Evolution of the public plant breeding capacities in the EU 27 MS

As presented above, the privatisation of the seed industry over the last 60 years has led to the significant reduction of public expenditures dedicated to the development and the marketing of new cultivars by the public sector. When some statistics exist in the USA to illustrate this shift of responsibilities and activities³¹, too few data have been collated in the EU to understand this evolution.

One of the main objectives of this study is nevertheless trying to illustrate this evolution with quantitative data.

Therefore a survey of the past and current applied public plant breeding efforts in releasing new varieties and cultivars in the EU 27 MS has been completed during the course of this study. This survey aimed to list most of the relevant public institutes and universities involved in breeding new varieties for their release on the market place and to estimate past and current resources and capacities of these institutes and universities still involved in applied plant breeding.

Only public breeders that are currently breeding new cultivars have been invited to fill the questionnaire. The segmentation between public and private breeding has created some issues when discussing with some organisations. Under this study, public breeding has to be understood as an activity performed by a legal entity, fully own by public legal entities, with no private funding investment in the applied plant breeding activities.

Financing from the private sector occurs in the public/private partnerships and when a public entity is working

30http://ec.europa.eu/food/plant/plant_propagation_material/plant_variety_catalogues_databases/index_en.htm

31 Frey K.J. 1996. National plant breeding study-I. Human and financial resources devoted to plant breeding research and development in the United States in 1994.

under a full cost recovery system. In this private funding occurs on a case by case basis only.

Only the public institutes that are still currently breeding new varieties have answered to the questionnaire and therefore historical data only address evolution for institutes that are still involved in breeding. Data from institutes or breeding programmes that stopped their activities since 2000 are not available, because no answers to the survey could be obtained. This remark applies for all cases where historical data (data series) are presented.

The comparisons that are presented in this analysis consider a 10 years period which is certainly not sufficient enough for a significant estimation of the evolution of the public plant breeding capacities but the research team considered that longer data series would have led to important data gaps. Then the compromise was to select a 10 years period.

Data from institutes or breeding programmes that have been stopped since 2000 are not included as these institutes have not answered to the survey questionnaire. Data are not available. This remark applies for all cases where historical data (data series) are presented. Efforts and capacities of public plant breeding efforts have been significantly reduced over the last 30 years and a comparison between 2000 and 2010 may not be seen a large enough to assess the evolution. A large number of privatisations did happen before 2000. The major examples of privatisation of applied public plant breeding efforts that has been observed since 200 are the one of Finland and Hungary. In Finland breeding of agricultural crops is done by Boreal (Jokioinen) which has the Finnish state as its majority owner³². The breeding programme is diversified and includes wheat, rye, barley, oats, spring turnip rape, forage grasses and clover, peas, field beans and potatoes, aimed at the development of varieties for the specific Finnish conditions. These different breeding programmes were located in several separate public entities in the past and have been grouped in a single one. Within Boreal only some activities (mainly breeding of minor crops and pre-breeding activities) are receiving public funding but in no cases, breeding is fully supported by public funding. Pre-breeding efforts are carried out in collaboration with the MTT, the Finnish institute for applied research for agriculture and food. The breeding of fruits (apple) and berries is done at MTTT Piikkio, close to Turkku, and is fully based on public breeding. Therefore only data for this latest programme are included in the data set of the study.

The second main example of “privatisation” is the case of the Szeged institute. Szeged is a very well-known institute in Hungary which a long history in the cereal breeding. Together with Novi-Sad in Serbia and the Fundulea in Romania, it is considered as one of the main public institute in the west-south of the EU. It was functioning as a state-owned institution since its foundation to 2008, belonging under the administration of the Ministry of Agriculture. It was taken over by the National State Property Agency Ltd since 1st January 2009, which manages state property and keeps the course of innovation in its entity and integrity. The company contributes to the competitiveness of agriculture with 183 registered plant varieties and hybrids of 23 plant species, the total growing area of which covers domestically and abroad ca. one million hectares annually³³.

