Agronomic & Economic Impact of Transgenic Canola

1. Agronomic & Economic Impactof Transgenic Canola JoAnne Buth Vice President, Crop Production Canola Council of Canada www.canola-council.org

2. Brassica napus Brassica rapa

4. Transgenic Canola Study • Serecon Consulting & Koch Paul Assoc. • Coordinated by the Canola Council of Canada with assistance from: • Manitoba, Saskatchewan and Alberta growers & provincial specialists, Aventis & Monsanto

5. Transgenic Canola Study • For this study transgenic = Roundup Ready & Liberty Link • Clearfield (SMART) not included = developed by mutagenesis • Conventional - not SMART, RR, LL, Bx

6. Transgenic Canola Study • 650 growers surveyed across western Canada • Half conventional/ half transgenic • > 80 acres • One field per grower • 13 case studies - financial records 1997-2000

7. Transgenic Canola Study • Variety, seeding rates, seed costs • Yield, dockage, grade • Self reported net returns per acre • Summer fallow practices in 1999 • Fertilizer use • Number of field operations - tillage, harrowing, spraying

8. Transgenic Canola Study • Weed control - mechanical & cultural • History of transgenic use • Changes since adopting transgenics • Benefits and disadvantages

9. Survey Says... • Reasons for growing transgenics: • Weed control • Better yield, more return, profit • Reduce costs • Clean up fields • Reduce tillage

10. Survey Says… • Reasons for not growing transgenics: • Cost of the TUA • Overall costs • No need to change • Market access • Weed resistance

11. Seeding Rates

12. Seed & Fertilizer Costs • Seed costs for transgenic $4.52 more than conventional ($16.21 v.s $11.69) • Slight increase in fertilizer ($1.72/acre) - includes 1999 summerfallow • Summerfallow • Transgenic - 18% • Conventional - 36%

13. Herbicides • 40% reduction in herbicide costs (includes summerfallow in 1999) • Transgenic - $16.22 • Conventional $21.72 • Number of applications • Transgenic - 2.07 • Conventional -1.78 • Reduced herbicide use - 6,000 tonnes in 2000

14. Soil Conservation

15. Tillage • Transgenic - fewer tillage passes • Direct-seeding • Transgenic - 50% • Conventional - 35% • 2.6 million acres with fewer tillage passes

16. Fuel • Transgenic growers used less fuel • fewer field operations- tillage, summerfallow • 31.2 million litres of fuel saved in 2000 • $13.1 million (42 cents/L) saved

17. Commodity Prices • Transgenic growers have increased their acreage and production • However, increased production has not impacted the price of canola

19. Yield & Dockage • Yield - 10% increase (3 bu/acre) • Transgenic - 29.25 bu/acre • Conventional - 26.54 bu/acre • Dockage - decrease • Transgenic - 3.77% • Conventional 5.14%

20. Returns • Transgenic Grower reported + $5.80/ac net return (yield x price - inputs, labour, etc.) • Transgenic $19.92 • Conventional $ 14.12 • Economic model - 1997-2000 • $10.62 advantage (gross margin)

21. Impact on the Industry • 1997-2000 • Grower (direct) - $144M to $249M • Indirect - $58 to $215M • Total - up to $464 M

22. The Bottom Line • Higher yield, lower dockage, better returns • Less tillage • Less herbicide • Less fuel • Benefits worth millions of dollars