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Output Group 3: New Products
Objectives
- Develop and deliver new, value-added grain products and new farm products and services to growers.
- Identify and implement partnerships necessary to develop and deliver these products and services.
- Identify opportunities to help new technology reach the Australian grains industry sooner.
- Access intellectual property from Australia and overseas to apply in the Australian marketplace.
Overview
The New Products output group invests in research, development and commercialisation opportunities that focus on new grain products, and new farm products and services. New Grain Products covers the areas of new grain uses (food, industrial and feed) and food safety and grain hygiene, while New Farm Products and Services covers the areas of farm inputs (goods and services) and grain handling and storage.
Inputs
In total, $8.7 million was invested through the New Products output group in 2006-07.
In addition, the New Products output group attracted significant co-investment from its research partners. The output group also relied on the skills and expertise of the people within partner organisations.
Outputs
Incorporated joint venture for soil inoculants
Philom Bios (Australia) Pty Ltd was formed in April 2006, as a joint venture between the GRDC and Philom Bios Inc. of Canada (PBI), to develop and commercialise high-value biological soil inoculants.
Philom Bios (Australia) achieved the following milestones in 2006-07:
- appointment of a regionally based territory manager
- successful transfer of microbial strains to PBI for formulation trials
- handover to Philom Bios (Australia) of all field trials previously contracted independently by the GRDC
- first Australian trialling of Canadian phosphorous solubilisation microbes currently marketed in North America by PBI.
With management in place and a business plan underway, the joint venture can now be considered an independent, operational business.
Unfortunately, the drought conditions in 2006 were not conducive to field trialling and several trials were not completed. Philom Bios (Australia) has improved the trial designs and methodologies for the 2007 season.
Extension of objective grain quality testing technology
The intellectual property arising from the Objective Grain Quality Testing project is jointly owned by the GRDC and BRI Australia Ltd, an independent centre whose primary business is the provision of research and technological expertise to the grains production, processing and food industries.
In April 2006, a joint management group established to guide the research and commercialisation process decided to call for expressions of interest from the private sector to invest in and undertake the commercial development phase of the project. Nine expressions of interest were received, including responses from several prominent international companies. The joint management group selected three of these to continue to the next stage.
During 2006-07, while the assessment and discussions were underway, the research group continued work on three key technologies, filing patents for two and beginning the writing for publication of the third.
The commercialisation pathway for weather damage technology (potentially a replacement for the falling number test for grain) is expected to be finalised in late 2007 with the signing of a licence agreement. Negotiations surrounding image analysis technology for assessment of staining, pinking and black point are continuing as the research phase nears completion.
Development of on-farm instrumentation packages
While Australian grain growers and their advisors make significant use of data and measurements in production and marketing, a number of the key measurements cannot be made on-farm, in real-time or cost effectively enough to ensure adequate data is gathered.
In 2006-07, a scoping study was undertaken to review the current state of GRDC instrumentation-related research, growers' on-farm data and measurement instrumentation needs, and the technologies that might be used to satisfy growers' needs. The aim was to use the findings of the scoping study as a basis for developing a GRDC investment strategy for on-farm instrumentation.
The scoping study reviewed and prioritised grain grower information needs (as well as possible technologies) from the perspectives of maximising the return on investment and developing useful instrumentation for on-farm, real-time and low-cost measurement. Initially focused only on near-infrared (NIR) and mid-infrared (MIR) technologies, the scope of the study was broadened to include all instrumentation technologies relevant to on-farm needs.
The report on the study was completed in December 2006, and the GRDC has commenced preparing business cases for potential for investment projects in 2008-09.
Post-harvest grain hygiene
The GRDC made significant progress towards integrating the stored grain research laboratory and GRDC grain hygiene projects into the CRC for National Plant Biosecurity (CRCNPB) in 2006-07.
