Non-Traditional Barley Breeding Research & Commercialization Conference

from Dave Henderson, NBGA President and Scott Brown, NBGA Vice President

A non-traditional barley breeding research and commercialization conference was held in Banff, Alberta, on April 14-15, 2010. The event was organized and hosted by the Alberta Barley Commission. US attendees included: Dave Henderson (MT), NBGA president; Scott Brown (ID), NBGA vice president; Dwight Little, Idaho Barley Commission; Kelly Olson, IBC staff; Doyle Lentz, North Dakota Barley Council; Steve Edwardson , NDBC staff; Mike Davis, American Malting Barley Association; Melvin Goffena, Montana Wheat and Barley Committee; Ralph Judd and Gary Hanning, Anheuser Busch InBev, St. Louis, MO; and Bob Brunick, MillerCoors barley breeder, Burley, ID.

April 14 focus was on Future Prospects/Need for Biotech Barley –

Dr. Bill Wilson, noted NDSU ag economist, kicked off the event with a lively discussion on the changing commodity landscape and shifts in consumer acceptance of biotech commodities:

 Fundamental change in commodity supply and demand in past 5 years.

 Countries are slowly changing GM regulations – Brazil, for example, has now approved GM production.

 Rapid increase in GM (Soy, corn, cotton) plantings globally.

 Emergence of new GM traits, i.e. RR (or HT - herbicide tolerant) sugar.

 New stacked traits in corn and soy- Monsanto goal of doubling corn yields by 2030. Corn is seeing a 3.2-3.4% growth rate in productivity annually.

 U.S. sugar beets should be viewed as good grower/industry model for developing and
commercializing new GM traits, particularly for small acreage crops (despite legal challenges that have yet to be resolved).

 Australia emerging as GM research leader in drought tolerance in small grains. Tests of the drought resistance gene in barley have shown a 20% increase in yield in non-drought stress situations.

 US/Australian and Canadian wheat growers advocating for GM wheat.

 Pressure is increasing to create biotech traits in small grains.

 All major US ag biotech companies have acquired private wheat breeding programs and will ramp up wheat breeding by about $1 billion/year. GM wheat release in 10 years? GM barley in another 10 years?

 According to his EU sources, GM crops will be widely accepted in the EU by 2022.

 US – 70-80% of U.S. foods contain some GM ingredients. Though surveys are a poor
method for determining consumer predictability, consumers’ biggest food concerns are
sanitation and food borne illnesses, with less than 0.5% concerned about GM.

Generally not willing to pay more for labeling. Trust federal food regulators.

 US wheat farmers concerned about decreasing wheat competitiveness both on yields (HRS yields up 7% from 1992 to present while soybeans are up 31% and corn up 82%) and input costs (ND wheat input costs up 166% from 2000 to present while soybeans up 111%).

 Research funding for wheat is about $.60/acre compared to about $10/ac for GM crops.

 Will need strategic partnerships between ag biotech and breeders.

 Groundwork for development of GM barley includes what needs to be done; who will do it; and how will we get there.

Dr. Charlie Pearson, ag economist with Alberta Dept. of Agriculture and Rural Development - reported on survey conducted on adoption of transgenic barley in Alberta – complete copy of survey will be available soon.

 Big difference in attitude in GM barley (benefits/costs) between various segments of supply chain, particularly between human consumption and livestock feed.

 Prohibitive introductory cost for small acreage crops like barley in terms of variety development, regulatory approvals and detection/segregation systems.

 Trait priorities – AGRONOMIC - FHB resistance, water use efficiency, salt tolerance, nutrient use efficiency; PROCESSING - uniformity of germination, extraction rates, starch level and extractability.

April 15 – Breeding techniques for barley improvement

Dr. Chengdao Li, Department of Agriculture, Government of Western Australia –

 Barley breeding is partnership between state of Western Australia and Grain Research Development Corporation (GRDC) and several private partners include Barrett Burston maltster.

 Leading varieties released from this program include: Stirling (being phased out), Baudin (largest acreage), Vlamingh, Harrelin, Gairdner.

 Baudin developed for acid soil tolerance. Standard barley variety Baudin in acidic soil yielded 20 bu/acre; after 3 years of gene crossing, acid resistant Baudin in acidic soil yielded 90 bu/acre.

 Have used Double Haploid (DH) techniques in barley breeding since 1993 with over
100,000 DH lines produced and now comprises 25-30% of total breeding effort.

 Marker assisted selection (MAS) is being used aggressively to discover new markers/genes and marker/trait combinations. Adds value, reduces costs and results in better varieties quicker.

