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CropLife Canada releases two new independent studies on the commercial success of biotech soybeans and corn in Canada

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Toronto, Ontario, Canada
February 13, 2008

Farmers continue to show commitment and support for plant biotechnology in Canada and around the world

Today's farmers are reaping the benefits as the global acreage of biotech crops continue to rise exponentially. According to the International Service for the Acquisition of Agri-Biotech Applications (ISAAA), global biotech crop acres have reached 282.4 million acres in 23 countries in 2007, an increase of 12 percent from 2006.

Domestic acceptance of biotech crops has also continued to rise, with the biotech crop acreage in Canada increasing in 2007 to over 17 million acres from 15 in 2006 (ISAAA). The majority of this increase can be attributed to three main crops - soybeans, corn and canola. CropLife Canada released two new reports outlining the successful introduction of GM corn and soybean into the Canadian marketplace showing that GM soy and corn varieties now each command approximately 65 percent of the total acres grown.

"The reasons are clear. For farmers, biotech crops provide increased yields, improved disease and insect resistance, and more efficient production," states Dr. Lorne Hepworth, President of CropLife Canada. "In addition to increased productivity per acre, biotech crops allow for reduced tillage preventing soil erosion and moisture loss while reducing greenhouse gas emmisons."

The two new reports, Soybean Crops in Canada: A report on the successful introduction of GM Soybean into the Canadian marketplace and Corn Crops in Canada: A report on the successful introduction of GM Corn into the Canadian marketplace and the continued co-production of GM and non-GM corn hybrids, were produced by Andy McCormick, Answers 4 Business and Joe Colyn, Originz LLC after conducting interviews of stakeholders ranging from technology developers, seed growers and distributors, producers, grain handlers and shippers, to end-processors.

"In 2007, farmers planted over 1.35 million acres of glyphosate tolerant soybeans representing approximately 65 percent of the market share," says Dale Petrie, General Manager of the Ontario Soybean Growers, an organization representing soybean growers in Ontario. "The main reason behind this rate of adoption is the ease of production in weed control, no-till farming, and reduced fuel costs."

GM corn varieites have also increased to over 65 percent of the market share. Dale Mountjoy, President of the Ontario Corn Producers' Association, attributes this growth in biotech corn acres mainly to improved insect resitance. "Eastern Corn Borer is a significant pest of corn in Canada," said Mountjoy. "Since the introduction of Bt corn varieties, producers have been able to effectively manage this pest without the use of insecticides, which
has helped to increase corn yields and led to the increase in farmer adoption. As new opportunities for animal feed and biofuel arise, we expect biotech corn acres will continue to increase."

Several smaller biotech crops are also being grown in Canada, including sugar beets for bio-fuel production. P.E.I. farmers are planing to grow 1,400 hectares of GM sugar beets in 2008, and expect that number to double in 2009.

"By supporting the use of GM crops in Canada, we are clearing the way to ensure Canadian farmers are on the leading edge of agricultural innovation to meet the evolving needs of farmers and consumers at large," said Hepworth.
 

GM and non-GM Soybean in the Canadian Marketplace: A report on the successful introduction of GM Soybean into the Canadian marketplace
Executive Summary

A decade since the introduction of Genetically Modified (GM) soybeans, the adoption of herbicide tolerant (HT) soybean for the commodity soybean oil crush market has become standard practice. The GM soybean market share continues to increase as growers realize production benefits in weed control and better land stewardship through the easier adoption of no-till planting. HT soy has been adopted by over 80 percent of farmers growing for the domestic crush market sector and has allowed the Canadian commodity soybean production base to compete effectively with HT soybeans from the USA and HT canola from western Canada in supplying the local crush markets.
Along with the commodity bean market, a vibrant food grade soybean production base has existed for more than 30 years in Canada, particularly south-western Ontario and Northern Tier soybean growing areas. Export markets for food grade soybeans have not accepted GM soybeans and as a result the soybean sector adapted and strengthened its Identity Preservation (IP) contracting and production practices to comply. Today GM and non-GM soybeans co-exist to satisfy these divergent markets and domestic crush needs.

Overview

The ten-year experience with GM and non-GM soybeans in Canada has been a success largely because:
  • Canada continues to maintain an Identity Preserved (IP) non-GM soy market due in part to contract production and IP programs such as CIPRS (Canadian Identity Preserved Recognition System.
  • Growers have readily adopted GM soybeans due to the ease of production and increased return per hectare
  • North America does not require separation of GM and non-GM soybean varieties, therefore handlers can leverage their flexible grain handling capacity and good operating practices
  • Technology developers continue to invest in new innovations, especially in the area of new value-added markets in the areas of bio-fuels and nutritional related traits
  • Seed companies benefit from annual sales and reinvest in breeding new varieties
GM and non-GM Corn in the Canadian Marketplace: A report on the successful introduction of GM Corn into the Canadian marketplace and the continued co-production of GM and non-GM corn hybrids
Executive Summary

In the 10 years since Genetically Modified (GM) corn has been available, it has grown to command 66% of the seed market. Much of its successful acceptance in the market can be attributed to increases in yields and improved insect resistance. The lack of major export markets requiring the segregation of GM and non-GM markets also played a factor as producers and handlers are able to manage all varieties in a single production and handling system, with the exception of a small European export market, which has been managed through the Market Choices program.

Overview

The introduction of GM corn into Canada has been successful mainly due to:
  • Yield increases that now exceed 33% of 1997 levels attract grower participation.
  • The steady and strong uptake on the part of growers has supported continued research and development in new traits and combinations of  traits by the technology providers and seed companies.
  • Cooperation by all points along the value chain in developing programs such as Market Choices and elevator Good Operating Practices to ensure channeling is properly managed.
  • Improved farm management opportunities that herbicide tolerant (HT) and insect resistant (IR) traits provide for the grower.


CropLife Canada is the trade association representing the manufacturers, developers and distributors of plant science innovations - pest control products and plant biotechnology - for use in agriculture, urban and public
health settings.

Established in 1949, the Ontario Soybean Growers (OSG) represents 25,000 growers in Ontario Canada. With a vision of an innovative and profitable soybean industry OSG's mission is to develop and promote a sound industry business environment that will allow Ontario soybean producers the opportunity for viable and profitable ongoing returns. Operating under the Farm Products Marketing Act, Board operations are financed by a producer levy of $1.10 per tonne of each tonne of soybeans marketed in Ontario. Growers are represented by 15 directors that come from 13 districts across Ontario. The OSG office is located in Guelph.

The Ontario Corn Producers' Association (OCPA), founded in 1983, is a non-profit association representing approximately 21,000 Ontario corn producers. The association is funded by a refundable check-off on commercial grain corn sales. Activities of the organization are directed by a 16-person board of directors elected annually. Each director operates a farm operation across Ontario and must produce corn to be eligible to be elected as a director.

Answers 4 Business is a consulting firm specializing in collaborative business solutions. Based out of Richmond Hill, Ontario, the firm is a reliable provider of valuable thought and knowledge-based supply chain solutions for clients. They are experts at business process transformation and change management within organizations.

Originz, LLC is a professional service provider delivering "Strategies for Future Food Systems and a Healthier World". The firm specializes in strategic planning, business and technology development, and project management across the food and agriculture sector. Originz clients include Fortune 500 companies, entrepreneurs in need of technical expertise, non-profits, and industry associations across North America interested in delivering good food from a vibrant agriculture.

 

 

 

 

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