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The Gene Revolution & Smallholder
Agriculture




         Prabhu Pingali
        Deputy Director
    Agricultural Development
Agriculture is a source of livelihoods for
     billions, but a huge reservoir of poverty

            Global extreme poverty 2002, $1.08 a day      2.5 billion people
                                                           involved in agriculture
                                                          800 m smallholders
                                                          75% of poor are rural
                        Global                             and the majority will
                      Urban poor                           be rural to about 2040
                       287 mill.          South            900 m extreme rural
                                        Asia rural         poor ($1/day)
                                         407 mill.         In Sub-Saharan Africa,
MENA rural                                             
  5 mill.                                                  farming accounts for
                                                           2/3 of employment
ECA rural              East Asia
                                                           and
 5 mill.                 rural     Sub-Saharan             1/3 of GDP
    LAC rural          218 mill.   Africa rural
                                     229 mill.            In South Asia, the rural
     27 mill.                                              poverty rate is still
                                                           approximately 40%
The Green Revolution

   We know progress is possible.             Rural poverty in India

   From the 1960s to the 1980s,        60
                                                   Poverty rate, %

   crop improvements in Asia and
   Latin America helped:

                                       50
                                                                                                  20%
• Double food production
• Save hundreds of millions of lives
• Lay a foundation for growth in                                    GREEN
                                                                  REVOLUTION
  countries like India and China                                    PERIOD
                                       40




                                                                        1975
                                            1965



                                                           1970




                                                                                      1980




                                                                                                   1985
                                            Nearly 20% reduction in
                                            poverty in just two
                                            decades.

May 6, 2010                                                          © 2010 Bill & Melinda Gates Foundation   |   3
Global Agriculture R&D: record of
                   past success
   Production
       Cereal output in developing
       countries has grown 2.8 percent
       annually for three decades

   Productivity
       Yields, not area, were
       responsible for growth.
       TFP grew along with yields

   Prices
       Long term declining trend in real
       food prices

                                                                                            4
May 6, 2010                                © 2010 Bill & Melinda Gates Foundation   |   4
Genetic gains for the major staples have slowed down




May 6, 2010                            © 2010 Bill & Melinda Gates Foundation   |   5
Can biotechnology reverse the
  current productivity trends?

  • The tools of biotechnology range from tissue culture
    for the production of disease-free planting materials,
    molecular markers and double haploids for
    accelerated plant breeding, to transgenic
    technologies for the genetic improvement of crops.

  • Transgenic technologies are used when conventional
    breeding approaches cannot achieve the specific
    crop improvements needed by farmers and
    consumers.


May 6, 2010                               © 2010 Bill & Melinda Gates Foundation   |   6
Types of Biotechnology Research
and Technology
1.  GMOs
   – Most visible (notorious) aspect
   – Widespread public interest; concern from some
   – Most studied aspect of biotechnology; most data
2. Molecular Techniques for Genetic Improvement
   – Marker Assisted Selection
   – Cellular biology
3. Vaccines and Diagnostic Tools for Animal agriculture
4. Advances in Basic Science
   – New avenues of science; new scientific horizon


                                            7
Transgenic technologies have had significant
 impact for a few crops & traits
                             Global Area of Biotech Crops, 1996 to
                                              2007:
Crops created through                 (Million Hectares)
transgenic technologies
have generated both
special concerns and
significant benefits since
their initial
commercialization a decade
ago
By 2009, 14 million
farmers grow biotech crops
in 25 countries, of which
90% are small farmers.
Source: Clive James, 2009




May 6, 2010                               © 2010 Bill & Melinda Gates Foundation   |   8
Transgenics by crop, 2007


                          31%
                                        13%                   Soybean
                                                              Maize
                                            5%                Cotton
                                                              Canola
                                                              Other
                            51%




              Other = papaya, squash, alfalfa, tomato,
              poplar, petunia, sweet pepper, carnation                             James, 2007


May 6, 2010                                              © 2010 Bill & Melinda Gates Foundation   |   9
GMOs have been an effective technology
   in some cases in developed and
        developing countries
Sustainability problems addressed by Bt cotton
• High pesticide loads
• Insect resistance to chemical pesticides
• Soil erosion under conventional tillage
  practices
• High production costs
Further progress in transgenic crops for
    developing country agriculture is constrained
    by:
   poor public sector R&D capacity;
   limited access to private sector innovations;
   Underdeveloped bio-safety regulations
   Low attention to crops & traits important to
    the poor

  Can parallel efforts in genomics and molecular
   breeding fill the gap?


