Genetically Modified Foods: Are They Safe?

An Expert's View about Growth Industries in the United States

Posted on: 18 Mar 2010

A presentation from Frost & Sullivan describing the key drivers and challenges, key players as well as technology trends in the GMO sector.

Genetically Modified Foods: Are They Safe? W.F. Kee ? Industry Analyst Technical Insights Group AGRI-FOOD SAFETY AND STANDARDS SEMINAR 2010 Berjaya Times Square Hotel & Convention Centre, Kuala Lumpur January 26, 2010 Agenda 1 Who is Frost & Sullivan? 2 Introduction to GMO 3 Key Drivers and Challenges, Key Players 4 Overview of GM Industry and Trends 5 Malaysia?s Biosafety Act 2007 6 Conclusion 2 1 Who is Frost & Sullivan? ? The Growth Consulting Company ? Over 1,700 employees across 31 global locations in 22 countries. ? Over 10,000 clients worldwide including emerging companies, the global 1000 and the investment community ? Founded in 1961 ? Developers of the Growth Acceleration System, which includes the CEO?s 360 Degree Perspective, CEO?s Growth Team, Growth Model, Growth Excellence Matrix and Growth Workshop. 3 1 Frost & Sullivan?s Industry Coverage 1. Aerospace & Defense 2. Automotive & Transportation 3. Chemicals, Materials & Food 4. Electronics & Security 5. Energy & Power Systems 6. Environmental & Building Technologies 7. Healthcare 8. Industrial Automation & Process Control 9. Information & Communications Technologies 10. Measurement & Instrumentation 4 2 Introduction to GMO ? Definition of GMO: A genetically modified organism (GMO) whose genetic material material has been altered using genetic engineering techniques. ? Genetic engineering techniques include gene targeting, gene splicing, gene silencing, gene transfer, etc. Rank Country Area (million hectares) Types of Crops 1 USA 62 nola, squash, .5 Soybean, corn, cotton, capapaya, alfalfa, sugarbeet 2 Argentina 21.0 Soybean, corn, cotton 3 Brazil 15.8 Soybean, corn, cotton 4 India 7.6 Cotton 5 Canada 7.6 Canola, corn, soybean, sugarbeet 6 China 3.8 Cotton, tomato, poplar, petunia, papaya, sweet pepper 7 Paraguay 2.7 Soybean 8 South Africa 1.8 Corn, soybean, cotton 9 Uruguay 0.7 Soybean, corn 10 Bolivia 0.6 Soybean Source: ISAAA, 2008 5 3 Key Drivers Food Security High Price of Food Sustainability Alleviation of Climate Change Poverty and Hunger Source: Frost & Sullivan. 6 3 Key Challenges Intellectual Difficulty in Property Prohibitive Costs Obtaining Rights Biological Sequences Ecological Concerns Safety of GMO on Human Health Source: Frost & Sullivan. 7 3 Key Players Monsanto Syngenta Dow Agrosciences GM Seeds DuPont Bayer Bioscience (division of Bayer Cropscience) BASF Plant Science Source: Frost & Sullivan. 8 4 Desired Crop Traits Soil Tolerance Herbicide Tolerance Delayed Ripening Insect Resistance Crop Traits Drought Tolerance Virus Resistance Stacked Traits Enhanced Nutrition Source: Frost & Sullivan. 9 4 GM Crops Soybean Corn ? 70% (65.8 million has.) of ? 24% (37.3 million has.) of total total global soybean planted is GM global corn planted is GM ? Countries growing GM soybean: ? Countries growing GM corn: Argentina, Bolivia, Brazil, Canada, Argentina, Brazil, Canada, Chile, Chile, Mexico, Paraguay, Uruguay, Czech Republic, Egypt, South Africa, and the USA. Germany, Honduras, Philippines, Poland, Portugal, Romania, Slovakia, South Africa, Spain, Uruguay, and the USA. Canola Cotton ? 20% (5.9 million has.) of ? 46% (15.5 million has.) of total global canola planted total global cotton planted is GM is GM ? Countries growing GM ? Countries growing GM cotton: canola: Canada, Chile, and Argentina, Australia, Brazil, the USA. Burkina Faso, China, Colombia, India, Mexico, South Africa, and the USA. 10 4 Breakdown of GM Crops 5% 12% Soybean Corn Cotton 53% Canola 30% Source: ISAAA, 2008 11 4 Countries Growing GM Crops Source: Clive James, 2008 12 4 Varieties of GM Crops Crop GM Property Soybean Herbicide resistant, different lipid profile Corn Herbicide and insect resistant, vitamin enriched Rapeseed / Canola Herbicide resistant, different lipid profile Cotton Pest resistant Papaya Virus resistant Tomato Delayed ripening Potato Higher starch content Sugar cane High sucrose content, pesticide resistant Sugar beet Herbicide resistant Rice Vitamin A enriched (?golden rice?) 13 4 Technology Trends in GM Crops Future  Stress tolerant Present  Enhanced nutrition  Multiple traits  Disease resistant  Therapeutic crops Past  Insect resistant  Stacked trait seeds  Patent-protected food crops (herbicide resistant)  First commercialized in the 1990s Source: Frost & Sullivan. 14 5 Malaysia?s Biosafety Act 2007 ? According to the Act, a ?living modified organism " means any living organism that possesses a novel combination of genetic material obtained through the use of modern biotechnology ? The Act calls for the establishment of the Genetic Modification Advisory Committee, whose function is to provide scientific, technical and other relevant advice to the Minister or the Board ? With regards to GM labelling, the Act requires that all living modified organisms, items containing living modified organisms and products of such organisms shall be clearly identified and labelled 15 6 Conclusion ? GMOs are increasingly viewed as one of the best solutions to end world hunger, as genetically enhanced crops typically provides higher yields than conventional crops ? It is increasingly difficult to determine whether a consumable product contains GMOs or not. For example, GM corn could easily be used to produce corn syrup or even alcohol, which is then inserted into various types of foods and beverages. ? It is predicted that GMOs will become a mainstream food product on a global scale by the end of the decade, and acceptance of GMOs, especially by the developing world, will increase. 16 Q & A W.F. Kee Senior Industry Analyst Technical Insights Asia Pacific (+603) 6207-1051 waifun.kee@frost.com Bernard Weber Sales Manager Technical Insights North America & Europe (+44 207 343 8352) bweber@frost.com 17
Posted: 18 March 2010

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