Review of Ag Investment Symposium - Vancouver Cana

Ag Innovation Showcase 2012 Recap

Wed, 26 Sep 2012 22:09:34 -0600

If you missed this year’s Ag Showcase held in St. Louis on September 11 and 12, you missed possibly the best meeting that spotlights companies and topics all about agtech innovation.

A few highlights from the meeting:

GAIN Members
First, about one-third of attendees were GAIN members. We started with zero members in 2010, so the growth in GAIN membership since then has been notable. If you are not a member and want to be part of this exciting and valuable network, contact Dena Cuppett at dena@aginvestors.com.

Presenting Companies
Twenty-two companies developing innovative ag products and services presented their business proposition and investment opportunities to an audience of more than 300 investors, corporate representatives, and other ag industry stakeholders.

The whole slate of companies was very strong, many attendees commented that it was the strongest set of companies they had seen at any agtech meeting.

A few highlights include:
• Vision Robotics, who is developing an automated (robotic) citrus harvester
• TrophoMax who is commercializing the application of certain microbes to seeds and foliage to increase yields and biomass
• Arvens Technologies, who is commercializing a plant called Pennycress, a sustainable, non-food winter cover crop (planted in the same field as soybeans but harvested before planting the beans) whose seed has high oil content.

You can see a complete listing of presenting companies on the Ag Showcase website.

The panel presentation entitled “Discovering Tomorrows Ag Innovations” was extremely interesting. Panel members were Adam Anders, Rabo Ventures and Rick DeRose of Syngenta, Ian Puddephat, PEPSICO, and Andy Renz, BSAF. They listed four technologies that will be available in the future that will help address the challenges in agtech. They are:

1. The ability to sequence long molecules of DNA and the bioinformatics to help select for certain traits.
2. The integration of multiple variables to determine the best combination of field treatments, hybrid and pesticide control for a particular field.
3. An improved method for screening plants in growth chambers to select the best plants for field tests so the attrition rate decreases.
4. The improved production techniques/processes to increase the yield of useful plant products.

Challenges Facing Agtech
One challenge facing the ag innovation industry is the lack of understanding of the industry by limited partners (the pension funds, foundations and endowments that invest in venture capital funds). Ganesh Kishore of Burrill and Company, said more must be done to educate the limited partner community of the need for agtech and the returns it can provide them.

GAIN is undertaking efforts in this regard and welcomes any suggestions by emailing or contacting me.

The format for the 2012 Ag Showcase was much improved. Longer breaks and lunches helped maximize the time for networking, which also resulted in larger audiences to listen to the presenters because people were not out trying to network. Also gone from the agenda were speakers during lunch and the reception, again this resulted in more networking time.

Over all, the 2012 Ag Showcase was a resounding success. GAIN extends its thanks and congratulations to the organizers including The Donald Danforth Plant Science Center, BRDG Park and Larta.

GAIN Meeting Mention

Mon, 18 Jun 2012 21:44:16 -0600

On May 30 and June 1, 2012 GAIN held a members only meeting at the Donald Danforth Plant Science Center in St. Louis.

The meeting kicked off with a very interesting presentation by Dr. Todd Mockler, assistant member of Danforth Center, who discussed the impact that high throughput genomics will have on plant science which in turn can enable new products.

Our keynote speaker was Dr. Sharon Deem, the Director of Conservation Medicine at the St. Louis Zoo (recently selected at the best zoo in the United States!) http://www.stlzoo.org who provided a fantastic presentation on Zoonotic diseases and why we should be concerned about them and what we can do about them. She gave a startling statistic – of the 1460 known human infectious agents 864 of them had origins infecting animals! Several members in attendance are now more interested in innovating and investing in zoonoses.

The last presentation was by Dr. Jim McClaren, Founder, Strathkirn Consulting and Richard Cantrill the technical director at the American Oils Chemistry Society. They spoke about the market for plant-derived oils and how it is evolving based on the ability to modify the components of the oil (like fatty acids) that enable new uses for the oil and healthier diets.

Of course, as always, the greatest value of the meeting was the excellent networking. The intimate nature of the gathering allowed the members in attendance to really get to know one another and build a lasting relationship.

If you are reading this and are not yet a member and want to find out more about GAIN, go to www.aginvestors.com.

- Dan Broderick

V.P. Capital Formation and Entrepreneurship

dbroderick@biostl.org

Agriculture and "Agripreneurship" is a worthy, and market demanded, career path.

Wed, 08 Feb 2012 16:19:03 -0600

One of GAIN’s missions is the promotion of the importance of careers in agriculture and “agripreneurship” and the need to educate those interested in these career paths. Clearly, with the un-deniable need to double the world’s food production by 2050 (or so) the world needs talent in the creation/invention of innovative ag technologies and the commercialization of the same. There is also the need for experts in traditional agricultural careers such as field inspectors, veterinarians (who I have a ton of respect for) and of course plant scientists such as those at the Donald Danforth Plant Science Center (www.danforthcenter.org a GAIN Founding Sponsor) and other prestigious plant science and ag organizations. An excerpt from Western Farm Press highlights such a need for talent and effort– and lack of SUPPLY!

“Separate statistical data from the United States Department of Labor and United States Department of Agriculture indicates an expected growth in most agriculture-related fields including inspectors, scientists and veterinarians. The Bureau of Labor Statistics projects over the next five years, there will be a 5 percent increase in the need for graduates in these disciplines, but a 10 percent decline in the number of students choosing these important programs as their career path. This means a shortfall of qualified workers in the areas where we need them most — plants, food, animals and climate change or environmental analysts. But, there are also growing opportunities in industries linked to the business of agriculture; from trucking to coffee and beer brewing, dietetic concerns to animal welfare and pet foods”

http://westernfarmpress.com/management/agriculture-isn-t-dead-despite-misleading-yahoo-report

The best business schools in America are not emphasizing the need for talent in agriculture let alone providing specialized courses in agribusiness and agripreneurship. The job market is not compensating talent, like those individuals employed by investment banks or consultancies. However, there are really no more necessary jobs in the world. I believe we need to change that.

Workers are also needed in careers in ag sales, marketing, administration and other ag jobs whose demand are increasing . Agday has a decent web site echoing this sentiment – and fact.

http://www.agday.org/education/careers.php

GAIN has a plan to create a fellowship for would be “agripreneurs” and is in search for financial support to make it a reality. The world needs this talent on all levels. We will pursue this with vigor and our precious resources.

Etcetera….

We have new members! Welcome Syngenta and Growponics. We are also thankful to the Danforth Plant Science Center for the donation of in kind personnel who are experts in social media, follow us on twitter.

Insights and Inspiration on Agricultural Innovation

Wed, 01 Feb 2012 21:45:15 -0600

In this post, I want to talk about a couple of interesting letters and articles that address the need for agtech innovation.

The first, and most important, is Bill Gates’ annual letter that addresses, in a keen fashion, the importance of agtech innovation to the world’s poor. He opens with the following:

“[T]he private market does a great job of innovating in many areas, particularly for people who have money. The focus of Melinda’s and my foundation is to encourage innovation in the areas where there is less profit opportunity but where the impact for those in need is very high. That is why we have devoted almost $2 billion to helping poor farm families, most of which are led by women, boost their productivity while preserving the land for future generations. Those funds are invested in many areas of innovation, ranging from sustainable land management, to better ways to educate farmers, to connecting farmers to functioning markets.”

He goes on to discuss the rising price of food, the decline in the number of farmers around the world, especially in the developed world, and the erosion of the amount of money spent on ag aid. He makes the following comment on the post-Green Revolution period:

“But the world’s success in warding off famine led to complacency. Over time, governments in both developed and developing countries focused less on agriculture. Agricultural aid fell from 17 percent of all aid from rich countries in 1987 to just 4 percent in 2006. In the past 10 years, the demand for food has gone up because of population growth and economic development—as people get richer, they tend to eat more meat, which indirectly raises demand for grain. Supply growth has not kept up, leading to higher prices.”

This reduction in spending impacts GAIN’s members, as well. We have less nascent technology to follow for a potential commercialization opportunity. Fewer scientists are choosing plant and other agricultural sciences as a career, which lessens the number of minds working on problems (opportunities) and the number of collaborators.

As ag innovators, investors and stakeholders, we can use this letter as a call to action. We need to innovate and get innovation to the market in a cost-efficient and profitable manner. This is no small task. GAIN is contemplating hosting a symposium on the topic of profitably innovating while affordably feeding the world. Comments are welcome and encouraged.

Mr. Gates goes on to discuss the threat of crop disease and how some are trying to address that threat, the importance of global health and U.S. education. The full letter can be found here. I encourage you to take the time to read it.

The second article, rather a series of articles, appears in Science Progress. It discusses the need for innovation in a less ag-specific fashion, but the points they make can easily be applied to agriculture along with the observations and examples. The articles are U.S.-centric, but again, the points made can apply to many other countries, governments and university systems. The opening paragraphs set the tone. You can read the full series here.

“Innovation is and always has been the engine that drives economic growth in the United States. Economists believe that innovation—new technologies, products, processes, and the industries they create—is responsible for between half and 80 percent of all economic growth.

Indeed, U.S. companies and industries, with the help of federally funded research, have invented many things that the world wants to buy—think light bulbs, assembly line automobile production, computers, Internet applications, handheld wireless devices, photovoltaic solar cells, Global Positioning System satellites, and the list goes on. This innovative spirit of the American people, protected by the rule of law, keeps us in the world’s top position in innovation, and subsequently ensures we are home to the world’s best-paying jobs and highest standards of living.

But in the 21st century our lead is beginning to erode. It’s not that we’ve started doing anything wrong—we are still home to the world’s most productive workers and innovative companies. Rather, it is because others have followed in our footsteps, and in some cases gone even further to invest specifically in the interrelated building blocks of a high-performance innovation engine. Across a spectrum of metrics—from education and workforce readiness, to research and development, to manufacturing, to infrastructure—our nation’s competitive position is slipping relative to other countries that are investing more in the driver of economic growth and prosperity. This slippage costs us jobs, investment, and wage growth.”

The overview of the five articles ends with a call for the establishment of a bipartisan congressional commission to study and make recommendations for government to help spur innovation and innovative companies. GAIN agrees with this recommendation, but doubts that the Washington has the political will to make the changes. This usually means less government (repeal SOX, long term capital gains tax rates to provide certainty, relax small company reporting requirements, rule 409a relaxation etc.), which is hard for Washington to actually execute. Strengthening IP law and encouraging countries that are weak on IP to do the same would be welcome government additions.

Inaugural Ag Caucus

Thu, 12 Jan 2012 13:26:26 -0600

Greetings from San Francisco. Although, there is not a lot of agtech talk going on this week at the J.P. Morgan Healthcare Conference, GAIN did host its first annual GAIN Ag Caucus, conceived of by GAIN member Charles Grabenstein.

The members and guests who attended the Agtech Caucus discussed agriculture, its future and challenges facing the introduction of innovative ag technologies into the marketplace due to government regulations.

The event was held at the Flying Leatherneck Club in the Marine Memorial Club near Union Square. Those in attendance included members Charles Grabenstein, Heritage Partners; Ron Meusen, Cultivian; Peter Brenders, BioteCanada; Pat Morand, Southwest Michigan First Ventures; Joshua Hofheimer, Sidley Austin; and yours truly. Our guests included: Derek Norman and Carol Marino, Syngenta Ventures, and Cort Barnes, New Island Capital.

We spent a good part of the evening just getting to know one another, talking about the crazy environment that JPM has produced over the years and GAIN’s need to attract new members.

Then the “caucus” kicked off. We had an excellent debate over the challenges associated with introducing GMO crops into the United States, and more so the rest of the world (ROW). The group agreed that greater regulatory cooperation between the United States, Canada and perhaps Australia would make the approval process more efficient and cost effective in these countries.

We also felt that the ROW’s rule that a GMO crop must be “approved everywhere before being sold anywhere” is a major hurdle to introduce the latest in crop innovation to countries where yields of major food crops are far less that that of the United States (in some cases, 70 to 80 percent less).

Of course, some of the lower yields are due to weather (longer cold seasons, shorter growing seasons), which in part could be dealt with by introducing GMO varieties with shorter maturity times and/or cold tolerance.

With the current ROW regulations, the group opined that minor food crops, which might grow well in some ROW countries, will never be optimized due to the costs and risks of meeting regulatory requirements. For this same reason, it is likely that no GMO crop can be introduced in the ROW by any company other than the really big seed companies.

Some of the members in attendance have testified to the appropriate bodies of their governments about this very subject, clearly we have some real experts in our membership. It might make a good topic for an upcoming meeting or web-based presentation. We will also need to decide if there is a role for GAIN to play in crafting more innovation-friendly regulations.

GAIN intends for the Ag Caucus to be an annual event held on Monday evening of JPM week. We hope to see many more members and some special guests in attendance next year.

Agtech Network Plans for 2012

Mon, 02 Jan 2012 20:47:08 -0600

Welcome to the ﬁrst GAIN Insight blog for 2012. We here at GAIN wish you all the best for a healthy and prosperous 2012.

GAIN had an excellent 2011. We launched numerous products for our members and those interested in agtech. These include:

• GAIN Insight™, the ofﬁcial blog of GAIN

• Innovation Cache™ - a listing of ag technologies available from key ag schools and universities

• Ag Explorer™ - a database containing articles from over 50,000 sources on ag innovations in selectable ﬁelds and subcategories of interest. We actually launched three versions during 2011 that increasingly improved the quality of the searches that return the articles to the database. This is available to members only. If you are a member, and need information on how to access Ag Explorer, please contact GAIN's membership director, Marypat Corbett.

• GAIN 50™ - is a stock index, some refer to it as an exchange traded fund (ETF) this index only contains public companies that are developing and selling innovative ag products. In a retrospective analysis, the GAIN 50 out performed the S&P 500 by about 10%!

We also hosted several successful meetings and webinars, spoke at five conferences on the importance of ag innovation and most importantly increased membership by 300% (from 9 to 43)!

While the majority of members are pleased with GAIN and the message and value propositions resonate with prospective members there is more for us to do and deliver to you. Here is a summary of our initial plans for 2012:

• Invite guest “bloggers” to publish in GAIN Insight and publish more frequently

• Expand the Innovation Cache to include 30 universities and 180 technologies. We will also move this feature, or most of it, to the members only section of the website.

• We will continue to reﬁne search strings and add categories to Ag Explorer

• We are going to try and register the GAIN 50 so it can me traded on a stock exchange, this will require a partnership which is early in exploration.

• GAIN will offer an average of one activity per month. These will include webinars, formal meetings and informal gatherings (our ﬁrst of these will be in San Francisco during the JPM meeting - the date is Jan. 9 - see below for details). We will also organize gatherings at larger agtech related meeting as resources allow, send us your suggestions.

• We have discussions ongoing about an International Agripreneurship Fellowship program with a major foundation interested in entrepreneurship.

• We have a goal of at least doubling the membership during 2012, so tell your colleagues, your network, about GAIN. Or let me know of anyone who would be a great member. The more thought leaders, innovators and change-makers that we can connect, the better GAIN will be for all.

• GAIN will work with the National Venture Capital Association (NVCA) to explore better ways to collect data on ag investing, including establishing new categories and classiﬁcations, so our members can better track them for reporting and strategic planning.

There is plenty to accomplish this year and we appreciate your continued support and participation.

The details for the January 9 gathering - or Ag Investing Caucus - are as follows:

When: January 9, 6-8:30 pm

Where: The Flying Leatherneck Lounge (12th Floor), Marines Memorial Club and Hotel, 609 Sutter St. San Francisco, 415-673-6672

RSVP: Space is limited so please reserve your spot soon. Email Marypat Corbett.

We will also be sponsoring the Corridor Conversations event in Kansas City on January 20, more details can be found at kcanimalhealth.com. You do need to register for this event through KC Animal Health.

Thanks so much, talk to you all again soon.

Dan Broderick
President, GAIN

"To be accomplished with sufﬁcient ﬁnancial - therefore- people resources ..."

Review of the Ag Symposium Meeting in Vancouver Canada

Sun, 25 Sep 2011 21:09:27 -0600

I just arrived back in the USA from attending the Ag Investment Symposium in Vancouver Canada. Growing Forward, the Canadian Government and British Columbia sponsored the meeting.

Greg Smith a Partner at Espresso Capital Partners emceed the meeting. Attendees included about 40 investors and 30 entrepreneurs and of course government officials and other stakeholders. A couple highlights follow....

The opening reception Keynote was delivered by Dion Madsen, Physic Ventures. He spoke about the increased investment opportunities in the functional food and beverage market. Key drivers for this market include demographics (baby boomers- as usual), the desire of consumers to eat healthier and if the food/beverage imparts a positive health benefit all the better. He also cited the creativity of entrepreneurs in coming up with new product and packaging designs. Dion reported that large CPC are interested in these product areas and are actively looking for strategic investment and aquisition opportunities. Dion will make his slides available; when GAIN receives them we will post them.

There also were presentations from 11 start-up companies. They are....

ATD Waste Systems - systems to separate water from solid waste ( manure)
Avivagen Animal Health - feed additives for companion and food animals
Diacarbon Energy - biomass refineries with proprietary pyrolysis technology
drinkme Beverage - kale and beet based organic natural drinks
GreenScene Agritech - wood reclaiming system to clean used bedding in the equine industry
iDUS Controls - water use optimization solutions
Linnaeus Plant Sciences - patented technology for the production of hydroxy fatty acids in cool climate oilseeds
Livestck Water Recycling - skid mounted mechanical and chemical system for the removal of manure from cistern influent
Saltworks Technologies - water desalination systems
SemiosBIO - biopesticides using pheromones
Symbiotic Envirotech - modular photo-bioreactor for algae cultivation

The two most interesting to me were Symbiotic Envirotech and Saltworks. Symbiotics modular photo-bioreactor system can be set up anywhere (in any climate), has a smal footprint and is scalable. They claim a high efficiency rate and continous production. Saltworks desalination system actually uses the salt water to provide power for the system that offers up to 80% savings on electricity. Uniquely it is also a low-pressure system (5psi). It is suited to treat waste brine. In a world with a demand for water this may be a nice solution for arid geographies with access to a sea or ocean.

I was honored to give the morning keynote address address. You can download my presentation here or view it below. The talk was entitled "Exciting Times Ahead for Ag Investing". My main points were...Agriculture is not an optional industry! Demographics favor heady times ahead, the population is growing, wealth is increasing and the taste for meat and dairy is increasing along with both. The amount of cultivable land is not increasing to keep up with population growth so the land must yeild more food per acre. This requires innovation which is what GAIN is all about, putting people developing innovative technologies together with financiers and other stakeholders to build successful companies. An audio of the presentation will be on the GAIN web site in two weeks.

Vancouver is a wonderful city to visit, the people are very friendly, there is a very diverse population, a lot of good restaurants and bars. If you go I suggest stopping into the Pourhouse for a vintage cocktail. They specialize in making cocktails that were popular prior to 1920. The bartenders are very helpful when deciding on which drink to order. They are perfectionists when it comes to making a refreshing beverage. They also have a very unique ice machine that turns out 1 1/2 inch square, clear cubes to control the dilution of their creations. The address is 162 Water St. in Gastown.

(PS the Canadian Government reimbursed GAIN for my air and hotel expenses)

Mega-Trends in Agriculture &amp;lt;div style="padding:5px 0 12px" mce_style="padding:5px 0 12px"&amp;gt;View more &amp;lt;a href="http://www.slideshare.net/" mce_href="http://www.slideshare.net/" target="_blank"&amp;gt;presentations&amp;lt;/a&amp;gt; from &amp;lt;a href="http://www.slideshare.net/DBroderick" mce_href="http://www.slideshare.net/DBroderick" target="_blank"&amp;gt;DBroderick&amp;lt;/a&amp;gt;&amp;lt;/div&amp;gt; &amp;lt;/div&amp;gt; &amp;lt;p&amp;gt;&amp;lt;br /&amp;gt;&amp;lt;/p&amp;gt;

Five headlines you can't miss

Tue, 12 Jul 2011 13:19:27 -0600

Read these five articles over your lunch or in between meetings sometime this week. I definitely recommend downloading the full report on ag resiliency from FAZD (No. 2 below). It's a longer read but is packed with good information if you're interested in that topic.

1. "Uncertainty about ethanol clouds cellulosic plant plans" from the Des Moines Register (07/02/11)

Last week, DuPont announced plans to build a next generation ethanol plant near Nevada, Iowa. This announcement came as a rare piece of good news in the world of ethanol production. Lately, a cloud of uncertainty has surrounded the biofuel. The EPA has pulled back requirements for ethanol production for the third consecutive year, and lenders see the delays and controversy that surround the biofuel, which makes it difficult for producers to receive the funds they need to build plants and improve ethanol technology.

This article examines the controversy surrounding ethanol, and the battle between progress and the price of fuel, food and feed.

2. "Enhancing Ag Resiliency: The Agricultural Industry Perspective of Utilizing Agricultural Screening" Tools from the National Center for Foreign Animal and Zoonotic Disease Defense

The FAZD Center has released a report from its second agricultural screening tools workshop, called “Enhancing Ag Resiliency: The Agricultural Industry Perspective of Utilizing Agricultural Screening.” In April 2011, industry leaders from animal agriculture in the United States met with top scientists specializing in contagious animal diseases to identify the next generation of improved screening tools for livestock, milk and other products.

You can read the full report here.

3. "Seaweed offers kelping hand for biofuels" from GreenBiz.com (07/05/11)

Researchers at Aberysthwyth University in the United Kingdom say seaweed, specifically kelp, is capable of producing more biomass per square meter than fast-growing terrestrial plants such as sugar cane. Not only will developing biofuels from plants like seaweed provide an alternative low-carbon energy source, but it will also help solve the issues of food and fuel crops competing for agricultural land, they say.

