1. Why So Few Biotech Crops? Issues for California Kent J. Bradford Dept. of Vegetable Crops Seed Biotechnology Center UC Davis

2. Non-transgenic Applications of Biotech Many products on the market have used non-traditional (not transgenic) methods –Embryo rescue, protoplast fusion, somaclonal variation, chromosome doubling, etc. Molecular-assisted breeding/genomics –Extremely valuable tools –Will enhance products even without transgenics

3. Biotech (Transgenic) Crops in the Market C. James (2001) Global review of commercialized transgenic crops. 2001. ISAAA Briefs No. 24. www.isaaa.org USA 68% Argentina 22% Canada 6% China 3% Soybean 68% Maize 22% Cotton 6% Canola 3% Herbicide 77% Insect 15% Both 8%

4. Horticultural Biotech Crops in the Market Papaya – virus resistant Squash – virus resistant Courtesy of D. Gonsalves

5. Biotech Crops Formerly in the Market FlavrSavr tomato – long shelf life Poor varieties Business failure Potatoes – insect and virus resistant 4% of national acreage in 1999 Withdrawn due to marketing issues Sweet corn – insect-resistant Up to 3000 acres in Florida after introduction Only scattered planting now due to marketing issues

6. Biotech Crops Potentially in the Market Herbicide resistance Sugarbeets Rice Lettuce Tomato Alfalfa Wheat Strawberries Insect resistance Broccoli Apples Walnuts

7. Biotech Crops Potentially in the Market Virus resistance Pumpkin, watermelon, tomato, pepper Raspberries – bushy dwarf virus Stone fruits – plum pox virus Citrus – tristeza virus Bacteria resistance Grapes – Pierce’s disease Citrus – Bacterial canker Apples – Fire blight Fungi, nematodes Various crops

8. Potential Impact of Biotech Crops for CA A study on pest control released by the National Center for Food and Agricultural Policy in June 2002 found that: Case studies of 32 biotech crops “in the pipeline” could reduce grower costs by $400 million and reduce pesticide use by 117 million lbs/year. California would potentially benefit the most, with estimated economic benefits of $206 million and 66 million fewer lbs of pesticides applied per year. www.ncfap.org

9. Why Aren’t Biotech Crops in the CA Market? Market resistance US consumers relatively unconcerned Marketers/retailers very concerned Why risk being picketed? Brand name protection Regardless of production benefits, they don’t outweigh the potential negatives in the market Waiting for “consumer traits” to pull products through the market Much more difficult to engineer Value uncertain in the market Foregoes benefits from input traits

10. Why Aren’t Biotech Crops in the CA Market? Intellectual property issues Enabling technologies owned by large companies Licensing required for entry into market Technology owners/providers may not be interested in minor crops Stewardship issues Concerns about diffusion of technology Liability issues Post-commercialization stewardship can be very expensive

11. Why Aren’t Biotech Crops in the CA Market? Market size Small markets cannot recoup development and registration costs on seed sales alone Require market differentiation and movement up the value chain (i.e., output traits) Alternative example: New root worm-resistant maize variety from Monsanto: 6 years of development since transformation At least $25 million spent before launch (largest fraction in regulatory activities) But estimated $1 billion yield loss worldwide Large market is sufficient to repay investment

12. Why Aren’t Biotech Crops in the CA Market? Regulatory issues Current regulatory data requirements are not economical for small market crops (Alan McHughen to discuss) Each transformation event must be separately registered Less of an issue for vegetatively propagated crops with relatively few varieties Significant issue for seed-propagated crops utilizing many varieties, e.g. lettuce, tomato Registration in Japan and other markets may be expected before release

13. Why Aren’t Biotech Crops in the CA Market? Biological diversity Diversity of crops has delayed development for CA Market acceptance Supply chains have not accepted them Anti-biotech campaigns have been effective Intellectual property A significant issue, but may not be the major one now Some alternatives in the public sector under development Stewardship Now the major issue for the technology providers Likely will be difficult for small companies to afford Regulatory requirements Costs out of proportion to potential market size

14. Workshop on Biotechnology for Horticultural Crops Challenges & Opportunities Monterey Plaza Hotel & Spa Monterey, California March 7-9, 2002 Papers from the Workshop are being prepared for publication as a special issue of California Agriculture which should appear in Spring 2003. Special California Agriculture Issue Seed Biotechnology Center Agricultural Issues Center