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Genetically Modified Soybean in Romania -economic aspects

Genetically Modified Soybean in Romania -economic aspects

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  • 1. TCE - I.M.B. Genetically Modified Soybean in Romania -economic aspects economic aspects- The Great Braila Island Farm Lucian Buzdugan - General Manager March 23, 2010 Brussels
  • 2. Background Soya in Romania Leading soya producing country in Europe Production of about 300 to 350 Thousand Metric Tons (Italy produces about 500 TMT) But small by world standards (0.15% of total global production) Highly concentrated cultivation area 60% of GM soya (84kha) grown in 3 counties (total of 142kha GM soya in 2006) Core group of very large, highly professional growers with +500ha of farmland Roundup Ready Soya One of the first GMO crops registered for cultivation in Europe (1999) Very rapid uptake and penetration Status 2006 5 Monsanto RR varieties 1 Pioneer RR variety EU accession of Romania – 01 January 2007 No transition requested by Gov’t for continuing GM soy cultivation during accession talks Intensive activist activity to destabilize existing situation and stop extension of RR registration into 2007 upon EU accession RO Gov’t announced a huge subsidy program for 2006 to support cultivation of conventional Soya
  • 3. Soybean map of Romania 1999- -2006
  • 4. Soya hectares grown by county BOTOSANI Soybeans area [ha] █ 10000 &+ ha IASI █ 5000-10000 ha BIHOR █ 1000-5000 ha █ 300-1000 ha █ 100-300 ha VASLUI █ 0-100 ha ARAD TIMIS GALATI BRAILA TULCEA IALOMITA CALARASI GIURGIU CONSTANTA TELEORMAN
  • 5. ROMANIA The evolution of the soybeans The evolution of the soybeans total cultivated area production 220 200 199,2 350 180 312,8 300 298,5 160 140 143,9 250 240,7 137,3 224,9 128,8 120 117 118 121 200 113,1 183 100 99,8 86,1 150 145 80 71,8 107,4 60 61,6 100 94,5 52,9 47,5 72,7 40 69,5 39,6 50 32,2 31,1 20 15,5 17,3 0 0 0 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Genetical Modified GM Soybean Total area Total soybean Soybean's total production
  • 6. TCE I.M.B. The Great Braila Island RR soybean The evolution of soybean cultivated area
  • 7. TCE I.M.B. How conventional soybean compares economically with RR varieties? 2007 comparable prices (1 EUR= 3.4 RON) Soybean Notes MU % RR Non-GMO Average Production Kg/ha 3.500 1.200 290 Total income per ha Ron / ha 4.810 1.820 263 of which: *price per ton (equiv. 300 €) Ron / ha 3.500 1.200 291 *direct payment (per hectare) 80 € Ron / ha 260 260 100 *subsidy per tonne 300 RON Ron / ha 1.050 360 291 Total costs, of which: Ron / ha 1.840 2.460 75 *herbicides Ron / ha 80 860 9,3 Profit / loss Ron / ha + 2.970 - 640 -
  • 8. TCE I.M.B. The comparative costs with herbicides for soy production – 2007 Eur Conventional soybeans RR soybeans Nr Name of product Treatment MU Cost Total Cost crt Dose Cost Dose Cost Total Unit with cost Unit with UM/ha per ha UM/ha per ha Cost price treat per ha prize treat per ha 1. Gliphosate Pre-emergent l 3,0-4.0 16,7 14.73 2.35 17.08 - - - - - 2. Guardian Pre-emergent l 2,5 6,8 50 2.35 52.35 - - - - - 3. Sexone 75 DF Pre-emergent kg 0,3 133 11.74 2.35 14.09 - - - - - 4. Harmony 50 SG Post-emergent kg 0,025 4.455 32.76 2.35 35.11 - - - - - 5. Basagram F Post-emergent l 2,5 60 44.12 2.35 46.47 - - - - - 6. Pulsar 40 Post-emergent l 1,0 126 37 2.35 39.35 - - - - - 7. Pantera 40 EC Post-emergent l 1,6 50 23.53 2.35 25.88 - - - - - Desiccation/ 8. Glyphosate l 3,0 16,7 14.73 2.35 17.08 - - - - - drying 9. Glyphosate Post-emergent l - - - - - 2 16.7 9.82 2.35 12.17 10. Glyphosate Post-emergent l - - - - - 2 16,7 9.82 2.35 12.17 Total X x x x 228.6 18.8 247.41 x x 19.64 4.7 24.34
