Kuliah Umum Orachos Napasintuwong Artachinda, Ph.D (Kasetsart University Thailand)
The Economics of Agricultural
Biotechnology in Developing
Countries
Orachos Napasintuwong Artachinda
Presentation at Institut Pertanian Bogor, Indonesia. January 31, 2011
Agricultural Development
Challenges
Increasing food/energy demand
Decreasing land/resource depletion
Ag labor scarcity
Emerging production problems e.g. biotec/abiotic
stress
Food security
Energy security
Income security
International competitiveness
Agricultural Production
Problems
Increase productivity
Reducing cost/resource use
Improve product quality
What is Biotechnology?
Any technique that uses whole or part
of a living thing to make new products,
improve or develop plants, animals and
other organisms for specific use.
Modern Biotechnology: the use of Genetic
Engineering technique that transfers gene(s)
of interest to develop and improve plants,
animals and other organisms
GE of
animals
GE to develop
animal vaccines
GE of biocontrol
agents against plant
pest & diseases
Plant protoplast
fusion
GE of plants
GE to improve
microorganisms
Recombinant DNA
for disease
diagnostics
Monoclonal anti
body production
Plant tissue culture
Embryo transfer
Fermentation, Biofertilizers
Source: http://isaaa.org/
Genetic Engineering
Technique
Source: http://www.farmacule.com/molecular_farming/
Wild Relative
Crop Plant
Conventional Breeding
Source: http://isaaa.org/
Wild Relative
Crop Plant
Genetic Engineering
Example: Bt-crops
Bt-Bacillus thuringiensis is a soil
bacterium that produces Cry proteins
effectively control insects.
Source: www.meta-helix.com
Example: Bt-technology
Source: http://www.scq.ubc.ca/bt-corn-is-it-worth-the-risk/
Bt-cotton
Source: www.agbioforum.org; http://envfor.nic.in/news/aprjun02/aftcbci.html
Bt-maize
Source: http://bulletin.ipm.illinois.edu/article.php?id=796
GM Herbicide-tolerant
Roundup: herbicide glyphosate
Roundup Ready (RR): Roundup-tolerant
RR soybeans
Source: http://agronomyday.cropsci.illinois.edu/
GM Rice: disease- resistant
Bacterial leaf blight resistant rice vs conventional rice
Source: www.agbioforum.org
GM Rice: golden rice
Golden rice is transgenic variety
containing Beta-carotene to help reduce
childhood blindness linked to vitamin A
deficiency
Source: http://biotektanaman.wordpress.com
Global Area of GM Crops, 1996 to 2007:
(Million Hectares)
140
120
Total
Industrial
100
Developing
80
60
40
20
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Clive James, 2008
Global Area of GM Crops, 1996 to 2007:
By Crop (Million Hectares)
70
60
50
40
Soybean
Maize
Cotton
Canola
30
20
10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Clive James, 2008
Global Area of GM Crops, 1996 to 2007:
By Trait (Million Hectares)
80
70
60
Herbicide Tolerance
Insect Resistance
Herbicide Tolerance/Insect Resistance
50
40
30
20
10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Clive James, 2008
Global Adoption Rates (%) for Principal
GM Crops (Million Hectares) 2007
M Acres
396
160
346
140
297
120
247
100
198
80
148
60
99
40
49
20
0
0
148
Conventional
Biotech
91
35
27
64%
43%
24%
20%
Soybean
Cotton
Maize
Canola
Source: Clive James, 2008
Economic Issues in
Ag Biotec
Production
Economic benefits/costs
Environmental impacts
Seed market monopolization
Consumer acceptance
Perceived risks
Ethics/values
Trade/international regulations
Improved Productivity
Cost Reduction
Increasing Supply
Changes in Consumer
Perception
Perceived risks
Perceived benefits
Changes in Demand
Trade Impact:
small importing country
Trade Impact:
large exporting country
International Regulations
Codex Alimentarius
WTO regulations based on
substantial equivalence
Sanitary and Phytosanitary Standard
Technical Barriers to Trade standards
Unless GM food can be scientifically
proven to be substantially equivalent to a
similar conventional product, an import ban
on the GM variety is regarded as being
compliant with WTO trade laws.
International Regulations
Cartagena Protocol on
Biosafety
Convention on Biological Diversity agreed
in 2003
based on precautionary approach
take into account socio-economic
considerations arising from the impact of
LMOs on the conservation and sustainable
use of biological diversity, especially with
regard to the value of biological diversity to
indigenous and local communities
Non-parties: US, Australia, Argentina,
Canada
Implications for
Developing Countries
Small farmers & the poor could
benefit from yield improvement.
Economic assessment should taken
into account consumers acceptance
and market response.
Price suppression, technical trade
barriers, cost of segregation may
surpass the benefits.
