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" I heard it
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AgLine"
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February 23, 2011
·
Biotech crops
surge over 1 billion hectares
·
Future of GM alfalfa
remains uncertain
·
Genomic tools
to improve crop quality
·
New US food
standards agency sought
·
Pepsi
agribusiness deal has social benefits
Biotech crops surge over 1 billion
hectares
(Wire Services) SAO
PAULO – In just 15 years after commercialization,
accumulated biotech crops exceeded 1 billion hectares in 2010, a milestone that
signifies biotech crops are here to stay, according to Clive James author of
the annual report released Tuesday by ISAAA (International Service for the
Acquisition of Agri-biotech Applications).
The 1 billionth hectare was planted
in 2010 by one of the 15.4 million farmers in 29 countries who now benefit from
the technology. For comparison, 1 billion hectares is roughly equivalent to the
vast land area of China, or
of the United States.
With an unprecedented 87-fold increase between 1996 and 2010, biotech crops are
the fastest-adopted crop technology in the history of modern agriculture,
according to James, chairman and founder of ISAAA.
“Growth remains strong, with biotech hectarage
increasing 14 million hectares -- or 10 percent – between 2009 and 2010,” said
James. “That’s the second highest annual hectare growth ever – bringing 2010
global plantings to 148 million hectares.”
For the first time, in 2010, the ten largest biotech crop
growing countries all had more than 1 million hectares in production, providing
a broad and stable base for future growth. In hectarage
rank order, they include: USA (66.8 million), Brazil (25.4 million), Argentina
(22.9 million), India (9.4 million), Canada (8.8 million), China (3.5 million),
Paraguay (2.6 million), Pakistan (2.4 million), South Africa (2.2 million) and
Uruguay (1.1 million).
For the second consecutive year, Brazil had the world’s largest
year-over-year increase in absolute biotech crop plantings, adding 4 million
hectares in 2010 -- a 19 percent increase -- to grow a total of 25.4 million
hectares. Only the United States
leads Brazil
in total cropland devoted to biotech crops. Australia, which recovered from a
multi-year drought, saw the largest proportional year-on-year increase in
biotech crop plantings at 184 percent. Burkina Faso followed at 126
percent growth with 80,000 farmers planting 260,000 hectares, a 65 percent
adoption rate.
Brazil,
after expediting approvals of biotech crops (a total of 27, and 8 in 2010
alone) and securing export trade agreements, now plants 17 percent of the
world’s biotech crops, according to Dr. Anderson Galvao
Gomes, director of Brazilian-based Celeres and
contributor to the ISAAA report. Productivity increases attributed to biotech
crops helped fuel Brazil’s
ability to double its annual grain production since 1990 while increasing
cropland by only 27 percent. The benefits from biotech crops are spurring
strong political will and substantial new R&D investments in biotech crops,
with speed and effectiveness increasing access to technology, Gomes noted. With
an ability to bring up to 100 million more hectares of cropland, with water,
into production, Brazil
will continue to be a driving force in the global adoption of biotech crops and
is investing in infrastructure to support that growth.
“Developing countries grew 48 percent of global biotech
crops in 2010 and will exceed industrialized nations in their plantings of
biotech crops by 2015,” said James. “Clearly, the countries of Latin America
and Asia will drive the most dramatic
increases in global hectares planted to biotech crops during the remainder of
the technology’s second decade of commercialization.”
The five principal developing countries growing biotech
crops – China, India, Brazil,
Argentina and South Africa
– planted 63 million hectares of biotech crops in 2010, equivalent to 43
percent of the global total. All told, 19 of the 29 countries that have adopted
biotech crops are developing nations, which grew at a rate of 17 percent or
10.2 million hectares over 2009 compared to only 5 percent growth or 3.8
million hectares in industrialized countries.
More than 90 percent of biotech crop growers are small-scale
farmers
Of the 15.4 million farmers using the technology in 2010,
14.4 million were small-scale, resource-poor farmers in developing countries;
these farmers are some of the poorest people in the world and biotech crops are
contributing to the alleviation of their poverty, according to James. China and India now have the most small-scale
farmers using biotech crops, with 6.5 million Chinese farmers and 6.3 million
Indian farmers planting biotech crop seed. Remarkably, over the last 15 years,
farmers worldwide have made 100 million independent decisions to plant biotech
crops.
