Biotechnology Research in Thailand:Viewpoints in response to the need of

Government and Private SectorsTaweesak Pulam

Plant Breeder/Managing DirectorSweet Seeds Company Limited

September 17, 2003

Note of Thanks

• First of all I would like to thank to Ministry of Science andTechnology for giving me an honor by inviting me to talk to thisintellectual group of government scholar returnees

Note of Thanks

• I also would like to thank to all returnees for coming back to workin Thailand. We need your help.

• You will agree with me later in your life that it is the best workingplace for Thai citizen

• There are a lot of opportunity to work and pursue success in yourcareer in Thailand.

Biotechnology Research and Development forThailand• There are so many areas of biotechnology research and

development that we can look into• Other experts, Prof. Dr. Sirireuk and Dr. Sakarin will talk about

those areas.

• It is wise for me to concentrate my talk to agriculture only.• Even Agriculture it is still very vast.

Agricultural biotechnology research in Thailand

• Interesting areas or area of need (at least) -plant breeding and improvement (increase yield) -plant protection (use of Bt as organism or gene) -soil improvement (more effective strain for N fixation) -biodiversity (vast area for research)• This is only what I can think of. If we concentrate on these areas

we can do a lot for the country.

Government and Private sector need and mandateGovernment• Basic research• Applied research to support private sector• Research for regulatory (regulate for the benefit of the mass..please

do not regulate for the benefit of own interest)

• Government conduct research for scientific excellent, economicgrowth of the country, solve problems of other sectors

Government and Private sector need and mandatePrivate• Basic and applied research for long term or short term profit -long term: develop new technology for patenting -short term: utilize existing technology for profit (producing

bio-fertilizer which is the result of research in government sector)

• Private sector conduct research for profit by providing unique ornew products and solve customer’s problems

These needs and mandate should govern the waywe do research• I will not talk so much about research in government sector as I

may not understand them quite well

• But, I would like to comment that government should conductresearch and let private sector utilize those result as soon aspossible for the benefit of the country. If the application issuccessful those private sector will pay back to government as tax.

Agricultural biotechnology research in ThailandPrivate• As mentioned, example of areas that we can do research in

Biotechnology in Thailand: -plant breeding and improvement -plant protection -soil improvement -biodiversity• Private companies has invested heavily on plant breeding. But, we

can still do a lot of things in plant breeding.

Why plant breeding?

• Plant breeding is the backbone for good seed.• Good seed is needed for prosperity in agriculture. If we start in

any kind of agriculture production good seed or breed is the must.

• Good seed is the basis of seed business.• Seed business is very well advance in developed countries but still

not so modern in Thailand.

Why should we talk about seed business?

• Thailand is the only net exporter of agricultural products with veryprimitive seed business (20 years ago and still not very welladvance)

• Private sector started investing in plant breeding in Thailand in late1970’s

Seed business in Thailand 20 years ago

• Government organizations did plant breeding on very few crops• Very limit distribution of good seed• No research in private sector. Companies in Thailand sold only

open pollinate variety or import new variety, test, and distribute

Seed business in Thailand at present

• Government organization decrease activities in breeding of somevery important crops (I do not know if this is good or bad).

What will happen if all seed corn companies stop their activities inThailand?

• Private companies are very strong in breeding of few crops.• Seed business for some crops is highly competitive.• But, we still can do a lot of things to gain more competitive

advantage and go international.

Seed businessValue: 1996 sales in milUSD• Pioneer US 1670• Syngenta SW 955• Limagrain FR 662 Advanta Eng 440• Seminis Mex 395 Cargill US 370• DeKalb US 340 KWS Ger 315• Pau Group ? 200 Monsanto US 200• Takii Jap 200 Sakata Jap 180

Are there any Thai company going international onseed business?

• Chia Tai• CP Group• East-West Seeds (not real Thai)

• Is that interesting?

Can we do anything to serve the industry?

