration
While conventional Canola production for the last ten
years
has been steadily increasing in response to increased demand,
Moloney believes it is probable that in North America
acreage planted will begin to level out.
'However, gene transfer methods have now opened several new
avenues for increasing the unit value of Canola products and
for
diversifying the range of products possible. This
diversification
could work to the great benefit of producers and processors.
However, taking full advantage of these opportunities will
require new relationships between producers, processors,
technologists and plant breeders.'
Moloney stresses the importance of such concepts such as
identity preservation, smaller scale specialty crushing
operations, and vertical integration of crop production, and
end-
product manufacturing. 'A solid and efficient commodity Canola
industry, combined with delivery of specialty products derived
from Canola or its relatives, will be a profitable symbiosis
for
the industry as we prepare for the 21st century.'
Animal Science Stream
Whether it's novel vaccines, improved feed efficiency, or
enhanced reproduction, biotechnologies are revolutionizing
animal
agriculture. The Animal Science stream at ABIC '96 brings
together 20 leading animal scientists from six countries to
guide
participants through the latest agbiotech achievements and
opportunities. Summaries of two of the outstanding
presentations
are provided in this issue.
Applications of Biotechnology in Farmed Animals
Dr. Grant Montgomery is Senior Scientist with the AgResearch
Molecular Biology Unit, University of Otago in New Zealand.
Montgomery has published extensively on aspects of
reproduction
and sheep genomics. He is also an editor of SheepBase, the
sheep
genetic map available on the World Wide Web.
The animal industry, like most economic sectors, is
experiencing
rapid change. Developments in genetic selection, disease
control,
reproductive technologies, nutrition, and improved management
have markedly increased production of traditional products.
The increase in intensive production has, however, generated a
number of problems. Threats exist, particularly in the areas
of
disease control, environmental protection, product safety, the
reduction of subsidies, climate change, and ozone depletion.
To
meet these demands and remain competitive, the animal
industries
must make further production efficiencies, implement
sustainable
production systems, and develop new safe products for food,
medicine, and industry.
'Biotechnology offers considerable opportunities to meet these
challenges,' reports Dr. Grant Montgomery in his
presentation to the Animal Science Stream at ABIC '96.
Montgomery is Senior Scientist with the AgResearch
Molecular Biology Unit, University of Otago in New Zealand.
His
studies of sheep reproduction have led to a greater
understanding
of the control of seasonal breeding, as well as fertility
characteristics and genetic mapping. Montgomery has
published extensively on aspects of reproduction and sheep
genomics. He is also an editor of SheepBase, the sheep genetic
map developed in New Zealand and available on the World Wide
Web.
'Biotechnology can be applied to all areas of the production
system,' says Montgomery, 'including genetic selection,
nutrition, animal health and welfare, product development, and
waste management. In many cases, the developments are linked
to
parallel developments in molecular biology and genetics.' In
his
presentation, Montgomery led his audience through a
concise overview of the state of the art in each of these
aspects
of the animal industry, including genetic mapping.
In the last decade, molecular analysis has been applied to
livestock species to study genome organization. Genetic
linkage
maps have been constructed for all the major species and used
to
identify genes affecting production.
'In our laboratory,' Montgomery said, 'we have employed
these methods for the analysis of the sheep genome. The first
application of the maps in sheep has been the location of
single
gene traits known to influence production.' Another area of
study
relates to the pathways controlling reproduction and may lead
to
new products for fertility control.
Montgomery also described the suggested uses of
transgenics,
including enhanced production through extra gene copies or
addition of gene pathways, addition of genes for disease
resistance, improved nutrient supply or utilization, and the
development of products for medical applications.
Biotechnology already makes major contributions to livestock
production through improved feeds and feeding systems, said
Dr. Montgomery. 'Digestion and the availability of
specific nutrients can be modified by supplementation with a
number of enzymes. Alternative approaches to improving
nutrient
availability include transgenic manipulations of
micro-organisms,
plants and animals.'
Montgomery was one of several speakers to deal with
biotech
developments in the aquaculture industry. 'The aquaculture
industry is expanding rapidly,' he said. 'This is the result
of
developments in technology and declining fish stocks in many
fisheries. Fish are especially suitable for transgenic study
because most species generate large numbers of eggs that are
fertilized externally. Transgenic methods being applied in
fish
include disease resistance, sexual maturation, increased
growth
rate and feed utilization.'
