Plant Biotechnology Has Gone Global With Research and Production Underway in 63 Countries

Biotech Crops Generate $27.5 Billion in Value in United States

13-Dec-2004

Less than a decade after the first biotech crop was commercialized in 1996, biotech crops are now being grown in 18 countries, and research and development is being conducted in another 45, according to a study by a leading U.S. food and trade policy analyst.

"The international adoption and diffusion of biotech crops has gone global and is poised to transform production and development around the world," said C. Ford Runge, director of the University of Minnesota's Center for International Food and Agricultural Policy and Distinguished McKnight University Professor of Applied Economics and Law. "Tens of thousands of lab, greenhouse or field trials have been conducted on about 57 food and fiber crops in countries on every continent."

The study, "The Global Diffusion of Plant Biotechnology: International Adoption and Research in 2004," reported the global commercial value of biotech crops grown in 2003-'04 crop year at US$44 billion, 98 percent of that value came from five countries - the United States, Argentina, China, Canada and Brazil - growing one or more of four biotech-enhanced crops: soybeans, cotton, corn and canola.

To date, the United States is the leader in producing biotech crops, with $27.5 billion in value in 2003-'04 from growing biotech-enhanced soybeans, corn, cotton and canola. The other top five countries in terms of current biotech production include:

- Argentina with $8.9 billion in value from soybeans and corn

- China with $3.9 billion in value from cotton

- Canada with $2 billion in value from canola, corn and soybeans and

- Brazil with $1.6 billion in value from soybeans.

In the next decade, as more developing countries grant approvals to these and other biotech crops in development, some studies estimate the global value of biotech crops will increase nearly fivefold to $210 billion. Adoption of these crops in developing countries could raise the gross domestic product in those countries by 2 percent.

The United States is the leading adopter of biotech crops, approving 15 crops to date, including corn, cotton, canola, soybeans, chicory, cotton, flax, melon, papaya, potatoes, rice, squash, sugar beets, tobacco and tomatoes. Corn, cotton, soybeans, canola, squash, papaya and tobacco are the only crops with significant planted acreage. From 1991 to 2003, the United States conducted field trials, with traits being researched in 24 crops in 2003. Trials included research on fungal-resistant potatoes, peanuts, plums, bananas, rice, lettuce, salt-tolerant cucumbers, herbicide-tolerant peas, onions, tobacco and many others.

"We see continuing expansion of commercial and scientific possibilities for plant biotechnology in the next decade and beyond," said Runge. "Major expansions in biotech crop approvals and plantings are expected in Asia, Latin America and parts of Africa."

While North America is the epicenter for plant biotechnology research, more than half of the 63 countries engaged in biotech research, development and production are developing countries. Western Europe, China, Argentina, Brazil, South Africa, Australia and India are centers of influence that will help lead development into the future, the study finds.

China has emerged as a major center for biotech research. Its government has invested several hundred million dollars, ranking it second in the world in biotech research funding behind the United States.

According to the study, other regions also are investing heavily in biotech research to improve agricultural production and rural incomes:

- South Africa, which has already approved biotech varieties of corn, cotton and soybeans for planting, now ranks sixth in the world in the amount of acres planted with biotech varieties. The country is poised to lead the continent in development.

- India, where farmers grow and sell insect-resistant cotton, has at least 20 academic and research institutions involved in plant biotech research covering 16 crops. Many Indian scientists hope to usher in a second "Green Revolution" while adding another facet to its already-booming, knowledge-based economy.

- In Latin America and the Caribbean, five biotech crops are now approved, and field trials are being conducted on a variety of plants. Argentina leads the way, followed by Brazil.

While biotech research and development in Europe slowed significantly following the European Union's 1999 de facto moratorium on biotech crop approvals, which has since been lifted, Europe's stance on biotech crops can not prevent biotech adoption in the rest of the world.

"If the European Union continues to restrict activity in the sector, it will slow down this global diffusion, but it cannot stop it," said Runge. "If, on the other hand, the EU engaged plant biotechnology, it will encourage rapid international diffusion and adoption."

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