 |
|||
 |
" I heard it |
||
July 12, 2011
· Major policy shift, GM grass gets USDA OK
· Big investors raise stakes in Syngenta
· Monsanto looks to bolster China business
· Plant size, shape hormone discovered
· ‘Snicker factor’ aside, hemp is serious business
Major policy shift as GM grass gets USDA OK
(The New York Times) – In a decision set to upturn the biotech industry and outrage its opponents, the Agriculture Department announced late last week that it does not consider a lawn grass genetically engineered to resist a weedkiller within its regulatory domain, ratifying a pathway for certain classes of bioengineered plants to bypass federal regulation.
The USDA's authority over biotech plants largely stems from its oversight of plant pests such as bacteria, fungi and insects. Since companies have created most genetically modified crops, like herbicide-resistant corn and soybean, using either genes or tools derived from microbes, USDA has long extended its powers to nearly every biotech plant developed in the country.
Unlike these predecessors, the herbicide-tolerant Kentucky bluegrass, developed by Scotts Miracle-Gro Co., contains no microbial material. The grass's tolerance to glyphosate, a common weedkiller, stems from the genetic material of corn, rice and Arabidopsis plants, and Scotts spliced the bluegrass's DNA with a gene gun, a common lab technique that shuttles DNA on high-velocity heavy metals.
Given these specifics, and its determination that modified bluegrass should not be controlled as a weed at the federal level, USDA's Animal and Plant Health Inspection Service (APHIS) will allow Scotts to proceed with commercializing its bluegrass product, the agency said in a statement, released on the Friday before the Fourth of July weekend.
"Because no plant pests, unclassified organisms or organisms whose classification is unknown were used to genetically engineer Scotts' [genetically engineered] Kentucky bluegrass," the agency said, "APHIS has no reason to believe it is a plant pest and therefore does not consider the Kentucky bluegrass described in the Scotts letter to be regulated."
The agency's decision, prompted by a query from Scotts last year, could clear the way for biotech crops incorporating the genes from unrelated plant species to avoid the long review required by APHIS for modified crops. APHIS will examine such situations on a case-by-case basis, according to a list (pdf) of questions and answers released by the agency.
"If a [genetically engineered] organism is not a plant pest, is not made using plant pests, and APHIS has no reason to believe that it is a plant pest, then the [genetically engineered] organism would not fall under APHIS' regulatory authority," it said.
This is not the first time APHIS has decided a modified plant was beyond its regulatory authority. The agency recently concluded that bioengineered petunias did not fall under its jurisdiction, a precedent cited by Scotts, and more than a decade ago a modified geranium was also cleared. Neither of these plants has the potential broad appeal of Scotts' turf, however.
Kentucky bluegrass is widely grown across the
Anticipating the anger that could accompany its decision from the organic community and longtime opponents of biotech plants, Agriculture Secretary Tom Vilsack urged Scotts in a letter (pdf) to engage with growers of bluegrass seed, among others, who will be concerned that the plant could threaten their exports to regions sensitive to modified crops.
"USDA therefore strongly encourages Scotts to discuss these concerns with various stakeholders during these early stages of research and development of this GE Kentucky bluegrass variety and thereby develop appropriate and effective stewardship measures to minimize commingling and gene flow between GE and non-GE Kentucky bluegrass," Vilsack wrote.
Is it a weed?
Kentucky bluegrass's weed status is bound to be a future point of contention. In 2002, the Center for Food Safety, one of the most vocal and litigious opponents of bioengineered plants, petitioned USDA to regulated modified bluegrass as a "noxious weed," claiming its resistance to glyphosate, commonly sold under the brand name Roundup, could turn the common grass into a persistent threat.
In a parallel decision last week, USDA said that while the modified bluegrass did in fact meet the definition of a noxious weed, it would not "cause impacts significant enough to warrant regulation at the federal level." Kentucky bluegrass has a low-to-moderate rating for management difficulty, the agency said (pdf), adding that USDA "[does] not think tolerance to one herbicide would justify increasing that ... rating to high."
Even if the agency wanted to regulate the grass as a weed, it couldn't, USDA noted.
"Funding for federal regulatory response for Kentucky bluegrass is unlikely to be available at a time when our noxious weed program is facing funding limitations," it said, "and the required response would be beyond the combined federal and state regulatory capacity."
