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Investing in agri- biotechnology: Research for Entrepreneurship Professor Paul PS Teng, Nanyang Technological University Singapore Chair, ISAAA APAARI, BKK 8 Dec 2015

Investing in agri-biotechnology: Research for Entrepreneurship

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Page 1: Investing in agri-biotechnology: Research for Entrepreneurship

Investing in agri-biotechnology:Research for Entrepreneurship

Professor Paul PS Teng, Nanyang Technological University Singapore

Chair, ISAAA

APAARI, BKK8 Dec 2015

Page 2: Investing in agri-biotechnology: Research for Entrepreneurship

Scope

A. What do countries include in their basket of agri-biotechnology products?

B. What needs in the marketplace are being met? (Why invest in agri-biotechnology?)

C. “Research for Entrepreneurship” – the paradigm and process

D. Success Enablers

Page 3: Investing in agri-biotechnology: Research for Entrepreneurship

A. What do countries include in their basket of agri-biotechnology products?

Conventional agri-biotechnologyMushroom cultureFermentation-based products, e.g. alcohol, vinegarTissue culture; Technology-enabled farming

Novel, modern agri-biotechnologyMarker-aided selected crop varietiesGMOs Bio fermentation, bio diagnostics, vaccines Emergent technologies: CRISPr, TALENs, Synthetic food

Page 4: Investing in agri-biotechnology: Research for Entrepreneurship

High Impact AgBiotech Investment Opportunities in Malaysia’s Bioeconomy . 2013.

Production of Stevia-based natural high intensity sweeteners

Extraction and commercialisation of mangosteen

Production and commercialisation of indigenous hybrid paddyseed

Production of biofertilizers through integrated waste treatment plants

Production and commercialisation of bio-feed for livestock industry

Production and commercialisation of high value mushroom varieties

From: www.biotechcorp.com.my

Page 5: Investing in agri-biotechnology: Research for Entrepreneurship

Transgenic Phalaenopsis

Orchid virus detection kit

Animal cloning technology

Transgenic Eucalyptus

Pink fluorescent angelfish

Courtesy of: Dr. Ying Yeh, COA, Taiwan

Taiwan yew for anticancer drug production

Agri-biotechnology products in Taiwan

Page 6: Investing in agri-biotechnology: Research for Entrepreneurship

Technology-enabled farming

AEROGREEN Aeroponics

SKYGREEN Vertical stacked rotating trays. Source: ChannelNews Asia

LED light forIndoor farming -- PANASONIC

Page 7: Investing in agri-biotechnology: Research for Entrepreneurship

Examples of Biotech crop products: Released and under development

B.t. corn, Drought tolerant corn USA

Insect resistant eggplantIndia, Philippines, Bangladesh

Insect resistant rice China, Iran

Biofortified rice Philippines, India, Bangladesh, Vietnam, and Indonesia

Courtesy: R. Hautea, ISAAA

Page 8: Investing in agri-biotechnology: Research for Entrepreneurship
Page 9: Investing in agri-biotechnology: Research for Entrepreneurship

 Year ValueUS$ Million

Year ValueUS$ Million

1996 93 2007 7,7731997 591 2008 9,0451998 1,560 2009 10,6071999 2,354 2010 11,7802000 2,429 2011 13,2512001 2,928 2012 14,8402002 3,470 2013 15,6102003 4,046 2014 15,700

(35% of global seed market)

2004 5,090 2015 ?2005 5,7142006 6,670

The global value of the Biotech seed marketFrom: James, 2015

Page 10: Investing in agri-biotechnology: Research for Entrepreneurship

Biotechnology is a global industry

Courtesy: Yali Friedman, Scientific American Worldview, 2015

2014 Global biotechnology market value - $318.4 BFrom: S. Chaturvedi & K.R. Srinivas, 2014

Page 11: Investing in agri-biotechnology: Research for Entrepreneurship

B. What needs in the marketplace are being met?Why invest in agri-biotechnology?

Meeting the challenges facing AsiaStrategic Market Drivers•Demand-side changes

– Demographics: Population growth, urbanization, increased income

– Diet changes (more diverse and high protein food)•Supply-side factors

– Demographics: declining & ageing farmer population– Declining performance of agriculture– Environmental degradation (loss of land and water

resources)– Climate change

Page 12: Investing in agri-biotechnology: Research for Entrepreneurship

Actual Yield

Water & Nutrient- limited

Yield

PotentialYield

TheoreticalYield

Reducing factors (Loss)•Biotics

• Weeds• Insect pests• Diseases

•Abiotics

Limiting factors•Water•Nutrients

Defining factors•CO2•Radiation•Temperature•Crop features

Genetically modified factors?

