"If companies want to do GM, they must at least burn 10 years of money. Now we are using traditional technology to make money to raise biotechnology." The office of a certain company in Zhongguancun, Beijing, talks about the status quo of the development of GM industry. Dr. Lee, the head of the company, was helpless.
In fact, the GM industry has been developing in China for two to three decades, but the attention it has received over the past year is unprecedented. The controversy triggered by the Ministry of Agriculture's approval of the staple food genetic safety certificate last year has not been eliminated. The recent incidents in which Hunan and Hubei were exposed to detect genetically modified rice are still under investigation. Transgenics was once at the center of public opinion storms.
Behind the noise of the public, the industrialization of genetic transformation has entered the deep water area. The reporter learned that there are still variables in the business model and economic benefits of the genetically modified industry. In addition to the lack of technical input and the lack of competitiveness of the enterprises, the prospects for the development of the entire industry are not optimistic.
Long-distance gene patents may expire
In 2009, the Ministry of Agriculture approved the production and application safety certificate for genetically modified rice and corn, which is seen as a substantial step towards the commercialization of GM rice and corn. However, there is still a long way to go before GM can truly realize industrial production. On the one hand, it takes a long time for the transformation of technology from R&D to product industry. On the other hand, as a genetically-modified technology that is closely related to public life safety, every step in the industrialization of GM crops cannot substitute for each other, and it is necessary to follow the relevant legal procedures step by step. Go to operation. People in the industry said with emotion: “The day when most of China's genetic patents are truly commercialized is basically the time when patents fail. Genetic patents have no commercial value in the end and they have to ask a big question mark.â€
The above-mentioned genetically modified rice varieties Huahui 1 and BT Shanyou 63 were obtained from the team of Zhang Qiu, academician of Huazhong Agricultural University. Entrusted by Prof. Zhang’s enlightened academician, the Biological Sciences Center of Huazhong Agricultural University (hereinafter referred to as the “Agricultural Media Centerâ€) said in an email replying to the “Economic Information Daily†reporter that the acquisition of the safety certificate was just for any seed variety to enter commercial planting. Important "threshold", there is no timetable for the commercial production of the two transgenic rice lines.
"Now most companies have not had much substantive action," said Dr. Li, who is the head of a seed company that does not want to disclose his name. He referred to the "substantive action", the first is to conduct genetic research, or to purchase the intellectual property rights and the right to use, and the second is the cultivation of transgenic varieties.
In fact, the research on genetically modified crops in China began in the 1980s and was one of the earliest countries in the world to apply agricultural bio-engineering. What is even less known is that China was also the first country in the world to commercialize GM crops—as early as 1992, China first planted transgenic virus-resistant tobacco in Datian. In 1993, China began planting genetically modified cotton.
However, when GM crops are changed from tobacco and cotton to rice and corn, they have to become the food on the table, and the challenges faced by the industrialization of genetic transformation really begin. In particular, public opinion on the controversy over transgenic technology, but also makes many companies do not dare to enter this "place of right and wrong."
Even if companies have made substantial progress, they must still have a long way to go before realizing industrial production. Dai Xiaofeng, deputy director of the Science and Technology Management Bureau of the Chinese Academy of Agricultural Sciences, wrote a “time account†to the reporter of the “Economic Information Dailyâ€:
Obtaining a safety certificate is an "innovation of germplasm," and it will normally take two to three years to transform the germplasm into good breeding materials. Breeding new varieties with breeding materials and obtaining a stable line will require at least three years. At this time, enterprises submitted their applications and participated in the regional trials. After three years, they can pass new product certifications and obtain production licenses. In the end, after two or three years of breeding, it is possible to carry out large-scale commercial production.
If we add the first five to six years of patent applications for genetic patents and conversion work, it will take at least 15 years from the acquisition of gene patents to industrial production even under the "ideal conditions," if not. It takes 20 years or even longer.
It is no wonder that Dr. Lee laments: “The day when most of China’s genetic patents are truly commercialized is basically the time when patents fail. Gene patents have no commercial value in the end and they have to ask a big question mark.â€
With such a long process of industrialization, the first domestic company that was approved to commercialize the phytase gene maize had to evaluate the value of various business models.
