Agriculture is one of Australia’s key industries, with gross annual production worth more than A$30 billion¹ Australian agriculture has a worldwide reputation for excellence, efficiency and competitiveness as a result of the sector’s readiness to adopt new technologies and to be at the forefront of modern agricultural R&D. Agribiotech is a field with enormous potential, ranging from addressing salinity issues and developing drought resistant crops to producing high-value molecules for industrial use²

Defining agribiotech

Agribiotech includes the application of biotechnology to improve plant and animal production and to create new, high-value products. Australia’s current agribiotech capabilities are categorised under the following areas:

• animals & animal health
• aquaculture
• fibre crops
• food crops
• nutraceuticals/functional foods

It is recognised that these categories are ‘elastic’, for example with cotton and sheep being sources of both food and fibre products. In addition, many agribiotech applications have close links with other key areas of biotechnology capabilities, including biomedicine (eg. animals bred for laboratory trials), industrial applications (eg. biofuels obtained from sugarcane) or environmental biotechnology (eg. pest and weed control).

Drivers of agribiotech

Australian agriculture continues to seek innovative ways to remain internationally competitive, particularly given the expansion of low cost production of cereals in Europe and Asia. Australia is also facing significant environmental challenges of climate change, water scarcity and land degradation, including salinity. These challenges coupled with growing populations both in Australia and overseas, are putting pressure on the agricultural sector to increase production, whilst at the same time protecting the environment.

Innovative solutions to meet these challenges offered through biotechnology include improving yields and productivity, lowering production costs, value adding (eg. specific health benefits through functional foods) and improving environmental outcomes across the spectrum of Australian agriculture.

GM moratoria and public perception

Australia has an indepenendant regulator in the Office of Gene Technology Regulator which assesses applications for growing of GM modified crops. However, strong restrictions have been in place on commercial production of Genetically Modified (GM) food crops in all Australian states and territories, except Queensland and Northern Territory. In a landmark decision both the Victorian and New South Wales governments have decided to lift the ban on GM Canola plantings from 2008.

Despite the removal of the moratoria, there are diverse concerns amongst the public and sections of the agricultural industry regarding GM food crops. However, recent research by Biotechnology Australia suggests that consumer perceptions are becoming more favourable towards the use of Agricultural Biotechnology. There was a notable increase in the proportion of participants rating themselves ‘fully supportive’ of gene technology in food and agricultural applications, from 6% in 2005 to 12% in 2007. There was a corresponding decline in the proportion of participants giving a support rating of 5 or lower. Only 8% of participants noted that they were ‘completely against it’.

As the GM debate continues, there are opportunities in agribiotech that are not necessarily dependent on GM technologies. For example:

• the global market for bioactives (biological extracts from previously low-value or waste products such as blood and cartilage) is predicted to grow by 300% in the next five years to be worth around A$1.4 billion per year⁵;
• the International Food Policy Research Institute argues that a livestock revolution is about to take place, in which overall production and consumption of meat and milk will grow exponentially by the year 2020, particularly in developing countries⁶, and
• Northern Australia's plant-based industries lose an estimated $1.5 billion per year in failed production and the cost of pest and disease management. It is anticipated that similar costs affect nations in South-East Asia, which have some of the fastest growing populations in the world, and a significant potential market exists for products in this area.

Enhancing Australia’s agribiotech capabilities

Australia’s core agribiotech industries are underpinned by a range of factors, or conditions, that support Australian agriculture generally. These factors include government policies, R&D support, leading research institutions, collaboration between researchers and industry and industry activity.

An example of Australian Government policy supporting agriculture is the development of the Commonwealth Scientific and Industrial Research Organisation’s (CSIRO) Food Futures Flagship. This Flagship program aims to add $3 billion annually to the Australian agrifood sector by the application of frontier technologies like biotechnology to a range of high potential industries.

