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This special project shows that the country’s determination and investment in the development of genetically modified fields are unprecedented. However, we believe that there is still a long way to go for the large-scale industrialization of domestic genetically modified varieties. First, the specialization of genetically modified organisms is only a systematic approach to the past in the field of biotechnology. Second, there are still domestic advanced technologies and advanced international standards. big difference.
In developed countries, the obstacles to the promotion of genetically modified crops are mainly the considerations of living in biosafety. In China, the opening up of the genetically modified field needs more consideration of domestic food security, taking into account the initiative of the domestic ability to grasp the variety rights after the sector is liberalized. Therefore, we believe that only when the domestic biotechnology level is sufficiently internationally competitive, the industrialization of genetically modified food crop varieties in China and the opening up of policies will have practical significance.
We also believe that we need to wait patiently for opportunities that the GM project may bring to the market. The target of this project will be mainly scientific research institutes and universities, and the enterprise unit will soon enjoy the support of special funds. However, as the main research units generally have supporting agencies for the scientific research achievements, the existing leading companies are also at a disadvantage.
We believe that special projects should be seen as the government’s efforts to strengthen biotechnology input and the potential for the development of basic biotechnology research in China. As for industrial opportunities, it is necessary to wait for the first two areas of investment in the project--the mining of dominant genes and the selection and breeding of genetically modified varieties. For the relevant domestic seed companies in the current stage, we believe that there will be no obvious impact on them in the short term. In the long run, enterprises with advantages in variety resources and management advantages are still the biggest winners in technological progress.
According to Xinhua News Agency, Premier Wen Jiabao of the State Council presided over the State Council's executive meeting on the 9th to review and adopt in principle the "Key Projects for the Cultivation of New Varieties of Genetically Modified Organisms" (referred to as "GM special projects").
The conference believes that the implementation of major new science and technology breeding projects for genetically modified organisms is of great strategic importance in enhancing the ability of independent innovation of agricultural science and technology, enhancing the level of biological breeding in our country, promoting agricultural efficiency and increasing farmers' income, and improving China's agricultural international competitiveness. The goal of implementing this major project is to obtain a group of genes with important application value and independent intellectual property rights, and cultivate a batch of major new genetically modified organisms that are resistant to pests, diseases, high-quality, high-yield, and high-efficiency, and improve agricultural genetically modified organisms. The overall level of research and industrialization provides strong scientific and technological support for the sustainable development of agriculture in China. -- Xinhua News Agency reported on July 10, 2008 that the commercialization of genetically modified grain crops will take some time. While the global GM crops are booming, does the establishment of genetically modified special projects mean that there will be breakthroughs in China's application of GM crops? Or does it mean that even China's GM crop varieties may open up to the outside world?
According to our understanding, the funds for the special GM project will be sourced from the special funds of the Ministry of Science and Technology. The planned investment will be about 24 billion yuan, of which the state will directly invest 12 billion yuan, and the subject undertaking unit will be worth 12 billion yuan. The funds will be mainly invested in three areas: 1) mining of dominant genes; 2) breeding of genetically modified varieties; 3) industrialization of genetically modified crop varieties. In the first three years, funds were allocated by the state in full, and 2 billion yuan was invested each year for gene mining and variety breeding.
This special project shows that the country’s determination and investment in the development of genetically modified fields are unprecedented. However, for the large-scale industrialization of domestic genetically modified varieties, we believe it still needs a long way to go.
First of all, the GM specialization is only the systematicization of past investment in biotechnology. As early as in the Outline of the National Medium and Long-Term Scientific and Technological Development Plan (2006-2020), genetic modification has been identified as one of the 16 major scientific and technological projects that China will strive to achieve in the next 15 years. And the government has always invested a lot in the field of biotechnology. The accumulated investment has reached several billion yuan.
Second, there is still a big gap between the domestic level of genetically modified technology and the international advanced level. The first generation of genetically modified crops was a single-trait (single-gene) transgenic crop; the second generation was a multi-gene improvement; the third was a multi-gene fusion. The application of GM technology in developed countries led by Monsanto has begun to enter the application of third-generation technology, but China's application in the first-generation and second-generation technology areas is still not satisfactory. Once China's GM crops begin to be commercialized, they will directly face international competition and China's food security may face greater challenges.
The obstacles for the promotion of GM crops in developed countries are mainly factors that are responsible for biosafety. In China, the opening up of the genetically modified field needs more consideration of domestic food security, taking into account the initiative of the domestic ability to grasp the variety rights after the sector is liberalized. If grain varieties are subject to human control, the autonomy of food production will be greatly constrained.
