Generating Funds for Plant Breeding and Variety Development Value - - PowerPoint PPT Presentation

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Generating Funds for Plant Breeding and Variety Development Value - - PowerPoint PPT Presentation

Generating Funds for Plant Breeding and Variety Development Value Capture in Canada For the ISF Field Crops Section For the ISF Field Crops Section May 28, 2014 Patty Townsend, CEO, Canadian Seed Trade Association Growing for the World/ Une


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SLIDE 1

Generating Funds for Plant Breeding and Variety Development

Value Capture in Canada For the ISF Field Crops Section For the ISF Field Crops Section May 28, 2014

Growing for the World/ Une Croissance Axée sur le Monde

Patty Townsend, CEO, Canadian Seed Trade Association

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SLIDE 2

IP and Value Capture in Canada

  • 1. Setting the stage – the situation in Canada
  • 2. IP tools
  • 2. IP tools
  • 3. Investment in plant breeding and variety

development p

  • 4. Changes in Canadian IP Environment

5 Developing a Value Capture System

  • 5. Developing a Value Capture System

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 3

IP Tools Used in Canada

Event/Trait Patents Cell Patents Tech.Use Agreements Contracts Hybrids PVP/PBR

Canola X X X X X Corn X X X X X Soybeans X X X X X y Cereals X X Pulse Crops X p

  • Private sector investment is going where there are
  • Private sector investment is going where there are

more options to protect intellectual property

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 4

Total investment in research plant breeding Total investment in research, plant breeding and variety development* in Canada in 2012 was $165.9 million $

Public Sector $46.5 million Producers $19.9 illi Private Industry $99.5 million Private Industry $99.5 million

Growing for the World/ Une Croissance Axée sur le Monde

* canola, cereals, corn, pulse crops, soybeans

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SLIDE 5

Private Sector Investment in Canada

Canola

Soybeans 9% Cereals 8%

Pulse Crops 0.5%

Corn Pulse Crops Cereals

Corn 15%

soybeans

  • 83% of Private sector investment is in Canola, Corn and

Soybeans Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 6

Investment in Cereals 2012 AAFC $23.5 million (58%) Private Industry $ 8 4 million (21%) Private Industry $ 8.4 million (21%) Farmers $ 8.3 million (21%) Total $40.2 million

  • 7.6% of total private sector investment was in

cereal breeding and variety development

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SLIDE 7

7

Wheat Yield – Top 5 Exporters 1962-2012

5 6 3 4 5 Argentina Australia C d 1 2 3 Canada EU USA 1 962 964 966 968 970 972 974 976 978 980 982 984 986 988 990 994 996 998 2000 2002 2004 2006 2008 2010 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2

USDA Foreign Agriculture Service

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 8

7

Wheat Yield – Top 5 Exporters 1962-2011

5 6 3 4 5 Argentina Australia C d 1 2 3 Canada EU USA 1 962 964 966 968 970 972 974 976 978 980 982 984 986 988 990 994 996 998 2000 2002 2004 2006 2008 2010 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2

USDA Foreign Agriculture Service

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 9

Seeded Acres Wheat vs. Canola

14 16 8 10 12

‘000 Ha

4 6 8

Canola

2 4 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Growing for the World/ Une Croissance Axée sur le Monde

Statistics Canada

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SLIDE 10

Public/Producer Producer/Private

AAFC Vision of Cereal Variety Development

Public/Producer

AAFC and Universities

Germplasm + Producer/Private P t hi

Producer/Private

Germplasm + Consortia Investment Partnership Public good trait de elopment Trait development Variety Testing and development Variety development g evaluation Accelerated variety Variety release – minor y release y classes?

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SLIDE 11

H l d’ FT W d ( f d i h )

The Variety Developer’s Return on Investment

Hyland’s FT Wonder (soft red winter wheat)

  • Variety Development Cost - 9 years - $926,814

Year 1 Year 2 Year 3 Margin $1.92/25kg $1.84/25kg $1.90/25kg g g g g Sales 176,000 units 10,546 units 32,000 units Revenue $337,920 $19,405 $60,800

Variety Development Cost $ 926,814 Three Year Total Revenue $ 418 125 Three Year Total Revenue $ 418,125 Three Year Net ($508,689)

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 12
  • Plant Breeders’ Rights are currently the main IP tool

for cereals in Canada

  • Current legislation conforms to UPOV 1978

December 9 2013 December 9, 2013

  • Bill C-18, Agricultural

Growth Act introduced in th H f C the House of Commons

  • Proposes to bring PBR

legislation into legislation into conformity with UPOV 1991

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 13

Bill C-18 completely complies with UPOV 1991

  • Includes a “farmers’ privilege” –

to save grain produced on their

  • wn farms to use as seed on

their own farms

  • Gives the Minister the ability to

make regulations: make regulations:

  • To include or exclude crop

kinds from PBR

  • Respecting harvested

material and farm saved seed Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 14
  • 18 organizations joined

Partners in Innovation

  • 18 organizations joined

together to support Bill C-18

  • 17 farmer organizations

ti t j it representing vast majority

  • f farmers and over 90%
  • f production
  • CSTA facilitates and is a

member

  • Actively promoting PBR

Actively promoting PBR amendments Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 15

Next Steps 1 L i l i h h h H f

  • 1. Legislation must pass through the House of

Commons and the Senate

  • Fall 2015 Federal election
  • Fall 2015 Federal election
  • 2. Develop PBR Regulations
  • Technology Value System

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 16

Funding Innovation - A Technology Value System

Technology Value System CSTA facilitated – Value Chain Developed p

  • Large international conference April, 2013
  • Value chain working group

g g

  • Draft concept presented to larger group
  • Value chain finalized

A “Canadian Technology Value System” that will effectively capture funds from the value chain for y p investment in plant breeding and variety development in order to bring benefits to all stakeholders along the value chain

Growing for the World/ Une Croissance Axée sur le Monde

value chain.

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SLIDE 17

Funding Innovation - A Technology Value System

The Concept The Concept

  • Established in regulation associated with new PBR

Act

  • Apply to all cereals protected with PBR under new Act
  • Indicators of success – to determine the value of the

t lt bli h d 5 system – results published every 5 years

  • 2 components

1 Flat rate delivered grain royalty $Cdn 1 50/Tonne 1. Flat rate delivered grain royalty $Cdn 1.50/Tonne 2. Refund for producers who purchase certified seed

  • Monitoring and testing to help prevent misdeclaration
  • Cooperation of the entire value chain

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 18

Funding Innovation - A Technology Value System

Next Steps

  • Present the concept to the Minister

p

  • While focussing on Bill C-18, develop proposed

regulations in the background

  • Public consultations
  • Implementation of the system – with retroactivity

Implementation of the system with retroactivity

Growing for the World/ Une Croissance Axée sur le Monde

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SLIDE 19

Canadian Seed Trade Association Suite 505, 2039 Robertson Road Ottawa, Ontario Canada K2H 8R2 +1 613-829-9527 +1 613 829 9527 www.cdnseed.org

Growing for the World/ Une Croissance Axée sur le Monde