If we are in government or private organization what can we do toserve the organization and customer (farmers)

• Yes, we can do so many things to serve the industry.

GermplasmBroad-base in various crops

Seed TechnologiesPelleting, Priming,

Coating technologies,Seed treatments

Seed Production Technologies

World-wide expertise, facilities with Global

quality standards

Gene TechnologyDiscovery, Regulation,

Expression and delivery

Marker TechnologiesRapid product conversion,Marker assisted breeding

How seed business could be in the future?

Can we do anything to serve the industry?Government

• Conduct basic research in gene technology, marker technology,and germplasm development

• Provide services to private sector in gene technology and markertechnology

• Distribute good germplasm to private companies for finishing up• Be in partner with small seed companies for production and

distribution of good varieties or hybrids

Can we do anything to serve the industry?Private

• Identify the need of growers of various crop and also differentmarket segments

• Develop and transfer package of technology to customers

• Conduct business fairly with all parties• Respect plant variety protection law

Personal experience in applying plant breedingknowledge

toserve the need of customers and (the country)

What is it all about? This is the success story of identifying the need of customers and

satisfy their needs. It is also a story of team work or partnership in work.

It is the story of sweet corn development in Thailand that make usranked 3rd or 4th as exporter of sweet corn and earn about 1600milB in foreign exchange in 2003.

Why we breed sweet corn? The scenario in Thailand in 1991 -large area of sweet corn planting (250,000 rai) -only OP was available -two OP dominated the market -The OP had very big ear, poor quality, and no uniformity -some importation of hybrid seeds and sell at very high price

Why we breed sweet corn? -only the government agencies were working on sweet corn

breeding -they worked on a hybrid breeding program -released hybrids from the government were not successful -food processors had already started working on sweet corn -field corn farmers were already using hybrid (70-80% of the area)

Thailand: A land of opportunity

In short, the situation in 1991 in Thailand was that: The market was big. There were a lack of good products. Big companies did not pay attention.

That was a very good opportunityto do something on sweet corn.

How did we start breeding sweet corn?

To start a sweet corn breeding program we need

-a plant breeder (This is very important factor for success.Thailand still lack good plant breeders)

-germplasm (some local sweet corn, and some imports). This isone of the most important factor for success.

How did we start breeding sweet corn?

-a good piece of land and some money

-a lot of hard work and sun tan

After a few seasons the ATS-1 hybrid was identified. (ATS= Arjan TaweeSak)

How was the hybrid ATS-1? I thought it was a great hybrid. (We plant breeders are always bias.)

It was the best product available at the time. This is the viewpoint of researcher.

• The seed was distributed to farmer to test the market.

Farmers refused seeds. What to do? I do not have much money to continue.

What do we need for a successful business?

To be successful in the seed business we need: -good and competitive products -good understanding of the crop and the whole business chain

We will look at these factors in detail.

On the product (hybrid):

I am sure that it was the best available at that time. It has -good yield -good eating quality -easy to grow We will look at these factors in detail.

On the business chain for sweet corn

• Seed company

• Grower Producer

• Retail outlet Users• Food processor

• Consumer

Business chain management.Analyze the business chain.• Consumers Want good quality fresh ear.• Retail outlets Want to sell if the consumer demand.• Processors Want good quality fresh ear in large quantities.• Growers Will grow if they can sell.

Can I do something to help them get whatthey want so that I can sell the seeds?

To succeed in the seed business

We must give all levels in the

business chain what they want.

This can be done by

Transferring knowledge andtechnologies to all levels in the

business chain.

Sweet Corn Products Co., Ltd.

This company was set up to do all kinds of thing to help the wholebusiness chain.

The activities related to sweet corn are producing and supplyingthe fresh ears to food processors and department stores.

The first job is on the production side. How did we do it?

Managing the production side.