A steering committee formed to examine a way forward for a national hygiene strategy for Australia determined that establishing or partnering with a CRC in this area would be the most effective way to utilise resources (financial, intellectual and human), and to develop innovative strategies to manage grain hygiene problems (such as insect resistance to phosphine, a stored-grain fumigant).
A supplement to the CRCNPB was identified to be the preferred option. The supplementary bid was led by industry, supported by the CRCNPB Board, and successfully argued the benefits of securing funding for the integration of the national hygiene strategy into the CRCNPB.
Over the next five years, the CRCNPB's Post-harvest Integrity Research Program will work towards achieving:
- appropriate competencies for pest management across industry
- enhanced workforce capabilities, including nationally accredited training for technologists and practitioners
- agreed industry protocols and codes of practice based on up-to-date technical information
- mitigation of the risk of phosphine resistance
- integrated pest management based on HACCP (hazard analysis and critical control points) principles
- the delivery of Australian grain to customers in accordance with an expected value proposition-that is, without insects and within agreed levels of fumigant residues
- grain quality that contributes to the sustainability and profitability of the grains industry from paddock to plate.
Premium Grains for Livestock Program
In 2006-07, the GRDC worked on a number of case studies examining the commercial potential of the research outputs developed by the Premium Grains for Livestock Program. The program aims to identify the extent of differences in the nutritional value of various feed grains, and to use NIR technology to generate calibrations to predict these differences.
Each case study involves an industry participant operating within the grains supply chain, and examines the practicalities of using, trading and evaluating feed grains. For example, one of the outcomes of a case study involving Inghams was the validation of apparent metabolisable energy (AME) for broiler production, using AME intake calibrations to differentiate between high-energy and low-energy wheat. The case studies are expected to be completed during 2007-08.
The GRDC joined a new forum, the Feed Grain Partnership, during 2006-07. The partnership was established to develop projects that are relevant to all facets of the feed grain supply chain, and ensure that each sector of the chain can validate the direction of projects during their formulation. The Feed Grain Partnership will have its first meeting in 2007-08, to bring together all parts of the feed grain supply chain to discuss issues that need urgent R&D attention. This will facilitate communication between rural R&D corporations with interests in these projects and provide opportunities for collaborative funding and sharing of outcomes.
New grain food products
In November 2006, the GRDC signed a high-amylose wheat joint venture agreement with CSIRO and Groupe Limagrain. The joint venture, now called Arista Cereal Technologies Pty Ltd, was established to develop high-amylose wheat technologies to a profitable commercial end point.
High-amylose wheat contains starch with an amylose content above 50 percent (traditional wheat varieties have an amylose content ranging between 20 percent and 30 percent). The joint venture aims to develop wheat with around 70 percent amylose content, in order to be commercially successful.
The new products and varieties that will be produced from this joint venture are expected to increase income opportunities for Australian grain growers, and enhance their competitiveness both in traditional markets and in new, higher value market segments. High-amylose wheat technology also addresses the key dietary issue of bowel health.
New industrial uses for grains
Crop Biofactories Initiative
In the third year of its predicted 12-year term, the Crop Biofactories Initiative (CBI) moved from the discovery phase to identifying a path to market for some of its products. One oil product is being used as a pathfinder to examine regulatory and commercial hurdles that other products might also have to face. Commercial paths to market for the other potential products are being examined as the focus turns from discovery towards delivery.
The CBI periodically conducts internal reviews that assess the direction of the suite of projects in terms of novelty, commercial reality and timeliness, and benchmark the CBI against world's best practice.
CBI outputs from the previous year, 2005-06, included taking intellectual property positions on expoxydases (oils) and silk protein structures; and discovering the ability to create secondary functionality in complex monomers.
GM cereals
In 2006-07, the GRDC Varieties and New Products output groups jointly commissioned Sd+D Consulting to examine the delivery platform and supply chain infrastructure requirements for GM wheat and barley crops and products within the Australian grains industry.