More than 1 billion people throughout Asia,
who are members of the 250 million small-scale rice-producing households
cultivating about one-half hectare, are potential beneficiaries from the
expected commercialization of insect-resistant Bt rice
expected to be introduced before 2015, James noted.
“This is important progress,” said James. “Up to 6,000
deaths a day can be prevented with Golden Rice for Vitamin A deficient
populations, which is expected to be available for planting in the Philippines by 2013 followed by Bangladesh, Indonesia
and Vietnam.”
Countries new to biotech crop production, additional crops
on horizon
In 2010, three nations grew biotech crops commercially for
the first time, and one nation resumed planting biotech crops. Approximately
600,000 farmers in Pakistan
and 375,000 farmers in Myanmar,
planted insect-resistant Bt cotton, and Sweden
(the first Scandinavian country to commercialize biotech crops) planted a new
biotech high-quality starch potato approved for industrial and feed use. Germany
also planted the same biotech potatoes in 2010, resuming its place among the
eight EU nations now growing either biotech maize or potatoes.
James said he expects an additional 12 countries to adopt
biotech crops by 2015 to bring the list of adopting nations to 40 (the number
predicted by ISAAA in 2005), the number of farmers to double to 20 million, and
global hectarage to double to 200 million hectares.
Up to three or four additional countries are expected to grow biotech crops
from each of the three regions of Asia, West Africa, East/Southern Africa and
fewer from Latin/Central America, and Western and Eastern Europe. Mexico,
the center of biodiversity for maize, successfully conducted its first field
trials of Bt and herbicide tolerant maize in 2010. Mexico
has already successfully grown biotech cotton and soybean for many years.
James said there is considerable potential for increasing
the biotech adoption of the four current large hectarage
biotech crops – maize, soybean, cotton and canola – which represented almost
150 million hectares in 2010 from a global potential of double that hectarage at over 300 million hectares.
In the next five years, the timing of commercialized biotech
rice, and drought tolerance as a trait in maize and several other crops are
seminal catalysts for the future adoption of biotech crops globally. Drought
tolerant maize is expected in the U.S.
as early as 2012, and importantly, in Africa
by 2017. The decision, four years ago, to delay biotech herbicide tolerant
wheat also is being revisited and many countries are fast-tracking the
development of biotech wheat with a range of traits including drought
tolerance, disease resistance and grain quality – the first of which are
expected to be ready for commercialization as early as 2017.
James expects several medium hectarage
crops to be approved for commercialization by 2015, including: biotech potatoes
resistant to the most important disease of potatoes in the world, “late
blight,” the cause of the Irish famine in 1845, sugarcane with improved
agronomic and quality traits, disease-resistant bananas, Bt eggplant, tomato,
broccoli, and cabbage, as well as some pro-poor crops, such as biotech cassava,
sweet potato, pulses and groundnut. The 29 countries which planted biotech
crops in 2010 already represent 59 percent of the world population, and James
is cautiously optimistic about the contribution that biotech can make to the
2015 Millennium Development Goals of food security and poverty alleviation.
“Biotech crops have played a perhaps underappreciated role
in progress toward attainment of the 2015 Millennium Development Goals,” said
James. “Their impact by 2015 will be more universally recognized.”
Furthermore, biotech crops have contributed to
sustainability and are helping mitigate climate change, said James: “Biotech
crops have helped reduce carbon emissions and save land, while helping
alleviate poverty for some of the poorest people in the world.”
To provide more of the world’s small and resource-poor
farmers access to biotech crops, James says there is an urgent need for
appropriate regulatory systems that are responsible and rigorous – but not
onerous – for small and poor developing countries.
For more information or the executive summary, log on to
www.isaaa.org.
The report is entirely funded by two European philanthropic
organizations: the Bussolera-Branca Foundation from
Italy, which supports the open-sharing of knowledge on biotech crops to aid
decision-making by global society; and a philanthropic unit within Ibercaja, one of the largest Spanish banks headquartered in
the maize growing region of Spain.
