HIGH FLYERS THINK TANK

Biotechnology and the future of Australian agriculture

The Shine Dome, Canberra, 26 July 2005

Summary report

Introduction

Biotechnology revolution

Biotechnology is the study and use of living things to make or change products.  Recent technological advances have enabled the science and application of biotechnology to expand exponentially, in particular due to the modern tool of gene technology. Biotechnology can be used for a range of purposes, including enhancing conventional breeding through identifying the functions of desirable – and undesirable – genes and marker-assisted selection of new varieties of plants and animals. Another approach is to develop a genetically modified organism (GMO) to introduce, enhance or remove particular characteristics by introducing new genetic material to an organism.

One of the greatest global challenges of the 21^st century will be to feed, water and clothe nearly 10 billion people in an environmentally responsible fashion. Biotechnology may provide solutions to some of the challenges of the new millennium. Biotechnology has already enabled major crops such as corn, cotton and soybean to have their own protection against insect attack and disease, allowing them to be grown using less chemical pesticides. The new technology enables the possibility of developing crop varieties that can better tolerate environmental stresses, including drought, waterlogging and soil salinity. Many farmers today want crops to help solve the five big ‘E’ challenges¹: protecting the Environment, conserving Energy, improving the agricultural Economy, Enhancing crop benefits, and improving crop Endurance in the face of disease, pests and adverse climatic conditions.

Importantly, biotechnology research is developing a ‘second wave’ of agricultural products with direct benefits to consumers, such as improved food quality and nutrition. Examples include ‘golden’ rice with added beta-carotene to produce vitamin A, omega-3 plant oils, leaner meat, protein-enriched milk and removal of allergens. Through biotechnology, food may become an important component in our preventative health system. A ‘third wave’ has also commenced where researchers are using biotechnology to modify plants to produce industrial and pharmaceutical products – called ‘biopharming’ – including biodegradable plastics, biofuels, new fibres, diagnostic enzymes, vaccines and medical compounds.

Global context

2005 marks the 10^th anniversary of commercialised GM crop plantings in the USA. Over the past decade, global acceptance of agricultural biotechnology has undergone a rapid rise. In 2004 the estimated global area of approved crop plantings was more than 81 million hectares, with these crops grown by millions of farmers across 17 countries². The International Service for the Acquisition of Agri-Biotech Applications (ISAAA) projects that by the year 2010, up to 15 million farmers will grow GM crops on more than 150 million hectares in up to 30 countries².

Australian context

Australia is ranked sixth among the countries using biotechnology in the world, and number one in the Asia-Pacific. Of the 400 or so biotechnology companies in Australia, the majority focus on human health applications with only about 16% involved in agricultural biotechnology and less than 10% working on environmental applications. However Australia has a strong public sector biotechnology research capability which is highly regarded internationally and some two-thirds of this research capacity is focussed on agricultural and environmental biotechnology.

In agriculture, biotechnology is now used to make conventional breeding more efficient through the use of DNA marker technology. Another key focus is genomics – the study of an organism’s entire genetic material – which is used to identifying individual genes and their function. Genomics can help to develop crop plants more suited to the Australian environment, both through fast tracking conventional plant breeding programmes or by genetic engineering.

Sequencing of the bovine genome is nearly complete, and brings great potential for advances in the health and disease management of beef and dairy cattle, and in the nutritional value of their products.

Most experts agree that water, salinity, nutrients, population growth and biodiversity preservation are some of the biggest issues facing Australian agriculture. The rapid growth in agricultural R&D of new and enhanced products is expected to have significant impact on agricultural practices in Australia during the next 10 to 20 years.

Summaries of each agriculture sector

Representatives from the agriculture industry were divided into sectors representing horticulture, crops, livestock, aquaculture and biopharming. Think Tank participants from each sector discussed four topics: productivity, environment, value chain and social aspects. A summary of results from the group discussions is provided in the Outcomes matrix which highlights current issues, strengths and needs in the areas of productivity, environment, value chain and social aspects. A summary of the discussions from each of the sectors follows.