Given the large volume of corn and soybean crops already engineered to resist glyphosate, there will likely be concerns that resistant bluegrass, widely deployed in parks and homes, could further exacerbate the number of glyphosate-resistant weeds that have appeared in recent years. APHIS has "little authority" to regulate modified plants solely under that concern, though, it said.
"To date APHIS has never regulated a weed as 'noxious' due to its resistance to an herbicide alone, nor has it ever taken action to prevent the evolution of noxious weeds," it said. "Herbicide resistant weeds are not an issue exclusively associated with the use of herbicides on genetically engineered ... crops."
Scotts plans to conduct field trials of the modified bluegrass in the near future, the company says.
Big investors raise stakes on Syngenta
(Forbes) – Some big institutional investors recently boosted their holdings in Syngenta (SYT), one of the world’s leading agribusiness companies, as it reaffirmed its strong growth prospects beyond 2015 that would double its sales in its seven key markets, including corn, soybean, rise and sugarcane.
That drove its American Depositary Receipt (ADR) higher, to more than $69 per ADR on July 8, 2011, after it had dipped to $64 a couple of weeks ago, when some analysts expressed concern over a possible narrowing in margins and weakening in sales growth.
But Switzerland-based Syngenta eased much of such worries during a well-attended “Capital Markets Day” meeting in London with investors and analysts in late June, when management executives expressed renewed confidence in the future growth of the company’s key crops, to more than $17 billon post 2015 from $8.4 billion this year.
That, combined with the expected positive results from Syngenta’s new integrated business model, “will enable us to grow faster than the global market and deliver superior returns to shareholders,” said CEO Mike Mack, who outlined a portfolio of innovations on its key products and services to provide credibility to the company’s ambitious sales targets.
Since that meeting, Syngenta’s ADRs have reignited its spark as investors bought more shares to raise their current holdings, according to data from Bloomberg.
Among the large institutional stakeholders that have increased their holdings are Wellington Management, which owns a 3.9% stake as of Mar.31, 2011 (the most recent date when data is available); State Street, which holds a 3.6% interest; Invesco, which owns 3.1%; First Eagle Investment, with 2.7%; Yacktman Asset Management, with 1.8%; and Fiduciary Management, 1.7%.
Syngenta’s ADRs have been a stellar performer, shooting up to a 52-week high of $71.87 on April 2, 2011, from a 52-week low of $42.93 on July 21, 2010. They closed at $69.10 on July 8, 2011.
The bulls continue to expect Syngenta to push higher, with Societe Generale’s analyst Patrick Lambert forecasting a price target of $79 and Nomura’s analyst Jean de Wateville predicting $74.
“After the Capital Markets Day, we are even more confident in our 2015 earnings forecast, with very tangible evidence of quantum yield improvements in many crops, made possible only by the deployment of agronomic, chemical, and genomic solutions,” says Societe Generale’s Lambert.
He estimates that Syngenta should earn $4.12 per ADR in 2011, $4.45 in 2012, and $4.82 in 2013. Syngenta's major rivals include the industry's behemoths Du Pont (DD) and Monsanto (MON).
Analyst Stefan Schuermann of Switzerland’s Vontobel says Syngenta made a “convincing presentation of how the company’s new strategy of integrating the Crop Protection and Seeds businesses will facilitate innovation and create value for farmers and ultimately for shareholders.”
He notes that the company will do even much better over the long haul. “We believe it’s now time to shift the focus from short-term uncertainties to the long-term potential of the stock,” says Schuermann.
He has upgraded his recommendation on Syngenta to a buy, based on his earnings estimate for 2011, which he has increased by 4%, and his 2012 forecast which he increased by 9%, and his 2013 prediction by 10%.
Syngenta’s new integrated business strategy “should work out well,” says Martin Roediger, analyst at investment firm Credit Agricole Chevreux, who rates the stock as “outperform.” He says the strategy isn’t about selling more seeds and crop protection, but understanding more its customers’ needs and problems. He rates Syngenta as “outperform.”
With its integrated business model, Syngenta aims not only to reduce the cost to farmers but to increase their efficiency and productivity, explains Syngenta’s Chief operating Officer John Atkin. The idea is for Syngenta to provide more solutions to farmers’ problems rather than just sell products, he adds.