Animal Biotechnology: Improving the Environment
Dr. Seerp Tamminga is Head of the Department of Animal
Nutrition at the Agricultural University in Wageningen, The
Netherlands and Chairman of the Wageningen Institute of Animal
Sciences.
Dr. Seerp Tamminga , Chairman of the Wageningen
Institute
of Animal Sciences in The Netherlands, addressed ABIC '96 on
another revolutionary aspect of animal biotechnology: its
potential to improve the environment.
'In many parts of the world,' says Tamminga, 'a dense
human population coincides with a high animal density,
resulting
in an intensification in waste production. This is often
associated with a growing pressure on the environment,
resulting
from an increased input of fossil energy and the accumulation
or
leakage of elements like nitrogen and phosphorus not to
mention
greenhouse gases.'
Tamminga's presentation raised the question, 'What is the
role of biotechnology in reversing these trends?' One of the
chief ways to accomplish this reversal is to use
biotechnologies
to improve the efficiency of animal feeding, either by
improving
the animal feed or by modifying the animals themselves.
Remedies considered
Improving animal feeding systems conserves carbon (energy) and
reduces the leakage of nitrogen and phosphorus from livestock
systems, capturing potential sources of pollutants as enhanced
elements of nutrition.
Tamminga commented that the partition of carbon in the
energy
containing nutrients in feed between animal products and waste
is under genetic control by the animal. It is also influenced
by
the quantity and nature of energy in the feed.
'A significant part of carbon in nutrients, varying from 20
per
cent in a high producing dairy cow to 100 per cent in a non-
growing, non-lactating animal, is lost in maintaining
the
animal. Some 90 per cent of the carbon used for maintenance is
in lipids and carbohydrates, the remaining 10 per cent in
protein. Measures which reduce the ratio in which nutrients
are
used in maintenance versus production i.e. increase production
per animal, are often considered beneficial to the
environment.
'This approach is however too simple,' said Tamminga.
'Increased
production is possible by an increased intake of the same
quality
feed, by the same intake of an increased quality feed, or by
an
increased efficiency of utilization of the ingested feed. An
improved feed quality often requires an increased input of
fossil
energy in the preparation of the feed.'
'The partition of energy between various sites of deposition
or
excretion is primarily under genetic control, but increasing
the
supply of nutrients also shifts the partition between mammary
gland and body reserves in lactating animals, and between
protein
and fat in growing animals towards body reserves and fat.'
'Biotechnology has potential to improve the genetic merit for
production and disease resistance in farm animals and
probably
in a way more marked and quicker than through traditional
breeding programmes. Biotechnology also plays an important
role
in reproductive efficiency. Developments in the field of
fermentation technology have become increasingly important in
the
production of biologically active substances, with potential
to
improve efficiency of utilization.'
Prospects of biotechnology in breeding, reproduction and
disease
resistance have received much attention in recent years, says
Tamminga. 'If progress in these area's leads to higher
productions per animal and improved health status, or less
removal from the production system before reaching the status
of
final product, a lower input can produce the same output, or a
higher output will result from the same input. The amount of
waste produced per unit of output will be lowered in both
situations, and the environmental burden will be relieved.'
Microbials Stream
ABIC '96 includes one of the most comprehensive forums ever to
examine the use of microbial technology. Twenty-two experts
from
six countries present their latest findings in areas such as
the
exploitation of bacteria used both in the development of
transgenic crops and in the control of weeds in cereal crops;
the
use of viruses to control insects in horticultural and field
crops; and the commercialization of biological pest control
agents. Two of the many excellent papers are summarized
here.
Commercializing Plant Growth-Promoting Bacteria
Dr. Joseph Kloepper is Professor and Department Head of Plant
Pathology at Auburn University in Alabama. His presentation is
titled 'Commercializing Plant Growth-Promoting Bacteria.'
Participants in the ABIC '96 Microbial Stream learned that
certain rhizobacteria (root-zone bacteria) are known as
Plant Growth-Promoting Rhizobacteria (PGPR) because they
exhibit
a beneficial effect on plant development . Dr. Joseph
Kloepper of Auburn University in Alabama outlined the
benefits and commercialization potential of leading edge PGPR
technology to participants in ABIC's Microbials Stream.
Benefits of PGPR on crops involve plant growth promotion and
biological disease control, said Kloepper . 'It is
often
difficult to separate precisely the involvement of disease
control and plant growth promotion in field trials, and both
attributes are desirable for practical use of PGPR as
commercial
products.'