Current Issues in
Developing Countries
Co-existence
Production and trade regulations
reconsideration
Applications in fuel crops
Interesting Websites
http://www.agbioforum.org
Journal of Agrobiotechnology
Management and Economics
http://www.bic.searca.org/
Southeast Asia Biotechnology
Information Center
http://isaaa.org/
International Service for the
Acquisition of Agri-biotec Applications
THANK YOU
Biotechnology in Developing
Countries
Orachos Napasintuwong Artachinda
Presentation at Institut Pertanian Bogor, Indonesia. January 31, 2011
Agricultural Development
Challenges
Increasing food/energy demand
Decreasing land/resource depletion
Ag labor scarcity
Emerging production problems e.g. biotec/abiotic
stress
Food security
Energy security
Income security
International competitiveness
Agricultural Production
Problems
Increase productivity
Reducing cost/resource use
Improve product quality
What is Biotechnology?
Any technique that uses whole or part
of a living thing to make new products,
improve or develop plants, animals and
other organisms for specific use.
Modern Biotechnology: the use of Genetic
Engineering technique that transfers gene(s)
of interest to develop and improve plants,
animals and other organisms
GE of
animals
GE to develop
animal vaccines
GE of biocontrol
agents against plant
pest & diseases
Plant protoplast
fusion
GE of plants
GE to improve
microorganisms
Recombinant DNA
for disease
diagnostics
Monoclonal anti
body production
Plant tissue culture
Embryo transfer
Fermentation, Biofertilizers
Source: http://isaaa.org/
Genetic Engineering
Technique
Source: http://www.farmacule.com/molecular_farming/
Wild Relative
Crop Plant
Conventional Breeding
Source: http://isaaa.org/
Wild Relative
Crop Plant
Genetic Engineering
Example: Bt-crops
Bt-Bacillus thuringiensis is a soil
bacterium that produces Cry proteins
effectively control insects.
Source: www.meta-helix.com
Example: Bt-technology
Source: http://www.scq.ubc.ca/bt-corn-is-it-worth-the-risk/
Bt-cotton
Source: www.agbioforum.org; http://envfor.nic.in/news/aprjun02/aftcbci.html
Bt-maize
Source: http://bulletin.ipm.illinois.edu/article.php?id=796
GM Herbicide-tolerant
Roundup: herbicide glyphosate
Roundup Ready (RR): Roundup-tolerant
RR soybeans
Source: http://agronomyday.cropsci.illinois.edu/
GM Rice: disease- resistant
Bacterial leaf blight resistant rice vs conventional rice
Source: www.agbioforum.org
GM Rice: golden rice
Golden rice is transgenic variety
containing Beta-carotene to help reduce
childhood blindness linked to vitamin A
deficiency
Source: http://biotektanaman.wordpress.com
Global Area of GM Crops, 1996 to 2007:
(Million Hectares)
140
120
Total
Industrial
100
Developing
80
60
40
20
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Clive James, 2008
Global Area of GM Crops, 1996 to 2007:
By Crop (Million Hectares)
70
60
50
40
Soybean
Maize
Cotton
Canola
30
20
10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Clive James, 2008
Global Area of GM Crops, 1996 to 2007:
By Trait (Million Hectares)
80
70
60
Herbicide Tolerance
Insect Resistance
Herbicide Tolerance/Insect Resistance
50
40
30
20
10
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: Clive James, 2008
Global Adoption Rates (%) for Principal
GM Crops (Million Hectares) 2007
M Acres
396
160
346
140
297
120
247
100
198
80
148
60
99
40
49
20
0
0
148
Conventional
Biotech
91
35
27
64%
43%
24%
20%
Soybean
Cotton
Maize
Canola
Source: Clive James, 2008
Economic Issues in
Ag Biotec
Production
Economic benefits/costs
Environmental impacts
Seed market monopolization
Consumer acceptance
Perceived risks
Ethics/values
Trade/international regulations
Improved Productivity
Cost Reduction
Increasing Supply
Changes in Consumer
Perception
Perceived risks
Perceived benefits
Changes in Demand
Trade Impact:
small importing country
Trade Impact:
large exporting country
International Regulations
Codex Alimentarius
WTO regulations based on
substantial equivalence
Sanitary and Phytosanitary Standard
Technical Barriers to Trade standards
Unless GM food can be scientifically
proven to be substantially equivalent to a
similar conventional product, an import ban
on the GM variety is regarded as being
compliant with WTO trade laws.
International Regulations
Cartagena Protocol on
Biosafety
Convention on Biological Diversity agreed
in 2003
based on precautionary approach
take into account socio-economic
considerations arising from the impact of
LMOs on the conservation and sustainable
use of biological diversity, especially with
regard to the value of biological diversity to
indigenous and local communities
Non-parties: US, Australia, Argentina,
Canada
Implications for
Developing Countries
Small farmers & the poor could
benefit from yield improvement.
Economic assessment should taken
into account consumers acceptance
and market response.
Price suppression, technical trade
barriers, cost of segregation may
surpass the benefits.
Current Issues in
Developing Countries
Co-existence
Production and trade regulations
reconsideration
Applications in fuel crops
Interesting Websites
http://www.agbioforum.org
Journal of Agrobiotechnology
Management and Economics
http://www.bic.searca.org/
Southeast Asia Biotechnology
Information Center
http://isaaa.org/
International Service for the
Acquisition of Agri-biotec Applications
THANK YOU