Argentina Biotech Summary
7 November 2006 A summary of Argentina’s continued expansion in biotech crops, reported by the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS).
Argentina is the world’s second largest producer of GMO crops after the United States, with ten biotech crop varieties approved for production and commercialization: one for soybeans (Monsanto 40-3-2), two for cotton (Monsanto 531 and 1445) and now seven for corn (Ciba-Geigy 176, AgrEvo T 25, Monsanto 810, NK 603, Novartis Bt 11, Syngenta GA 21 and Dow/Pioneer TC 1507).
Soybeans
Since its release in 1996, Roundup Ready (RR) soybeans have been adopted at a very high rate, with an estimate for the current season of 1562 million planted hectares (Ha), placing Argentina behind just the US in biotech soy area.
Geared almost entirely towards exports, only 2% of the soybeans harvested reach the nationaldomestic market. Ninety-three percent of soybean oil and 99% percent of by-products (meals) are exported.
Maize
Biotech varieties of lepidoptera tolerant and ammonium-glyphosate tolerant maize were commercially released for the first time in 1998. The adoption of these varieties has also been significant. In the case of Bacillus thuringiensis(Bt) maize, benefits are derived from a net increase in production, resulting from the reduction of losses. Argentina’s government forecasts that producers will plant around 2.3 million Ha of maize this season, although that figure may change, as it is difficult to estimate the amount that will enter into the marketing chain.
Cotton
Biotech cotton adoption represents 40% of Argentina’s planted area, or approximately 400,000 Ha, according to the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS). Bt cotton is the common variety planted.
Although seed containing a combination of Bt and RR technologies might be approved in the near future, some sources say that it is doubtful it will be marketed, as seed companies have had trouble collecting fees and controlling illegal multiplication of the traits (see “Royalty Pains,” below).
Through a research project done by the National Institute of Agricultural Technology (INTA), it was found that in the leading cotton-growing regions of Argentina, biotech cotton required almost 64% fewer applications of insecticide compared to conventional counterparts. This research also showed that the average cotton grower had a US $65 per Ha advantage using biotech cotton vs. conventional cotton.
Royalty Pains
The biggest issue facing Argentina’s ag sector in terms of biotechnology adoption is the country’s lack of an adequate and effective system to protect the intellectual property rights of new plant varieties and plant-related technology. Penalties for unauthorized use of protected varieties are negligible, and judicial enforcement has been ineffective to prevent the unauthorized commercial use of protected varieties.
Monsanto Co., grower organizations, and commodity exporters remain at an impasse regarding a solution to the high level of saved and illegally traded RR soybeans. In January 2004, Monsanto announced that it would cease investments in and sales of RR soybeans in Argentina. Monsanto applied for and was denied a patent on RR soybeans, a decision it appealed unsuccessfully with the Argentine Supreme Court. Argentine law currently allows farmers to save seed from one harvest and to use it the following year if a royalty is paid to the original seed breeder. However, it is illegal to sell, trade, or pass saved seed from one producer to another. In May 2004, Argentina’s National Seed Institute implemented Resolution 44/2004, requiring that each sack of seed be labeled with quantity, unit price, total sales price, and seed species, type or variety. However, the illegal seed sales continued and Monsanto stated that if an acceptable solution could not be reached with producer organizations and commodity exporters by March 2005, the company would enforce royalty payments on unlicensed Argentine soybeans exports at ports of destination in countries where Monsanto holds a patent on RR soybeans. In March 2005, Monsanto informed Argentine soybean and product exporters of imminent enforcement actions on unlicensed shipments of soybeans, soybean meal, and other soy products containing the RR gene. This move provoked heated reactions from Argentina’s government and farmers.
The two sides have continued to discuss possible solutions, but neither has given much ground. For the near-term, this situation remains in a confused limbo.
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