Horticulture

Horticulture is a very diverse sector which includes the cultivation of fruit, vegetables, flowers and bush-tucker, and consequently this sector has a fragmented approach to the application of biotechnology. Fragmentation is exacerbated by the wide range of climatic environments over which horticulture occurs in Australia. The great diversity of horticulture in Australia offers significant potential for the development of new products, particularly in the tropical regions. Australia is also well placed globally with respect to having a reduced pest and disease presence in the horticultural industry.

Within the horticulture sector, there has been an emphasis on ‘reactive’ research, responding to growers and retail needs, and a general lack of funding for ‘strategic’ research. The distinction is critical, given the long time frames from initial concept to final product in horticultural research. There has also been an emphasis on the selection of varieties for quality characteristics such as appearance, flavour and lack of seeds, rather than yield.

To date, new biotechnology techniques have not been applied to many horticultural crops. There is a need to develop a range of molecular markers that can assist in conventional breeding programs. Analysis of quantitative trait loci is also required in horticultural crops.

The use of genetic modification of horticultural crops has the potential to deliver improved tolerance to adverse environmental conditions such as frost, drought and salinity, and also to extend growing seasons, thereby creating new markets. The application of RNAi technology to decrease undesirable characteristics – and to create desirable characteristics such as altered flower colour – could enable significant advances to be made.

There is great potential to transfer research findings from other plant species to horticultural crops and to develop platform technologies. There is also a growing need to take a multidisciplinary approach to research and to draw on research developments and outcomes in other countries and other agricultural sectors.

Crops

In the 22 years since the first transgenic tobacco plant was made, there have been major advances in the understanding of how plants grow and function, with much knowledge gained from the ‘model’ plant Arabidopsis. To date, efforts have focused on genetic modifications to improve crop production, particularly herbicide and pest resistance in cotton and canola.

A ‘big-picture’ approach is required to predict the future demand for crops, including a consideration of wheat versus other crops. Diversity is considered a key element to maintain a strong future for the sector in Australia, requiring more basic research in a number of crop and cereal species. Target crops and target traits need to be identified for strategic planning, with consideration given to global activities. It is acknowledged that future research should involve multiple genes and traits, decreasing undesirable gene activity and altering biochemical pathways. This is particularly important given the high R&D costs and long-lead times involved.

There is a current need for greater precision in agriculture to match inputs and outputs, and undertake cost-benefit analyses. There is also an important need to take a more proactive approach and a critical need for minimising risk and conducting risk planning for implementation.

The current community barrier to GMOs is limiting advances in both GM and non-GM biotechnology approaches. A multi-disciplinary approach to the sector that involves environmental and climate change experts is also considered essential.

Livestock

The strong export-orientation is a major driver of biotechnology research in Australia’s livestock industries, and the sector aims to remain competitive in an international market. Productivity growth over the past 25 years has been moderate for the sector.

There are key opportunities across livestock industries, particularly with respect to genomics, genetic markers, and functional genetics associated with key diseases, parasites and production traits including wool fibre quality, milk output, protein content of milk and lean meat. DNA-based diagnostics for productivity and product quality traits are now available, eg. tests for meat tenderness and fat marbling in beef have been successfully commercialised. Biotechnology has also been critical to the development a number of vaccines.

Importantly, a number of genome sequences for livestock are now or will soon be available. An important future challenge is to understand the complexity of gene and metabolic networks – all on a relatively limited funding base. The genome sequences will generate a flood of data, but there is a critical gap in mathematical capability to analyse the sequence and an increasing need for molecular biologists and geneticists to work with mathematicians and modellers.

There is scope to greatly expand efforts so that Australian agriculture and farmers are at the forefront of the ‘new’ genetics in developing improved breeds of livestock and management practices for enhancing global competitiveness. Effort is currently fragmented, and a more united, national framework and strategic approach is required. There is also a need to better understand the environmental impact of livestock in Australia to encourage sustainable practices.