Plant growth promotion effects which have been documented with
PGPR strains were summarized by Kloepper as enhancement
of seedling emergence rate, especially under cool-soil
conditions; increased seedling vigor; enhanced root length and
branching early in the season; and yield increases. 'With
biological disease control, PGPR in general have shown broad
applicability for reducing the incidence or severity of many
different diseases. However, specific strains of PGPR
generally
control only one or two diseases. Most biocontrol work with
PGPR
has focused on soilborne plant pathogens.
Kloepper reported that the host list of PGPR, or the
plants
which can benefit from inoculation with PGPR strains, is quite
broad. Initial PGPR work concentrated on root crops such as
potato, sugar beet, and radish, but now almost all major crops
have been found to be amenable to PGPR-mediated growth
promotion
or biological control. In addition, there are several reports
with the use of multiple vegetables and forestry species as
hosts
of PGPR.
'Given the large number of bacterial taxa which may include
PGPR
and the large host range, it is not surprising that there have
been intensive efforts to commercialize PGPR for practical use
in agriculture,' said Kloepper. 'Several commercial
products consisting of PGPR are now marketed around the
world.'
In the US., a strain of Bacillus subtilis has been
commercialized for promotion of roots and protection against
seedling diseases on cotton and common bean. In China, PGPR
are
known as YIB, for yield-increasing bacteria.
Kloepper reported that YIB have been marketed since
1985,
and they are now used on an estimated 3.35 million hectares on
48 different crops. All of the YIB marketed in China are
species
of Bacillus, and they are produced at eight
fermentation
plants located throughout the country.
Since 1991, it has been recognized that PGPR may lead to
biological control through direct effects on the plant. In
this
case, termed induced systemic resistance (ISR), PGPR
stimulate host defense systems such that subsequently invading
pathogens cause reduced disease. PGPR-mediated ISR has now
been
shown on cucumber, tobacco, bean, and tomato.
A key attribute of ISR which makes it appealing from a
commercial
viewpoint is that it leads to protection against multiple
pathogens. Kloepper stressed that the discovery that
single bacterial treatments may protect plants against
multiple
pathogens and even insects further demonstrates the potential
role of PGPR products in sustainable agriculture.
Biocontrol Found Effective for Fungal Diseases
Dr. Jennifer Parke is with the Department of Plant Pathology
at
the University of the Wisconsin in Madison. Dr. Parke has
developed a research program on rhizosphere ecology and
biocontrol of fungal plant pathogens of vegetables.
Biological control through the use of applied microbes is an
appealing strategy for controlling food crop diseases,
according
to Dr. Jennifer Parke of the University of Wisconsin in
Madison, a featured speaker to the Microbials Stream at ABIC
'96.
'From a commercial standpoint in the US.,' says Parke,
'biologicals offer companies opportunities for more rap id
product development and registration at a cost much less than
for
chemical pesticides. Of the 40 pesticides registered by the
US.
Environmental Protection Agency in 1995, fully half were
biologicals, many of these microbial.
In Parke's view, vegetable and specialty crops are
especially good commodities for application of biocontrol
strategies because of their high crop value, the efficacy of
biocontrol agents against diseases not controlled otherwise by
conventional means, and because of increased pressure to
reduce
pesticide use due to consumer awareness of food and
environmental
safety issues.
'Most diseases of vegetable and specialty crops are caused by
fungi. Several biological control agents available
commercially
are targeted against soilborne and foliar fungal diseases of
vegetable and specialty crops.' Parke's research served
as an example of how biocontrol research, including pitfalls
and
successes, can progress from initial discovery, growth chamber
studies, field testing and laboratory studies, toward
development
of a commercial product.
'Our research on biocontrol of vegetable crop diseases
initially
focused on Aphanomyces root rot of pea, the most serious
disease
of peas in the US. There are no chemical pesticides
commercially
available for c ontrolling this disease, nor are there
commercial
pea varieties resistant to Aphanomyces.
'To obtain potential biocontrol candidates, we collected
several
hundred strains of bacteria from healthy pea roots growing in
field soils naturally infested with Aphanomyces. Individual
strains were then screened in pea seedling bioassays for their
ability to suppress disease. Two bacterial strains were chosen
for further research.'
