Despite the global financial crisis, global demand for sugar remained strong and Australian sugar prices were relatively favourable in 2008>09. Sugar production was down overall worldwide, notably in India and the EU and because a large share of the rising Brazilian sugarcane yields was diverted to ethanol production. Thus, world sugar trade — a key driver for the Australian sugar industry — increased to meet shortfalls, reaching a record 50.1 million tonnes in 2008>09 and global sugar stocks fell. The favourable exchange rate for the Australian dollar for most of the year helped reduce the pressure on Australian farmers. However, the long–term environment for the Australian industry has not changed: declining prices in real terms, a declining crop area, increasing pressure from environmentalists regarding the industry’s environmental footprint (i.e. use of pesticides and fertilisers), ongoing technological challenges from major competitors and uncertain weather.
Innovation and Australia’s global positionThe need for sugar industry innovation therefore remains as strong as when the CRC SIIB was first established. Research is a key building block for innovation and our CRC is a major R&D player, positioning Australia in the front rank of countries seeking to apply biotechnology to producing sugarcane and developing new products from the sugarcane crop.
It is important to be in the top ranks as countries such as Brazil continue to grow their sugar biotechnology future. Despite the economic downturn, foreign investment continued to flow into the Brazilian sugar industry and research on sugarcane biotechnology grew there during the year. Field-testing of their GM varieties is believed to be under way in eight countries. New alliances have been announced, notably between leading chemical company BASF and Brazil’s CTC (Centro de Tecnologia Canavieira) to bioengineer drought-resistant varieties. Significantly, Monsanto emerged as a major sugarcane breeder following its purchase of CanaVialis (a Brazilian sugarcane breeding company) and Allelyx (a Brazilian sugarcane biotechnology company).
Another significant development this year has been an international research effort to sequence the sugarcane genome. In an initiative of the long-standing International Consortium for Sugarcane Biotechnology, six countries (USA, Brazil, China, Australia, France and South Africa) will work collaboratively to produce a first draft of the genome by mid-2010. The CRC SIIB is an investor in this collaboration through its new project ‘Understanding the Sugarcane Genome’ which began in July 2008.
CRC’s IP deliveryThe CRC SIIB looks back at a successful sixth year in which the centre has again excelled in developing new Intellectual Property (IP) opportunities in botanical biotechnology as well as industrial and nutraceutical biotechnology. Our original charter focused on investing in IP creation in high-risk areas. We have now delivered on six patent positions, four licensing positions and a wealth of understanding and data which will provide considerable focus for future work well beyond the life of this CRC.
Our DArTs technology is now in the commercial marketplace and the centre’s long-term and significant investment in marker technology has positioned the Australian sugarcane breeding program to be able to use the technology to improve the rate of genetic gains in the current breeding program. While the payback period for this investment is definitely longer term, the work has established an opportunity to advance the breeding program through improvements to the parental populations used by the breeders.
At a more strategic level our CRC’s understanding of sugarcane biology is now well recognised by the Australian Gene Technology Regulator as critical in evaluating potential risks associated with the introduction of GM sugarcane.
High Value Products for Other Industries
Our centre’s work in industrial biotechnology has now seen a patent and license arrangement established to manufacture high molecular weight Hyaluronic Acid – a significant body lubricant, development of BARRECOTETM — a waterproofing compound for extensive use in waterproof cardboard boxes, and GIWiseTM — a compound and extract from sugarcane which has considerable advantages over existing GI lowering extracts already in this expanding market.
Higher degree students working with our CRC continue to reward with remarkable progress in their thesis work, in development of CRC Project IP and in valuing our CRC in their respective universities. Particular mention should be made of our education project group who have improved biotechnology understanding in lower, middle and upper school grades.
As our final year approaches, the emphasis has been on two key components of the portfolio. First, we are committed to bringing all projects and technologies to their logical conclusion. Second, there is a continued commitment to the commercialisation of our technology. The most pleasing aspect for management has been the way in which key researchers (and Project Leaders in particular) have worked with the Commercialisation Manager to meet these challenges.