The International Service for the Acquisition of Agri-biotech Applications (ISAAA) is a not-for-profit
organization with an international network of centers designed to contribute to
the alleviation of hunger and poverty by sharing knowledge and crop
biotechnology applications. Clive James, chairman and founder of ISAAA, has
lived and/or worked for the past 30 years in the developing countries of Asia,
Latin America and Africa, devoting his efforts
to agricultural research and development issues with a focus on crop
biotechnology and global food security.
Return to Top
Future of GM alfalfa remains uncertain
(stltoday.com)
– When federal regulators gave farmers the green light to plant genetically
modified alfalfa, some growers of the nation's fourth-largest crop celebrated.
But others — even those supportive of the technology — responded to the news
with mixed feelings.
Over the past five years, the widespread planting of genetically
modified alfalfa, developed by Creve Coeur-based Monsanto, has been held up by
a protracted court battle that made its way last year to the U.S. Supreme Court
— the first case involving genetically engineered plants to land there.
But after the costly court battle, both sides concede that
the government's decision last month to allow genetically modified alfalfa on
American farmland may not deliver a financial blockbuster.
"Where does this go in the long term?" asked Steve
Welker, who heads up Monsanto's alfalfa business. "That's a really good
question."
The debate over alfalfa — the nation's
fourth-largest crop after corn, soybeans and wheat — has simmered between
predictable factions. On one side, Monsanto, the world's largest seed company,
along with the hay, or forage, industry, which, for the most part, wants the
technology in its farming arsenal; on the other, conventional and organic
growers worried about genetically modified crops' cross-pollinating and
contaminating their own.
Monsanto and Forage Genetics International, the
Minnesota-based company to which Monsanto licenses the technology, have
acknowledged those concerns. Farmers in California's
Imperial Valley, the nation's most productive
alfalfa growing region, asked Monsanto to keep its genetically modified alfalfa
out of the region for fear of losing access to export markets that don't allow
modified crops, and the company agreed.
"They asked us to impose a restriction, and we've done
that," said Forage International president Mark McCaslin.
"That's a contractual obligation that's part of Monsanto's grower
agreement."
USAGE IN DOUBT
According to the U.S. Department of Agriculture, alfalfa is
grown on roughly 20 million acres and has a value of about $9 billion a year.
Most of the alfalfa goes to dairy cows or export markets.
In 2005, the department allowed unrestricted planting of the
modified alfalfa, which is engineered to withstand the herbicide marketed by
Monsanto as Roundup. Roundup, generically known as glyphosate, kills weeds but
not the modified crops.
American farmers have widely employed the Roundup system for
corn, soybeans and cotton, crediting the technology with boosting farm incomes
and making Monsanto the dominant force in the business. But, farmers and
agriculture experts say, the same wholesale embrace of the system for alfalfa
is not as certain.
Only about 7 percent of alfalfa growers use a herbicide to control weeds, according to the Agriculture
Department, whereas most corn and soybean growers applied herbicide prior to
adopting the Roundup system. That could mean fewer farmers are likely to make
the switch.
"There's some awfully good
alfalfa varieties out there that … have great yield potential and bred-in
resistance," said Darrel Franson, vice president
of the Missouri Forage and Grassland Council. "There's some awfully good
seed stock already out there."
Cost could prove a factor: The Roundup Ready alfalfa seeds
are roughly twice the cost of conventional seeds.
"You hear mixed opinions," said Nolan Kleinboecker, who grows alfalfa in Lawrence County.
"The extra price for the Roundup Ready seeds could scare some of them
off."
Mariann Holm runs an organic dairy
in Elk Mound, Wis.,
and is worried that genetically modified alfalfa could cross-pollinate the
organic alfalfa she grows to feed to her cows.
"Is there really a market for this product?" Holm
asked. "Right now alfalfa is grown without herbicide. It's not like
there's a need for this."
The Agriculture Department's analysis suggests that 50
percent of alfalfa growers could switch to genetically modified seeds. Some say
that's optimistic.