The phytase maize gene safety certificate is aimed at the transformant (receptor material that has introduced a certain gene, but also a complete plant), not the genetically modified species, if the transformant is used to directly produce phytase as an animal feed additive. , you can immediately put into production; if it is the production of hybrid species, sold to farmers to plant, then the above-mentioned approval procedures can not be less.
Han Gengchen, chairman of Origen’s company, said in an interview with the “Economic Information Daily†reporter that transmuting phytase corn is the first case in the world and there is no established model. Origen began to officially assess the potential economics of various business models this year. Value will be determined next year based on which model to implement large-scale industrialization.
In China, some experts have been calling for the simultaneous release of environmental releases and regional tests from the perspective of accelerating industrialization to shorten the cycle. However, as a genetically-modified technology that is closely related to the public safety of life, promoting its industrialization is not simply an acceleration. "Every step in the industrialization of genetically modified crops cannot be replaced with each other. It is necessary to follow the relevant legal procedures on a step-by-step basis. It must not be skipped at a certain stage. Otherwise, it cannot withstand practical tests in the future," said Dai Xiaofeng.
The economic value is still in dispute The R & D risk should not be underestimated
For genetically-modified proponents, the industrialization of genetically modified plants is a "required option" for solving the problem of food shortages in China. However, some experts believe that the yield increase of GM rice is “negligibleâ€, and that traditional agricultural technologies can achieve better yield increase results. At the same time, even in the United States where GM crops have been planted in the largest areas, examples of failures can be found everywhere. In addition to the great controversy over the issue of biosafety, the industrialization of genetically modified organisms is still difficult to determine.
China uses 8 percent of the cultivated land to feed 22% of the population, but it uses 33% to 35% of fertilizer, and the output of agricultural products has not increased yet. --- Academician Zhang Qi used the data to illustrate the necessity of developing genetically modified technology. .
In Dr. Li's view, China has such a huge food demand, and now it can guarantee output by relying on the application of a large amount of fertilizers and pesticides, which leads to an extremely fragile agricultural production system. "Whether it is from the international competitiveness of agriculture or food security, promoting the industrialization of genetic transformation is one of the few possible options. There is basically no other way to go."
What are the advantages of genetically modified technology? The Agriculture Genetically Modified Organism Safety Management Office of the Ministry of Agriculture recently stated this in answer to public questions: Integrating genetically modified technology with traditional breeding techniques, it can cultivate multi-resistance, high-quality, high-yield, high-efficiency new varieties, greatly improve the efficiency of variety improvement, and reduce pesticides. Fertilizer input has great potential in alleviating resource constraints, ensuring food security, protecting the ecological environment, and expanding agricultural functions.
However, these advantages of GM crops such as yield increase and insect resistance that can directly generate economic benefits are not fully recognized. Some experts even believe that the increase in the yield of GM rice is “negligibleâ€, and that traditional agricultural technologies can achieve better yield increases.
Even in the United States where GM crops are the largest, there are numerous examples of failures. After the listing of the first GM ripe tomato in the United States, which was approved for commercialization in the United States in 1994, it was withdrawn from the market in 1997 because of the low yield and the inability to withstand the entire process of harvesting, packaging, and transportation. From 2006 to 2009, U.S. farmers reduced their production of genetically modified soybeans to 31 million metric tons, and the economic losses caused by the reduction in production in the last four years exceeded US$11 billion.
The Huanongshengke Media Center also “specially stated†in the email: China's rice fields cannot and do not need to be fully grown with genetically modified rice. The cultivation of a kind of crop is behind the expression of ecological and cultural traditions. The GM rice is competitive in the market, but considering the protection of rice germplasm resources and the traditional agricultural growing habits, there should be no situation where GM rice is “unifiedâ€.
The economic value of the production process is still uncertain and there are also difficulties that can be expected in the sales process. Dr. Lee gave a "multiple choice question": If ordinary rice and genetically modified rice are placed in front of them, what kind of choice will the average consumer choose? Since most people cannot accept genetically modified products, the result is likely to be ordinary rice. Dr Lee said: "Unless the price of genetically modified rice is relatively low, it is possible to attract consumers to buy, but the cost of genetically modified products is already high, and as long as the price drops by 10%, there will be no commercial value."
Technology, business, capital, and talent, each of which may become the bottleneck of the development of China's GM industry. It is understood that due to the uncertain prospects of the genetically modified industry, it is difficult to attract social capital and professionals who are in urgent need of industrial development. Dr. Li said that few of the seed companies listed in the seed industry have used the funds raised to develop the seed industry because the industry is not attractive.
