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Royalty for farm-saved-seed

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Germany
October 30, 2007

Quelle: SAATEN-UNION

The achievements of classical cereal breeding by private breeding companies have shown a remarkable success during the last decades. But the public recognition and the even the respect at the farmers’ level have been limited.

While the results of breeding via international foundations was highly recognised as the „Green Revolution“, „private” breeding had an equally high impact in developed countries where high yields and improved quality joined by better resistance against harmful pests and diseases were accomplished in their varieties. But private breeding companies have to collect royalties to finance these achievements. Even in there home markets of Western Europe all private cereal breeders are suffering due to the increasing level of FSS.

EU legislation confirmed royalty on FSS

Although in Northern Europe, UK and France the implementation of the EU-regulation regarding royalty on FSS has been successful, breeders are suffering from the increase of FSS, because the royalty level for FSS is only about 50 % of the royalty for certified seed. The collection of royalty on FSS in Central Europe is still not satisfying and in Southern or Eastern Europe the regulation’s implementation is still missing. In addition to this we have levels of FSS in these countries of up to 90 %.

Costs for breeding are increasing

To succeed with top-level new varieties private breeders have to use the latest bio-technologies like dihaploids, cell and tissue culture, molecular markers, etc. These techniques are increasing the cost for breeding every year. These circumstances have caused a dramatic change in the business structure of private cereal breeding during the last decade. Due to the low profitability of classical cereal breeding, big multinationals like Monsanto sold their cereal breeding activities, while other multinational breeding companies like Advanta were cut into pieces and sold as well. Several smaller breeding companies just disappeared and even leading cereal breeders had to cut their staff and tried to reduce their costs.

New top-varieties only with royalty for FSS

As one reaction SAATEN-UNION will deliver new top cereal varieties to countries with a very high level of FSS, only if a payment of royalty on FSS will be assured by distributors and farmers through a contract. The agreement would also allow free access of an authorized person to the concerned field of these farms, provision of their field maps and would include a significant penalty for any sales of harvested grain to other farms for seeding purposes. To maximize the yields of purchased top-varieties, even with FSS, new local SAATEN-UNION advisers will support these farms in the future giving advice in production technology not only for cereals but in the management of the whole crop rotation of the farm including oil-seed-rape, maize or pulses. Hopefully this approach will help return the cost of increasingly expensive breeding programs. Otherwise the concentration of private cereal breeding enterprises will continue or such companies may be replaced by less efficient public breeding programmes as it is the case in North America and elsewhere.

Dr. Ernst Loop, Head of International Department

 

 

 

 

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