Significant government support also goes to the sector through the Rural Research and Development Corporations (RDCs), focusing research across the value chain in Australian agriculture. In 2003-2004, 14 RDCs spent more than $460 million on Research and Development (R&D) within their respective industry areas aligned to the National Research Priorities⁷

Leading R&D institutions that support Australia’s capabilities in agribiotech include:

• CSIRO, which is the largest biotechnology research organisation in Australia, accounting for 29% of publicly-funded biotechnology research in 2002. The largest share of the CSIRO’s biotechnology research is carried out by CSIRO Plant Industry. Other major divisions relevant to agribiotech include Livestock Industries and Marine and Atmospheric Research;
• 16 Cooperative Research Centres (CRCs) in the agricultural and rural based manufacturing sector;
• institutions focused on a wide range of products from wine to legumes, including the National Wine Industry Research Cluster; International Livestock Resources and Information Centre (ILR&IC), funded through the Major National Research Facility (MNRF) program; the Centre of Excellence for Integrative Legume Research, established under Australian Research Council (ARC) funding; and the Australian Centre of Plant Functional Genomics (ACPFG); and
• state and territory government agencies funding research and development in primary industry and fisheries sectors in partnership with the Australian Government and other funding bodies.

Collaboration is a key factor enhancing agribiotech capabilities. There are significant partnerships between governments, universities, research organisations and industry as well as through the 16 CRCs noted above. In addition, Australia has agribiotech precincts in most states and territories, aimed at fostering collaboration.

Company growth also supports Australian capabilities in agribiotech. Agribiotech is the second largest subsector in Australian biotechnology, with nearly 70 companies⁸ (or 16% of the total number of dedicated biotechnology firms) focusing primarily on food crops, animal health, and livestock. A smaller number of companies are also involved in diagnostics and fibre crops.
 

¹ Australian Bureau of Statistics Year Book (2005); Agriculture - Gross Value of Agricultural Commodities Produced. In 2002-03 this figure was approximately $32.5 billion.

² Department of Education, Science and Training (DEST), Mapping Australian Science & Innovation, Main Report, 2003, p.313.

³ IBIS Biotechnology in Australia - Industry Report 2007

⁵ Meat & Livestock Australia Media Release, Productivity Gains Needed Across Red Meat Supply Chain, (19 November 2003).

Bioactives include:

• ingredients that can be extracted from animal tissues and added back to foods to create functional foods;
• nutraceuticals, such as chondriotan sulphate which is extracted from beef or sheep cartilages and used in the treatment of arthritis; and
• high grade products used in the pharmaceutical industry as blood fractions to help grow cell cultures in the manufacture of drugs or as medical products in their own right.

⁶ International Food Policy Research Institute, The Unfinished Agenda – Perspectives on Overcoming Hunger, Poverty and Environmental Degradation, 2001, edited by Per Pinstrup-Andersen and Rajul Pandya-Lorch, Chapter 14 – Livestock to 2020.

⁷ Department of Agriculture, Fisheries & Forestry, Innovating Rural Australia – Research & Development Corporation Outcomes, 2004, p 4 & 11.

The RDC-specific priorities include:

• use of frontier technologies;
• creating an innovative culture;
• improving competitiveness through a whole of industry approach;
• maintaining confidence in the integrity of Australia’s food, fish and forestry products;
• improved trade and market access; and
• protecting Australia from invasive diseases and pests.

⁸ Hopper & Thorburn, BioIndustry Review 2006.

Note: Information concerning Australia's biotechnology capabilities contained on the Industry Subsector of this microsite, including the sectoral maps, was taken from material developed by the Biotechnology Liaison Committee (BLC) for a National Capability Statement on Biotechnology. The BLC which is chaired by Biotechnology Australia and includes representatives from all Australian State and Territory Governments, was tasked by Ministers and State Premiers in 2004 with developing a National Capability Statement for Australian biotechnology, in consultation with industry, research bodies, professional groups and other key stakeholders.

