Foreword

Acknowledgments

Summary

Introduction

Costs and benefits of GM crop adoption

Potential economic impacts of GM crops in Australia

Conclusion

Appendixes

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A International adoption of GM crops and the Australian experience

The first significant planting (1.7 million ha) of GM crops took place in the United States. Since then, global adoption of GM crops has increased rapidly, reaching 114 million hectares by 2007, with the United States accounting for 50 per cent of this area (figure C). Other principal adopters of GM crops are Argentina, Brazil, Canada, India and China, which together with the United States accounted for around 95 per cent of the global area grown to GM crops (James 2007). GM crops are also being increasingly adopted by farmers in other countries, with 17 countries accounting for the remainder of global GM crop production. In terms of the area cultivated worldwide, the predominant GM crops planted to date have been soy bean (51 per cent), maize (31 per cent), cotton (13 per cent) and canola (5 per cent) (figure D) (James 2007). Other commercially planted GM crops include tomato, potato, sugar beet, tobacco, squash, alfalfa, melon and papaya. These accounted for less than 1 per cent of total GM crop plantings in 2006. Soy bean is an important livestock feed and food crop. Critical to soy bean production is the effectiveness and efficiency of weed control. Accordingly, HT soy bean varieties have been rapidly adopted, reaching 64 per cent of the total world area planted to soy bean in 2006 — equivalent to 57 per cent of the area under all GM crops. The United States is the main producer of HT soy bean, with Argentina and Brazil also contributing significantly to world production (Gómez-Barbero and Rodríguez-Cerezo 2006). Maize provides the largest share of global coarse grain production. GM maize varieties have been developed using the Bt trait to provide protection against losses in yields arising from insect pests. By 2006, Bt maize accounted for an area of 25.2 million hectares, or around 17 per cent of the global maize area. The majority of GM maize is grown in the United States, South Africa and Argentina. Small areas of GM maize are planted annually in the European Union (James 2007). Cotton is the world’s leading industrial crop in terms of area cultivated (Gómez-Barbero and Rodríguez-Cerezo 2006). Cotton is highly susceptible to a number of insect pests and is therefore heavily reliant on pesticides. Around a quarter of pesticide use worldwide is in cotton production. To reduce pesticide use and yield losses, cotton varieties have been engineered to produce a protein that is toxic to certain species of insects (Bt cotton). The proportion of the global cotton area planted to GM varieties was around 43 per cent (15.0 million ha) in 2007. In 2007, most of these plantings were for Bt cotton (72 per cent), followed by Bt/HT cotton (21 per cent) and HT cotton (7 per cent) James (2007). Canola is used for both human food and animal feed. Management of broad leaf weeds in canola crops is an important activity in production, as competition for nutrients by weeds reduces overall crop yields. HT canola contains genes, which provide tolerance to broad spectrum herbicides such as glyphosate and glufosinate-ammonium, providing a management tool for weed control. In 2006, the proportion of global canola area planted to GM varieties was around 18 per cent. Currently, the only producers of GM canola are Canada and the United States.

Australia’s adoption of GM crops

GM cotton

Australia is a significant producer of cotton. In the period 2000–01 to 2005–06, Australia produced an average of 590 400 tonnes a year of cotton lint (ABARE 2006). Australia is also a significant exporter of cotton lint, ranking fifth. Currently GM cotton varieties account for around 90 per cent of total Australian cotton plantings (James 2007) (figure e). Cotton is susceptible to attacks from insect pests, notably the helicoverpa caterpillar. A range of GM cotton varieties have been adopted by Australian cotton producers since 1996, resulting in a reduction in the use of pesticides and herbicides. Varieties such as Ingard and Bollgard II cotton contain proteins toxic to the helicoverpa caterpillar, and have been widely planted by cotton farmers. More recently, Australian producers have adopted cotton varieties incorporating HT traits resistant to the application of broad spectrum herbicides — such as Monsanto’s Roundup Ready® Flex — allowing herbicide applications well into the later stages of the growing season. These GM cotton varieties are available with stacked Bt and HT traits and have been widely accepted by cotton producers, accounting for 80 per cent of the total area planted to GM cotton in 2007 (James 2007). Currently both private and public research is being conducted into future varieties of GM cotton. For example, field trials are either being undertaken or planned for GM varieties resistant to water logging, can use water more efficiently, or improve the fungal resistance of the plant (Ministerial GMO Industry Reference Group 2007). Over the longer term, it is possible GM cotton technology will enable cotton production to expand into areas where it is now unviable. For example, cotton production in the Ord River Irrigation Area ceased in the 1970s because of difficulties in controlling pests. However GM technology may make cotton production a viable option in this area (Ministerial GMO Industry Reference Group 2007).

