Agronomic & Economic Impact

of Transgenic Canola

JoAnne ButhJoAnne Buth

Vice President, Crop ProductionVice President, Crop Production

www.canola-council.org

Canola Council of Canada

Brassica napus

Brassica rapa

Canola Types as % of Seeded Canola Acres

0

20

40

60

80

100

1995 1996 1997 1998 1999 2000

% S

eed

ed

Acr

es

Roundup

Liberty

Smart

Conventional

Transgenic Canola Study

Serecon Consulting & Koch Paul Assoc.Serecon Consulting & Koch Paul Assoc. Coordinated by the Canola Council of Coordinated by the Canola Council of

Canada with assistance from:Canada with assistance from: Manitoba, Saskatchewan and Alberta Manitoba, Saskatchewan and Alberta

growers & provincial specialists, Aventis growers & provincial specialists, Aventis & Monsanto& Monsanto

Transgenic Canola Study

For this study transgenic For this study transgenic = Roundup Ready & Liberty Link= Roundup Ready & Liberty Link

Clearfield (SMART) not included Clearfield (SMART) not included = developed by mutagenesis = developed by mutagenesis

Conventional - not SMART, RR, LL, BxConventional - not SMART, RR, LL, Bx

Transgenic Canola Study

650 growers surveyed across western 650 growers surveyed across western CanadaCanadaHalf conventional/ Half conventional/

half half transgenictransgenic

> 80 acres> 80 acresOne field per growerOne field per grower

13 case studies - financial 13 case studies - financial records 1997-2000records 1997-2000

Transgenic Canola Study

Variety, seeding rates, seed costsVariety, seeding rates, seed costs Yield, dockage, gradeYield, dockage, grade Self reported net returns per acreSelf reported net returns per acre Summer fallow practices in 1999Summer fallow practices in 1999 Fertilizer useFertilizer use Number of field operations - tillage, Number of field operations - tillage,

harrowing, sprayingharrowing, spraying

Transgenic Canola Study

Weed control - mechanical & culturalWeed control - mechanical & cultural History of transgenic useHistory of transgenic use Changes since adopting transgenicsChanges since adopting transgenics Benefits and disadvantagesBenefits and disadvantages

Survey Says...

Reasons for growing transgenics:Reasons for growing transgenics:Weed controlWeed controlBetter yield, more return, profitBetter yield, more return, profitReduce costsReduce costsClean up fieldsClean up fieldsReduce tillageReduce tillage

Survey Says…

Reasons for not growing transgenics:Reasons for not growing transgenics:Cost of the TUACost of the TUAOverall costsOverall costsNo need to changeNo need to changeMarket accessMarket accessWeed resistanceWeed resistance

Seeding Rates

SeedingRate (lbs/ac)

Transgenic Conventional

<5 37 26

6 40 44

7 15 21

>7 8 9

Seed & Fertilizer Costs

Seed costs for transgenic $Seed costs for transgenic $4.524.52 more more than conventional ($than conventional ($16.21 v.s $11.69)16.21 v.s $11.69)

Slight increase in fertilizer ($Slight increase in fertilizer ($1.721.72/acre) /acre) - includes 1999 summerfallow - includes 1999 summerfallow

Summerfallow Summerfallow Transgenic - 18%Transgenic - 18% Conventional - 36%Conventional - 36%

Herbicides 40% reduction in herbicide costs (includes 40% reduction in herbicide costs (includes

summerfallow in 1999)summerfallow in 1999) Transgenic - $16.22Transgenic - $16.22 Conventional $21.72Conventional $21.72

Number of applicationsNumber of applications Transgenic - 2.07Transgenic - 2.07 Conventional -1.78Conventional -1.78

Reduced herbicide use - 6,000 Reduced herbicide use - 6,000 tonnes in 2000tonnes in 2000

Soil Conservation

Tillage Transgenic - fewer tillage passes Transgenic - fewer tillage passes Direct-seeding Direct-seeding

Transgenic - 50%Transgenic - 50% Conventional - 35%Conventional - 35%

2.6 million acres with fewer tillage passes2.6 million acres with fewer tillage passes

Fuel Transgenic growers used less fuelTransgenic growers used less fuel

fewer field operations- tillage, fewer field operations- tillage, summerfallowsummerfallow

31.2 million litres of fuel saved in 200031.2 million litres of fuel saved in 2000 $13.1 million (42 cents/L) $13.1 million (42 cents/L)

savedsaved

Commodity Prices

Transgenic growers have increased Transgenic growers have increased their acreage and productiontheir acreage and production

However, increased production has not However, increased production has not impacted the price of canolaimpacted the price of canola

0

50

100

150

200

250

300

350

400

450

500

1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Crop Production Year

Dol

lars

per

Met

ric

Ton

ne

Wheat ($/t) Corn ($/t) Canola Price ($/t) Soybeans ($/t)

Linear (Wheat ($/t)) Linear (Corn ($/t)) Linear (Canola Price ($/t)) Linear (Soybeans ($/t))

Yield & Dockage

Yield - 10% increase (3 bu/acre)Yield - 10% increase (3 bu/acre) Transgenic - 29.25 bu/acreTransgenic - 29.25 bu/acre Conventional - 26.54 bu/acreConventional - 26.54 bu/acre

Dockage - decrease Dockage - decrease Transgenic - 3.77%Transgenic - 3.77% Conventional 5.14%Conventional 5.14%

Returns Transgenic Grower reported Transgenic Grower reported + $5.80/ac+ $5.80/ac net return net return (yield x (yield x

price - inputs, labour, etc.)price - inputs, labour, etc.) Transgenic $19.92Transgenic $19.92 Conventional $ 14.12Conventional $ 14.12

Economic model - 1997-2000 Economic model - 1997-2000 $10.62 advantage (gross margin)$10.62 advantage (gross margin)

Impact on the Industry

1997-20001997-2000 Grower (direct) - $144M to $249M Grower (direct) - $144M to $249M Indirect - $58 to $215MIndirect - $58 to $215M Total - up to $464 MTotal - up to $464 M

The Bottom Line

Higher yield, lower dockage, better Higher yield, lower dockage, better returnsreturns

Less tillageLess tillage Less herbicideLess herbicide Less fuelLess fuel Benefits worth millions of dollars Benefits worth millions of dollars