"I think that's a substantial overstatement of what's
likely," said Charles Benbrook of the Washington-based Organic Center,
which advocates for organic-friendly policies. "I'd say 20 percent is more
realistic, and that would make a threefold increase of alfalfa treated with
herbicide."
LEGAL BATTLE
After the Agriculture Department's approval in 2005 of
Roundup Ready alfalfa, a group of alfalfa growers led by the Washington-based
Center for Food Safety, an organization opposed to biotech crops, challenged
the department's ruling, saying it had not performed the required environmental
assessments. A federal circuit court judge agreed and banned the further
planting of Roundup Ready alfalfa.
Ultimately, Monsanto and Forage Genetics took the case to
the Supreme Court, which lifted the ban last year. The court said, however,
that the department would have to complete an environmental impact statement.
That statement was completed in December, and last month the
Agriculture Department announced it would "deregulate" modified
alfalfa, meaning farmers can grow it without any government-imposed
restrictions.
While opponents of the decision say modified alfalfa may not
prove to be hugely popular with farmers, the announcement came as a blow to the
Center for Food Safety, which has said it plans to take the matter back to
court.
The impact statement, critics point out, cites evidence of
cross-contamination, and seed scientists have since said more contamination is
inevitable. Alfalfa is a perennial — it grows back every year — and farmers
can't control when it blooms. It is also pollinated by bees, whose trajectories
and flights aren't containable.
"That makes alfalfa dangerous," said Bill Freese, a science policy analyst for the center.
Dairy farmers, who rely in part on alfalfa to get their
animals through winter, could eventually see a drop in hay prices that will
help their bottom lines. But organic producers — who have to prove the hay they
feed their animals comes from organic-certified growers — could see prices go
up if organic hay becomes scarce, they say. Many grow their own organic
alfalfa.
"I'd have the cost of testing the field for
contamination. … I'd have the cost of replanting the field," said Loretta Jaus, an organic dairy farmer from Gibbon, Minn. "Then there's
the issue of [organic] certification. If we lose that, we could lose 50 percent
of our income."
The alfalfa industry, however, points to a strict management
plan and its own best practices that will, it says, control contamination.
These practices, which include placing fields at strategic distances, are
designed to keep contamination to 0.5 percent — a percentage both the industry
and critics say is acceptable, but may not be for some export markets.
"There are stewardship requirements, and Monsanto fully
supports those," Welker said.
Many alfalfa farmers, including those who were among the 1
percent of growers who planted Roundup Ready alfalfa before the ban, say
they're anxious to plant more.
"I think it's a pretty good deal," Kleinboecker said. "I know there's a lot of uproar
about it, but it depends what side of the fence you're on."
Monsanto is hoping more farmers feel the way Kleinboecker does.
"Organic and conventional and biotech crops have
coexisted for years now," Welker said. "There's no reason to think
this can't happen with alfalfa."
The next few spring planting seasons will give the company a
sense of just how strong the market might be. But in the meantime, the cows who
survive each winter on hay may have the last moo.
"Cows don't really like alfalfa," said Kerry Buchmayer, an organic dairy farmer from Purdin,
Mo. "If you have a bale of clover hay, a bale of grass hay and an alfalfa
bale, they'll eat the clover bale, then the grass bale, then they'll go hungry
a day before eating the alfalfa. I've seen it."
Return to Top
Genomic tools to improve crop quality
(Cornell
University via PhysOrg.com) -- Using powerful genome sequencing tools
created for human genetics, researchers can now exploit the genetic diversity
of crops to improve productivity, sustainability and nutrition, a Cornell
researcher reported at the annual American Association for the Advancement of
Science meeting in Washington,
D.C.
Researchers now have the tools to dissect maize genes, for
example, and predict the likelihood of any trait with up to 90 percent accuracy,
said Edward Buckler, a U.S. Department of Agriculture--Agricultural Research
Service research geneticist in Cornell's Institute for Genomic Diversity, in
his presentation, "Dissecting the Genetics of Complex Agronomic Traits for
Crop Improvement."