Peter Twine
CEO
Bob Clements
Chairman
Despite the global financial crisis, global demand for sugar remained strong and Australian sugar prices were relatively favourable in 2008>09. Sugar production was down overall worldwide, notably in India and the EU and because a large share of the rising Brazilian sugarcane yields was diverted to ethanol production. Thus, world sugar trade — a key driver for the Australian sugar industry — increased to meet shortfalls, reaching a record 50.1 million tonnes in 2008>09 and global sugar stocks fell. The favourable exchange rate for the Australian dollar for most of the year helped reduce the pressure on Australian farmers. However, the long–term environment for the Australian industry has not changed: declining prices in real terms, a declining crop area, increasing pressure from environmentalists regarding the industry’s environmental footprint (i.e. use of pesticides and fertilisers), ongoing technological challenges from major competitors and uncertain weather.
Innovation and Australia’s global positionThe need for sugar industry innovation therefore remains as strong as when the CRC SIIB was first established. Research is a key building block for innovation and our CRC is a major R&D player, positioning Australia in the front rank of countries seeking to apply biotechnology to producing sugarcane and developing new products from the sugarcane crop.
It is important to be in the top ranks as countries such as Brazil continue to grow their sugar biotechnology future. Despite the economic downturn, foreign investment continued to flow into the Brazilian sugar industry and research on sugarcane biotechnology grew there during the year. Field-testing of their GM varieties is believed to be under way in eight countries. New alliances have been announced, notably between leading chemical company BASF and Brazil’s CTC (Centro de Tecnologia Canavieira) to bioengineer drought-resistant varieties. Significantly, Monsanto emerged as a major sugarcane breeder following its purchase of CanaVialis (a Brazilian sugarcane breeding company) and Allelyx (a Brazilian sugarcane biotechnology company).
Another significant development this year has been an international research effort to sequence the sugarcane genome. In an initiative of the long-standing International Consortium for Sugarcane Biotechnology, six countries (USA, Brazil, China, Australia, France and South Africa) will work collaboratively to produce a first draft of the genome by mid-2010. The CRC SIIB is an investor in this collaboration through its new project ‘Understanding the Sugarcane Genome’ which began in July 2008.
CRC’s IP deliveryThe CRC SIIB looks back at a successful sixth year in which the centre has again excelled in developing new Intellectual Property (IP) opportunities in botanical biotechnology as well as industrial and nutraceutical biotechnology. Our original charter focused on investing in IP creation in high-risk areas. We have now delivered on six patent positions, four licensing positions and a wealth of understanding and data which will provide considerable focus for future work well beyond the life of this CRC.
Our DArTs technology is now in the commercial marketplace and the centre’s long-term and significant investment in marker technology has positioned the Australian sugarcane breeding program to be able to use the technology to improve the rate of genetic gains in the current breeding program. While the payback period for this investment is definitely longer term, the work has established an opportunity to advance the breeding program through improvements to the parental populations used by the breeders.
At a more strategic level our CRC’s understanding of sugarcane biology is now well recognised by the Australian Gene Technology Regulator as critical in evaluating potential risks associated with the introduction of GM sugarcane.
High Value Products for Other Industries
Our centre’s work in industrial biotechnology has now seen a patent and license arrangement established to manufacture high molecular weight Hyaluronic Acid – a significant body lubricant, development of BARRECOTETM — a waterproofing compound for extensive use in waterproof cardboard boxes, and GIWiseTM — a compound and extract from sugarcane which has considerable advantages over existing GI lowering extracts already in this expanding market.
Higher degree students working with our CRC continue to reward with remarkable progress in their thesis work, in development of CRC Project IP and in valuing our CRC in their respective universities. Particular mention should be made of our education project group who have improved biotechnology understanding in lower, middle and upper school grades.
As our final year approaches, the emphasis has been on two key components of the portfolio. First, we are committed to bringing all projects and technologies to their logical conclusion. Second, there is a continued commitment to the commercialisation of our technology. The most pleasing aspect for management has been the way in which key researchers (and Project Leaders in particular) have worked with the Commercialisation Manager to meet these challenges.
Peter Twine
CEO
Bob Clements
Chairman