The consultants are required to:
- identify generic pathways to market for broadacre crops of wheat and barley
- differentiate between food, feed and industrial applications, to determine the layers of regulatory approvals, process management/traceability requirements and associated costs
- identify the delivery platforms and supply chain infrastructure required for the introduction of GM crops and products
- identify measures for process management and traceability at all steps of the supply chain
- estimate the timelines and cost of entry to market for GM wheat and barley crops and products.
The project commenced in January 2007 and is due to report in 2007-08.
Biofuels
In 2006-07, the GRDC received the results of a consultancy examining the opportunities for GRDC investment in biomass ethanol. Biomass ethanol differs from grain-based ethanol in that vegetative material such as crop residue (stems and leaves), rather than grain, is used as the feedstock. The grain can be used for traditional food and feed production.
The consultancy report suggested that the GRDC:
- investigate research or intellectual property that can be adapted for use in Australia to reduce the cost of using the starch in grains for ethanol production once the biofuels industry has clearly demonstrated that it is viable in Australia
- map the areas with potential for biomass ethanol production
- investigate biomass energy crops for new cropping areas in Australia
- maintain a watching brief on biomass-based ethanol developments internationally.
The GRDC is working with CSIRO on a biomass mapping project to compare the pros and cons of biomass ethanol production and other crop uses in a number of regional areas.
The GRDC is also a member of Bioenergy Australia, a forum that coordinates the collection and dissemination of information on all aspects of bioenergy and biofuels. Participation in this forum, and in international conferences, ensures that the GRDC remains informed about developments in this area.
Case study
GRDC-CSIRO grain product synthesis builds biotech benefits
The GRDC and CSIRO established the Crop Biofactories Initiative (CBI) to explore the potential to produce novel industrial compounds in field crops, using GM technology. The program builds on the strong biotechnology capabilities of CSIRO in areas of gene discovery and transformation technology, enzymology, microbiology, fermentation and biocatalysis.
In 2006-07, the CBI focused on two areas which show particular promise to move from the discovery and technical development phases towards commercialisation: novel protein biopolymers for use in high-performance fibres, and vernolic acid.
Insects are costly to keep and produce in bulk, but certain products they produce, particularly those with very novel properties that could be relevant in medical fields, could be in high demand. Part of this collaboration is to examine whether the products produced by insects can be produced more cost effectively, and in larger volumes, using a broadacre grain production system.
Commonly studied insect silks, such as those of silkworms and orb-weaving spiders, are composed of very large proteins with repetitive amino acid sequences that make them particularly difficult to synthesize in recombinant systems. The CBI has been investigating an unusual insect silk, produced by bees, with a coiled structure based on small, non-repetitive genes. The bee silk has a number of desirable material properties, including toughness, high extensibility (stretchiness), extreme stability and retention of properties in both wet and dry environments.
The research seeks to use the recombinant expression and self-assembly of the silk proteins to produce fibres, and to assess the physical properties of those fibres. The long-term aim is to identify opportunities for this class of materials to be produced by the Australian grains industry.
Another example of product development in CBI is vernolic acid, an epoxygenated fatty acid present in oilseeds. Its potential for use in coating, plasticiser and polymer applications is well recognised, but commercial development has been limited by the cost of extracting the acid from low-yielding plant sources.
The CBI has been working to develop a GM crop with a commercially viable yield of vernolic acid. The project has completed the initial genetic transformation and expression in a model plant system, and is now moving to optimise vernolic acid content in an agriculturally productive oilseed crop.
Case study
Tailored management process through project design
In what is likely to be the last in the line of fumigants developed by CSIRO Entomology, the unique combination named GLO2 is poised to be a significant step forward for the protection of stored grain in Australia.
The GRDC supports a commercialisation project designed to manage the path to market process for GLO2. Milestones for this project centre on the activities required to take a new active ingredient from the proof of concept stage to commercial launch.