Animals and animal health

Australia’s biotechnology capabilities are being applied in a number of animal breeding programs, particularly in dairy, beef cattle and sheep, for early diagnosis of diseases and to deliver improvements in areas like animal nutrition, meat marbling, muscle development and composition and wool fibre quality.

Capabilities in this product area are evidenced by the work of leading R&D institutions including Elizabeth Macarthur Agricultural Institute; CSIRO’s Livestock Industries; and CRCs such as Cattle and Beef Quality; the Australian Sheep Industry and the Australian Biosecurity CRC for Emerging Infectious Disease.

These leading institutions are applying capabilities in areas including genomics, molecular and quantitative genetics, phenomics and gene markers to aid molecular animal breeding. Applications of these capabilities include:

• current work on the sequencing of the bovine genome which is researching a range of traits that includes disease resistance, fecundity, temperature stress and tenderness; and
• development of multiplex genome based techniques for the diagnosis of microbial agents that are pathogens or carriers of antibiotic resistance genes.

Australian research organisations such as the Australian Genome Research Facility (AGRF) in conjunction with the Baylor College of Medicine in Texas, are involved in the sequencing of the Tammar Wallaby genome, which is viewed as a potential boon to the dairy industry. An understanding of kangaroo lactation offers the prospect of adding value to milk and milk products through genetic selection.

Capabilities in specific product areas for animal and animal health are demonstrated in a range of applications, including:

• vaccines, where Australia has an advanced animal vaccine industry with significant investment by a number of domestic and multinational companies as well as the CSIRO Australian Animal Health Laboratories;
• immunology, where increased knowledge about animal genetics is being transferred to fill gaps in knowledge of human genetics and vice versa; and
• diagnostics, where Australia’s expertise in animal health includes diagnostics for the deadly viral disease Infectious Bursal Disease (IBD) affecting chickens; foot and mouth disease; research into bovine spongiform encephalopathy (BSE) or ‘mad cow disease’; the development of biocontrols for insects and pests; and reproductive technology (including IVF).

An important diagnostic tool is polymerase chain reaction (PCR) that allows compilation of even tiny pieces of DNA, resulting in billions of copies. CSIRO Livestock Industries’ researchers have developed two new tools to quickly detect the IBD virus and differentiate between different strains.¹ While some isolated cases of IBD have been detected in Australia, it appears that this is not caused by the most virulent strain. PCR will be vital for detecting this strain should it ever appear in the country.

Australian capabilities are also reinforced by the success of breeding programs in the poultry and pork industries that are undertaken at institutions such as the CRC for Australian Poultry Industries, the CRC for an Internationally Competitive Pork Industry and the Pig and Poultry Institute formed by the South Australian Research and Development Institute (SARDI).

Australia is also becoming renowned for its capabilities in:

• pedigree analysis of thoroughbred horses²;
• the use of snake and spider venom as a potential source of pharmacologically active products3; and
• research into endemic and exotic diseases.

¹ www.csiro.au/pubgenesite/biotechLivestock/index.htm.

² Rural Industries Research and Development Corporation (www.rirdc.gov.au).

³ Institutes such as the University of Queensland Venoms Research Unit, James Cook University Tropical Australian Stinger Research Unit, School of Pharmacy and Medical Sciences University of South AustraliaUniversity of Technology Sydney, and the Australian Biopharmaceuticals company, Xenome Limited. 

Aquaculture

Aquaculture R&D is focused on delivering benefits, including promoting faster growth rates for fish stocks and improved economic outcomes for fisheries as a result of disease management, selective breeding and environmental management.

Australia’s natural advantages underpin our capabilities in aquaculture. These natural advantages include:

• geographical isolation from potential aquatic diseases;
• effective quarantine regulation by the Australian Quarantine and Inspection Service (AQIS) that bolsters protection;
• close proximity to South-East Asian markets, where demand for fish is high; and
• a wide variety of aquatic species located in a range of environmental conditions, which present opportunities for discovering pharmacologically active compounds (adding further value to the industry beyond traditional harvesting of fish stocks).

