Loop 2008

FSS in the view of breeders Ernst A. Loop

TAIEX-Meeting, 4. March 2008, Tallinn

Loop 2008

SAATEN-UNION GmbH

Eisenstr. 12

30916 Isernhagen HB

SAATEN-UNION Group, a Merger of medium sized Plant Breeders – founded in 1965 –

SAATEN-UNION Resistenzlabor GmbH

SAATEN-UNION Versuchsstation

Moosburg

Member companies

SAATEN-UNION

France

SAATEN-UNION

UKSAATEN-UNION

RomaniaSAATEN-UNION

PolandSAATEN-UNION Czech Republic

SAATEN-UNION Hungary

Subsidiaries

Breeding cooperation Service cooperation Marketing cooperation

Czech Republic

Poland

SAATEN-UNION Russia

Loop 2008

SAATEN-UNION in Figures Vermehrungsflächen nach Ländern (inkl. SUR)

SAATEN-UNION Group – Europe: ~ 780

– Germany: ~ 600

among them ~ 40 trainees

plus seasonal workers

SAATEN-UNION GmbH – Isernhagen: ~ 70

Number of employees

Turnover development GmbH (Group)

1965 5 Mio. €

1975 51 Mio. €

1985 74 Mio. €

1995 102 Mio. €

2003 121 Mio. € (138)

2004 127 Mio. € (149)2005 133 Mio. € (157)

2006 138 Mio. € (165)

2007 155 Mio. € (190)

Loop 2008

Vermehrungsflächen nach Ländern (inkl. SUR, ohne D)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

E01 E02 E03 E04 E05 E06 E07 E08

(ha)

USURUKUAso.SKSERUROPLNONLLVLULTIRHUFRFIESEEDKCZCHCABEATAR

CZ

FR

RU

UA

Loop 2008

Breeding Activities of SAATEN-UNION

Wheat +hybrid wheat

Barley (for use in malting and fodder)

Rye(+ hybrid)

Oats

Triticale

Maize

Oilseed rape (winter and spring hybrids)

Fodder Beet

Green Manure Crops(fodder rape, radish, phacelia, mustard, fodder peas)

Grasses and Clover

Other Crops (sunflowers, linseed, fodder cale, calendula, etc.)

Pulses(peas, faba beans, lupins)

Nematode Resistant Intermediate Crops (fodder radish, mustard, buckwheat)

Loop 2008

Royalties for cereals in EU 15 and EU 25 2006/2007

Country Wheatother

cerealstotal FSS %

France 19,8 11,6 31,4 43Germany 10,6 13,5 24,1 46UK 9,8 6,7 16,5 47other EU 15 11,2 12,4 23,6 41

Summe EU15 51,4 44,2 95,6 44

Poland 1,4 1,4 2,8 93Ungarn 2,4 0,7 3,1 61CZ 2,9 2,3 5,2 38other EU +10 1,5 1,5 3,0 82

Summe EU +10 8,2 5,9 14,1 70

Summe EU 25 59,6 50,1 109,7 48

Royalty income for cereals and FSS % in EU 15 und EU 25 in Mio € (2006/2007)

Loop 2008

Situation of private Breeding in Europe is critical !!

 Since year 2000 the picture of private breeding has dramatically changed.Many private breeding companies disappeared or have been taken over:

  Monsanto sold Hybritech 2000 and DuPont Hybrinova 2002 SB Linz and Probstdorf merged to SZ Donau(2001) Benoist(F) has been sold to Syngenta (2001) Zelder(NL) has been taken over by Golden Harvest (2003) Golden Harvest has been taken over by Syngenta (2006) Monsanto sold conventional cereal breeding to RAGT(2005) Advanta has been sold to Limagrain(2005) SW reduced 50% of it´s staff(2006) DLF took over Mommersteg(2007) Pajbjerg and ABED merged with DLA to Nordic Seed(2007)

Only 4-5 international cereal breeder will remain in the next decade !

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Research and Development of SAATEN-UNION

• Classical Breeding(Pedigree Crossing, Field & Nursery Selection, Laboratory Analysis)

• Biotechnology(Tissue Culture, Molecularbiology, Moleculare Markers, Gene Technology)

• Breeding Programmes for Over 30 Crops

• 16 Breeding Stations with 65 Testing Sites

• In Germany and 38 other Countries

• 13 % of Turnover for Research and Development

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Different Objectives of Breeding ?

Rang Officials Farmer Industry1. Resistence Yield/Profit Quality

2. Qualityagronomical

Values Resistence

3.agronomical

Values Qualität Yield

4. Yield Resistence

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Yield Development Winter-WheatGermany 1990 – 2001 Official Statistic

79,2

73,2

76,4

72,4

73,473,2

69,268,2

66,2

60,3

68,2

63,0y = 1,44x - 2812

R2 = 0,76

60

65

70

75

80

1988 1990 1992 1994 1996 1998 2000 2002

Yie

ld d

t/h

a

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Trend of WW-Yield in different Quality-Groups C, B, A u. E

The genetic/breeding based Yield-Increase is continuing!