Parke's field studies show that treatment of pea seeds
with
the bacteria results in significantly greater plant stands,
reduced disease severity, and increased yield compared to
seeds
without bacteria. Pea yield of seeds treated with the
biocontrol
agents is significantly greater than for seeds treated with
captan, a fungicide applied commercially to pea seeds.
The development of suitable formulations and application
strategies is one of the biggest stumbling blocks to
commercial
development of biocontrol agents. Formulations must be
compatible
with agricultural practices, must be effectiv e, and must be
economically feasible. Currently, formulations of pseudomonad
biocontrol agents include peat-based inoculum, frozen
concentrates, liquid concentrates, and freeze-dried powders.
Initial field results suggest that freeze-dried powders of our
strains can be very effective when diluted with water and
applied
as a spray.
Parke reported that two biocontrol strains developed at
her
labs have been patented and the technology licensed. 'We are
anticipating approval of an Experimental Use Permit in 1996
and
expect full registration and commercial product to be
available
in 1997.'
Technology Transfer Stream
Discussions within the Technology Transfer stream at ABIC '96
focus on three key areas: technology transfer from
universities/institutions to industry; international transfer
of
agbiotech to developing countries; and the response of
international programs to the needs of developing countries.
Twelve speakers from seven countries are featured. Summaries
of
two of their presentation are included here.
The Private Sector and Biotech Transfer to Developing
Countries
Dr. Anatole Krattiger is a plant breeder and geneticist.
He
worked in the biotech sciences for CIMMYT in Mexico prior to
becoming Executive Director of International Service for the
Acquisition of Agri-biotech Applications (ISAAA) at Cornell
University.
Ensuring an adequate food supply, produced within sustainable
agricultural systems, will be a forbiddingly difficult
challenge
in the years ahead particularly, for developing countries.
Quantum leaps in agricultural production by more sustainable
use
of natural resources are required to feed the burgeoning
population. 'Traditional technology has made impressive
gains,'
said Dr. Anatole Krattiger, speaking to the Technology
Transfer Stream at ABIC '96, 'but it will have to be
supplemented
by modern biotechnology applications to meet the forbidding
food
challenge of the 21st century.'
Krattiger, Executive Director of International Service for
the Acquisition of Agri-biotech Applications (IS AAA) at
Cornell
University was a farmer before becoming an agronomist, plant
breeder and geneticist. He stated that over the next decade
approximately 80 per cent of increased food production will
have
to come from increased productivity per unit of land. There
are
numerous ways by which agricultural productivity may be raised
in a sustainable way, according to Krattiger, however,
'biotechnology probably holds the greatest promise to augment
conventional agricultural research and practices particularly
given the need to increase production sustainably.'
Biotech and the developing world
In developing nations, improved food technology is the best
strategy for generating wealth and increasing disposable
income,
which in turn leads to a better quality of life. Yet the
majority
of biotechnology R&D investments is in the private sector in
developed nations with the consequence that most applications
are
proprietary and not accessible to developing countries.
Developing countries would like to access agricultural
biotechnology
applications, particularly recombinant products,
but can't. Similarly, private sector corporations wish to
test,
share and market recombinant products in developing countries
but
are precluded from doing so.
Several key factors mitigate again st the transfer of
biotechnology to developing countries, according to Krattiger.
'Biotechnology R&D is expensive to undertake. Consequently
almost
all of the current R&D in biotechnology is conducted in the
industrial world and aimed at these countries. In addition, no
consensus exists between industrial and developing countries
on
a policy for utilizing the primary genetic resources that are
mainly in developing countries.'
ISAAA: Case Study of Private Sector Biotechnology
Transfer
Krattiger said that pragmatic programs are needed to create
opportunities for the developing countries to access
biotechnology applications. 'ISAAA offers a pragmatic program
that can turn the lose-lose situation into a win-win
situation;
it acknowledges that reasonable profit/return provides
motivation
and incentive for both farmers/national programs and the
private
sector.
'The first pilot stage of ISAAA's program involves donation of
technology to test and demonstrate its capability and to build
scientific conviction and political will. This is achieved by
building institutional capacity in biotech R&D as well as
regulatory development, including biosafety, food safety,
intellectual property rights, and the management of Bt gene
deployment.'
Krattiger says that the major obje ctive of ISAAA is to
offer an institutional mechanism which will allow the
potential
contribution of proprietary biotechnology applications to be
tested by developing countries themselves, and ultimately to
facilitate the transfer of biotechnology between the North and
South.