Monsanto looks to bolster China
(Indie Research) – Shares of genetic seeds maker Monsanto Company (NYSE: MON - News) are down 2% today despite news the company is in talks with Chinese commodities trader Sinochem to bolster the relationship between the two companies, another sign of China's growing demand for U.S. crops and biotechnology, the Wall Street Journal reported, citing sources familiar with the talks.
The news isn't proving to be enough to keep the Agricultural
Chemical and Fertilizer Stocks Index from a 2.5% loss. The sources cited by the
Journal said Missouri-based Monsanto and Sinochem
have been in talks for months, though it is unclear what type of deal the
discussions could produce, whether it be a large joint
venture, the sale of a minority interest or Sinochem
taking a more active role in marketing Monsanto products in
In 2010, Sinochem was rumored to be the Chinese government's preferred bidder for Potash Corp of Saskatchew (NYSE: POT - News), the world's largest fertilizer producer, when BHP Billiton (NYSE: BHP - News) was making a run at the Canadian company. Sinochem was never able to launch a legitimate bid for Potash and the Canadian government scuttled BHP's bid for Potash, keeping the company out of foreign hands.
China is the world's largest producer of rice and wheat and the second-largest producer of corn behind the U.S., but the country isn't producing enough of those crops to satisfy domestic demand, the Journal reported, making a deeper Sinochem partnership with Monsanto all the more attractive for the purposes of keeping check on volatile food prices in China.
Shares of Mosaic (NYSE: MOS - News), the second-largest North American maker of crop nutrients, are slumping 6% after the company said a Florida court issued an injunction on Friday that prevents the company from expanding a phosphate mine in South Fort Meade, Fla. into Hardee County, the Journal reported. Citigroup views the decision as a near-term negative, but noted it isn't the final decision in the case.
Plant size, shape hormone discovered
(PhysOrg.com) -- In an important breakthrough, plant biologists at The University of Queensland have identified a hormone that plays a key role in determining the size and shape of plants.
The discovery of the hormone strigolactone could have enormous impact on the forestry and horticultural industries, and is expected to lead to the ability to custom design the shape of plants.
“Taller plants can be produced by boosting strigolactone, and bushier plants can be grown by suppressing the hormone,” UQ Associate Professor Dr. Christine Beveridge said.
“In the case of fruit-producing trees where the yield comes from the branches, repression of the chemical — that is, to create more branches — can give a better harvest.”
A number of factors work together to determine plant shape and size, but the discovery of strigolactone's role in inhibiting branch development was important, Dr. Beveridge said, and paved the way for understanding the regulatory framework behind plant development.
“It is interesting that strigolactone uses a long-distance signaling process to determine plant shoot branching,” Dr. Beveridge said.
“Strigolactone's capacity to have an impact on shoot branching will be conducive to obtaining a desired shape in plants and is sure to prove beneficial in crop production.”
Dr. Beveridge, who is a Future Fellow of the Australian Research Council, said in the forestry industry the hormone could be manipulated to inhibit branch production and contribute to better stem growth and wood production.
Researchers from the University of Western Australia (UWA) have detected a structurally similar chemical called karrikins in smoke that affects the sprouting of dormant seeds after fire.
Through research done under a UQ-UWA Bilateral Research Collaboration Award, a gene called MAX2 was found to control the functioning of both strigolactone and karrikins.
Dr. Beveridge said despite the similarity in the structure of the two hormones and their similar response systems, karrikins did not affect shoot branching.
Current promising leads with these hormones on their chemistry and on other aspects of plant development could result in improvements in the propagation of endangered and economically important plant species and in weed eradication and reforestation.
UQ's main commercialisation company, UniQuest, is currently working towards commercialisation opportunities for this technology.
Provided by
‘Snicker factor’ aside, hemp is serious business
(The
Globe and Mail) – Hemp is fast becoming a staple of daytime TV as Oprah,
Dr. Oz and others extol the health virtues of hemp oil, protein powders and
pasta. At the same time, industrial interests tout it as a potential base for
products ranging from textiles to car parts. As a result, demand is surging in
the
But American farmers are prohibited from growing hemp. That
leaves farmers in
First, though, they must navigate the shifting sands of
public opinion – or, as one
According to an Alberta Agriculture Department report on
industrial hemp production in
Nevertheless, this is serious stuff. The North American market for industrial hemp – which has only a minuscule amount of the chemical that gives marijuana its punch – is booming.