Aquaculture capabilities are supported by government and industry collaboration in the development of the Aquaculture Industry Action Agenda. This national initiative will help the aquaculture industry meet challenges and capitalise on its competitive advantages and growth opportunities. Initiatives have been agreed to drive the industry's future growth. The aim is to triple Australia’s aquaculture production to $2.5 billion and create 29,000 new jobs by 2010. Funding of $1 million under the Action Agenda was provided in the 2004 Federal Budget, in addition to $2.5 million funding provided in 2003-04, to begin implementation of these programs.

Major areas of capability in aquaculture include pearl culture and tuna and salmon farming, with increasing capabilities in other areas such as prawns, oysters, trout, barramundi and abalone.

Diagnostics in aquaculture is an important capability for disease detection and control, particularly for farmed species as disease can spread rapidly through ponds and cages. Disease caused by a gill-associated virus has caused millions of dollars of lost production in Australia, and the related yellow head virus has contributed to devastating losses in Asia.

CSIRO is using the same PCR diagnostic tools referred to under the previous section for farmed prawns¹. The PCR based kit from CSIRO enables both viruses to be detected before the prawn has any symptoms of infection and before the disease can spread. Research is also underway to develop tests to detect diseases that could affect Atlantic salmon and trout farms.

In addition to this work, leading R&D institutions in aquaculture include the Tasmanian Aquaculture and Fisheries Institute, Australian Institute of Marine Science (AIMS), the Queensland Department of Primary Industries and Fisheries, NSW Department of Primary Industries and Marine Innovation South Australia (MISA).

Many Australian aquaculture institutions are involved in collaborative research. For instance, the CRC for Sustainable Aquaculture of Finfish (Aquafin CRC) is a joint venture of a large group of research institutions, universities, industry associations, companies and the Fisheries Research & Development Corporation (Fisheries RDC).

Expertise in reproductive techniques, molecular marker determination and genetic mapping of commercial traits has enabled the industry to induce sterility in selected targets to preserve their genetic identity. Australia has world class expertise in fisheries assessment and wildlife management, as well as in marine ecology.

¹ CSIRO (www.csiro.au/pubgenesite/index.htm).

Fibre crops

A major success story for the application of biotechnology in Australian fibre crops is cotton. It is currently grown predominantly in New South Wales and Queensland below 22° South (as set down by the OGTR to manage any risk of the GM cotton outcrossing with native cottons). The use of biotechnology in cotton production has delivered significant financial returns and higher quality fibre production, and is acknowledged as a model for the commercialisation of future transgenic crops.

Australia’s capabilities are demonstrated in transgenic crop development, particularly in insect resistance and herbicide tolerance in GM cotton. These capabilities are supported by skills in breeding crops to exhibit specific characteristics (including through the use of molecular markers) as well as in gene identification and understanding gene effects on plant development and growth.

Australia has significant and internationally recognised capabilities in the development of diagnostic tools for pest and weed identification and pesticide formulation. These capabilities and their flow-on effect from research has also been demonstrated by the successful development and marketing by Monsanto and Bayer of the Ingard®, Bollgard® II and Roundup Ready® varieties of GM cotton in Australia.

Cotton is one of Australia’s most significant agricultural industries, exporting nearly 90% of cotton fibre for use in clothing and fabrics. New GM cotton, such as Bollgard® II is now available for Australian cotton growers and is set to reduce pesticide use by over 80% on conventional varieties, improving the environmental sustainability and profitability of this $1.7 billion a year industry.

Leading R&D institutions in fibre crops include three CRCs - Australian Cotton, Sustainable Production Forestry, and Innovative Wood Manufacturing; as well as the Australian Genome Research Facility (AGRF) and the Australian Plant DNA Bank.

R&D capabilities in fibre crops are also being applied in research on pine, eucalypt and tea trees, in an effort to improve specific characteristics.¹ For example, the CRC for Sustainable Production Forestry has a genetic improvement program that is assisting breeders of pines, eucalypts and other native species.