Technology Transfer: Needs and Opportunities in Southeast
Asia
Dr. Cohen is a plant breeder/molecular geneticist. Prior to
being
Project Manager of the Intermediary Biotechnology Service of
ISNAR in the Netherlands, he was Senior Biotechnology Advisor
to
the US Agency for International Development.
Participants in ABIC's Technology Transfer stream benefited
from
Dr. Joel Cohen experience with tech transfer programs
in
Southeast Asia. Cohen, Project Manager of the
Intermediary
Biotechnology Service (IBS), International Service for
National
Agricultural Research (ISNAR) in The Hague, Netherlands,
described the results of an Agricultural Biotechnology Policy
Seminar involving six Southeast Asian countries.
Cohen said that the seminar e stablished that the ability
to
demonstrate benefit-sharing, coupled with increased
accountability and efficiency of research, are key elements to
the success of tech transfer. 'In countries with advanced
national research capabilities, efficiency has been increased
by
encouraging collaboration with industry, permitting public
organizations to award exclusive licenses. To spread benefit,
public institutions are encouraged to seek relevant partners
to
provide the widest dissemination. These measures increase
impact
and accountability, as the use and adoption of a technology
become the most important measure of success.'
Presently, biotechnology research among developing countries
is
primarily the responsibility of the public sector. However,
Cohen
added, the c ommercial sector can also play an important role,
depending on the clients, agroservices, and the technology-
transfer routes available. 'Regardless of whether distribution
is done by the public or private sector, recognized routes for
technology transfer must be established. Even though
researchers
themselves may not be responsible for technology transfer, the
directors of biotechnology research do have responsibility for
their outputs reaching end users.'
Case Study: Indonesia
Cohen described tech transfer case studies in several
countries,
including Indonesia. The Indonesian example involved one
company's (Fitotek Unggul) experiences with plant
biotechnology.
Its investments in this area began when a rapidly increasing
demand for various kinds of planting material was recognized,
particularly for the horticultural sector.
The transfer involved technologies to improve pineapple
micropropagation using a bioreactor system developed by DNA
Plant
Technology (DNAP) in the USA. Collaboration with the private
sec
tor was facilitated through a bilateral development program
supported by the US. Agency for International Development.
The Indonesian pineapple industry and growers were targeted as
primary recipients of plantlets from the bioreactor
technology.
Besides p rivate-to-private collaboration, government support
can
be tapped to ensure that pineapple planting material becomes
more
widely available to all Indonesian farmers, and not just to
commercial producers.
Achieving an equitable share of benefits
Concern was expressed in the seminar for resource-poor farmers
who may not have adequate opportunities to receive and
evaluate
biotechnology products. Inadequate promotion of research
results
to these farmers was noted, as well as the need for greater
farmer participation.
In general, Cohen said that if private sector
collaboration and technology transfer are to be viable options
for the tech transfer programs in this region, then
communication
with the private sector must occur at an early stage in
research
develop ment. 'This helps ensure that products are appropriate
for private production and geared to identified clients or
users
of the research. In such cases, programs may require
contractual
mechanisms to ensure technology transfer, and the equitable
sharing of benefits,' he said.
Business Stream
Business people around the world are recognizing the growth
potential of agbiotech. In Saskatchewan and Canada, they have
proven their commitment through their willingness to support
ABIC
'96 as participants, as exhibi tors, and as sponsors. In the
ABIC
Business Stream, 18 speakers from Canada, the US and the UK
guide
participants through the complexities of commercializing new
biotechnologies. Summaries of two of their papers are
presented
here .
Determining whether a technology is commercially
viable
Frederick Rogers, was CEO of Rogers & Associates Management
Consultants prior to becoming President of Select University
Technologies in 1993. Rogers was educated at the University of
Alberta
'This is the dawn of the knowledge-based economy, and
technology
is it's currency. Yet far more technologies are being
developed
today than will ever meet with commercial success,' says
Frederick Rogers, President of Select University
Technologies of Newport Beach, USA. 'This makes it more
critical
than ever before to make informed judgments about the
commercial
viability of a new technology.'
Speaking to the Business Stream at ABIC '96, Rogers
asked
participants a simple question: 'How can you determine whether
a technology is commercially viable?'
