Biotechnology and the AgChem Industry

In the article “Biotechnology and the AgChem Industry, by Paul E. Kindinger, President and CEO of the Agricultural Retailers Association, biotechnology is thought to be the defining technology of the future. It is however prone to the normal ups and downs in new technologies as it eliminates techniques which do not perform to set standards and retains those which do conform. It is pointed out that foods will be able to be customized with respect to texture, taste,nutritional value, and medicinal properties. The seed for these customized foods will be produced, under strict guidelines laid out between the suppliers and the farmers through contracts and the supplier will in turn send the requirements to the producer or biotechnology firm for production. The biotech company then would be compensated for this technology by the supplier or retailer who is also the broker. Biotechnology is bringing about change in the manufacturing and retail industry. An example of this can be found with the change in descriptive names for these companies. Initially the manufacturers referred to themselves as “agricultural chemicals" companies, then they changed to “crop protection” companies and finally decided on “life science” companies.Today these “life science” companies are placing more emphasis on research and development utilizing that company’s before tax revenue or through mergers, joint ventures, or acquisition of companies with existing technology. Retailers likewise are venturing in new areas such as precision agriculture, information services, marketing or custom applications. Most of them are either now selling biotech seed or are looking for a way to get into that market. This transformation will not occur overnight but will gradually evolve with many changes throughout the transition with many successes and failures along the way. Today we have single trait genetics leading to identity preserved markets, but soon these will give way to gene stacking on a commercial basis. Today’s agricultural chemicals companies will not survive as we know it today, and there will not be an elimination of pesticides, but rather there will be a greater emphasis and reliability on the biotechnology . This increased emphasis will of course bring with it more risks and greater liabilities which will require the support of other fields, but despite it all, the biotech industry will remain as the dominant driving force behind the changes in the agricultural chemicals industry for the foreseeable future.

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