The technical decisive battle will be a roadmap for industrial development in a decade or two.
Like many emerging industries, China's GM industry is "congenitally deficient" in its technological investment. Although China has more than 400 scientific research institutes and more than 50,000 people engaged in seed research and development, the company's R&D investment accounts for less than 1% of sales. Biotechnology has entered a critical period of strategic competition. If it does not seize the high ground, the commanding heights will be occupied by others. In recent years, China has continuously increased its efforts to promote the development of the genetically modified industry. However, bottlenecks such as technology, enterprises, capital, and talent still restrict the development of China's genetically modified industry. China urgently needs an industrialized strategic plan to determine the direction of industrial development.
"In the future, multinational corporations will enter the Chinese market. The biggest competition lies in technology. How do you not prepare for yourself and how to deal with the challenges outside?†Han Gengchen admits that currently, Origlion’s technology investment accounts for about 5% of sales revenue, compared to foreign companies. The proportion of technical investment is still very low.
Dr. Li from the seed company also stated that the technology gap between domestic and multinational companies is too big. Once the market is opened up, it is a matter of course that multinational companies will occupy the market. Enterprises should be immersed in technological research and development, truly breeding excellent GM varieties, and can't rush to the market.
The reporter learned that currently domestic seed industry companies generally lack research and development capabilities and rarely have truly independent intellectual property rights. 88% of China's R&D is from research institutes, while 90% of American R&D is from companies. Companies such as Monsanto have formed an engineering and commercial technology innovation system.
The most worrying thing for Dai Xiaofeng is that China’s upstream investment in gene development is seriously deficient in industrialization, and this will be the place for future “snacksâ€. Dai Xiaofeng said that it is only the first round of competition, and several varieties and even dozens of varieties have no relationship to fight. The real decisive battle will be 10 or 20 years later.
It is understood that the world’s top 10 transnational seed companies have achieved a 50-60% share of patents for genes. The United States, Japan, and Australia have more than 70% of the world's rice gene patents, more than 90% of corn gene patents, and more than 80% of the total. Wheat gene patents and more than 75% of cotton gene patents. The total number of crop gene patents that we have obtained so far is about 7,000, which is still less than 10% of the United States.
Huang Dazhao, a researcher at the Chinese Academy of Agricultural Sciences, said in an interview with a reporter from the Economic Information Daily: “Biotechnology has entered a crucial period of strategic competition. If we do not seize the high ground, the commanding heights will be seized by others.â€
In recent years, China has continuously increased its efforts to promote the development of the genetically modified industry. The Outline of the National Medium- and Long-Term Scientific and Technological Development Plan (2006-2020) will list "Growing New Varieties of Genetically Modified Organisms" as one of the major science and technology projects. In June 2009, the State Council issued "Several Policies to Promote the Accelerated Development of the Biological Industry", proposing that "accelerating the cultivation of the bio-industries should become a pillar industry in the high-tech field and a strategic emerging industry in the country."
In 2010, the No. 1 Central Document put forward “promoting the industrialization of new genetically modified varietiesâ€. Premier Wen Jiabao of the State Council pointed out in this year’s government work report that it is necessary to focus on the breeding of fine varieties to accelerate the innovation and promotion of agricultural science and technology and implement the cultivation of new varieties of genetically modified organisms. Major science and technology projects.
“The past has been in place for the past ten years and is now a big step forward, but the roadmap for industrial development is still not clear.†Han Gengchen said that China needs to develop a strategic industrial plan for the development of the biotechnology industry. From the government to the company can determine the direction.
Dai Xiaofeng believes that the most important thing in advancing the industrialization of genetically modified plants is to create a good environment for the development of the entire industry. Otherwise, even if several enterprises and varieties are supported, they cannot sustainably develop.
An official from the Seed Department of the Ministry of Agriculture said in an interview with an Economic Information Daily reporter that there are too many domestic seed companies, and the unregulated operations and infringements of small businesses have squeezed the development space of large companies and hindered the development of large enterprises. . The state will promote the integration of domestic enterprises and research institutes by investing funds, formulating supporting policies, and improving access thresholds for enterprises. It will promote mergers and acquisitions among enterprises, increase the competitiveness of enterprises, and enlarge and strengthen domestic seed enterprises.