Australia’s capabilities in salinity management and understanding of the role of trees in catchment management are also increasing.

¹ Examples include lignin content, increased fibre length, disease resistance and capacity for use in bioremediation.

Nutraceuticals/functional foods

Australia’s existing capabilities in nutraceuticals and functional foods are expected to grow as a result of the National Food Industry Strategy. This Strategy is a five-year (2002 - 2007) blueprint for increased investment in innovation, increased export growth and improved productivity, efficiency and skills in the Australian food industry.

Current capabilities in nutraceuticals and functional foods include:

• physiology;
• compound analysis;
• molecular farming and genomics;
• understanding medical biology; and
• development of multiplex proteome based techniques for monitoring immune responses and the effectiveness of functional foods.

These capabilities have contributed to the development of designer formulations for food to reduce obesity and improve cardiovascular health; including probiotics, prebiotics, low glycemic-index foods, increased dietary fibre and antioxidants.

There are a number of successful products on the market as a result of research in the dairy industry (particularly in harvesting antibodies and bioactives in milk) like colostrum and lactoferrin (which has a role in boosting the immune system after birth). Products include Recaldent™, which helps to remineralise the enamel of human teeth when included in chewing gum.

Several other products have already found support in the marketplace, with more likely to follow.¹

Australian leaders in this field include the National Centre of Excellence in Functional Foods and Food Science Australia (FSA).

¹ Examples of successful products include, Pro-Activ margarine, omega 3 fatty acid enhanced and fibre enhanced breads, and probiotics in yoghurt and cheese products. Anadis Ltd has developed a product called Travelan, which is derived from dairy colostrum, to reduce the risk of contracting traveller’s diarrhoea (TD). Trials in the US and Europe showed protection of up to 90% against infection with the type of E.coli that causes TD. Travelan is registered with the Therapeutic Goods Administration and went on sale in Australia in October 2004.

Emerging capabilities in agribiotech

The proximity of growing markets for agricultural products in South-East Asia presents significant business opportunities for agribiotech. At the same time, however, international competition is likely to pressure Australian industries to seek more effective and efficient results.

This pressure is likely to drive research into a range of emerging agribiotech opportunities (e.g. use of the total biomass of a crop or animal to increase its value).

The development of new technologies in agribiotech will be assisted by the convergence of existing technologies. New tools are likely to be developed as a result of anticipated developments in nanotechnology, as well as a closer interaction with information technology that will provide greater capacity for understanding data obtained from biotechnology research, resulting in improved outcomes.

Animals and animal health

Past investments by the RDCs, CSIRO, industry and governments provide a solid platform for future capabilities in animals and animal health.

Emerging capabilities include:

• building on expertise in pasture production through genetic enhancement and selective breeding, potentially including traits in feed crops which confer disease resistance in animals or promote anti-allergenic properties; and
• the production of more efficient and environmentally friendly animals (e.g. reducing methane production in cattle) through improved reproductive techniques (e.g. IVF and cloning), gene and cell therapy and marker assisted selection.

Using expertise already applied in beef, Australia could also develop expertise in more efficient production of niche meat products (e.g. goat). Transgenic animals are a possibility, but unlikely within the next ten years.

There is a significant potential market for biotechnology applications in the domestic or companion animal market as well as in livestock industries. These include diagnostics, disease resistance, nutritional controls and immune system and muscle development.

If nanotechnology results in the ability to use biochips, it may be possible to create implants for particular bioprocessing functions.

More work is expected to take place in target species rather than in laboratory models, with emerging expertise in molecular diagnosis and epidemiology necessary to facilitate this change.

Aquaculture

Building on existing capabilities in selective breeding for fisheries, Australia could continue to develop this expertise as a result of research into ‘closing lifecycles’, potentially through genetic modification, but primarily through molecular methods.