 Active partners in International Barley Genome Sequencing Consortium

Dr. Amelie Genty, Secobra Recherches, France – largest private barley breeding company in EU –

 Using DH to breed new malting barleys, with emphasis on 6-row winter malting.

 Target traits – mosaic Y disease resistance and frost resistance.

 New variety registration process limits new variety releases.

Dr. Allen Good, University of Alberta, nitrogen use efficiency

 70% of N fertilizer is lost through leaching, volatilization, etc.

 Genetic improvement through two pathways - recovery efficiency and physiological
efficiency.

 University of Alberta developed new Alanine mutant (AlaAT) that is believed to improve physiological N efficiency. Licensed to Acadia in 2003 and sublicensed to Monsanto in 2004 for use in canola.

 Monsanto and Arcadia conducted field trials in 2004, 2005, 2008-09 – no intention at this time to release as commercial variety.

 Genetic construct based on this new gene have been introduced into canola, corn, wheat, barley (CSRIO in Australia will be trialing this year), rice, turf grass and sugar beets.

 IP issue still be resolved – patent pool versus open source DNAs Panel discussions on Challenges and Opportunities in Adopting new Barley Genetic
Technologies –

 Canadian plant breeders were adamant there are no silver bullets (like BT and HT) that will be readily available and affordable – if HT trait costs $100 million to commercialize then these new complex traits are likely to cost $1 billion or more which is out of the reach of small acreage crops.

 Opportunities - gene sequencing and new MAS technologies (RTDs) have given traditional plant breeders a better understanding of both the structure and function of genes and better/faster phenotyping techniques also have improved breeding. Dr. Rossnagle from Univ. of Saskatchewan sees only “remote possibility of solving problems that traditional plant breeding has difficulties with.”

 Challenges – GM research costs could drain funds from traditional breeding programs and lead to shortage of barley breeders; creating public-private partnerships will be necessary.

 Dedicated funding for whole and complete project development must be in place before project is even started to ensure uninterrupted completion.

 There must be measurable value to both farmers and downstream users.

 There is nothing natural about agriculture as it is!!

 There have been biotech crops since mid-90s so people have been ingesting these products for a number of years. Has to be considered the largest medical experiment ever.

 Marketability – Canadian livestock producers face severe competitiveness issues that have only worsened under US COOL regulations; need “improved feed grains at lower costs.”

Quality traits of importance include impacts of nutrition on fatty acid profiles.

Maltsters/brewers need to see “convincing evidence that there are no health differences and that GM can produce significant improvement in quality traits above and beyond traditional breeding.”

 Feed Barley: Potential to increase nutrient profile traits and ability to better exploit animal performance; Barley still equated with white marbling, preferred by Asian customers; 86% of western Canadian barley is feed, 8% of wheat is feed.

 Malting Barley: Could increase predictability and stability of barley production; Increase in sales via desirable trait enhancements; Potential for increased yields means lower contracting prices.

 UK wheat yields trend with US GM corn yield trends due to subsidized support for
maximum application of fertilizer, multiple fungicide and pesticide applications and the use of certified seed.

 Current international regulatory framework insufficient to ensure trade is not interrupted.

Conference Wrap-Up –

 Excellent discussion on the current status of barley breeding techniques and some of the opportunities and challenges for GM barley.

 Urgency of situation – declining acres across North America, lack of competitive return to growers, livestock feeders need more competitive inputs.

 Set the stage for further discussion – another meeting in a year or so?

 Alberta Barley Commission will publish an outcomes document from this conference and North Dakota State University (Dr. Bill Wilson) expressed interest in hosting a second conference in a year or so to continue the dialogue between producers, processors, end users and research community.

Question of the Day - Bread Choices

If you had the choice of the following bread loaves, which one would you buy and why?

A) Organic loaf ($4)
B) Genetically modified with added antioxidant vitamins to lower heart disease risk loaf ($3)
C) Conventional loaf ($3)

Farmer workshop - Wheat Marketing Center

Director Bruce Myllymaki (District 5), and 9 other producers from Montana attended the 2010 Montana Wheat Export & Marketing Workshop March 15-17 in Portland with the Wheat Marketing Center. This program is designed to show producers a small portion of how the grain export and marketing end of things works. They saw everything from a large T-5 export facility and a FGIS facility, to the tools used at WMC to educate current and prospective US wheat customers. Here is what a few of the participants had to say:

"Three things I learned at this workshop include how important of a role the whole transportation system plays, that the wheat market is a world market and we have to compete, and the importance of FGIS" - Matt Flikkema, Manhattan, MT