C B A E

Increase 1980-2002

Total, dt/ha 25,4 24,5 23,8 23,0

per Year, dt/ha 1,3 1,2 1,3 1,0

dt/ha in the years ... 1980 74,6 72,1 70,1 67,7

1990 85,0 82,2 79,9 77,1

2000 98,4 95,1 92,5 89,3

expected 2010 103-112 100-110 98-108 93-99

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Breeding Progress 1980-1990 and 1995-2002(in official trials in DE)

Time 1980-1990 1995-2002 Progress average rating

Mildew 3,3 2,6 -0,7Yellow-rust 3,9 2,6 -1,3

Brown-rust 4,3 3,9 -0,4Septoria 5,1 4,3 -0,8

Summe Diseases -3,2APS-Yield 7,0 7,1

Grain-Yield, dt/ha 75,7 92,3 +16,6 dt/haYield-Increase in % 106 129 +23%

Grain-yield 1980 71,6dt/ha=100%

.

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Progress in Quality-Wheat Breeding 1975 bis 2002- Resistence und Fungize-cost -

98

114

81

56

96

75

62

3,7

6,46,5

7,6

5,0

5,4

4,1

40

45

50

55

60

65

70

75

80

85

90

95

100

105

110

115

120

Diplomat Disponent Kanzler Astron Toronto Ludwig Tommi

1975 1980 1985 1990 1995 2000 2002

3,0

4,0

5,0

6,0

7,0

8,0

9,0

Kalkulatorische Fungizidkosten €/ha

Krankheitsbefall (Mittel APS)

€/ha

APSBSL

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Qualitäts-Zuchtziele für die Verwertungsrichtungen von Weizen

Quality-Breeding Objectives for different Use of Wheat

Quality-Objective Bac

king

Feed

Cockie

s

Ethan

o

lBurn

ing

Volume high low low low

Dough normal normal

Falling Nr. high high high high low

Raw-Protein high low low low low

Zeleny high low low low

Water-uptake high low

Flour-Yield high high high

Gluten-Quality high low high

% A-Starch high high

Ethanol-Yield high

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  Schema of Breeding (Crossing 2008)

Schema des ZüchtungsprozessesJahre

Crossing 2-3 2008DH-Plants

Selection of lines 2-3 2011Screening- ,Quality, Marker

Testing, Variety Dev. 2-3 2013

Official Testing 20163

2-3 2019

Marketing ?? 2020

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SU- Trials in D

Loop 2008

Costs for breeding are increasing To succeed with top-level new varieties private breeders have to use latest bio-technologies like di-haploids, cell culture, marker technologies, etc.. These techniques are increasing the cost for breeding every year.

These circumstances have caused the dramatic change in the structure of private cereal breeding during the last decade. Due to the low profitability of conventional cereal breeding big multinationals like Monsanto sold their cereal breeding activities, other multinational breeding companies like Advanta were cut into pieces and sold as well.

Several small breeding companies just disappeared and even leading cereal breeders had to cut their staff and tried to reduce their costs.

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Concept of Saaten-Union(SU) for cereal varieties in the Baltics

 Seed of new higher yielding varieties will be only sold by Saaten-Union or via their distribution partners to those farms who sigh a contract with SU with following conditions:

  For every ha of sown with Farm-Saved-Seed(FSS) the farmer has to pay 5 EURO to SU for SU-varieties A person empowered by SU is allowed to control fields, harvest results and relevant book-keeping of the farm twice a year Grain of mentioned varieties can be sold to other farms for use of seed only with the written permission of SU If one of the conditions 1.-3. are not fulfilled the farm has to pay a punishment of 5 € per ha farm area

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Royalty for Farm- Saved- Seed(FSS):Royalty for Farm- Saved- Seed(FSS):  

A key-question for the future of conventional private cereal breeding 

The achievements of conventional cereal breeding by private breeding companies have shown a remarkable success during the last decades. But the public recognition and the even the respect at farmer levels has been very limited to this.

While the results of breeding via international foundations was even respected as the “Green Revolution”, the “private” breeding achieved even higher benefits regarding yield and quality increase joined by a better resistance against harmful pests and diseases of their varieties.

But these private breeding companies have to collect royalties to finance these achievements. Even in there home markets of Western Europe nearly all private cereal breeders are suffering due to the increasing level of FSS.

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Other actions with success against use of FSS

 The use of certified seed has not only a positive effect on the income of breeders via payment of royalties. Following cases have shown advantages in the whole food chain:

  Russia: all main malteries are insisting in the use of certified seed for contracts of commodity malting barley with farmers; the use of FSS for malting barley in Russia is meanwhile smaller than in Germany BARILLA, Italy: the biggest processor of wheat in Europe is purchasing only lots of one variety and fulfilled specifications, incl. use of certified seed Canada: for OSR together with the switch to GMO-variety only hybrids are mainly distributed The Ukraine: 2007 nearly all western plant breeders started to offer only hybrid-OSR

Loop 2008