May 6, 2010                        © 2010 Bill & Melinda Gates Foundation   |   11
Molecular Breeding

   Advances in molecular biology and information technology offer
    opportunities for enhancing plant breeding
   By using a plant’s genetic code to identify desired traits, Marker
    Assisted Breeding (MAB) saves time compared to phenotypic selection
    (PS), more popularly known as conventional breeding.
   Though upfront costs associated with marker assisted breeding are
    much larger compared to phenotypic selection, the precision of MAB
    over phenotypic selection significantly slashes both breeding time and
    future costs.
   For rice, using MAB saved between three and six years in development
    time when compared to PS. Financially, this equates to an NPV of
    USD50–500 million higher, depending on the constraint and country.
       Source: Generation Challenge Program, Pathways to Impact: Brief No. 3



May 6, 2010                                                                    © 2010 Bill & Melinda Gates Foundation   |   12
Ex-ante estimates of financial benefits of
  speeding technology development using MAB
  for some key constraints

                     Rice                        Cassava
  Salinity               Incremental   Cassava mosaic          Incremental NPV
                         NPV           disease,                (million $)
                         (million $)   & green mites
  Philippines            49            Nigeria                 817
  Bangladesh             499
  India                  447           Ghana                   371
  Indonesia              194
                                       Uganda                   34
              Phosphorus deficiency
  Indonesia              282



May 6, 2010                                      © 2010 Bill & Melinda Gates Foundation   |   13
MAB and developing country agriculture
  R&D
 Weak Public sector infrastructure & conventional
  breeding capacity
 Private sector genomic information not easily
  accessible
 High costs of establishing and operating an MAB
  program
 Low scale economies for small and medium sized
  countries
 Little information for “orphan crops” of importance
  to the poor



May 6, 2010                             © 2010 Bill & Melinda Gates Foundation   |   14
Lessons from the Green Revolution
 Focus on staple crops & traits important to the poor

 Generate global public goods through International &
  Regional Research Centers

 Develop open access networks for transmitting
  knowledge and technology

 Support national capacity building in plant breeding
  and plant sciences

 Promote policy frameworks for enhancing
  productivity
May 6, 2010                             © 2010 Bill & Melinda Gates Foundation   |   15
Biotech research capacity in
  developing countries

  Tier 1 Countries – India, China, Brazil, etc.,
   are self reliant in marker technologies
  Tier 2 Countries – Kenya, Vietnam, Chile, etc.,
   have ability to do adaptive breeding using
   markers from elsewhere
  Tier 3 Countries – low income countries, with
   limited capacity even for basic breeding




May 6, 2010                          © 2010 Bill & Melinda Gates Foundation   |   16
The way forward for the Public
  Sector
   Seek collaboration and partnership with the private
    sector

   Concentrate on areas under-researched by the
    private sector

   Establish IPR and bio-safety regulations

   Generate public goods and human resource capacity

   Explore new mechanisms for international
    collaboration

May 6, 2010                              © 2010 Bill & Melinda Gates Foundation   |   17
Deal with the age old
              problems of small farmer
              constraints to technology
              access and adoption, even as
              we look ahead to new
              technological revolutions.


May 6, 2010                         © 2010 Bill & Melinda Gates Foundation   |   18

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Gene revolution pingali 2010