Similarly we can mention the case of Agri-Obtention in France. However, that structure has been created before 2000 and delegation of plant breeding efforts to that private company based on majority of public ownership did start in the 1980-1990s and continued during the 2000s (e.g. winter oil seed rape).

Another question that arose during the study is to decide which activity has to be considered as an activity that leads to the release of new cultivars and especially in the field of molecular breeding. Public breeders have been invited to provide information for their molecular breeding activities in support to germplasm characterisation and to variety development. All other molecular breeding activities related to the pre-breeding activities are not included in the scope of this study.

Representativeness of the completed answers to the survey questionnaire

The completeness of the responses is an important demonstration of the readiness and capabilities of the public

sector to fulfil (or not) the objectives of the EU 2020 Strategy. Public plant breeders were invited to contribute to the survey during the 2012 summer period. The research team considers that the response rate is satisfactory and representative of the current public efforts for a level of 80-85% of the total EU seed market value³⁴. A limitation to this analysis is the lack for completeness for Poland (even if an answer from the well-known IHAR has been received).

Information regarding the public plant breeding efforts situation in Bulgaria and Serbia are based on secondary data from international reports from the FAO in the context of the Global Partnership Initiative for Plant Breeding Capacity Building (Information available at: www.km.fao.org/gipb/). These two reports have been published in 2006 and data included corresponds to the situation in 2004-2005. For these two countries, when data series are presented, the year 2000 corresponds to the situation in 1990; and when data refers to the most recent year, data dates back to 2004-2005.

Benchmark indicators

Serbia has been included in the study because it is a candidate for EU membership, it has a long history of public plant breeding and it is still heavily committed to the development, multiplication and marketing of new cultivars in the Balkan countries and in other markets too. Data from Serbia are used as a benchmark to measure the importance of the EU public efforts.

As a background indicator, the private plant breeding efforts should be reminded. The European Seed Association (ESA) estimates that the EU commercial seed market value has reached approximately between 7.0 and 7.5 billion Euros and represents more than 20% of the total worldwide market for commercial seed as the global certified seed market is estimated to have a turnover of around 26-29 billion Euros annually.

The seed industry has an annual R&D spending of about 12 to 15% of the total turnover (ESA, 2012), which means that total R&D budget (all activities included: genomics, pre-breeding, breeding) in the private EU R&D sector is estimated at around 800 million to 1 billion Euros annually.

In the EU 15 MS the number of personnel involved in R&D (plant breeding) in private companies is about 5,000 staff working in around 500 major research stations.

Two major groups of breeders co-exist in the EU:

 The SMEs that are used to breed for their local/national markets. These SME enter into partnerships with foreign seed partners for the purpose of testing/positioning, and when relevant, for marketing their existing cultivars in other countries characterised by specific growing conditions (breed locally – test globally) ;

 Large companies whose breeding strategy is a European wide and /or a global approach (e.g. hybrid crops) that consists in breeding for a given area of adaptation (breed globally-test locally).

The list of public institutes and universities involved in the breeding of new cultivars

The list of relevant institutes/universities that have been identified³⁵ during the survey is presented in Annex 6.

Public breeding efforts are based on universities, agronomic institutes in which breeding is one of the activities or dedicated breeding institutes. The number of institutes per MS is not a relevant criterion to be considered in this study as the public breeding structure is largely dependent on how agricultural research is organised as a whole in a given country.

34 Estimation done by the research team based on its understanding of the sector and on the basis of the discussions with national experts and national competent authorities that took place during the course of the study. More information in Annex 3.

35See methodology of identification in Annex.

Public breeding efforts are based on universities, agronomic institutes in which breeding is one of the activities or on dedicated breeding institutes. The number of institutes per MS is not a relevant criterion to be considered in this study as the public breeding structure is largely dependent on how agricultural research is organised as a whole.

In Eastern countries, public plant breeding is coordinated via a national structure that includes satellite breeding stations distributed all over the country in order to test varieties locally (a testing network based on several locations).