  • 9. Specification Weed control for conventional soybean Herbicides Roundup Combaterea buruienilor la soia conventionala Guardian Lexone Harmony 50 Pulsar Basagran Pantera Total Thyfensulfuron Active ingredient Glyphosate 360 g/l Acetoclor 820-860 g/l Metribuzin 70% Imazamox 40 g/l Bentazon 480 g/l Quizalofop-p-tefuril 40g/l X metil 500 Sorghum halepense 15-20 Date of application Pre-emergent + desiccant Pre-emergent 2-4 leaves of dycotils weeds cm Dose 2+2 2,5 0,5 0,024 1,0 2,5 1,7 12,2 Cost (lei/UM) 13 41 188 5.609 195 97 70 x (lei/ha) 52 103 94 135 195 242 119 940 1.Dycotils weeds Abutilon th - - Solanum nigrum (x) (x) - Xanthium sp - - Cirsium arv (x) (x) (x) - Gallium sp - (x) - - - Chenopodium album - - Datura (x) - Brassica sp - - - - - Sinapis arv - - Sonchus sp - - - - - Convolvulus sp - (x) - (x) - Polygonum sp - - Capsela bursa past - - - - Hibiscus trionum - - - - - Matricaria spp - - - Portulaca oleracea - - Amaranthus spp - - Ambrozia elatior - - - - - Atriplex patula - - - - - Galeopsis tetrahit - - - - Raphanus raphanistrum - - - - - Thlaspi arvense - - - - - Rumex spp - - - - - 2. mono weeds Setaria sp - - Echinochloa - - Digitaria sanguinalis - - Panicum sp - - - Sorghum halepense rizomi - (x) - Bromus tetorum - - - - Alopecurus - - - Avena fatua - - - -
  • 10. TCE I.M.B. Profitability of soybean cultivation Support on the unit surface Support on the product tones Income from sale/tones Others cost Herbicides Profit/loss 4810 4 800 4 400 4 000 3 600 Conventional soybean Roundup Ready soybean 3 200 3500 2 800 2460 2 400 2 000 1820 860 1840 80 1 600 2970 1 200 1200 800 1600 1760 1050 400 360 260 260 0 -400 -640 -800
  • 11. TCE I.M.B. WHY ROUNDUP READY SOYBEAN? CONVENTIONAL SOYBEAN Roundup Ready SOYBEAN
  • 12. TCE I.M.B. Why ROUNDUP READYSOYBEAN? CONVENTIONAL SOYBEAN Roundup Ready SOYBEAN
  • 13. TCE I.M.B. Weed Infestation % 100 90 80 70 Phragmites communis 60 Sorghum halegense 50 Cirsium arsense 40 Sonchus spp Solanum nigrum 30 Xanthium strumarium 20 10 0 Conventional soybean
  • 14. TCE I.M.B. Why ROUNDUP READY soybeans? No Till (directly drilled after harvest) Min Till
  • 15. TCE I.M.B. Why ROUNDUP READY soybeans ? Wheat in no till system Same field at harvest time
  • 16. TCE I.M.B. Why ROUNDUP READY soybeans ? Characteristics of RR soybeans Characteristics of conventional soybeans cultivation cultivation High green mass ; Less Le green mass with less nitrogen fixing bacteria More numerous nitrogen fixing The nitrogen amount left in the soil is 10 10-15 kg/ha; bacteria Chemical nitrogen fertilizer needed The nitrogen amount left in the soil Pollution of the water table is 50-100 kg/ha; Increased weed seed reserve in the soil Nitrogen chemical fertiliser is Numerous ag operations resulting in additional necessary in reduced volume costs A much lower presence of tough Harvest quality is poorer weeds in the following crop (investment) Better control & planning of farm activities, less peaks (3 major crops); Biodiversity conservation around RR soya fields Relative simple technology based on a single herbicide
  • 17. TCE I.M.B. Herbicide tolerant biotech crops Summary of key attributes Increase yields significantly; Diminish soil erosion and compaction (min till); Significant benefits in the crop rotation pattern; Significant reduction in number of sprayings; Permanent reduction in fuel use and CO2 emissions; Produce better crop (and food) quality; Increase convenience and management flexibility; Conservation of soil moisture; Increase the efficiency of water usage; Contribute to sustainable economic benefits.
