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FOSTERING AN ENVIRONMENT FOR INVESTMENT
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FOR MANY YEARS, Canada has enjoyed a positive national and international image as a provider of innovative products to farmers and consumers around the world. However, the truth is that our agriculture and agri-food industry is falling behind its competitors for many crop kinds._x000D_
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Research and plant breeding are critical to innovation in agriculture and agri-products. Canadian agriculture and agri-products have benefited from both public and private sector research and plant breeding._x000D_
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Both public and private sector research must continue and increase if Canada is going to maintain and, in some cases, regain its competitive position. The private seed sector has accepted a growing role as an investor in research and plant breeding. In 2006, the private sector invested over $56 million in plant breeding and research, making it the single largest investor in Canada. That investment is projected to almost double by 2012._x000D_
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However, the fact that almost 96 per cent of that investment will be in three crops—canola, corn and soybeans—tells its own story. It is in these three crop kinds that the regulatory and intellectual property environments exist to facilitate investment. And the investment pays off. For example, the average net cash return for soybeans and corn is 10 times the return for wheat. Canola returns, on average, five times the cash that wheat does. This is primarily the result of the increased productivity and profitability delivered by new varieties (source: Statistics Canada and Manitoba Agriculture numbers, CSTA calculations)._x000D_
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However, a recent international study on wheat ranked Canada at the very bottom when it comes to providing an environment for investment in wheat. In Canada, private sector investment in wheat is expected to drop to less than two per cent by 2012. The correlation between investment and productivity is clear when one looks at wheat yield improvements. Once again, Canada is far back in the pack._x000D_
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The seed-driven innovation pipeline is bulging with new improved varieties, developed through both biotechnology and conventional plant breeding, which will deliver even better productivity to farmers, and will bring improved traits to enhance food quality, health and the environment. Whether these innovations are made available to Canadian farmers and consumers on a timely basis depends on the investment environment in Canada._x000D_
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The Canadian Seed Trade Association is actively advocating for changes to intellectual property provisions and regulatory requirements and for incentive programs to create an innovation environment for variety development._x000D_
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For more information on research investments, visit the Canadian Seed Trade Association website at www.cdnseed.org.
