New numbers released by the CSTA show good news across the spectrum, but there’s more to be done — especially in cereals and pulses.
Newly-released survey results from the Canadian Seed Trade Association shows absolute investment has increased for every crop kind in Canada since 2012.
The results are compiled in A Snapshot of Private Innovation Investment in Canada’s Seed Sector. The document is based on the CSTA’s 2017-2022 Investment Survey, completed in 2018. The survey, conducted every five years, is the most comprehensive snapshot of private seed sector research and development in Canada.
Survey respondents represent the diversity of CSTA membership, with companies ranging from less than $1 million to well over $150 million in annual sales in Canada. Overall, the seed innovation industry represents over $3.2 billion in annual sales in Canada, providing a broad and diverse picture of seed research and development, the document states.
The major findings of the survey show that private investment in seed is rising steadily, with projected further growth to $179 million by 2022, driven particularly by projected growth in soybean and wheat research.
Investment in canola has risen to almost $95 million compared to only $64.8 million in 2012. Projected investment in cereals in 2022 will be over $26 million, up from only $8.3 million in 2012. Pulses will see a projected investment of $13.4 million in 2022, up from a paltry $235,000 in 2012.
But barriers to innovation exist and must be dealt with, the results show. “We need to do more to make Canada an international destination of choice for research and development,” the document states. “There is still work to be done on value creation: investment levels in canola are very high, but Canada has a major gap when it comes to private investment in cereals research and development. There is great potential there.”
To request a copy of A Snapshot of Private Innovation Investment in Canada’s Seed Sector, email info@seedinnovation.ca.
What the Numbers Show
Wheat and Pulses are Growing: The 2012 survey found that three crops — corn, canola and soybeans — made up 89% of private research investment in Canada (and canola alone was 64% of industry expenditure). Five years later there is far greater diversification, as research investment in wheat and pulses has increased dramatically. Those two crops combined now make up almost 20% of private research investment in Canada.
Research Spending is Rising: In 2012 the sector spent $101 million on private research, and CSTA forecasted modest growth of 1% by 2017. The latest data shows that private research expenditures have grown to $171 million in 2017, a 56% increase over five years ago.
Breakdown of Private Research Spending in Canada
Traditional plant breeding 45%
License or royalty payments for genetics to breeders and developers within Canada 21%
Trait development 15%
Variety evaluation 13%
Approval of traits 3%
License or royalty payments for genetics to breeders and developers outside Canada 3%