Therefore, we believe that only when the domestic biotechnology level is sufficiently internationally competitive, the industrialization of genetically modified food crop varieties in China and the opening up of policies will have practical significance.
Industrial opportunities are also unclear about the opportunities that GM projects may bring to the market, and we also believe that we need to wait patiently.
The project organization unit of the special GM project was led by the Chinese Academy of Agricultural Sciences, which means that in the same way that agricultural science and technology could be invested in the past, the project input target will be mainly borne by scientific research institutes and universities, and the enterprise unit will soon enjoy special GM projects. Funding support. In other words, even in the context of national special projects for genetic modification, the R&D strength of companies will hardly be effectively improved.
Looking further, the use of research results in the national project investment is also at a disadvantage. Each scientific research institution or subordinates of universities and colleges generally has units that carry out industrial research on scientific research results. They have priority in the application of research results. However, due to the limitations of its own strength, it is often said that the subordinate enterprises of scientific research institutions do not have enough industrialization development strength for the research results, which greatly reduces the efficiency of the industrialization of scientific research results.
Therefore, for the establishment of this GM project, it is unrealistic to expect short-term business opportunities. We believe that special projects should be seen as the government’s efforts to strengthen biotechnology input and the potential for the development of basic biotechnology research in China. As for industrial opportunities, it should at least wait for the first two areas of capital investment--the mining of dominant genes and the results after the completion of the breeding of genetically modified varieties, and after the policy orientation of industrialization is clear, judging commercial opportunities is of practical significance.
For the relevant seed leaders at the current stage in China, we believe that there will be no obvious impact on them in the short term. In the stage of special industrialization, enterprises with advantages in variety resources, combined with superior genetic resources have advantages, and can better achieve the combination of dominant genetic resources and varieties; while companies with advantages in channels and management have advantages in the efficiency of results transformation. Therefore, the advantages of breed resources and management advantages are still the biggest gainers of technological progress in the long run.
Obviously, the relevance of genetically modified projects and related listed companies is not high, and the impact on investment opportunities is naturally quite limited.
Background Small information: Global GM crops are booming Relying on technological advances to increase crop yields have become the main means of solving world food problems, and the number of countries that grow GM crops globally and their planting area are growing rapidly. According to ISAAA statistics, the global cultivation of genetically modified crops in 2007 has rapidly increased from 1.7 million hectares in 1996 to 114 million hectares, which has increased nearly 100 times in 11 years.
The data shows that the global cultivation of GM crops is still in a stage of rapid increase. In 2007, it gained another 12%, and the area increase was the second in the last five years. Among them, developing countries are developing faster.
The largest GM crop planted in 2007 was soybeans, which reached 58.6 million hectares, which was the same as in 2006. Followed by corn, the planting area was 35.2 million hectares, which was higher than 25.2 million hectares in 2006. The cotton planting area is 15 million hectares, which is higher than the 11.4 million hectares in 2006. Rapeseed is 5.5 million hectares, up from 4.8 million hectares in 2006.
From the perspective of the relative share of planting of genetically modified crops, the largest proportion of genetically modified soybeans was 64%, followed by cotton, maize, and rapeseed, which were 43%, 24%, and 20%, respectively.
China's GM crops are mainly cotton. In 2007, China's GM cotton production area reached 3.8 million hectares last year, accounting for 69% of the country's cotton planting area.
In the application of transgenic industrialization, only transgenic cotton can provide reference. The technology of China's GM cotton is mainly from the Chinese Academy of Agricultural Sciences and is developed by Shenzhen Genesis Bio-company. This model is a typical model for transforming research institutes.
The U.S. and China are very different. In the early days of the development of genetically modified technology, the U.S. government mainly engaged a large number of commercial enterprises in technological development. After market integration, it formed some strong technical strength and achieved industrial success. Biotechnology company. The typical representative is Monsanto, and 90% of insect-resistant cotton and insect-resistant corn varieties in the United States are Monsanto products.
A few days ago, the State Council executive meeting delibrated and approved in principle "a major special project for the cultivation of new varieties of genetically modified organisms." According to our understanding, the funds for the special GM project will be sourced from the special funds of the Ministry of Science and Technology. The planned investment will be about 24 billion yuan, of which the state will directly invest 12 billion yuan, and the subject undertaking unit will be worth 12 billion yuan. The funds will be mainly invested in three areas: 1) mining of dominant genes; 2) breeding of genetically modified varieties; 3) industrialization of genetically modified crop varieties.