'The old adage 'that a swan and a turkey look the same at
birth'
is absolutely true when it comes to technology. There are no
easy
answers or magic shortcuts,' said Rogers. 'In my research on
the
subject, I examined thirteen of the greatest technological
breakthroughs of all time. From King Camp Gillette and the
disposable razor to Charles Goodyear (who died in debtors
prison)
and vulcanized rubber none were intuitively obvious successes.
They all had one thing in common, however: each and every
project
received strong negative criticism from the industry leaders
and
credible people of the time.'
Rogers questions whether these captains of 19th century
industry less bright than we are today or did they simply
not
understand what attributes a technology such as the telephone
possesses which will cause its diffusion?
Research has proven that the likelihood of diffusion and the
rate
of adoption of a technology is to a great degree predetermined
by the nature of the innovation itself. The attributes which
most
affect the adoption of a new technology by the target market
are
in fact inherent within the technology from the start. The
trick
is to identify them.
In the world of technology commercialization, the most
important
question to be answered is: Will it diffuse? 'Diffusion theory
is complex and drawn from many disciplines - sociology,
psychology, anthropology, mathematics, and consumer behavior.
Research has focused on people as innovators, social systems
as
receptors or rejecters of ideas, and on the nature of
innovations. It is helpful also to express the rate of
diffusion
as a function of the variables affecting the rate of adoption.
In general, these include the attributes of the innovation
itself; the nature of the target market; and the attributes of
the delivery vehicle.'
How do we measure each of these variables, and more
importantly,
how do they relate to each other? Are they all of equal value,
and if not, which are more important? Does the presence or
absence of any one variable cause the diffusion process to
stop?
'At Select University Technologies,' Says Rogers, 'we
developed a questionnaire designed to seek quantitative
measures
of these parameters. We have also developed the weighted
relationships between these variables and identified a range
of
output scores which separate projects with more promise from
less
meritorious technologies.
Does it really work? 'The model may not pick the winners,'
Rogers comments, 'but it certainly eliminates the
losers.
In my own personal experience o ver a five-year period, I
reviewed approximately 1,000 technologies and selected nine. I
believe these are outstanding technologies and I know that it
was
this model which led me to them.'
Directors Role in Corporate Governance Emphasized
Denzil Doyle is President of Doyletech Corporation, a
Kanata, Ontario consulting firm specializing in creating
management tools for technology-intensive firms. He was
formerly
President of Digital Equipment in Ottawa, and is Chair of
Instantel and Capital Alliance Ventures. He received an
Honorary
Doctorate from Carleton University in 1981.
Denzil Doyle, President of the consulting firm
Doyletech,
shared a series of insights on 'corporate governance' in
technology companies with participants in the ABIC '96
Business
Stream. Doyle's comments were especially relevant to
company board directors.
'Most of the published information available to directors of
companies is focused on their legal responsibilities,' said
Doyle. 'However, most seasoned directors will agree
that
their responsibilities are much broader in scope. Their most
fundamental responsibility is to ensure that the company
survives
and that it fulfills its obligations to all of its
stakeholders.
The most obvious stakeholders are shareholders, employees,
governments, customers, creditors, and the community at
large.'
Doyle believes that the best way of fulfilling those
obligations is to ensure that the company is managed properly.
'Unfortunately, management means different things to different
people. In a technology-based company, it takes on a number of
dimensions which may be foreign to the average director. '
'The only reason why most technology-based companies come into
existence in the first place,' Doyle contends, 'is
because
some other companies that were already supplying its target
markets did not have aggressive and innovative product
migration strategies. A board of directors that allows
a
company to fail because of inadequate product migration
strategies is just as guilty as if it had failed to remit
withholding payments to the government or violated some
environmental regulation even though there are legal statues
in
place for the latter but not for the former.'
A good director of a technology-based firm will pay close
attention to two things, the company's long range plan and its
budget. 'The Long Range Plan is an annually updated document
that
projects the activities of the company for the next three to
five
years. It will outline the company's technology, product, and
market strategies along with implementation plans for ensuring
that the company maintains a strong position in each of its
markets. The Budget is a detailed breakdown of the first
year's
financial projections.
'In addition to the above,' Doyle added, 'a good board
will ensure that the company has a rigorous forecasting system
in place so that deviations from either the long range plan or
the budget can be detected well in advance.'
Doyle outlined the elements of an early warning system for
directors for detecting problems within the company,
particularly within the ranks of its senior management team.