We did not believe in producing sweet corn in-house. So, we took the contract farming approach. -set up farmer groups -supply seed and other inputs -transfer production technologies -field visits for observation and expansion -buy back all the produces at agreed price. Sound easy----but it’s not.

Our first year’s work.

• Visiting farms and meeting farmers became my daily life.• We showed them the superiority of ATS-1 good yield good and uniform quality easy to grow easy to harvest, etc.• Plant demonstration plots, holding field days and farmers meetings

During the farmers meetings:We gave the following information:• hybrid selection (telling them how to select hybrids)• soil preparation and soil conservation• planting method and plant population• fertilization• weed control• harvesting time

Our first year’s work.

• Some people believed and tried to planting the ATS-1• The first harvest of 35 rai by about 15 farmers was very successful• We bought all the ears at the agreed price.• Word spread that planting sweet corn is good.• In the second year it was easy to get farmers to plant sweet corn.• In the second year we were able to buy 30 MT of corn a day.

The production was successful.What to do with all those sweet corn ears? Our customers are: -Food processors -Retail outlets -Consumers

The food processors as our big customer:

-show them the benefits of using hybrids -more uniformity (less discard and more production yield) -better and easier quality control -processing machine works better and more efficiently The first processor, and only one for the first year, agreed to buy

10 MT/day.

For the first 3 year we were very busy expanding thisoperation for that processor.

Fresh ear sweet corn collectors.

• When the business expanded, we had to look for partnership.• Sweet corn collectors were set up (they were already there, we just

brought them together) and helped them on a few points: -quality of the products -post harvest tips

• Now, fresh ear collectors are vital for the sweet corn business.• Without them the Thai sweet corn industry will never be successful.

The success of the sweet corn processing industry.

-sweet corn processing expanded very rapidly during 1992-1998. -there were about 31 food processors working on sweet corn in

1998. -Thailand came from nowhere to rank 4th as an exporter of canned

sweet corn. -This brought in 1500 milB in foreign exchange.

Our other two customers:

• Retail outlets• Consumers

Retail outlets and consumers

• We showed them that our products is better: -better taste (sweeter and more tender) -uniform quality (every ear tastes the same) -more appealing on the shelves in the supermarket -long shelf life• Hand out samples to consumers.

Our first year with retail outlet and consumer

• It was very difficult due to the small ear size of ATS-1.• But, the good qualities---- -better taste (more tender, sweeter) -uniform quality (every ear taste the same) -long shelf life ----helped greatly in penetrating the market.• After 4 years of hard work about half of the sweet corn market

belonged to the ATS-1.

We continue to stimulate more sweet cornconsumption:• Superior quality of the hybrids• A variety of ways to eat sweet corn -better cooking -new recipes (sweet corn as a dessert) -new products (the corn milk for example)

If consumer don’t eat sweet corn,farmers can’t grow them.

The success of the sweet corn business.The scenario in 1998: -wide adoption of hybrids for processing. -fresh ear segment started using hybrids. -processor reached a high peak in production. -many organizations were setting up sweet corn breeding programs -hybrids from competitors were released -we started developing overseas market in cooperation with

Syngenta Seeds.

Sweet corn is a success story. Sweet corn is a success story in terms of product and business

development. The company and I were honored as followed: -1996 Taguchi Prize for Outstanding Company -Outstanding Alumni of Depart. of Soil Science, Kasetsart U. -Best Invention Award, National Research Council. Given by the

Prime Minister. -Outstanding Citizen Award, National Identity Committee, Prime

Minister office. Granted by the Crown Princess. This is one of the greatest honors for the Thai people.

The success story of sweet corn is one example ofresearch that we can do for our organization andour country.

There are so many things that we can do.

Keep on thinking.

When we think about research….think aboutour professors.

Look at the way they work…………so hard.

Follow their footpath in the way they conductresearch….and..…we will be second to none.

Research….do not continue your thesisTeam work…Work with other in same or different organization.

..devote for organization…we as individual will gain

Thank you for your kind attention.