Business Potential for Agricultural Biotechnology - Asian Productivity ...

Business Potential for Agricultural Biotechnology Products
Sweet
potato
Sweet potato
feathery mottle virus
(SPFMV) resistance
Eggplant Fruit and shoot
borer resistance
Research (PCARRD, 2003)
Research (ABSP II and IPB, 2005)
SETTING THE STAGE FOR COMMERCIALIZATION
The majority of publicly-funded research is still production-oriented and not commercially
viable. There is a growing concern that agricultural research should address not only the production
of raw materials but also associated focal and downstream industries. Value addition commands
higher market prices and margins. Continuous innovation through R&D is imperative to
keep up with market preferences and changing demands.
Over the past two decades, the Philippines has experienced several challenges in embracing
modern biotechnolog but has nonetheless achieved a number of milestones necessary to set the
stage for the growth of an agricultural biotech industry.
The Research, Development and Extension (RDE) Paradigm
To enable a shift towards a market-driven approach, an appropriate technology commercialization
model has been adopted, albeit to a limited extent (Figure 1), since 1997 when the
Philippine National Research System (NARS) formulated the Philippine Biotechnology Agenda
for Agriculture and Forestry (PAFBA I: 1997–2002). This approach considers diversified end
products for certain markets (for example, fresh papaya and mango with a long shelf life for export
to nontraditional markets such as Europe and Canada, coconut oil with high lauric content),
the particular industry (as against the particular commodity traditionally addressed by the
NARS), the role of research and development, enabling mechanisms, and support industries in
place. Figure 2 shows the potential application of the model for the papaya industry.
Papaya
Producers’
Organization
R&D
Technology
Dissemination
Project Components
Fresh Papaya
Exporter
Papaya Processors
Training &
Organizational
Development
Sample End-products:
– 148 –
Fresh Fruit
Dried/Canned Fruit
Papain
Skin Whitening Soap/
Lotion, Contact Lens
Cleaner, Medicine/Vitamins/
Supplements and
Beverages (Brewery)
Certified Planting Material
Systems Analysis
(Trouble shooting)
Information
Source: Modified from Sharif, 1995
Figure 2. Papaya: Diversified Market Approach