"I learned how a T-5 and T-6 works...it's amazing! Also I learned about gluten tests and grading, and why different countries prefer different types of wheat...Thank you for this opportunity!" - Cheri Fuhringer, Dutton, MT

"I am glad the MWBC supports the Wheat Marketing Center and this workshop. It gives us an appreciation of how our check-off money is being spent and how it benefits us. I do believe we are not aware of the many things being done to promote our products." - Willie Bernard, Scobey, MT

"I learned how important the WMC research is for markets, how vital consistency is for overseas customer, and how important the visual aspects of food are to the customers. I saw the importance of raising a good product, the coordination of all aspects of exporting, and the importance of research." - Charlie Bumgarner, Great Falls, MT

"I would recommend this workshop to my neighbors. I feel we have a better understanding of the whole picture of our operation and it makes us better producers." - Denise Conover, Broadview, MT

ASIA trip Jan. 7-21 (Buzz Mattelin)

My name is Buzz Mattelin . I am a wheat and barley producer from Northeast Montana and member of the Montana Wheat and Barley Committee. Along with Shannon Schlect, US Wheat Deputy Director of Policy, Sara Olsen and Tom Zwainz producers from Colorado and Washington, I recently participated in an Asian trade mission organized by US Wheat Associates. Following a briefing at the US Wheat office in Portland we were able to visit the Wheat Marketing Center, Federal Grain Inspection Service (FGIS), and a grain export facility. Our trip included stops in China, Philippines, Thailand, and Japan, each country very interesting and very different wheat customers. Upon arriving at each country we were met by US Wheat staff and briefed on the country’s past wheat use and market potential. Visits in each country centered on baking schools affiliated with US Wheat , flour mills and or flour millers, and bakeries.

Our first stop was Hong Kong where we gained some insight into Chinese culture. I was impressed and a little envious of the Chinese Government emphasis on food security. Food scarcity has had a significant impact on Chinese culture, as evidenced by their greeting. While most westerners say “How are you?”, the Chinese say “Have you eaten?”. From Hong Kong we rode a train into mainland China to the city of Guangzhou.The train ride impressed upon us the task of providing food for a growing population of 1.3 billion people. The route which once spanned about one hundred miles of rice patties is now seemingly solid high rise apartment buildings. China plants about the same acreage of wheat as the US but has twice the production. About 70% of the wheat acres have supplemental water. With other demands for water and declining aquifers one questions how long this production is sustainable. We visited two campuses of the Sino American Baking School which is supported in part by US Wheat Associates.

Next stop was Manila where the US has had a large presence the last century. The Philippines have a young population, 85% under the age of 35. Poverty is extreme in the Philippines with 40% living below the world poverty level of $2 per day. Most of the poor eat rice but would prefer to eat wheat if they could afford to buy bread. Pan de Sol is the bread staple in the Philippines and is quite sweet at 16% sugar. Four of seven flour mills in the Philippines use 100% US wheat . This loyalty is due in part to the availability of PL 480 funds to build mills in the post World War Two era.. It was gratifying to see flour brands that prominently displayed made with “Montana spring wheat”.

Bangkok Thailand, the Venice of the East, was our next stop and we enjoyed a Sunday and our only free day of the trip. Our traveling party grew to seven in Bangkok, as we were joined by US Wheat staff from Manila, Shane Townsend,and Singapore, Mike Spier and Roy Chung.. Roy, US Wheat baking expert, acted as tour guide with a ferry ride up river to the Grand Palace. We found Bangkok to be clean and modern, with elevated rail and highways and a very good infrastructure. The Thais use the highest quality flour 13.5% protein which requires 14.5% protein wheat. Their bakeries were high tech and efficient, but continue to utilize low cost labor,$8/day, in their packaging. These bakeries export to SE Asia with the Vietnamese market experiencing very rapid growth. We visited a instant noodle bakery that produces 5.5 million packages of product per day. While most of the wheat used in production comes from Australia, these noodles represent a large potential market for hard white wheat.

Our last stop was Tokyo. Japan is our largest customer of US Wheat. Japan’s population of 120 million is declining at a rate of over 1% a year. If the current trend continues by the year 2050 the population will only be 60 million. The Japanese economy is now deflating as prices of good and services are becoming lower. I’m convinced that our largest customer will work through their problems and remain a strong customer. Our visit to a Nisshin flour mill was most impressive with top notch cleanliness, procedures and a fully automated warehouse. Our visit with the Ministry of Agriculture, Forestry and Fisheries (MAFF) yielded a couple questions and concerns with the 2009 crop including high moisture and lower proteins. MAFF also expressed their concern about genetically modified (GM) wheat entering the market place. This was the only time a real concern about GM wheat was expressed during our trip.