Crop yield levels -- Concepts

Derived from “production ecology” of C.T. de Wit, Wageningen, Netherlands

Need to raise yield levels in both food surplus and food deficit countries

RBI: Farm level yields are important contributor to food security

Page 13: Investing in agri-biotechnology: Research for Entrepreneurship

012345678

1950 1975 2000 2020

WorldPopulationArable Land(billion ha.)Farmland perperson(ha)

Source : United Nation

"This will require a combination of conserving and managing existing resources more effectively, tapping science to grow food from less land, and drawing in investment to meet growing food demand,"

-- Mahfuz Ahmed, Asian Development Bank (ADB) Technical Adviser for Rural Development and Food Security.Asian Development Bank5 Oct 2015”

Page 14: Investing in agri-biotechnology: Research for Entrepreneurship

C. “Research for Entrepreneurship” -- the paradigm and process

Purpose of agricultural biotechnology R & D• Discovery of new knowledge• Discovery and/or development of new products

Public sector: Social goal oriented, increasingly market-

supportive

Private sector: Profit and market-driven, but increasingly conscious of social responsibility

Page 15: Investing in agri-biotechnology: Research for Entrepreneurship

“Lab to market” key steps for biotech seeds

Private• “Proof of Concept”• Product Development• Approval (Regulatory,

Commercialization)• “Freedom to- Operate”• Marketing & Sales• Product stewardship

Public• R & D• Technology Development• IP audits & management• Approvals (Biosafety,

Food & Feed use)• Seed multiplication• Distribution• Outreach &

communication• Extension

Technology Push

Market shareSocio-economic impact

Market shareValue created

Page 16: Investing in agri-biotechnology: Research for Entrepreneurship

Scoping/Technical Research

Proof of concept

Businessplan

Gate 2

Gate 1

Gate 3Product

Development

Gate 4

RegulatoryApproval/ Field tests

LAUNCH

Discoveryor Ideation

Stage

IdeasScreen

SecondScreen

Go toDevelopment

Go toTesting

Go toLaunch

Private Company: Biotech Seed stage-gating

Gate 5 Gate 7

Marketing,Sales

Public acceptance

Gate 6Seed bulk up,distributionsystems

Gate 8

ProductStewardship

1

2 3

4

5 6

7

8

Page 17: Investing in agri-biotechnology: Research for Entrepreneurship

D. Key Enablers for success

THE ENABLING ENVIRONMENT•Innovation Strategy•Policy support•Investment funding •Infrastructure •Human resources (right mix) •Regulatory framework (FTO)•Supportive or neutral public

Page 18: Investing in agri-biotechnology: Research for Entrepreneurship

Country Status Country StatusAustralia Nat. biotech strategy, 2000 Bangladesh Nat. Biotech. Policy, 2006

China First policy in 1990, “863” plan

India 1st policy in 1983; Nat. biotech strategy in 2007

Indonesia Nat. policy in 2004 Japan Bio-Strategy in 2002

Korea Nat. Bio Industry Action Plan, 2004

Malaysia Nat. Biotech Policy, 2005

Nepal Nat. Biotech Policy, 2006 New Zealand Nat. Biotech Strategy, 2003

Pakistan No comprehensive national strategy

Philippines No comprehensive national strategy

Sri Lanka

Thailand

Policy finalized in 2011

National strategy in 2003

Singapore

Vietnam

No specific biotech policy

No national strategy

Evolution of biotechnology policy in Asia-Pacific

From: S. Chaturvedi & K.R. Srinivas, 2014

Page 19: Investing in agri-biotechnology: Research for Entrepreneurship

Malaysia Recognises Biotechnology as a Strategic Industry to Drive Growth

MALAYSIA -- NATIONAL BIOTECH POLICY

Comprehensive Strategy & Ecosystem Setup

From: www.biotechcorp.com.my

Page 20: Investing in agri-biotechnology: Research for Entrepreneurship

Vastly improved R&D capacity in Asia for agri-biotechnology

Biotechnology Research Institute, CAAS, China

The National Center for GM crops. RDA, Korea

Institute of Agricultural Genetics, Hanoi, Viet nam

Indonesian Center for Agricultural Biotechnology and Genetic Resources Research and Development (ICABIOGRAD), Bogor

National Center for Genetic Engineering and Biotechnology, Thailand

RIS 2014.www.ris.org.in

Page 21: Investing in agri-biotechnology: Research for Entrepreneurship

E.g. Taiwan’s investments

• 8 R&D targets: plant seedling biotech, aquaculture biotech, livestock biotech, food biotech, biofertilizers, biopesticides, animal vaccines, and tests and diagnosis.

• As of 2011, there were 92 companies in the agricultural biotechnology industry, together producing total revenue of approximately USD213 million (TWD6.39 billion).

• Two significant developments that have contributed to promoting the industry are the implementation of the Development Program for Industrialization of Agricultural Biotechnology (DPIAB), and the establishment of the Pingtung Agricultural Biotechnology Park (PABP).

Ying Yeh, 2015

Page 22: Investing in agri-biotechnology: Research for Entrepreneurship

FTO =

STRATEGICTactical

APPROVALS for planting and food

“FEEL-GOOD” WORK &OPERATING ENVIRONMENT

SUPPORTIVE POLICIESAND REGULATIONS

SUPPORTIVE/NEUTRAL MEDIASTRONG THIRD PARTY

SUPPORT

TimeSpace

Indigenous capacity & products

Page 23: Investing in agri-biotechnology: Research for Entrepreneurship

http://www.apo-tokyo.org/publications/ebooks/agricultural-biotechnology-and-global-competitiveness/

Page 24: Investing in agri-biotechnology: Research for Entrepreneurship

Science + Technology + Entrepreneurship = Surplus food plus cash for livelihood

Linking productivity to poverty reduction: Livelihood creation

Micro-technologiesMicro-FinanceMicro-Insurance

Farmers need to be entrepreneurs to get out of the poverty trap by using modern science andtechnology to produce surpluses and add value to their produce

Page 25: Investing in agri-biotechnology: Research for Entrepreneurship

Thank you - 谢谢 - Terima Kasih - धन्यवाद - ありがとう – Maraming

selamat - Merci - Gracias - 너를 감사하십시요 - Thank you

[email protected]; [email protected]