GM canola

HT canola has been licensed for release by the Office of the Gene Technology Regulator (OGTR) and has been approved for commercial release in Victoria. New South Wales has approved the release of GM food crops, including canola, but under a strict licence regime and subject to final ministerial approval. Other state and territory governments continue to review their moratoria on the growing of GM crops, apart from the Northern Territory and Queensland where no restrictions are placed on the growing of GM crops once approved by the OGTR.

Prospective GM crops

HT canola has been licensed for release by the Office of the Gene Technology Regulator (OGTR) and has been approved for commercial release in Victoria. New South Wales has approved the release of GM food crops, including canola, but under a strict licence regime and subject to final ministerial approval. Other state and territory governments continue to review their moratoria on the growing of GM crops, apart from the Northern Territory and Queensland where no restrictions are placed on the growing of GM crops once approved by the OGTR.

Wheat

In June 2007, the Victorian Department of Primary Industries was granted a licence from the OGTR to carry out field trials of drought-resistant wheat. Also, the CSIRO is currently conducting field trials for GM wheat with increased starch content (Glover et al. 2005). In addition, Grains Biotech Australia has conducted field trials of herbicide and salt-tolerant wheat (O’Niel 2005). Significant research is also being undertaken into developing GM wheat varieties for commercial release overseas. For example, Syngenta, a Swiss-based company, is carrying out field trials in North America of a GM wheat variety resistant to the fungal disease fusarium, a disease which can stunt plant growth and reduce yields of wheat crops by around 1–3 per cent (Gianessi 2005). Fusarium-infected crops also pose a serious risk to consumers as toxins produced by the fungus can affect human health (GMO Compass 2006). GM wheat field trials are also under way in Mexico and China (Berwald et al. 2006).

Rice

Research into developing suitable GM rice strains is in progress globally. A world leader in GM rice research is China, where several varieties of insect-resistant GM rice have passed field and environment release trials and are now being tested in farm trials (Huang et al. 2005).

B Research and development in GM crops in Australia

Australian research institutions, state agriculture departments and local and international biotechnology companies are engaged in biotechnology programs and many of these involve field trials of GM crops (see table 3).

3 Examples of GM field crop trials currently under way State/territory GM crop GM trait New South Wales Cotton Water use efficiency Victoria Canola and  Indian mustard Herbicide tolerance and hybrid breeding system Victoria Wheat Drought tolerance Victoria Grapevines Expression of modified colour, sugar composition, flowering and fruit development Victoria Rose Altered flower colour Victoria White clover Viral resistance Queensland Papaya Delayed fruit ripening Queensland Sugar cane Altered plant architecture, enhanced water or improved nitrogen use efficiency, Altered sugar content Queensland Pineapple Reduction of blackheart, delayed flowering Source: Office of the Gene Technology Regulator, www.ogtr.gov.au.

In addition to the trials under way, a number of field trials are in the post-harvest monitoring phase (see table 4).

4 Examples of GM field crop trials in post-harvest monitoring phase State/territory GM crop GM trait New South Wales Rice Herbicide tolerance New South Wales Cotton Insecticidal, herbicide tolerance, and water logging tolerance New South Wales White clover Viral resistance Victoria Canola Herbicide tolerance, hybrid breeding system Victoria Indian mustard Herbicide tolerance, hybrid breeding system Queensland Cotton Water use efficiency, fungal resistance, insecticidal, herbicide resistance South Australia Canola Herbicide tolerance, hybrid breeding system South Australia Indian mustard Herbicide tolerance Tasmania Canola Fungal and herbicide resistance ACT Wheat Altered grain starch Source: Office of the Gene Technology Regulator www.ogtr.gov.au.