In Estonia, the Jovega Plant breeding institute is an autonomous state research and development institute under the jurisdiction of the Ministry of Agriculture Estonia. The main activities of the institute include: variety breeding, applied research on agro-technical aspects, seed production, basic genetics research and heritability of valuable traits and maintenance of genetic resources.

In Lithuania, breeding in the Lithuanian Research Centre for Agriculture and Forestry started in Akademija near Dotnuva in 1922, when the famous Dr Rudzinskas, teacher and mentor to N.I. Vavilov, moved from St Petersburg to Dotnuva. The research centre is a state institute that is funded through the government (41% as core funding) and the Ministries of Education and Agriculture (17%)³⁶.

In the UK, plant breeding to produce finished varieties is very much a private sector activity and it has been so since the 1980s when the government decided that public money should no longer be used to support ‘near market research’, which included plant breeding. At that point the Plant Breeding Institute in Cambridge, where most public sector breeding had taken place, was sold. Today several independent institutes are performing some breeding activities. The James Hutton Institute breeds and commercialises potatoes and soft fruits. It also does barley breeding but not to the point of finished varieties. The Aberystwyth University (IBERS) breeds oats, which are commercialised by Senova, and grasses and clovers that are commercialised by Germinal Holdings. In Northern Ireland, the Agri-Food and Biosciences Institute (AFBI) breeds grass, which is commercialised by Barenbrug, and potatoes.

In France and Italy, the structure based on a single institute is rather similar. In France, all public plant breeding work is done by INRA; in Italy by the Consiglio per la Ricerca e la Sperimentazione in Agricultura though by different groups, each involved in a specific crop or group of crops.

In Spain, several national and regional institutes are carrying out different programmes without any national coordination.

Eight MS have reported no public breeding activities in their country³⁷ (see following figure).

36 Von Bothmer R., Nilsson A. Collaboration between Baltic and Nordic Plant Breeding: a report from the investigation on measures to

Figure 5 - MS in which public plant breeding occurs

Source: Survey questionnaire

Five of these 8 MS (CY, IE, LU, MT, and SL) do not have a strong crop production history, therefore it is understood that research priorities do not include plant breeding. These markets are made of foreign varieties that are tested locally and released via the national or the European common catalogues. In the other three countries (AT, CZ and DK), a long history of plant breeding exists, and then the logic behind the lack of public plant breeding activities is less obvious.

Plant breeding efforts and resources (input) Plant breeding pattern by crop or group of crops

The reduction of public plant breeding expenditures has led to the closure of a large number of breeding programmes in the EU 15 MS. In some NMS, the large majority of important national crops are still under consideration by public breeders (e.g. RO, BG). Although not visible in the following table, because the data set is incomplete, the same situation occurs in Poland. The situation in Estonia is particular as public breeding programmes are dedicated to more than ten different crops.

In Western countries, a rationalisation did occur. First it appears that crops well covered by the private sector were abandoned (e.g. hybrid crops, cereals). On the other hand, the example of legumes shows that public efforts are dedicated to crops no longer targeted by the private sector. Legumes were traditionally bred by cereal breeders.

Reduction of acreage in these crops has had the consequence that private breeding legume programmes have been stopped.

In the other hand, the example of legumes shows that public efforts are focused on crops not considered any longer by the private sector. Legumes were traditionally bred by cereal breeders. Reduction of acreage for these crops (mainly due to their lack of yield stability) has had the consequence that private plant breeding legumes programmes have been significantly reduced and in most of cases stopped.

Secondly, rationalisation did also take the form of a prioritisation of crops based on the costs of the breeding programs. For example, sugar beet breeding programs are expensive especially in its variety testing phase, therefore public plant breeders have had to focus on species for which breeding costs are less expensive. Applied plant breeding is considered as “number game” meaning that it is recognised that more budget you have, more breeding material you can test, and then more chances to release need varieties you have. When your budget is limited, the number of varieties you can test is rather limited and then your chances to release competitive commercial varieties limited. This characteristic has led to strategies of concentrating breeding efforts on a small number of specie is instead ok keeping a large number of small breeding programmes. In that context the situation in Estonia is rather unique as public breeding programmes are dedicated to more than ten different crops.