"There are some simple traits, like improving vitamin A
content in maize, that work with five or 10 genes, but we can also understand
complex traits, like flowering time, that work with over 50 genes, and we can
still make very accurate predictions," said Buckler, a Cornell adjunct
associate professor of plant breeding and genetics. The researchers have
discovered that with such complex traits, individual alleles (or gene variants)
each have very small effects, but together they can create a large effect.
Maize has more natural variation in its genes than humans
and apes combined, Buckler said. To understand variation, researchers focus on
single nucleotide polymorphisms (SNPs), points in the
genetic sequence where there is a mutation within a single base pair. While
many of these SNPs have no effect, Buckler estimated
that corn may still have hundreds of thousands of SNPs
with functional effects. By growing out special populations of plants --
something not possible with human genetics -- and then measuring millions of
individuals, researchers can explain most of the variation, Buckler said.
With the ability to explain variation and accurately predict
which traits exist in a plant, breeders can now cross two plants and predict
which offspring will have the traits they desire, without having to grow out
tens of thousands of plants. Using genetic markers is much cheaper and cuts the
time to advance new varieties to four months for annual species like maize;
traditional methods can take five years.
In the coming decades, breeders hope to use genomic tools to
create crops that produce twice the yield with the same amount of fertilizer
and water; that grow perennially; are drought resistant and utilize nutrients
more efficiently; and are biofortified to improve nutrition
in the developing world, Buckler said.
"Now is the time to apply these tools to important
traits to improve society and sustainability," he said.
Return to Top
New US food standards agency sought
(foodproductiondaily.com)
– Researchers writing in the journal Food Policy have called for an independent
US
food standards agency to ensure an innovative, high quality and price
competitive food industry that also protects consumer interests.
The researchers, led by Trenton Smith of Washington State
University, said that although the modern industrial food system has its
advantages, there are “asymmetric information problems inherent to this
system”, referring to consumer reliance upon brand reputation when many aspects
of production are no longer able to be observed directly by consumers. They
suggest that the only appropriate policy reaction is to provide verifiable
quality standards, but that these may reduce profits for large food makers, at
least in the short term.
“In light of the food industry’s long history of success at
regulatory capture, we propose the formation of a new independent food standards
agency devoted to protecting the interests of the American consumer,” they
wrote.
Smith and his colleagues claim that there has been a market
breakdown in certain segments of the food industry, because producing foods
with the highest nutritional quality has become less profitable for food
manufacturers; consumers care about nutritional quality enough to pay more for
a higher quality product; and product quality is unobserved by the individual
consumer.
Part of this problem, they argue, is that the Food and Drug
Administration (FDA) and the US Department of Agriculture (USDA) are charged
with protecting the interests of both consumers and producers of foods, and
have “often seemingly favored the latter.”
The mission of an American Food Quality Standards Agency
should be built upon two main principles, the authors wrote. Firstly, such an
agency should take into account the interests of consumers in terms of
nutritional quality, rather than what consumers say they like to eat. And
secondly, it should err on the side of caution when population-level public
health policies could have unintended negative effects.
They wrote: “If an efficient market is the goal, then
priority should be placed on revealing (in an easily accessible manner) to
consumers product qualities that are most likely to be conducive to long-term
good health.”
“Food policy should be conservative,” they added. “…When the
scientific questions are unresolved, err on the side of what is natural.”
Return to Top
Pepsi agribusiness deal has social
benefits
(The
New York Times) SAN GABRIEL, Mexico — In the past, farmers would make the
dangerous trek north from this tiny town hidden in the rugged folds of the
Jalisco mountain range to the United States, hoping to earn enough money doing
odd jobs to cover debts incurred while cultivating the small plots of land that
have been in their families for generations.
But more recently, many have managed to avoid the trips,
staying home as the result of a new venture with PepsiCo, which buys their
crops.
“Some of us used to go north to work to make money to pay
off debts, but no longer,” said Martín Ramos Torres,
a farmer, adding that at least two members of the cooperative he leads had been
caught by United States border patrol agents and deported. “In just three
years, everything has changed.”
