Implications for Industry
• Experience shows GM canola will increase the canola area grown
• Yield and Oil content of GM canola is higher than competitive systems
• Roundup Ready means increased continuity of supply for the whole supply chain
Australia is already using GM oils• Cotton seed oil
– ~94% of Australian cotton production is GM
– The majority of cottonseed is pressed for oil and meal
– Cottonseed oil is used for cooking and in a range of industrial products including as soap, margarine and cosmetics
– GM not new in the Australian oils market
– Monsanto traits already present in the supply chain
Australian canola production
Major Australian broadacre crops1
20.7 million ha
WheatBarley
Canola
Oats
SorghumTriticale Maize Lupins
Canola ha's (000s) and production (kt)2
0
500
1000
1500
2000
2500
1999
/00
2000
/01
2001
/02
2002
/03
2003
/04
2004
/05
2005
/06
2006
/07
2007
/08
050010001500200025003000
Hectares
Production
What is Roundup Ready Canola?Susceptible plants
Sugars shikimate-3-phosphate
EPSPSEnzyme
aromatic amino acids
production of proteins necessary for plant
growth interrupted...
plant dies
glyphosateblocks EPSPS
enzyme
X
Roundup Ready Plants
Sugarsshikimate-3-phosphate
EPSPSEnzyme
aromatic amino acids
X
CP4 - EPSPS
Roundup Ready gene
production of proteins necessary
for plant
growth unaffected
glyphosateblocks EPSPS
enzyme
+ GOX enzyme
metabolises glyphosate
to AMPA and glyoxylate
inactivates
herbicide
Timeline for Roundup Ready Canola in Australia
2009
WA Govt
Exemption for
small scale
commercial
demonstration
late 1990s
Work commences on
RR canola in Aus.
(breed + regulatory)
Pioneer, Pacific
Seeds,
Agseed/govt
collaboration
Monsanto acquisition
of Agseed (canola
breeding & research)
2001 2003
Federal regulatory
approvals of RR & LL
canola for cultivation
2004
Moratoriums enacted in
all major canola
growing states
RR work in Australia ,
Recommences. Monsanto
enters agreements with
Pioneer, Nufarm and
Pacific Seeds
2006 2007
Moratorium reviews in
three key states, seed
company field trials
Victorian &
NSW state
moratoria lifted,
commercial
plans
advanced
2008
SA govt extends
moratorium, declares
intent to enforce
grain transport
restrictions
Roundup Ready canola production• 2008
– 9500ha commercial ~ 1% of production (Vic and NSW)
– Segregated – limited delivery sites and marketing options
• 2009 East Coast
– 41000ha commercial ~10% of production (Vic and NSW)
– Delivered according to AOF canola standards
• 2009 Western Australia
– 850ha demonstration
– Segregated – limited delivery sites
Why will growers use Roundup Ready?
• Over 90% of growers rated their weed control as excellent
• 100% of growers surveyed will plant Roundup Ready canola again
Delivered exceptional weed control
• Roundup Ready canola yields were higher than or equal to Triazinetolerant varieties in 70% of cases; and higher than or equal to
Clearfield® varieties in 80% of cases
• Roundup Ready canola gross margins were higher than Triazine tolerant in 65% of comparisons & 70% of Clearfield comparisons
Outperformed alternative herbicide tolerant canola
• Non residual herbicide and crop rotation benefits
• Responsible stewardship package to ensure ongoing sustainability and resistance management
A sustainable farming tool
Roundup Ready vs Triazine tolerant
1.16t/ha
0.95t/ha
39.4%
37.4%
30
31
32
33
34
35
36
37
38
39
40
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
Roundup Ready Triazine tolerant
Ave
rage
oil
con
ten
t (%
)
Ave
rage
yie
ld (
t/h
a)
Canola system*Comparison of 59 farms growing comparable Roundup Ready and Triazine tolerant canola, surveyed January
2009
Benefits to industry
• Yield and Oil content of GM canola is higher than competitive systems
• Industry competitive with overseas production
• Potential for GM specialty oils with herbicide tolerance
• Provide continuity of supply
Sustainable Agriculture is our focus
• We are developing products that can help address Australia’s major agricultural challenges.
• In Australia we have a strong track record –
– Delivering more than an 80% reduction in insecticide applications in cotton over the past 12 years;
– improved weed management in cotton, and now canola.
• We believe we can play a significant part in the solution towards sustainable agriculture.