The diverse elements of the project include researching and managing:
- the development of a toxicology package
- coordinated trials in laboratory, on-farm storage and bulk-handling facilities
- patenting and intellectual property protection
- the preparation of a registration package for approval by the Australian Pesticides and Veterinary Medicines Authority
- market analysis
- the evaluation and selection of commercial licencees
- the negotiation of commercial agreements for manufacture and distribution.
The GRDC's decision to use a specific project format such as this was based on the need to ensure this vital product is brought to the Australian grain market as quickly and cost effectively as possible. Products such as GLO2 have global market opportunities to consider, and this wider application often has significant bearing on domestic affordability.
Close coordination between New Products and the CSIRO Entomology Business Development team, in the form of fortnightly meetings and a hands-on approach, has developed a working relationship much closer than usually warranted by a research project. This relationship has been crucial to the project's success in achieving such diverse milestones.
| Investment priorities | Achievements |
|---|---|
New farm products and services |
A joint venture was established to complete development and commercialisation of new soil inoculants. A strategy for the development of affordable near-infrared (NIR) and mid-infrared (MIR) instruments for on-farm grain and soil testing was formulated, with a view to investing in 2007–08. A commercial partner was selected for the commercial development phase of new objective grain quality testing instrumentation. |
New grain products |
A coordinated cross‑industry investment in post-harvest grain hygiene was successfully developed through the CRC for Plant Biosecurity. A new investment opportunity in CSIRO work on omega 3 fatty acids was identified. In collaboration with the feed grain industry, case studies were initiated to demonstrate the value of establishing a more rational basis for trading feed grains. The New Grain Products and Varieties output groups jointly initiated a study into the pathway to market for GM crops. |
| Indicators | Performance |
A new incorporated joint venture for soil inoculants established, with field trials undertaken and first product(s) released. |
The Philom Bios (Australia) Pty Ltd joint venture was established and launched. The joint venture expects to release new products in the second half of 2007. |
Objective grain quality testing technology developed to the stage at which a commercial partner can take it forward to develop instrumentation. |
At the end of 2006–07, the Objective Grain Quality Testing project had:
|
Development of a research, development and commercialisation plan for NIR and MIR technologies to measure soil, plant and grain qualities. |
The scoping of potential uses and available technologies for on‑farm instrumentation was completed in 2006–07. Based on the results, the GRDC began preparing business cases for potential projects. The draft investment plan for 2008–09 contains two projects prepared from this report. |
Establishment of a governing body to develop and implement a post-harvest grain hygiene strategy. |
A supplementary bid to the Cooperative Research Centre for National Plant Biosecurity (CRCNPB) was successful in establishing a governing body to develop and implement a post‑harvest grain hygiene strategy, through the CRCNPB. |
Completion of three or more case studies with different end-users to demonstrate and promote a rational basis for trading feed grains. |
At the end of 2006–07, three case studies were complete and six case studies were near completion. |
Establishment of a new incorporated joint venture for high-amylose wheat, to deliver a non-GM breeding line with an amylose content in the order of 70 percent. |
The GRDC, CSIRO and Groupe Limagrain signed the agreement to form the joint venture Arista Cereal Technologies Pty Ltd, to deliver high-amylose wheat. |
Crop selection and identification of delivery channels for GM crops completed (with the Varieties output group) for the outputs of the Crop Biofactories Initiative. |
The annual internal review of CBI’s research and commercial direction examined crop selection and identification of delivery channels for GM crops for CBI products, and developed a short list for further evaluation. The GRDC commissioned a study to examine the delivery platform and supply chain infrastructure requirements for GM wheat and barley crops and products. |
Identification of research opportunities for new technologies to produce biofuels from Australian grain crops. |
The report of the GRDC-commissioned study of the possibilities of biomass ethanol was completed. The GRDC engaged CSIRO to map regional areas where biomass ethanol production opportunities may exist. The GRDC participated in Bioenergy Australia, as a means to keep abreast of Australian and international developments in relation to biofuels policy and technology. |