Biotech Values

[DewDiligence]

Worldwide Biotech Acreage Jumps 10%—Brazil Leads the Way

[This Reuters piece highlights the premise for owning MON (one of my top-5 stock picks for LTBH). The geographic breakdown of the market for genetically-modified seeds is unlike that of any other market I follow: the US comprises 45% of worldwide GM acreage, while emerging-market countries constitute 48%! Europe, which has been dominated by Luddites, is the big laggard (but this is gradually changing: #msg-47335698). Even without Europe, the upside for GM seeds is enormous insofar as only 10% of worldwide farm acreage is currently GM.

Please see #msg-59333127, #msg-55511802, #msg-54541113, #msg-55517002, #msg-58519196, and #msg-60109375 for related stories.]

http://www.reuters.com/article/2011/02/22/us-biotech-crops-idUSTRE71L4H120110222

›Feb 22, 2011
By Carey Gillam

KANSAS CITY, Missouri (Reuters) - Global plantings of biotech crops increased 10 percent in 2010, continuing steady growth over the past decade that has been spurred by concerns about feeding a growing world population, according to an industry analysis.

While the United States remains the largest user of genetically modified seeds, Brazil posted the biggest growth, with plantings rising 19 percent, according to the report issued Tuesday by the International Service for the Acquisition of Agri-Biotech Applications (ISAAA), which promotes biotech crop adoption. That marked a rise of 10 percent over 2009.

About 10 percent of total global cropland is being planted to biotech crops, according to ISAAA [i.e. there’s a huge upside for market penetration of GM crops].

Brazilian farmers led the way, increasing their biotech crop plantings by 4 million hectares in 2010, more added farmland sown to biotech seeds than any other country last year, according to ISAAA Chairman Clive James.

"It is growing extremely fast," James said of Brazil's use of biotech crops, particularly soybeans. "The technology is here to stay."

The United States remained by far the largest adopter of biotech seeds, with 165 million acres planted to GMO crops in 2010 [45% of the world total], up 4 percent from 2009.

Globally, farmers last year planted 365 million acres of genetically modified (GMO) corn, soybeans, cotton and other crops.

U.S.-based Monsanto and DuPont's Pioneer Hi-Bred are world leaders in development of crops genetically altered to help farmers fight weeds, bugs and diseases [#msg-58519196].

…CHINA BECOMING BIOTECH LEADER

ISAAA's report said that while China planted only 3.5 million hectares [about 8M acres] to biotech crops last year, down 5 percent from 2009, policymakers there are encouraging development of biotech crops to address food security concerns for the fast-growing population. Among biotech crops being field-tested are GMO wheat, soybeans, potato, cabbage, papaya, and melon.

Pakistan and Myanmar were among three countries planting biotech crops for the first time last year, with farmers in those nations planting insect-resistant Bt cotton. Sweden also reported planting biotech crops for the first time last year as farmers there seeded a biotech high-quality starch potato approved for industrial and feed use [#msg-48575063].

Notably, developing countries grew 48 percent of the total global biotech crop tally last year, and are expected to continue to accelerate use of biotech crops rapidly, according to the ISAAA report.

James said he expects an additional 12 countries to adopt biotech crops by 2015 and the number of farmers planting such crop to double to 20 million with global hectarage rising to 200 million hectares, or nearly 500 million acres [an almost 40% increase form 2010 acreage].

Up to three or four additional countries are expected to grow biotech crops from each of the three regions of Asia, West Africa, East/Southern Africa and fewer from Latin/Central America, and Western and Eastern Europe.

Europe largely remains a steady foe of biotech crops, James said, though there are signs some European countries are softening [#msg-47335698].

"Europe is not lost but is by far the most difficult region to call in terms of future development," he said.

Advancements in new types of biotech crops should accelerate adoption, particularly drought-tolerant corn [#msg-58519196], and rice that is healthier, tastes better and resists pests. Biotech wheat that resists certain plant diseases is also on the drawing board.‹