A GM case study – building community capital

1. A GM case study – building community capital Paula Fitzgerald Trade and Strategy

2. William Farrer • Born in 1845 • Began studying medicine – moved to Australia at 25 - tutor at sheep station – qualified as surveyor (Department of Lands) – moved to a farm – became a wheat experimentalist with the Department of Agriculture • Believed the types of wheat grown were unsuitable for Australian conditions • In 1882 he began selecting individual plants which showed superior qualities. This soon included foreign wheats – relied on overseas correspondence/networks • Aimed to improve rust resistance and baking quality (focus on the latter, as well as agronomic, was unique) • Viewed by some as wasting time on “pocket handkerchief wheat plots” • Millers initially resisted … • “Father of Australian wheat” – for contribution to wheat quality & yield; but also science.

3. Global GM statistics - cultivation • 18 years old • 170.3 million hectares of GM crops were planted in 2012 • 100-fold increase from 1996 when GM crops were first commercialised • 28 countries grew GM crops in 2012 – 20 developing countries and 8 industrial. • 17.3 million farmers grew GM crops in 2012. Over 90% of these, or 15 million farmers, are in resource-poor countries. • Five EU countries (Spain, Portugal, Czechia, Slovakia and Romania) planted GM insect resistant corn.

4. Global GM situation - 2012 * Million hectares

5. GM crops under development in Australia Most commodities in Australia have GM investments. The OGTR has granted licences for field trials of GM: • Banana • Barley • Canola • Cotton • Lupins • Pineapple • Safflower • Sugarcane • Ryegrass • Wheat • White clover • (carnations)

6. Most advanced Australian R&D

7. Most advanced Australian R&D

8. GM ryegrass? • What? High energy (high fructan) ryegrass • How? Two additional ryegrass genes have been added – storage of sugar in the leaf and the stem • It is different to other ‘high sugar’ grasses as it has a higher energy content without any yield penalties. • Should allow for a reduction in other energy sources (wheat, barley) • So what? Modelling suggests $300 per hectare per year – equating to at peak use (of 70%) $196 million annual benefit

9. What do our consumers think? • Males, younger people and those who live in capital cities are more likely to accept GM foods. • People are more supportive of GM foods that have health outcomes or are cheaper, and find lasting longer or tasting better only a minor benefit. • Support for GM foods and crops has remained fairly consistent over the past few years, with about 60 per cent of the population willing to eat most GM foods and about 25 per cent not willing. However this figure changes depending on the type of food being modified, whether there are benefits to the consumer and perception of effective regulation. • Australian concerns about GM foods are not top of mind.

10. GM opponents – celebrities, costumes, chaos!

11. Farm business fitness • Management capability and tactical flexibility • Cost control • Efficient utilisation of home grown feed • High levels of labour efficiency • Business structure – debt related to production costs and community capital

12. Potential challenges • GM crops/GM pasture • Water • Animal welfare • Sustainable land use/practices • Healthiness of our product

13. What is “community capital”? People “Social licence” Transparent dialogue Community Connectedness – family, neighbours, community, governments Building relationships through strategic engagement TRUST Local and global Listening Freedom to Operate

14. Aussie kids - 2000 • What kids know about agriculture: • 58% of city children didn’t know that cotton comes from a plant • Almost half the children surveyed didn’t know that pasta comes from wheat • 81% of children didn’t know that leather products come from cattle • 50% of city kids think farmers never use computers or fax machines • Almost one in every three city children are completely unsure about why farmers use pesticides • Source: Kondinin Group

15. Aussie kids – 2011 • Understanding of agriculture: • 75% of year 6 students thought cotton socks were an animal product • 45% could not identify that everyday lunchbox items originated from a farm – bananas, bread and cheese • 40% of year 10 students believe farming damages the environment • 28% of year 10 students thought natural fibres only came from plants • Only 57% of students linked scientific research to farming • Only 45% of students linked innovation to farming • Source: Primary Industries Education Foundation

16. UK Kids ... “The white bread is made with milk and the brown bread is made with wheat” “A lemon is from Birmingham and it grows in the ground and that’s a kiwi it grows in the ground and it’s from Jamaica” “Rhubarb is like carrots, it’s what kangaroos eat. Sometimes they grow on trees without seeds”

17. Having profile

18. Profile? Peter Waterhouse - 2002 the Victor Chang Medal; 2003 The Bulletin's 'Top Ten Smartest Scientists in Australia’; 2005 CSIRO Chairman's Medal; 2007 Prime Minister’s Prize for Science. Key area of work: gene silencing – plants (viruses/plant health), animals and medicine

19. The GM DAIRY story 1 7 PLANT CELL DNA carrying new gene with plant chromosome 3 REGENRATTION OF PLANT REWARDED FARMER 6 2 PLANT WITH NEW TRAIT More sugar/ higher energy MORE MILK Milk is milk! • Five essential elements for community support: • Developed by a trustworthy public agency • Includes a gene from the same species • Has a consumer benefit • Is labelled or differentiated • Has strong evidence of safety/regulation 4 5 8 REGULATORY SCRUTINY AND APPROVALS HAPPY COW EATS ‘HIGH ENERGY’ PASTURE MILK ON SHELVES

20. Global grassrootssupport

21. Aussie GM canola support Grains Council of Australia Flour Millers’ Council of Australia

22. Build dairy community capital? ?

23. Our story … • Australian dairy is a $13 billion farm, manufacturing and export industry. • Australia’s 6700 dairy farmers produce around 9.5 billion litres of milk a year. • The Australian dairy industry directly employs 43,000 Australians on farms and in factories, while more than 100,000 Australians are indirectly employed in related service industries. • Australia is the fourth largest dairy exporter in the world, accounting for 7% of global trade. • Australia would save $2 billion a year in healthcare costs if every Australian consumed the minimum recommended daily dairy intake. • Dairy farmers are environmental caretakers. The industry has a strong record of continuous improvement in water and energy efficiency, and protecting soils and biodiversity.

25. Further information Paula Fitzgerald Manager Biotechnology & Strategic Initiatives Dairy Australia Tel: 03 9694 3775     Email: pfitzgerald@dairyaustralia.com.au

26. The Federal Regulator – the Office of the Gene Technology Regulator (OGTR) – oversees human health and safety, and safety of the environment in relation to GM products, while State Governments make decisions on ‘market and trade’ grounds. A national approach? NT: OGTR legislation only WA: Moratorium on all GMcrops. GM cotton (in the Ord) & canola grown by exemption QLD: OGTR legislation only. GM cotton grown NSW: Moratorium on commercial cultivation of GM food crops. ‘System’ for agriculture minister to grant approval. GM cotton & canola grown ACT: Moratorium on commercial cultivation of all GM crops until 2006+ SA: Moratorium on commercial cultivation of GM food crops until 2019 Vic: OGTR legislation only. GM canola grown Tas: Moratorium on commercial cultivation of all GM crops. (Government has just announced indefinite extension)

27. Market choice (GM canola model) 29 supply chain organisations endorsed GM canola commercialisation as a result of the following: