Market Information
Asia Pacific

Agricultural Biotechnology Sector Profile(1) - Australia

December 2003

Canadian High Commission in Australia
Commonwealth Avenue
Canberra, ACT 2600, Australia
Contact: Pierre Desmarais, Second Secretary
Tel.: (61-2) 6270-4000
Fax: (61-2) 6270-4069
E-mail: pierre.desmarais@dfait-maeci.gc.ca
Internet: http://www.canada.org.au

MARKET OVERVIEW

Australia is a significant player in the global biotechnology industry, with world-class biotech capabilities in a range of agricultural disciplines. In Australia, agricultural biotechnology represents 20% of the biotech industry and is focussed on improving livestock genetics, aquaculture practices and crop yields.

Biotechnology research and its applications in agriculture and the food industry is a fast-growing sector in Australia. In the year ended March 2000, Australian biotech companies invested approximately $130 million(2) in research and development (R&D). In the following fiscal year, Australian biotech companies generated more than $800 million in revenues.

Growing worldwide acceptance of genetically modified (GM) products has led to larger areas of land used to cultivate GM crops. Between 1996 and 2001, the global area used for the growth of GM crops jumped from 1.7 million hectares to 52.6 million hectares. Genetically modified crops in Australia accounted for 0.2 million hectares of its 22 million hectares of cultivated land in 2001, ranking it as the fifth-largest cultivator of GM crops in the world, behind China, Canada, Argentina and the United States.

The Australian market's level of acceptance of GM products is yet to be determined. There are approximately 20 GM food ingredients that have been approved by Food Standards Australia and New Zealand as of October 2002. Compulsory labelling of GM food products in Australia took effect on December 7, 2001. Since then, some food processors and supermarkets have been reluctant to use GM ingredients in products. Furthermore, products labelled as genetically modified have been slow to appear on supermarket shelves. However, public acceptance of GM food products nearly doubled since 1999, with 49% of Australians in 2001 saying they would eat GM foods. The same study indicated that 60% would eat GM foods if the foods had been modified to taste better.

Australia currently has three transgenic crops approved for commercial release. There are two different varieties of carnations modified to produce different coloured flowers, as well as, to extend vase life and three GM crop varieties of cotton. The most recent transgenic crop approval was for GM canola. The Office of Gene Technology Regulator (OGTR) issued a first licence for the commercial release of GM canola in July 2003. However, there are still some remaining barriers to commercial release of GM canola as most of Australian State governments have adopted their own moratoriums on such releases for various periods of time.

Sixteen GM crops approved for field trials in Australia are expected to be released to the market over the next five years:

barley
canola
carnation
cotton
field pea
Indian mustard
lettuce
lupins
oilseed poppy
papaya
pineapple
subterranean clover
sugarcane
tomato
wheat
white clover

While there is a lack of venture capital and R&D investment for biotech development in Australia, there is strong government support for biotechnology at both the federal and state levels. In 1999, the federal government established the Commonwealth Biotechnology Ministerial Council to co-ordinate biotech activity and to develop a national strategy. In July 2000, the Council produced the National Biotechnology Strategy. The Strategy established the Biotechnology Innovation Fund (BIF) and aims to increase public awareness of biotechnology and its safety, develop national and international biotech networks and ensure market access for Australian agriculture and agri-food biotech products.

In 2001, the federal government allocated $25 million over three years (2001-2004) to support initiatives under the National Biotechnology Strategy. Moreover, an additional $40.1 million has been rendered to establish the Biotechnology Centre of Excellence in Victoria by 2006. The Centre will support the development and application of critical technologies, and create biotech networks in order to consolidate and build Australian capability in a variety of fields of biotechnology. By strengthening its biotech capabilities, the Centre expects to attract investment by research institutes and large multinational companies.

OPPORTUNITIES

In plant agriculture, the opportunities to apply biotechnology are numerous. Australia is interested in improving its major export products, in particular wheat, other cereal crops, cotton and oilseeds. Biotech products that will prevent grapevine disease or enhance the ripening process of grapes may find a ready market in this country. Another important agricultural activity is livestock production for human consumption, particularly beef, cattle, lamb, pigs and poultry; this sector is receiving top priority in Australia's biotech research activities.

In applications relating to milk and meat production, modern biotechnology has already been applied. Australian scientists have extracted Bovine Somatotropin (BST) from a cow's pituitary gland and injected this into dairy cattle to produce 25% more milk. It was also found that the use of BST in beef cattle resulted in leaner meat on the animal and a weight increase of between 10% and 15%. Opportunities exist for Canadian companies experienced with applying similar technology to other farm animals, such as sheep and pigs.

In the area of aquaculture, some of the most viable opportunities for Canadian companies exist in biotechnology research and biotechnology products to support the aquaculture industry. Research and product development are particularly important for:

the provision and development of hatcheries;
selective breeding programs;
quality and control of breeding stock for more uniform production;
constant control of production conditions to prevent pollution;
improved environmental management systems;
techniques for off-shore aquaculture;
inland development to determine what species can be successfully cultivated;
the prolonged shelf life of shellfish;
disease control and prevention;
bio-remediation of coastal waters; and
the preservation of wild fish stocks.

Canadian companies with expertise in these areas have the opportunity to partner with other research institutions, and sell vaccines and medicines to those experimenting with new species.

There are also opportunities in developing immunity enhancers as well as food technology. These are areas of continued research in Australia and may provide technology transfer, or collaborative arrangement opportunities for Canadian companies. Australia is also looking for dietary enzymes; fishmeal replacements; improved processing technology; formulation to lessen the demand for costly fishmeal in food; to increase food efficiency; and to ensure access to sufficient quality feed.

The maturity of the Australian market, and similarities with Canadian firms in structure, funding and agricultural biotech strengths, make Canadian biotech companies obvious partners for Australian companies. Partnerships, licensing agreements and strategic alliances drive the industry. Opportunities to form partnerships or strategic alliances exist in applying biotech development in grain and oil seed crops, meat and dairy production, and aquaculture. Moreover, opportunities for technology transfer and/or joint R&D projects may be found in Southern Australia, where the region is face with problems with soil salinity and drought, and climate conditions are similar to Saskatchewan.

Furthermore, Australian biotech companies are increasingly outsourcing R&D activities to research institutions and universities. Canadian companies interested in investing directly in R&D activities in Australia may consider becoming part of a dedicated biotech company or partnering with a university-based facility or a Cooperative Research Centre (CRC). As of July 2003, there were 71 CRCs in operation in Australia, of which many are involved with R&D in the agricultural/rural sector. For information regarding CRCs in Australia and participating research universities refer to the CRC website: http://www.crc.gov.au

For major applications of biotechnology in food or agriculture, it is recommended that a Canadian company have a direct presence in the market by establishing its own subsidiary in Australia. A subsidiary will facilitate interactions with R&D organizations in Australia, respond to any legislative requirement, lobby federal or state governments for acceptance of experimental testing, and establish relationships with manufacturers, distributors, farmers and other relevant consumer groups.

Trade Shows

Event:
AusBiotech 2004
November 7-10, 2004 (Annual)
Brisbane, Queensland
Australia

Organizer:
AusBiotech Ltd.
576 Swan St.
Richmond, VIC 3121, Australia
Contact: Fiona Corrie, Information and Marketing Services Manager
Tel.: (61-3) 9208-4204
Fax: (61-3) 9208-4201
E-mail: admin@ausbiotech.org
Internet: http://www.ausbiotech2004.com

Event:
BIO 2004
June 6-9, 2004 (Annual)
San Francisco, California
USA

Organizer:
Biotechnology Industry Organisation (BIO)
BIO Meetings Department
1225 Eye Street NW, Suite 400
Washington, DC 20005
Tel.: (202) 962-6655
Fax: (202) 589-2545
E-mail: bio2003@bio.org
Internet: http://www.bio.org/events/2003
The ABIC Foundation is managed by

Event:
Agricultural Biotechnology International Conference (ABIC) 2004 (Annual)
September 12-15, 2004
Cologne, Germany

Organizer:
Ag-West Biotech Inc.
101 - 111 Research Drive
Saskatoon SK S7N 3R2 CANADA
Tel.: (306) 975-1939
Fax: (306) 975-1966
E-mail: abicfoundation@abic.ca
Internet: http://www.abic.net

KEY PARTICIPANTS

There are more than 190 core biotech companies--of which approximately 15% are involved in the agricultural biotech sector--and 460 biotech-related companies in Australia. The Australian agricultural biotech market is characterized by a number of major multinationals that have established operations in Australia. Several Australian companies have also started or expanded operations in the United States or Europe.