Mr. Ramos and some 300 small farmers here no longer sell
their corn to middlemen but directly to PepsiCo, which guarantees the price it
will pay for their crops upfront. The deal enables the small farmers to secure
credit to buy seeds and fertilizers, crop insurance and equipment.
“Before, I had to sell my cow to buy what I needed,” said
José Guzmán Santana, another farmer selling to Pepsi.
“Now I keep the cow and my family has milk while I grow my crop.”
PepsiCo’s work with the corn farmers reflects a relatively
new approach by corporations trying to maintain a business edge while helping
out small communities and farmers. Begun as a pilot project by the foundation
affiliated with the company’s Sabritas snack foods
division, it is expanding to about 850 farmers to develop a local source of
sunflower oil, which the company needs to improve the nutritional quality of
its products.
The corn project saved PepsiCo transportation costs because
the farms were close to two of its factories, and the use of local farms
assured it access to types of corn best suited to its products and processes.
“That gives us great leverage because corn prices don’t fluctuate so much, but
transportation costs do,” said Pedro Padierna,
president of PepsiCo’s operations in Mexico,
Central America and the Caribbean.
The social benefits of the corn program are obvious in
higher incomes that have improved nutritional and educational standards among
the participating farmers, not to mention its impact on illegal immigration and
possibly even the reduction of marijuana production.
The sunflower farmers are expected
to see similar benefits — but PepsiCo insists those benefits are ancillary to
the business rationale for the program.
A growing number of major companies have adopted similar
business tacks aimed at profitability that also prove to be economically and
socially beneficial for needy people. One of the earliest examples was Danone’s development of a vitamin-enhanced yogurt product
that sells for 11 cents in Bangladesh.
The product is profit-neutral, but has given the company valuable insights into
the 2.5 billion potential consumers who live on less than $2.50 a day.
“These are markets,” Harry Verhaar,
head of strategic sustainability initiatives at Philips Electronics, said of
countries with sizable populations of impoverished consumers.
Philips has begun selling low-cost, solar-powered lighting
products in Africa to people who lack access
to the electrical grid. “We are developing products to address them that are
economically good for us as a company and also good for ecology and good for
consumers,” Mr. Verhaar said.
The products reduce the use of kerosene, the fuel of choice
among the world’s poorest consumers. Because they light homes that previously
went dark at sundown, they may enable a child to study longer or a community to
enjoy an evening soccer game.
And they have spawned business. “A guy will set up a small
shop with a large solar panel on the roof or behind and charge a small fee for
recharging the solar light,” Mr. Verhaar said.
“We are seeing an increased focus by companies looking to
see how they can use their core capabilities for public good rather than simply
writing a big check,” said Gaurav Gupta, regional
director for Asia at Dalberg
Global Development Advisors, a consulting firm focused on international development.
“They’re starting to realize that the marginal cost of doing a little extra
good produces such a great impact — and not only in terms of good will, but
also because it’s good for business.”
Mr. Gupta stressed that what was emerging was not “corporate
social responsibility,” a loosely defined concept typically driven by corporate
marketing departments, which he said was “largely nonsense.”
“This is about a company’s core activity, which is something
it is constantly thinking about and working to improve,” he said. “Its impact
on business can be defined and measured.”
Derek Yach, the former World
Health Organization official who is now PepsiCo’s senior vice president for
global health and agriculture policy, said firmly: “This is a business. All the
good things we want to do have to be financed out of the profits of the
company, so why not do them while we are doing our
business?” Mr. Padierna described the program in the
state of Jalisco as Act II of a three-act play, which started when the company
needed a way to mitigate its impact on the potato market. Through a guaranteed
purchase system similar to the one it uses with the small farmers, PepsiCo
enticed big agribusinesses to invest in the development of potato varieties
better suited to Mexico’s
tropical climate and also mitigated its impact on potato prices, which swung
wildly because its demand was so large.
Today, the company is the largest buyer of potatoes produced
in Mexico,
accounting for some 22 percent of total potato purchases there.
Working with small farmers was a bigger challenge. Mr. Guzmán and Mr. Ramos, for instance, had little experience
with pesticides, having previously relied on the local priest to bless away
worms.