Aquaculture

Aquaculture is one of, if not the, fastest growing sector of food production in Australia and overseas, with close to 150 species under development. Globally, aquaculture production has grown five-fold in the last 50 years, and is expected to produce around 40% of the world’s seafood in 15 years. This is largely driven by an apparent plateau in our ability to procure food from ocean and fresh water wild stocks. Although Australia is a small producer of seafood, it exports high-quality, high-value products, including tuna, pearls, abalone and lobster, much of which is cultured. Currently Australia represents less than 0.3% of world aquaculture production, but has about 0.5 % of the value.

Australia has a wealth of unique marine and aquatic biodiversity to be used for aquaculture, and a wide range of environmental ‘culture’ conditions. However, for most species the basic life cycle and nutritional requirements are not known. Researchers are currently trying to develop solutions to three main aquaculture problem areas:

• diagnosis, treatment and prevention of diseases
• production of environmentally sustainable, nutritional products
• defining and improving genetic stocks.

The first genome of an Australian marine organism to be sequenced is likely to be that of the sponge Reniera. Since sponges are communal organisms being comprised of animals and microbes, this will provide the opportunity to investigate metagenomics. A future trend will be for marine invertebrates to be increasingly used in food production, biopharming and biofabrication. An adequate national legislative environment to support these trends is still in development.

Australia is well positioned to be a central driver in the future development of aquaculture worldwide – particularly if a multi-disciplinary approach is taken and overseas experience and lessons are used. Australia is well placed to develop as a biotechnology industry provider for the Asia-Pacific region – this is dependent on an integrated, national approach to the sector and maintenance of our ‘clean green’ reputation. At present aquaculture industry in Australia has no clearly defined biotechnology objectives.

As a priority Australia needs to develop its under-utilised aquatic resources using biotechnology, particularly in relation to genetics, disease and nutrition. Some 85% of Australia’s aquaculture production is based on five species. The time is right for a selection of key species to link to a dedicated industry-supported biotechnology program, with the next step being to combine these species with sustainable aquaculture systems using biotechnology tools for husbandry development.

The aquaculture industry would benefit from utilising biotechnology to develop product quality by drawing upon the experience of the livestock sector. However, to date there has been poor selling of biotechnology benefits by R&D providers to the aquaculture industry, and there is a real need to reinforce and better demonstrate the benefits and applications of biotechnology to members of the industry. This requires the division between GM and non-GM biotechnology applications to be clearly defined. Importantly there is a critical need to maintain the low impact and high acceptance of aquaculture by the public, and to develop a forum between industry and R&D providers to explore the opportunities of potential biotechnology applications.

Biopharming and functional foods

Many believe that there will be greater acceptance of GM products by consumers when health benefits can be demonstrated. Health benefits could be provided by modifying cooking oils, enrichment or modification of available vitamins or removal of allergens. Such traits are known as ‘second wave’ output traits. ‘Biopharming’ and functional foods is the youngest of the agricultural biotechnology fields with a focus on output traits.

There is also a move to genetically modify industrial and pharmaceutical crops to synthesise products they don’t currently make (ie. ‘third wave’ output traits). There are two main technologies used to modify metabolic pathways in plants: silencing genes using RNAi and introducing new genes to modify existing biosynthetic pathways. For example, biotechnology could be used to genetically modify:

• poppy plants to produce reticuline rather than morphine
• plants to produce human insulin
• starch composition in plants to make biodegradable plastics.

An important community issue is that of coexistence and separation of GM crops from traditional food crops. Planning, risk management, and communication will be essential.

There is also a large potential for biopharming and biofabrication applications using marine organisms. It seems that current funding models constrain research in the ‘pharming’/new products sector – perhaps alternative sources of funding are needed to allow the development of new products from pharming.

