DIFFUSION PROCESS IN NETWORKS THE CASE OF GMO SOYBEAN IN ARGENTINA - - PowerPoint PPT Presentation

DIFFUSION PROCESS IN NETWORKS

THE CASE OF GMO SOYBEAN IN ARGENTINA THE CASE OF GMO SOYBEAN IN ARGENTINA

Project : The impact of biotechnology on Argentine production

Roberto Bisang

ARGENTINA’S PRODUCTIVE PERFORMANCE

REMARKS

Local production of grains and oil seeds in 2002 doubled 1990 figures. Soybean production in 2002 tripled 1995 figures. Land devoted to soybean production grew 200% between 1995 and

2002.

Soybean represents almost 50% of total grain and oil seeds cropped in

2002.

Argentina's share in the international market of soy oil and pellets

amounts to about 40%.

Soybean (oil, pellets and other forms) accounts for almost 30% of

Argentine total exports. Why?

• A. A quick diffusion process of a new technological package
• B. Structural changes Networking

SOYBEAN: BUILDING A NEW TECNOLOGICAL PACKAGE

Zero Tillage

Herbicide + Fertilizer

Seeds = Conventional Genetics + Biotechnology

NP NP

• Higher yields
• Lesser fuel consumption
• Erosion control

Effects:

• Cost reduction
• Improved land use (double cropping)
• Easy handling

GMO SOYBEAN

• First Generation On process

Single Agrobacterium cell Transfection is carried out through plasmid cut A gene resistant to Glyphosate is extracted Agrobacterium plasmid in the new gene Cells modify Modified Agrobacterium cell New plant DNA containing the new gene DNA-receptive plant New Glyphosate-resistant soy

• Second Generation On Product

TILLAGE

ZERO TILLAGE CONVENTIONAL

• 1. Seed-bed preparation 2/3

steps

• 2. Seeding 1 step
• 3. Covering 1 step
• 4. Fertilizer
• 5. Weeds control
• 1. Seed-bed preparation 1 step only
• 2. Seeding + Fertilizer 1 Step
• 3. Weeds control

70´S 70´S 80´S 80´S 90´S 90´S

TECHNOLOGICAL PATH

HERBICIDES MACHINERY SEEDS Conventional Drill Seeding (Private + Public Agency) Introduction (INTA/Private) PARAQUATT (by ICI) Seeds + Gene (1985) + Biocides Local varieties

• f seed

(INTA + Local Breeders) GMO Seeds (Nidera) (Monsanto) GLYPHOSATE First Mechanic Zero Tillage Drill Seeding Automatic Zero Tillage Drill Seeding RR Soybean (Nidera Monsanto Syngenta) NEW PACKAGE

DIFFUSION OF NEW TECHNOLOGICAL PACKAGE

Zero Tillage in Soybean

2000000 4000000 6000000 8000000 10000000 12000000 1980/81 1981/82 1982/83 1983/84 1984/85 1985/86 1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02*

Total sown -Has- ZERO TILLAGE Zero Tillage -Has-

Ha’s

Total ZT 67% Zero Tillage sown

DIFFUSION OF NEW TECHNOLOGICAL PACKAGE

• GMO in Soybean

2000000 4000000 6000000 8000000 10000000 12000000 1980/81 1982/83 1984/85 1986/87 1988/89 1990/91 1992/93 1994/95 1996/97 1998/99 2000/01 Years

Total sown -Has-

GMO Transgenic Seeds -Has-

Seeds Sown

91 %

Ha’s

NETWORKS IN SOYBEAN

GMO seeds

fertilizer

• thers

F I N A N C I E R A L SUBCONTRATORS LANDOWNERS AAPRESID INTA SAGPYA CONABIA ET Service Centers Private Diffusion Nets Machinery Suppliers S U P P L I E R S glyphosate

CONTRACTS CONTRACTS

CRUSHING MILL EXPORTS (OIL - Others)

THE DYNAMICS OF DIFFUSSION I

Assets Products Inputs

Prices

Regulatory Productive Technical

Previous Platform

Products Inputs

Technology Import Production

Regulatory Framework

NEW PACKAGE NEW PACKAGE

International Local Markets

Other Seed Equipment

Suppliers of Inputs

Landowners Pools Subcontractors

Agents

Private Public

Financial Market

Why networking? How to improve benefits? (flux effects) How to revalue fixed assets? (stock effects)

• A. FROM AN INDIVIDUAL TO A COLLECTIVE UTILITY META-FUNCTION

. Subcontractors set themselves up in business . Full use of fixed assets

Subcontractors

. Improve sales . Generate tacit knowledge as a commercial surplus

Service Centers

. Increase demand for marginal varieties

Local seed breeders

. Improve demand . Full use of installed capacity

GMO seeds and inputs suppliers

THE DYNAMICS OF DIFFUSION II

How to cooperate in order to compete?

. Increased tax base (on flux or capital)

Government

. Full capacity use

. Low risk in raw material supply

Crushing industries

• B. EXTERNALITIES

. Reduce risk . Lesser capital uses . Higher rotation of fixed capital . Revaluation of land prices

Landowners

. Lower risk . Environmentally friendly

Landowners

. Tacit knowledge on land/weed managing

Subcontractors

. Same process and gene applied to different varieties

GMO seeds and inputs suppliers

• C. FROM PUBLIC TO CLUB GOODS

. Land-working routines Development of conventions or contracts

. Soil management

. Building up of the production function Tacit knowledge in nets

• D. THE PROMOTING AGENT (CONTROL NODES)

○ Public in pre – competition ○ Private Market/Price