Australia's long-standing excellence in agribusiness is due partly to the links between primary producers and R&D service providers, including universities and state-funded departments of natural resources. Indeed, Australia has a substantial research infrastructure. The Commonwealth Scientific and Industrial Research Organisation (CSIRO)(3) is Australia's largest and most prestigious public-sector R&D organization with approximately 70 laboratories across Australia. CSIRO has developed expertise in the areas of designer grapevines, bioremediation with insect enzymes and insecticides that target the insect life cycle. CSIRO believes there is a window of great opportunity for Australia, its community and industries, in the adoption of biotech research, particularly in gene technologies. Other major research institutions in Australia include the CRCs, the Institute of Molecular Bioscience and the Australian Genome Research Facility.

PRIVATE- AND PUBLIC-SECTOR CUSTOMERS

Canadian food products using biotechnology may be imported after it has passed the food legislative requirements, and may only be distributed by an Australian company. Australia's food distribution chain is well-established, so Canadian exporters should seek out a reputable and well-connected firm that can introduce new products to this mature market. The Canadian High Commission can assist exporters in finding an appropriate agent/distributor.

In December 2001, Australia's new labelling requirements for GM food took effect. For packaged foods, the words genetically modified must be used in conjunction with the name of the food. For unpackaged processed or semi-processed foods, genetically modified should be displayed. Detailed information regarding the labelling of GM food products can be found at the Food Standards Australia New Zealand (FSANZ) Web site, http://www.foodstandards.gov.au.

All GM crop trials must receive a licence from the OGTR and all field trial locations are made public through OGTR's Web site (see Key Contacts). Companies may apply for private trials in order to protect corporate privacy; however, the criteria are quite strict and, to date, very few requests for privacy have been accepted.

KEY CONTACTS

Canadian Contacts

Agriculture and Agri-Food Canada
Sir John Carling Building
930 Carling Ave., 5th Floor
Ottawa, ON K1A 0C5
Contact: Blair Gowan, Senior International Market Development Officer
Tel.: (613) 759-7524
Fax: (613) 759-7506
E-mail: gowanb@agr.gc.ca
Internet: http://www.agr.gc.ca

Canadian Food Inspection Agency
Office of Biotechnology
59 Camelot Dr.
Nepean, ON K1A 0Y9
Tel.: (613) 225-2342
Fax: (613) 228-6125
E-mail: cfiamaster@inspection.gc.ca
Internet: http://www.inspection.gc.ca

Department of Foreign Affairs and International Trade (DFAIT)
125 Sussex Dr.
Ottawa, ON K1A 0G2
Internet: http://www.dfait-maeci.gc.ca

International Business Opportunities Centre (IBOC)
Tel.: (613) 944-6000
Fax: (613) 996-2635
E-mail: iboc@dfait-maeci.gc.ca
Internet: http://www.iboc.gc.ca

Korea and Oceania Division (PKE)
Contact: David Korth, Desk Officer
Tel.: (613) 995-7652
Fax: (613) 996-1248
E-mail: david.korth@dfait-maeci.gc.ca

Market Support Division (TMR)
Contact: Sean McLean, Senior International Market Analyst
Tel.: (613) 996-0688
Fax: (613) 943-1103
E-mail: sean.mclean@dfait-maeci.gc.ca

Market Support Division (TMM)
Contact: Rick Winter, Trade Commissioner
Tel.: (613) 995-1773
Fax: (613) 943-8820
E-mail: rick.winter@dfait-maeci.gc.ca

Export Development Corporation (EDC)
151 O'Connor St.
Ottawa, ON K2P 2L8
Tel.: (800) 850-9626 or (613) 598-2500
Fax: (613) 598-6697
E-mail: export@edc4.edc.ca
Internet: http://www.edc-see.ca

Australian Contacts

Australian High Commission in Ottawa
50 O'Connor St., Suite 710
Ottawa, ON K1P 6L2
Tel.: (613) 236-0841
Fax: (613) 236-4376
Internet: http://www.ahc-ottawa.org

Agriculture, Fisheries and Forestry Australia
Edmund Barton Building
Broughton Street, Barton
GPO Box 858
Canberra, ACT 2601, Australia
Tel.: (61-2) 6272-3933
Fax: (61-2) 6272-5680
E-mail: internet.section@affa.gov.au
Internet: http://www.affa.gov.au