  • 18. TCE I.M.B. Why GMO crops? GMO corn Conventional corn
  • 19. TCE I.M.B. Why GMO crops? GMO corn Conventional corn
  • 20. TCE I.M.B. Why GMO crops? GMO corn Conventional corn
  • 21. TCE I.M.B. Why GMO crops? GMO corn Conventional corn
  • 22. TCE I.M.B. What are the expectations of the Romanian farmers From the European Commission To approve the re-introduction of RR soybean into cultivation in Romania, that Has favorable climatic conditions. Suitable for up to 1 million ha. Can be self-sufficient for vegetable protein protein. Can provide substantial amounts (1-2 million tons) of soybeans to the EU mkt . Production costs for RR soybeans are lower than for conventional varieties. Environmental benefits due to less pesticide application. To approve cultivation of 3 types of transgenic maize (that are already authorized for consumption): Among all EU countries, Romania has the widest weed reserve The herbicide treatment expenditures would diminish drastically. Beneficial impact over environment. Improved quality of final product. To allow Member States to make their own decision regarding the cultivation of PG crops, after EFSA scientific opinion issued. To support and guarantee all agricultural systems – organic, conventional and biotech.
  • 23. TCE I.M.B. What are the expectations of the Romanian farmers From the Biotechnology Research To focus on and deliver products addressing their needs: Row and oilseed crops and with draught resistance (wheat, corn, soybeans etc.). Rapeseed resistant to coleopterans (cheuthorincus), attack, but also tolerant to low temperature (to avoid winterkill) and….. Maize – events with resistance to a wider pest range (ostrinia, helicoverpa, agriotes spp, tanymecus spp and tetranychus). Crops (other than legumes) able to efficiently utilize the atmospheric N and to generate biologic N in the soil Crops able to tolerate salty soils and/or excess humidity. Plants able to better use macro- and micro elements of the soil through increased absorption capacity. Crops able to process increased amounts of CO2 to reduce greenhouse effects. Crops suitable to green energy production, as an alternative to the depleting resources for conventional energy.
  • 24. TCE I.M.B. Green Biotechnology Manifesto Conclusion: Europe must move forward Publicly acknowledge agricultural biotechnology; Allow EFSA to deliver safety opinions on biotech products and base decisions on these conclusions; Allow biotech products to be placed on the market; Set up workable thresholds for adventitious presence of biotech seeds in seed lots; Monitor implementation of measures to ensure alignment with the EU recommendations on coexistence. European farmers should support technology more vocally; Policies should not discriminate against biotechnology; Need to actively inform citizens about the technology, its safety, its advantages and the existing regulatory framework.
  • 25. TCE I.M.B. Instead of “The End”… CUI PRODEST? •Who benefits from the fact that Romania (one of the few EU Who countries with suitable conditions) is not allowed to cultivate RR soybeans? •Who benefits from the fact that EU is permitted to import and Who consume RR soybeans, but not to plant it? •Who benefits from Romania annually leaving 3 million ha of Who arable land uncultivated (of which 1 million could easily be devoted to RR soybeans)? •Who benefits from the fact that Romania, from a regional Who exporter, has turned into a net importer of vegetable protein?
  • 26. TCE - I.M.B. Thank you !