Nor did they maintain bank accounts, a hurdle to payment by
wire transfer. “We didn’t have money to put in the bank,” said Bonifacio Villalvazo, who
together with Mr. Guzmán and Mr. Ramos is a member of
one of the cooperatives created by the program.
The company teamed up with a Mexican nonprofit group, Fundación Sembrando Trabajo, which extended to farmers in Jalisco a program it
had begun in Chiapas.
“The levers we use in this program are tiny, but they have tremendous impact,”
said Alberto Castelazo, chairman of Sembrando Trabajo.
A team of engineers from the nonprofit did soil and other
tests to determine what seeds and fertilizers would work best. The engineers
live nearby and so are frequently on hand to offer farmers advice and services,
like delivering the seeds, instructing farmers on how to plant them and
counseling on the safe disposal of pesticide containers, which in the past had
been re-used to store water and other things.
“They taught us to first triple-wash them and then to poke
holes in the bottom so they can’t be reused,” Mr. Guzmán
said. “Now we use them to make fences” — which in turn reduces the need to cut
down trees, thereby reducing soil erosion.
Other members of the group repeatedly stressed how helpful
it was to know they would receive their seeds and supplies on time. In the past,
they worked through intermediaries who would sell them what they needed to
plant their crops, financing some or all of their purchases.
The intermediaries decided when to deliver seeds and
fertilizer and when the farmers would harvest. And almost invariably, the price
an intermediary would pay for that crop was less than the amount a farmer owed
him — assuming he even agreed to take the crop. “I planted a lot less because I
didn’t know if I could sell it and I didn’t want to end up with a big debt,”
said Germán Rodríguez
Estrada, the youngest member of the cooperative. “Now that I have a secure
buyer, I plant twice as much.”
Indeed, the farmers said Pepsi’s purchase guarantee was the
most valuable aspect of the program, benefiting even farmers who did not
participate. “My neighbors come to me and ask what Sabritas
is going to pay me for my crop,” Mr. Ramos said. “Now everyone is getting that
price.”
The farmers said the price was higher than they ever got
from any intermediary, which means they end up with money in the bank after a
crop is harvested. Sembrando Trabajo
estimates that while their output has increased by about 160 percent, their
incomes have tripled over the three years the program has been in place.
“Well, it depends on the year and the crop, but, yes, we all
have higher incomes in general,” said Matías Estrada
Figueroa, the treasurer of the cooperative.
They now maintain bank accounts, which Ellis J. Juan,
representative of the Inter-American Development Bank in Mexico, considers one of the
primary “macro” benefits of the program. “The minute one of these farmers gains
access to the financial system, he in a sense has to become legal,” Mr. Juan
said. “He may have to pay taxes, which is good for Mexico, but he also develops a
credit history that might later give him access to a loan he could use to send
his child to college.”
Other broad benefits Mr. Juan cited were the program’s
potential to reduce illegal immigration to the United States and the cultivation
of marijuana. “The minute you can have a crop that provides higher profits,
that becomes a possibility, though of course it’s hard to measure,” he said.
The bank has struck an agreement with PepsiCo to provide up
to $5 million in credit guarantees to support a program similar to the corn
project. The new project has enlisted farmers in the states of Jalisco and
Durango grow sunflowers, the first time since 1970s that the crop has been
grown for anything other than floral arrangements and bird seed, according to
PepsiCo.
The company will spend roughly $52 million over the next
seven years to buy crops that may eventually produce 40,000 tons of sunflower
oil. That oil will begin replacing the 80,000 tons of palm oil it needs each
year for products made in Mexico.
The new oil will improve the nutritional quality of the foods it makes and will
lower transportation costs, since palm oil must be imported from Asia and Africa. That, in turn, will have environmental benefits.
As for the San
Gabriel cooperative, its members are applying for a
government grant to buy a tractor, which they say will increase productivity
and yields. “Yes, a tractor or some other machinery, maybe a cooperative where
we could sell seeds and fertilizers to other farmers,” Mr. Ramos said. “It’s
just the beginning of what we might do.”
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End Transmission