In Australia there is limited infrastructure and limited support compared to some overseas competitors. Consolidation of infrastructure, network development or global partnering could provide a solution. Commercial viability of potential products is also an important issue. Intellectual property (IP) can unnecessarily complicate research opportunities, particularly if IP outputs are linked to funding. Taking an open source approach and Australia-wide ‘team’ models for licensing of products needs to be considered. A unified, national approach to the sector is required for Australia to progress and to be globally competitive.

Common themes for the future of agricultural biotechnology

Ten common themes emerging from discussions on the future of biotechnology were identified. These are, in no specific order: communication/education; innovation; integration; technology; training; the GM barrier; economic barriers; positioning Australia; agricultural biotechnology research funding; and regulation. Common themes are presented in Universalities matrix and further discussion on some of the issues is presented below.

Communication and education

Communication and education are seen as critical areas for the future of agricultural biotechnology in Australia. There is a need for consistent use of biotechnology nomenclature in government, industry and consumer markets. At present there is a lack of knowledge and appreciation of the full range of biotechnology tools and potential products by the public.

Raising awareness of the distinction between GM and non-GM techniques seems prudent. There is a need for more detailed information to be communicated to end users – product labelling and branding may help with this. Education of the public of the benefits of biotechnology has been lacking in all agricultural sectors. There is an urgent need for case studies that provide ‘bigger picture’ perspectives. Greater communication of risks and management options are also required to enable science-based, informed decisions by policy makers and consumers.

Innovation

Recent advances in biotechnology offer exciting developments, not only for scientific research but also for innovation. Australia can provide innovative solutions to local conditions and problems, as well as the global community and markets. Innovation would be facilitated by improving dialogue between farmers, retailers, scientists and end users, and between scientists working in different disciplines and agricultural sectors. Current research seems to be reactive and ‘grower’ driven, rather than proactive and strategic; it is also often focussed within disciplines and sectors.

Integration

The Think Tank discussions clearly demonstrated that there was much to be learned from synergistic interactions between scientific disciplines and also from transferring experiences between sectors. The formation of ‘umbrella’ research organisations was suggested to facilitate a multi-disciplinary approach to research, provide a critical mass for research, and achieve efficiencies of scale regarding resources and equipment.

Positioning Australia

It was also clear that Australia has been somewhat conservative and constrained in its approach to and progress in biotechnology. Rapid gains and implementation of agricultural biotechnology developments in the international scene present a challenge. While Australia is a relatively small player in the global market, there are many opportunities for Australia to use its natural competitive advantages and strong research capability (see Opportunities matrix). Australia has many high-value, high-demand products, and extensive biodiversity, geographic diversity and climatic range to assist the development of new products. To remain globally competitive, Australia may need to make strategic research and economic plans to develop and utilise the full range of biotechnology tools across all agricultural sectors. There is a strong need for longer-term strategic GM research – even if it is not brought to market in the immediate future or within Australia. For example, some products could be solely marketed overseas, and the marketplace can undergo rapid changes regarding demand. This is even more pressing given the considerably long lead times involved in much agricultural research (ie. from idea to shop).

Much of the public concern overlooks the fact that biotechnology’s greatest potential is not necessarily in GMOs but in biotechnology processes – identification of genetic function, molecular markers, genomics, proteomics, et cetera.

Integration and agricultural research funding

A major finding of the Think Tank was that, as far as biotechnology is concerned, the agricultural sector as a whole, and within individual sectors, lacks a unifying framework that can guide national action on the policies and methods needed to achieve sustainable agriculture and globally competitive positioning for Australia.

Limitations were identified with current R&D funding models and a call was made for a more centralised fund that could support strategic research that would benefit all agricultural sectors. A national, unified approach to supporting biotechnology infrastructure was also called for and the need for consolidation was suggested. The need for global partnering was identified as essential for Australia, and this is already occurring in many fields.

Regulation

Discussions during the Think Tank stressed that agricultural biotechnology must be underpinned by a scientifically credible, robust regulatory structure with a national purview. While this is occurring there is still the opportunity to further consolidate legislative aspects (eg. national biodiscovery) and broaden the regulatory ambit (eg. definitions, labelling).