When it relates to cereal crops, table 5 shows that public plant breeding efforts are not only focused on the main crop species which is winter wheat, but that other cereals such as triticale and oat are also considered. This can be explained that the breeding schemes are rather similar for the majority of cereal crops and therefore several species can be considered in the same breeding programme by the same breeder and the same breeding team.

This is not the same for e.g. oilseed crops where different breeding programmes and different teams are required.

Winter oilseed rape is not any longer under significant consideration of public breeders. For a long time, oilseed rape has been bred by public breeders in the Western Europe as the main markets are in the UK, FR and DE. Poland (via the IHAR institute) is still active in the development of new cultivars for the Eastern European countries. When oilseed rape breeding in Western Europe is concentrated on winter oilseed rape, Poland is breeding winter and spring OSR.

Wine has a rather specific profile as most of the plant breeding efforts are concentrated in public institutes of two major countries (i.e. FR and DE). Slovakia is reporting testing of wine varieties but no variety development.

The following table shows that few vegetables, industrial and non-food and non-feed crops are bred by public institutes.

A majority of MS that have answered to the survey questionnaire is reporting a breeding activity in legumes (10 MS out of 18). Plant breeding of legumes species has been largely abandoned by the private sector as acreages have been significantly reduced during the last 20 years in the EU. The main reason of this decline in the production of legumes crops is due to the lack of yield stability for the main one being field peas. When yield level can be good one year making the crop financially interesting for the farmer, it can be poor the following year. Crop proteins from legumes have been replaced by cheaper crop protein extracted from soybean meal coming mainly from South America.

Sugar beet is bred by a public organisation in RO only. Variety testing of this crop is highly expensive as sugar beet is a heavy crop and that significant investment in machinery is required to set-up a variety testing network in that crop. Additionally, market size for this crop has been reduced over the last 10 years and therefore public plant breeding efforts are now concentrated in private breeders hands.

Very few public plant breeding efforts in vegetable crops and for the non-food and non-feed needs have been reported by the respondents of the survey.

The situation in Slovakia is rather unique and has to be considered specifically as the respondents to the general survey have indicated that only variety testing occurs in Slovakia. One may consider that variety testing alone should not be considered as a breeding activity. However, as these testing activities take place before the release of the varieties and carry out in support to variety registration (pre-registration trials), they are included in the data set of the study.

Table 8 - Crops and group of crops bred by the public sector in the EU 27 MS

Other industrial crops X X X X

Maize X

EU 27 MS (in which public breeding occurs)

Type Group of crops Crops Serbia

Source: Survey results. Polish data set is not complete. Serbia and Bulgaria: 2006 FAO reports

Plant breeding pattern by activity

Conventional plant breeding is a process of several activities. As presented under chapter 2, it starts by germplasm collection and characterisation supported by molecular breeding techniques, followed by variety development, then variety testing and variety registration occur before parental and commercial seed are produced for marketing and sales.

The previous table lists crops species that are bred by public institutes in general terms, but do not present which activities within the breeding schemes are carried out. All steps from germplasm characterisation to variety registration are required for the large majority of crop species to bring a new cultivar to the market and sharing of responsibilities between the public and private sectors occurs in a large majority of MS. Each MS/crop combination has a specific plant breeding model to adapt to commercial realities. However history has determined that each

The previous table lists crops species that are bred by public institutes in general terms, but do not present which activities within the breeding schemes are carried out. All steps from germplasm characterisation to variety registration are required for the large majority of crop species to bring a new cultivar to the market and sharing of responsibilities between the public and private sectors occurs in a large majority of MS. Each MS/crop combination has a specific plant breeding model to adapt to commercial realities. However history has determined that each

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