Biotech crops for food processing to see biggest growth
controversial scientific issues of recent decades. Agbiotech
products might have the potential to feed an increasingly hungry
world, but it is also weighed down by doubts over its influence on
human health.
Agricultural biotechnology is arguably one of the most controversial scientific issues of recent decades. Agbiotech products might have the potential to feed an increasingly hungry world, but it is also weighed down by doubts over its influence on human health.
Although several types of biotech crops have been developed, only three primary crops have gained widespread market acceptance, and these are crops developed for crop protection. Insect-resistant corn and cotton and herbicide tolerant soybeans account for nearly 100 per cent of the biotech crops planted in the US. Of these, soybeans and cotton have gained the largest market share.
According to an impending study from US market analysts Business Communications Company entitled Agbiotech: Genetically Altered Traits in Crop/Food Products and Ingredients, the total market for altered crops, food products and ingredients with genetically altered traits is estimated at $17 billion (E19.3bn). This figure is expected to show an AAGR (average annual growth rate) of 3.8 per cent, and the market is likely to reach $20.5 billion by 2006.
Herbicide-tolerant soybeans have the largest market share with sales of $11.67 billion in 2001. This growth is expected to continue, but at a slower pace, since it has already penetrated the market to a large extent. BCC forecasts that herbicide-tolerant soybeans will grow at an AAGR of 2.9 per cent achieving total sales of $13.47 billion by 2006.
Of the three primary biotech crops, stacked trait varieties will have the highest growth rate. This is due to the fact that seed companies are beginning to incorporate more stacked trait varieties in their product lines, and farmers will have the benefits of herbicide tolerance and insect resistance in one crop, or other beneficial combinations. Biotech seed companies are working to provide the most effective combinations of traits to attract more producers to these products. BCC predicts that they will grow at an AAGR of 8.7 per cent and sales will reach $2.25 billion by 2006.
A few crops altered for desired characteristics are on the market but they represent less than 1 per cent of the total acres planted for each type of crop. These crops have been altered to express traits for easier food processing. While these products have not gained market share, they are still relatively new to the market and are expected to have the largest growth in the next five years.
BCC predicts that food ingredients will enjoy a large average annual growth rate over the next five years of 14.9 per cent, achieving sales of nearly $0.04 billion by 2006.