Opportunities for development of agricultural biotechnology in Australia

Discussions between groups revealed the strengths and weaknesses of Australian agricultural research, presented as options for biotechnology in the Opportunities matrix.

Opportunities arising from biotechnology strengths

Australia’s biodiversity was seen as a strength because it provides numerous opportunities for new products. Australia’s geography provides a variety of climatic conditions to cultivate a variety of crops and supply high-value and out-of-season products to northern hemisphere markets. The difference in northern and southern hemisphere growing seasons also allows plant breeders to use two growing seasons per year, by alternating cultivation sites between the hemispheres.

Geographic isolation ensures that Australia is naturally free from many diseases and world’s best practice in biosecurity measures have been implemented to maintain freedom from a range of diseases and pests that trouble other countries. 

Many plants and animals bred in Australia have long family histories with reliable documentation of visible characteristics or phenotypes. Sound pedigrees are essential for biotechnology applications that rely on an understanding of genes and their functions. Genetic modification (GM) is a tool for many biotechnological applications to the industry and has broad potential as a tool for research and applications alike.

Opportunities arising from weakness or gaps in application of biotechnology

Some gaps or weaknesses in Australian agricultural research and development (R&D) were also identified. Future efforts could focus on these areas to strengthen and benefit the industry. More effective communication about the uses of biotechnology is needed between all parties: this includes different scientific disciplines, members of the industry and the public. Consistent terminology needs to be adopted and clear distinctions made between GM and non GM technologies.

Participants felt that agricultural biotechnology in Australia lacks a unifying framework to guide national action needed to achieve sustainable agriculture and globally competitive positioning for Australia. The amount of funding available for agricultural research is small compared with medical research and it was suggested that the industry might benefit from a new, national source of funding with cross sector purview. The formation of ‘umbrella’ research organisations could facilitate a more multidisciplinary, national approach to research and the industry, encouraging the efficient use of resources and equipment.

Research in agricultural biotechnology is considered reactive, not strategic, with businesses targeting specific areas of the market and not supporting the industry as a whole. The industry could benefit from increased transfer of findings from medical to agricultural research and the development of more ‘platform technologies’ from which to launch further research and new products. Conversely, medical research could benefit from the research discoveries made from plant models, such as experiments using RNAi, which are not possible in animal models.

Research efforts currently focus on a few species: there is a need to use a broader range of model species to assist the transfer of information from research to commercial species. Some essential genetic information, such as genome sequence, does not yet exist and the lack of information is hampering development in the area.

Some areas of the industry are under skilled and the current trend of funding for relatively short cycles leads to high turnover of staff and students and causes a loss of skills to the industry. It is also felt that there are insufficient people with scientific background on R&D boards to provide input to develop new products and industries. Knowledge of markets within the biotechnology industry is generally poor, particularly overseas markets, and more research needed to identify potential markets.

Some participants expressed concern about the impact of the industries activities on the environment and the need to introduce and maintain practices that are sustainable. Advances in technology could be used to implement adaptations to climate change and to create sterile varieties of potentially invasive weed species.

Conclusion

For Australia to remain globally competitive in the agricultural, biomedical and biodiscovery areas we need to fully engage in basic and strategic research using the full range of biotechnology tools – irrespective of current market options and opportunities.

There is an urgent need to clearly define biotechnology objectives for Australia and for each sector of agriculture.

A strong, internationally competitive science base, a robust and credible regulatory environment, and a sound public communication strategy, will facilitate Australia’s position as a leader in the application of biotechnology in the next decade.

References:

1. J. Greenwood (2005) Testimony regarding benefits and future developments in agriculture and food biotechnology. http://www.bio.org/foodag/action/20050614.asp

2. International Service for the Acquisition of Agri-biotech Applications
   ISAAA Briefs 32-2004: Preview: Global Status of Commercialized Biotech/GM Crops: 2004
   http://www.isaaa.org/

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