AusBiotech Ltd.
576 Swan St.
Richmond, VIC 3121, Australia
Tel.: (61-3) 9208-4200
Fax: (61-3) 9208-4201
E-mail: admin@ausbiotech.org
Internet: http://www.ausbiotech.org

Biotechnology Australia
GPO Box 9839
Canberra, ACT 2601, Australia
Tel.: (61-2) 6213-6000
Fax: (61-2) 6213-6952
E-mail: ba@biotechnology.gov.au
Internet: http://www.biotechnology.gov.au

Commonwealth Department of Health and Ageing
Office of the Gene Technology Regulator
MDP54 PO Box 100
Woden, ACT 2606, Australia
Tel.: 1-800-181-030 (only available in Australia)
Fax: (61-2) 6271-4202
E-mail: ogtr@health.gov.au
Internet: http://www.ogtr.gov.au

Commonwealth Scientific and Industrial Research Organization (CSIRO)
Bag 10
Clayton South, VIC 3169 Australia
Tel.: (61-3) 9545 2176
Fax: (61-3) 9545 2175
E-mail: enquiries@csiro.au
Internet: http://www.csiro.au

Food Standards Australia New Zealand (FSANZ)
Boeing House
55 Blackall Street
Barton, ACT 2600, Australia
Tel.: (61-2) 6271-2222
Fax: (61-2) 6271-2278
E-mail: info@foodstandards.gov.au
Internet: http://www.foodstandards.gov.au

BIBLIOGRAPHY

Agriculture, Fisheries and Forestry Australia. "Agricultural Biotechnology: What is Happening in Australia?" April 2002. Downloaded from http://www.affa.gov.au/corporate_docs/publications/
pdf/innovation/Pamphlet.pdf on May 13, 2003.

Canada. Department of Foreign Affairs and International Trade. "The Biotechnology Industry in Australia," April 2002. Downloaded from http://www.infoexport.gc.ca/ie-en/DisplayDocument.jsp?did=7507 on May 14, 2003.

------. "The Aquaculture Market in Australia, "May 2002. Downloaded from http://www.infoexport.gc.ca/ie-en/DisplayDocument.jsp?did=7594 on June 23, 2003.

United States Department of Commerce. "Australia: The Biotechnology Industry," June 30, 2000. Downloaded from http://www.stat-usa.gov/mrd.nsf/vwAll_All/?SearchView&Query=Australia on May 23, 2003.

Useful Internet Sites

AgBiotech Net: http://www.agbiotechnet.com/

AgBioWorld Foundation: http://www.agbioworld.org

Agriculture and Agri-Food Canada Agri-Food Trade Service: http://atn-riae.agr.ca

Australian Bureau of Agricultural and Resource Economics: http://www.abare.gov.au

Australian Quarantine and Inspection Service: http://www.aqis.gov.au

Australian Venture Capital Association: http://www.avcal.com.au/

Australia's Biotechnology Organisation: http://www.ausbiotech.org

BioteCanada: http://www.biotech.ca/

Biotechnology Australia: http://www.biotechnology.gov.au/

Commonwealth Scientific & Industrial Research Organisation: http://www.csiro.au/biotechnology

Department of Foreign Affairs and International Trade: http://www.dfait-maeci.gc.ca

ExportSource: http://exportsource.gc.ca

InfoExport: http://www.infoexport.gc.ca

Office of the Gene Technology Regulator: http://www.ogtr.gov.au

State of New South Wales - Biotechnology: http://www.biofirst.nsw.gov.au/

State of Queensland - Biotechnology: http://www.iie.qld.gov.au/biotechnology/

State of South Australia - Biotechnology: http://www.bioinnovationsa.com.au/

State of Tasmania - Biotechnology: http://www.development.tas.gov.au/biotechnology.html

State of Victoria - Biotechnology: http://www.biotechnology.vic.gov.au/

State of Western Australia - Biotechnology: http://www.agric.wa.gov.au/biotechnology/

Therapeutics Goods Administration: http://www.health.gov.au/tga/

1. The Government of Canada has prepared this Country Sector Profile based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this document, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information.

2. All monetary amounts are expressed in Canadian dollars, unless otherwise indicated. The conversion rate to Canadian dollars is based on IDD Information Services, Tradeline, May 2003.

3. For contact information regarding key organizations mentioned in this report, see Key Contacts and Support Services.

Date Modified: 2004-06-25

Important Notices