Commercialisation strategy of energy crops adds value to end users

23 April 2013 20:15  [Source: ICIS news]

CHICAGO (ICIS)--Although many transgenic crops are used commercially, commercialisation pathways for new energy crops may be significantly different from previous kinds, an executive of a US-based biotechnology developer said on Tuesday.

“Most of the technologies that have been developed so far are really focused on what we call input traits, or traits for the farmer,” said Michael Raab, president of Agrivida.

“So the technology provider puts technology into the seed, and the farmer buys that seed and pays a premium so they can access the benefits of that technology, and the anticipation of the farmer is have either lower costs or higher yields,” he said at the Bio International Convention.

However, some commercialisation pathways are shifting to output traits, where the focus is on added value for the end user, Raab said.

“For output traits in energy crops, the value must provide incentives to the value chain and an adequate return of investments,” he said.

The output trait must create enough value to cover the added cost of identity preservation, ensuring that the product does not fail in the market, he added.

Raab said another thing to consider when organising a strategy is in addition to having technology on the trait side, companies should also integrate technology downstream on the processing side.

“That’s one way of controlling how the value gets distributed, and it really access use of that type of technology, he said.

“Integration with the end user is critical and affects the business model of the commercialisation strategy,” he concluded.

The Bio International Convention runs through Wednesday.

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By: Tracy Dang
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