Australia’s fisheries will increase their capabilities in management expertise, particularly as ranching techniques improve. This has the potential to integrate aquaculture with other sectors such as tourism and hospitality.

Australia also has the potential to improve its tropical fishery management, particularly with regard to wildlife harvest management as part of an integrated management system.

Australia could potentially be an international centre of learning. For example, the marine research hub located in Tasmania, consisting of the Australian Antarctic Division, University of Tasmania, CSIRO Marine & Atmospheric Research Division and the Antarctic Climate & Ecosytem CRC, is well placed to further its capability for Southern Ocean and Antarctic biodiscovery and bioprospecting.

A further emerging opportunity is the production of synthetic feeds for fisheries that do not use fish protein. There has been extensive research in this area with plant protein such as soya being substituted to a certain level but with anti-nutritional properties occurring after this level is reached. The composition of the fish feed at this stage of the research still needs to have a level of fish protein. Ongoing development may occur through closer collaboration with agribiotech organisations involved in crop development.

Improved skills in biodiscovery could lead to new aquaculture-based products, with applications in both the agricultural and health sectors. A number of companies, such as Xenome Ltd, are now looking more closely at cone shells as a new source of non-addictive painkillers. There are more than 500 cone shell species found around the Western Pacific and Indian Oceans, which contain a venom of neuroactive protein fragments (peptides).

Fibre crops

Building on its current capabilities, Australia has the potential to further develop expertise in the development of multi-trait GM crops (such as drought tolerance and improved efficiency of water use) and high throughput screening technology to quickly and easily identify genetic mutations of interest.

The concept of the biorefinery is likely to be further developed so that value can be extracted from the total biomass of crops. Lignin-based products and cellulose can be harvested for industrial applications, but the expectation is that other alternative products could be available. Utilisation of the residues of crops like sugarcane, hemp and kenaf present an emerging opportunity.

Australia also has the potential to increase its understanding of the role of trees in catchment and salinity management and carbon cycling. The latter could be particularly important with the advent of international trade in carbon credits as a result of the Kyoto Protocol.

Food crops

Australia has the potential to lead internationally in some areas of food cropping, such as the commercialisation of transgenic tropical and sub-tropical crops (e.g. sugarcane and bananas).

The success of GM cotton and its byproducts such as cotton seed oil in the fast food industry, provides a good model for future commercialisation opportunities in terms of commercial viability, consumer acceptance and the flow-on success in pest and weed management.

Other areas in which Australia can build on its current capabilities include:

• further development of expertise in total biomass utilisation¹;
• development of multi-trait GM crops aimed at specific global markets; and
• identification of new traits as a result of our natural biodiversity.

Diagnostic tools for varietal identification will continue to be developed and can be used in supply chain management to ensure identity preservation. GM approaches can be used to understand the basis of new properties and provide a potential source of significant scientific development. This knowledge could be used to develop new commercial products with similar properties via a non-GM route.

Australia also has the potential to take advantage of its position in the southern hemisphere, its R&D base and integrated supply chains by becoming a ‘just in time’ supplier of value-add food products worldwide.

Nutraceuticals/functional foods

Capabilities in agribiotech mean that Australia is well-placed to develop expertise in the use of transgenic crops to supplement a range of dietary requirements, including foods which have anti-cancer properties or other therapeutic benefits. An example is that some crops are likely to be “biofortified” with additional zinc or iron to improve their nutritional value and give easier access to those people needing supplementary vitamins to improve their health standards and also stave off threatening deficiency conditions.

It is expected that pharmacogenomics² will interact with improving skills in phenomics, potentially enabling some food crops to be developed which are tailored for use by humans (or animals) with a particular genetic trait.

Such products would need to be supported by clinical trials in an appropriate regulatory environment, and would also need to meet market expectations.

¹ The more efficient and productive utilisation of the entire biomass – for example, by developing techniques that enable sugarcane to provide both sugar and ethanol (and other products) instead of being grown for only one purpose.

² The study of genetic variability in the way individuals respond to medicines.