He
said that potential trouble indicators to watch for
include:
- A marked change of attitude on the part of the president or
a
key member of his management team (e.g. a persistent negative
attitude, bad housekeeping habits, reduced energy level,
etc.)
- Missed deadlines, particularly on items for delivery to the
board, such as the long range plan, quarterly reports, or the
budget.
- Across-the-board salary increases and bonuses with little
appar
ent attention paid to unusual individual performance.
- Significant changes in the management structure of the
company,
particularly ones that dramatically change the president's
span
of control.
- A tendency for the president to 'snow' the board with
technical
jargon, or to bring his or her direct reports to board
meetings
and to delegate reporting responsibilities to them.
In suggesting these warning signs, Doyle noted that
none
of them have anything to do with legal issues.
People Watch
Agriculture and Agri-Food Canada
Dr. Reg Kucey has assumed the directorship of the
Brandon
Research Centre. Kucey, who was formerly with the Agri-
Food Diversification Centre in Morden, Manitoba, replaces
Dr.
Al Robertson who has retired after 31 years of service.
Mrs . Diane Vincent has been appointed Assistant Deputy
Minister of Market and Industry Services, replacing
Michelle
Comeau who has joined Industry Canada. Vincent was
formerly with the Government of Quebec.
Ken Kirkland has been appointed at manager of the Melfort
Research Centre. He will continue to manage the Scott Research
Centre.
Deputy Minister, Raymond Protti, of Agriculture and
Agri-
food Canada is leaving the Department to take a position with
the
Canadian Bankers Association.
Dista Products Ltd.
Dr. Graeme Macaloney, Project Manager with the Alberta
Research Council in Edmonton has been appointed Group Leader,
Fermentation Development with the Eli Lilly & Co. subsidiary,
Dista Products Ltd. of Liverpool, England. His e-mail address
will be macaloney_graeme@lilly.com.
National Research Council (NRC)
Dr. Wilf Keller, Leader of the NRC Plant Biotechnology
Institute's Brassica Biotechnology Group in Saskatoon, has
received the NRC's Outstanding Achievement Award.
Keller's
research productivity, peer recognition, and networking
activities are acknowledged through this award.
Royal Bank of Canada
Corey Keith, Senior Account Manager for Knowledge-Based
Industries (KBI) with the Royal Bank's Business Banking Centre
in Saskatoon, is moving to Ontario where he will be Manager of
KBI Markets at Metro West in Mississauga.
Jack Fleming will replace Corey Keith as Senior
Account Manager for Knowledge-Based Industries in
Saskatoon.
Saskatchewan Economic Development
Claire Kirkland is the new Deputy Minister of Saskatchewan
Economic Development. Mr. Kirkland was previously
Deputy
Minister with Saskatchewan Highways and Transportation.
Visit the Ag-West Booth at ABIC
While you're at ABIC, take a moment to stop in at the Ag-West
Booth. It's a great opportunity to learn how the Ag-West team
can
be of service to you. Ag-West acts as a catalyst for agbiotech
development through early stage investment programs, business
relationship brokering, industry education programs and
information distribution.
You can also take advantage of
. Daily draws for prizes
. Free Publications
. Demonstrations of a 'Quick Dip in the Gene Pool' - a new
teacher's multi-media resource on agbiotech
We Welcome Your Input
The AgBiotech Bulletin welcomes submissions of news, ideas and
articles from subscribers. Information about new developments
at
your company or institution, notices about new products or
resources, or observations about events and opportunities
affecting the agbiotech industry will be considered for
publication. Please put us on your mailing list for press
releases and/or contact us directly regarding story ideas or
submissions.
Contact: Debbie Lepage, Ag-West Biotech Inc., 230-111 Research
Drive, Saskatoon, Saskatchewan. Canada S7N 3R2; Phone:
306/975-
1939; Fax: 306/975-1966; E-mail:
agwest@innovplace.saskatoon.sk.ca, Web:
http://www.lights.com/agwest
Credits:
The Agbiotech Bulletin is published 12 times per year on
behalf of Ag-West Biotech Inc. by Westcross House
Publications,
Saskatoon, Saskatchewan, Canada S7K OR1, e-mail:
signatur@eagle.wbm.ca
Ag-West Biotech can be reached at 230-111 Research Drive,
Saskatoon, Saskatchewan, Canada S7N 3R2, e-mail:
agwest@innovplace.saskatoon.sk.ca World Wide Web:
http://www.lights.com/agwest/
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