  • 1. The Gene Revolution & Smallholder Agriculture Prabhu Pingali Deputy Director Agricultural Development
  • 2. Agriculture is a source of livelihoods for billions, but a huge reservoir of poverty Global extreme poverty 2002, $1.08 a day  2.5 billion people involved in agriculture  800 m smallholders  75% of poor are rural Global and the majority will Urban poor be rural to about 2040 287 mill. South  900 m extreme rural Asia rural poor ($1/day) 407 mill. In Sub-Saharan Africa, MENA rural  5 mill. farming accounts for 2/3 of employment ECA rural East Asia and 5 mill. rural Sub-Saharan 1/3 of GDP LAC rural 218 mill. Africa rural 229 mill.  In South Asia, the rural 27 mill. poverty rate is still approximately 40%
  • 3. The Green Revolution We know progress is possible. Rural poverty in India From the 1960s to the 1980s, 60 Poverty rate, % crop improvements in Asia and Latin America helped: 50 20% • Double food production • Save hundreds of millions of lives • Lay a foundation for growth in GREEN REVOLUTION countries like India and China PERIOD 40 1975 1965 1970 1980 1985 Nearly 20% reduction in poverty in just two decades. May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 3
  • 4. Global Agriculture R&D: record of past success  Production Cereal output in developing countries has grown 2.8 percent annually for three decades  Productivity Yields, not area, were responsible for growth. TFP grew along with yields  Prices Long term declining trend in real food prices 4 May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 4
  • 5. Genetic gains for the major staples have slowed down May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 5
  • 6. Can biotechnology reverse the current productivity trends? • The tools of biotechnology range from tissue culture for the production of disease-free planting materials, molecular markers and double haploids for accelerated plant breeding, to transgenic technologies for the genetic improvement of crops. • Transgenic technologies are used when conventional breeding approaches cannot achieve the specific crop improvements needed by farmers and consumers. May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 6
  • 7. Types of Biotechnology Research and Technology 1. GMOs – Most visible (notorious) aspect – Widespread public interest; concern from some – Most studied aspect of biotechnology; most data 2. Molecular Techniques for Genetic Improvement – Marker Assisted Selection – Cellular biology 3. Vaccines and Diagnostic Tools for Animal agriculture 4. Advances in Basic Science – New avenues of science; new scientific horizon 7
  • 8. Transgenic technologies have had significant impact for a few crops & traits Global Area of Biotech Crops, 1996 to 2007: Crops created through (Million Hectares) transgenic technologies have generated both special concerns and significant benefits since their initial commercialization a decade ago By 2009, 14 million farmers grow biotech crops in 25 countries, of which 90% are small farmers. Source: Clive James, 2009 May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 8
  • 9. Transgenics by crop, 2007 31% 13% Soybean Maize 5% Cotton Canola Other 51% Other = papaya, squash, alfalfa, tomato, poplar, petunia, sweet pepper, carnation James, 2007 May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 9
  • 10. GMOs have been an effective technology in some cases in developed and developing countries Sustainability problems addressed by Bt cotton • High pesticide loads • Insect resistance to chemical pesticides • Soil erosion under conventional tillage practices • High production costs
  • 11. Further progress in transgenic crops for developing country agriculture is constrained by:  poor public sector R&D capacity;  limited access to private sector innovations;  Underdeveloped bio-safety regulations  Low attention to crops & traits important to the poor Can parallel efforts in genomics and molecular breeding fill the gap? May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 11
  • 12. Molecular Breeding  Advances in molecular biology and information technology offer opportunities for enhancing plant breeding  By using a plant’s genetic code to identify desired traits, Marker Assisted Breeding (MAB) saves time compared to phenotypic selection (PS), more popularly known as conventional breeding.  Though upfront costs associated with marker assisted breeding are much larger compared to phenotypic selection, the precision of MAB over phenotypic selection significantly slashes both breeding time and future costs.  For rice, using MAB saved between three and six years in development time when compared to PS. Financially, this equates to an NPV of USD50–500 million higher, depending on the constraint and country. Source: Generation Challenge Program, Pathways to Impact: Brief No. 3 May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 12
  • 13. Ex-ante estimates of financial benefits of speeding technology development using MAB for some key constraints Rice Cassava Salinity Incremental Cassava mosaic Incremental NPV NPV disease, (million $) (million $) & green mites Philippines 49 Nigeria 817 Bangladesh 499 India 447 Ghana 371 Indonesia 194 Uganda 34 Phosphorus deficiency Indonesia 282 May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 13
  • 14. MAB and developing country agriculture R&D  Weak Public sector infrastructure & conventional breeding capacity  Private sector genomic information not easily accessible  High costs of establishing and operating an MAB program  Low scale economies for small and medium sized countries  Little information for “orphan crops” of importance to the poor May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 14
  • 15. Lessons from the Green Revolution  Focus on staple crops & traits important to the poor  Generate global public goods through International & Regional Research Centers  Develop open access networks for transmitting knowledge and technology  Support national capacity building in plant breeding and plant sciences  Promote policy frameworks for enhancing productivity May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 15
  • 16. Biotech research capacity in developing countries  Tier 1 Countries – India, China, Brazil, etc., are self reliant in marker technologies  Tier 2 Countries – Kenya, Vietnam, Chile, etc., have ability to do adaptive breeding using markers from elsewhere  Tier 3 Countries – low income countries, with limited capacity even for basic breeding May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 16
  • 17. The way forward for the Public Sector  Seek collaboration and partnership with the private sector  Concentrate on areas under-researched by the private sector  Establish IPR and bio-safety regulations  Generate public goods and human resource capacity  Explore new mechanisms for international collaboration May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 17
  • 18. Deal with the age old problems of small farmer constraints to technology access and adoption, even as we look ahead to new technological revolutions. May 6, 2010 © 2010 Bill & Melinda Gates Foundation | 18