My participation in the US Wheat Associates trade mission to Asia was a great learning experience. Shannon and the US Wheat Associates staff throughout Asia are well qualified, dedicated and doing a great job for US wheat producers. I returned home with two dominate lessons learned. There are millions of potential customers in Asia. And the reason the millers and bakers in these countries use US wheat is because of high quality wheat that we produce.

SGL - Way to Go!!

Just heard from Jeff Rumney at the State Grain Lab. They have had a great week! Congratulations to Beth who just received her official FGIS wheat grading license, and to Greg who received his official FGIS barley grading license. They join a well-known top-notch staff of FGIS graders at the lab.

SGL's two newest employees, Scott and Lauren are currently studying for their wheat licenses, so by harvest they should have a strong crew to help out!!!

Kudos to SGL!

JAPAN - last day (Cheryl)

Just as the hardest part for the aerial skiers in the Olympics is to come back down to earth, so it is with us. We spent some valuable time pulling together and prioritizing the things we learned from each day's activities. With three people involved, there were sometimes three impressions of what those priorities should be.

We all agreed it will be necessary to match up business cards with photos, once we return home, as this will help us to individualize our follow-up correspondence. (Of course, eventually we want to get to the point where we can just enjoy going back over our photos and reliving certain experiences.) Before we can send this correspondence, we need to assemble a database of all the business card contact information, which will be a considerable task itself .

Pulling pieces of this trip together, it became quickly apparent that we need to now follow-up on a regular basis--not with just a one-time "thank you". Part of this last day was spent determining the most efficient way to do that and Kara is eager to put that plan into action.

We feel, on behalf of the producers we represented on this trip, that it is imperative to not only acknowledge those who assisted in making all the arrangements, but also those who agreed to meet with us and engage in meaningful dialogue. Meeting and greeting is one thing, and certainly a part of doing business, but discussing concerns and challenges and solutions---therein lies the value and we all feel we got to this deeper level in our meetings.

I have a kaleidescope of impressions ---a multiple of personal and professional "firsts" as a result of this trip. Shoot---I survived eating tripe, wild taxi rides, maneuvering through the Tokyo subway system, avoiding things I'm terribly allergic to, not breaking my neck wearing the slip-ons required to tour the flour mill we visited (that was more of a struggle than most of you could realize) and traveling with Leonard and Kara! (On that note, I hasten to add that I definitely was fortunate to have such solicitous, dedicated, fun traveling companions. We walked into meetings firm in the knowledge we were a team and could count on each other! That is nothing to "snivel" at! Finally, and I'm sure I speak for Leonard and Kara, I felt very honored to represent wheat and barley farmers and especially those from Montana who support the check-off program. They have such a passion for what they do. We found customers here who have that same passion. Being even a small part of this huge industry is a humbling experience and I walk a little taller. Thanks, to all. (Boss Kim-san-----we're coming home!)

JAPAN - Day 512 (Kara)

Oh the sweet feel of Levi's!

As you can tell from the blogs, my enthusiasm for journaling was getting stomped out by exhaustion! Thankfully Cheryl has a writer's soul and has been able to put thoughts to the keys much better than I. She has done a wonderful job of trying to illustrate the emotions and agenda of our fast-paced mission. I think I can speak for both Leonard and me that her chronicle of it all is dead-on.

After all these hot and heavy days of discussion, education, and introductions I can honestly say we are leaving with more than just relationships. We are leaving with a better sense of Japan; it's people, it's culture, and it's country. I could list hundreds of differences that should matter to every farmer in Montana and the US. The bottom line, however, is the importance of consistency from the farmgate to the store shelves. The mission of this trip was to understand the future of our Japanese customer. It does not end with the grain trade or the flour millers. The men and women of Japan are our customers. One in three bushels of Montana's wheat feeds them and their children. Throughout this trip the three of us have tried to show those we have met that the Montana farmer is their partner now and indefinitely. With all the changes coming down the pike, from MAFF to biotech, our goal is to show them consistency in friendship and trust. We may not always agree, but I believe we have built a strong bridge of communication to continue discussions and figure out a plan together instead of apart. We need them. They need us.

Today, I am going to enjoy my jeans. The sun is out. And I will enjoy the company through these last hours in this magical island. I am ready to go home and kiss my husband and baby girl. Aragato Japan.