Strategic alliance will push Australian grain to the forefront

April 14, 1999

A strategic research alliance between three of Australia's leading agricultural bodies was announced today at Grains Week. Graingene, a joint venture formed by AWB Limited, the Commonwealth Scientific and Industrial Research Organisation (CSIRO), The Grains Research & Development Corporation (GRDC), will generate plant biotechnology research and commercialisation  opportunities for Australian-grain and will greatly enhance Australia’s investment capability in grain biotechnology.

In announcing the joint venture, AWB limited Chairman Mr Trevor Flugge said Graingene will help Australia to develop a strong, strategic position in the plant biotechnology field, particularly in wheat and other grains, and will also enhance Australia's competitive position in these technologies.

Each of the founding bodies bring with them strategic benefits for the joint venture. AWB Limited brings commercial knowledge and competitive experience, CSIRO brings research skills, knowledge and facilities and the GRDC brings investment in major plant breeding programs within Australia and a share in ownership of most new Australian grain varieties.

Graingene will take advantage of the strengths in plant biological research, particularly in gene technology, which already exists within CSIRO plant industry. With AWB as a partner, Graingene will have the opportunity to commercialise all research outcomes under licence for the benefit of Australian growers.

According to GRDC Managing Director, Professor Emeritus John Lovett, if Australia's wheat yields are increased by just 0.5 per cent as an outcome of the joint venture, Australian graingrowers stand to gain increased harvests worth $15 million each year.

"A number of the projects within Graingene have the potential to capture at least this level of return, " Professor Lovett said. "A practical approach is being taken and links have already been developed between Graingene and some of Australia's major crop-breeding programs."

Professor Lovett said farmers in Australia stand to benefit from projects which will include the development of novel bread wheats and. cereals with starches modified to suit food processes used in Asian markets.

In addition to this, the project would develop wheats with increased protein content and crop varieties able to better tolerate Australia's environmental stresses and resistances to pests and diseases.

Dr Jim Peacock, Chief, CSIRO Plant Industry, said Graingene consists of six major research programs embracing topics crucial to Australian agribusiness, "Graingene will lock at genomics, new breeding and product specification technologies, yield increase and performance traits, resistance to pests and diseases, crop nutrition and abiotic stress and product quality," he said.

"Each of the projects within these programs should generate important intellectual property which can be incorporated into new grain cultivars for Australia's grain industry. The Graingene partnership represents a framework for research and industry groups to work with each other to bring discoveries successfully to fruition. Australian and international research institutions and companies will be invited to participate in individual research programs."

AWB Limited Chairman, Mr Trevor Flugge said Graingene will provide a training ground for young scientists in biotechnology and will ensure Australia does not play the role of dependent player in global agribusiness, but will be a world leader.

"Biotechnology and other new technologies have made major contributions to plant science in the last decade and advances are now beginning to reach into commercial agriculture," Mr Flugge said. "Large multinational companies previously based-in the agrichemicals business, have increasingly oriented their business system to gene technologies."

"With the prospect of large multinationals taking greater control of the Australia grain industry's genetic intellectual capital, AWB Limited, the CSIRO and GRDC through Graingene, are taking a leading position with this technology on behalf of Australian growers."

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