For centuries, hemp had been ubiquitous in global commerce – from paper making to the rope used on sailing vessels – until synthetic fibres usurped its naval role and global anti-drug sentiment put paid to the rest.
Now the market, while still small, is growing by about 10 per cent a year, with annual sales estimated between $350-million and $400-million, according to some estimates.
Mike Fata, co-founder and chief executive officer of
Winnipeg-based Manitoba Harvest Hemp Foods & Oils, believes
“The great thing about marketing hemp is that hemp is in everyone’s psyche – whether they think that hemp is marijuana or they think that hemp is clothing or rope or they already know that hemp is a food product …” Mr. Fata said. “It is easy when you have their attention to educate them about what hemp really is and all the great things that it can offer.”
Canadian hemp exports have increased by 500 per cent over the past four years. Even so, total exports were worth just $10.38-million in 2010.
The industry’s goal is to generate more than $100-million for the Canadian economy by 2015, partly by boosting production from 10,855 hectares to 40,000 hectares over that time.
Eager to capitalize on that burgeoning potential, the
federal government recently boosted its investment in the industry. In
December, 2010, Agriculture
Toward that end, Canadian hemp food products have yet to overcome a key regulatory hurdle with the U.S. Food and Drug Administration by achieving “GRAS” status, an acronym for Generally Recognized As Safe.
Without that certification, Canadian companies are prevented from selling hemp to big multinationals like General Mills and Kellogg’s, and another three years’ worth of costly study is required before the Canadian industry can even apply, says the Canadian Hemp Trade Alliance.
Mr. Fata of Manitoba Harvest says he recognizes those obstacles but is optimistic about the industry’s long-term potential.
Manitoba Harvest is now one of the world’s largest hemp food
manufacturers. Its sales growth has averaged about 50 per cent every year since
1998. It currently makes 68 per cent of its sales in the
In addition to health food stores, it is penetrating
mainstream grocery chains in the
While hemp foods continue to represent the bulk of the Canadian industry’s exports, there is also a growing appetite for hemp fibre for industrial uses. German auto maker Mercedes-Benz, for instance, has been using natural fibre such as hemp, flax, sisal and abaca for many years in various components. One example is the Mercedes-Benz CLS, where hemp is used in the door panels.
“A typical example is the application as a base for car interior lining parts. In these parts, the natural fibres replace mineral fibres such as fibreglass,” said Matthias Brock, spokesman for parent company Daimler AG. “As reinforcing material, natural fibres have the same characteristics like mineral fibres but they are much lighter.”
With the price of cotton still high, albeit down from its peak, garment makers are also eyeing hemp as a substitute textile as manufacturers increasingly experiment with new blended fabrics to contain costs.
Vancouver-based Naturally Advanced Technologies Inc., established in 1998 as Hemptown Clothing Inc., is developing alternative fibres made out of flax and hemp. Its Crailar technology uses an enzyme process to remove lignin, which is the natural glue that binds fibres like flax and hemp. Doing so gives those fibres a smoother texture and allows them to be processed in new blended fabrics that can result in savings for clothing makers because they require less cotton and are less prone to shrinkage.
Earlier this year, Naturally Advanced signed purchasing and development agreements for its Crailar flax fibre product with apparel giants Hanes and Levi Strauss & Co., along with pulp-and-paper manufacturer Georgia-Pacific LLC and specialized-products manufacturer Cintas Corp.
Flax is currently much cheaper for Naturally Advanced to
process than hemp partly because it contains less lignin and also because it
can be grown in the
“We’re not giving up on hemp. Hemp is just going to follow in or feed in after we lead off with flax,” chief executive officer Ken Barker said. “None of our agreements preclude us from having hemp being part of them.”
Moreover, the company is also fielding enquires about its hemp fibre product from a range of other industries, including mattress makers and the medical sector.
Still, Mr. Barker recognizes that there remains a marketing
challenge for hemp: “That’s just the reality of the
End Transmission