4. "Green Fields: Study finds strong farmer support for biotech seeds" from the Des Moines Register (07/09/11)

The U.S. Department of Agriculture recently released a report indicating that American farmers still prefer genetically engineered varieties of corn, cotton and soybean over traditional seeds. Data from the report indicated that 94 percent of farmers use genetically engineered soybeans, up 1 percent from last year. Overall, the findings indicated that 90 percent of farmers choose the biotech varieties of these seeds.

5. "’Radical’ changes needed to meet rising food demands: UN" from The Christian Science Monitor (07/06/11)

A new report by the United Nations says that some radical changes are needed to meet rising food demands in the next 40 years. The report highlights the need for a 100 percent increase in food production by 2050. But it also outlines methods in which this should be reached, such as sustainable practices and small farming.

Recent articles you may have missed

Thu, 23 Jun 2011 14:47:02 -0600

We are a few weeks behind on sharing interesting articles with you, but that doesn't mean there has been a shortage of content. The conversation about the recent changes in biofuels legislation and non-corn ethanol production -- both in the United States and aboad -- is worth reading about. Here are five articles and excerpts you should not miss.

1. "EPA cuts non-corn ethanol targets" (06/22/11) from the Des Moines Register

This week the U.S. Environmental Protection Agency cut the proposed target for the production of cellulosic (non-corn) ethanol from the original 500 million gallons to 15.7 million gallons. For 2011, the EPA had cut the proposed 250 million gallons to 6 million gallons. Why? The EPA says efforts to produce ethanol from grass, algae, corn residue or other non-corn feedstocks has been slow. “Biofuel producers face not only the challenge of the scale up of innovative, first-of-a-kind technology, but also the challenge of securing funding in a difficult economy,” the EPA stated.

Read more on this topic in an article from Ethanol Producer magazine.

2. "G-20 to press U.S. to end aid for biofuel industry" (06/20/11) from The Wall Street Journal

Whenever food and commodity prices spike, as they are now and did three years ago, the biofuels industry faces pressure. Partly because of this, the United States will face pressure from fellow Group of 20 nations to end government aid for the biofuels industry at a meeting of farm ministers in Paris on Wednesday and Thursday, said trade diplomats and analysts.

Trading partners are seeking issue with the fact that the United States is alone in using trade policy to promote its own industry. The U.S. government continues to support the tax credit, which costs $6 billion a year and helps drive exports to the European Union by keeping biofuels less expensive.

3. "Researchers announce initiative to sequence the genomes of 5,000 insects" (06/20/11) from AgriMarketing

Researchers involved in the i5k Initiative, also known as the 5,000 Insect Genome Project, aim to sequence the genomes of 5,000 insects and other arthropods over the next five years in order to "improve our lives by contributing to a better understanding of insect biology and transforming our ability to manage arthropods that threaten our health, food supply, and economic security."

Daniel Lawson, a coordinator at the European Bioinformatics Institute said, "We hope that generating this data will lead to better models for insecticide resistance, better models for developing new pesticides, better models for understanding transmission of disease, or for control of agricultural pests.”

4. "(The Yale Globalist) Genetically modified cassava: New technologies have complicated the challenge of feeding Africa" (05/31/11) from the Donald Danforth Plant Science Center

Cassava is an important food crop in sub-Saharan Africa. This sweet potato-like vegetable thrives in areas where other crops don’t. It resists drought, grows in poor soil, repels herbivores and requires minimal labor to plant. Cassava can be left in the ground for up to three years and removed whenever needed. Not surprisingly, at least 100 countries worldwide count on cassava as a staple food.

The problem is that the 250 million people in sub-Saharan Africa who rely on the plant as their major source of calories are prone to malnutrition. The vegetable has the lowest protein-to-energy ratio of any staple crop and lacks adequate levels of vitamins A and E, iron, and zinc.

Two teams of researchers at the Danforth Plant Science Center are aiming to genetically engineer a new form of cassava crop to correct these imperfections.

5. "Tracing of rice genomes reveals cross-breeding" (06/13/11) from The New York Times

Last month, a study in The Proceedings of the National Academy of Sciences claimed to end a longstanding dispute about the two major subspecies of rice: indica and japonica. Researchers studied select gene regions of the species and suggested that both had a single point of origin, in the Yangtze Valley of China.

But now, a new study in the journal PLoS Genetics illustrates the truth is less clear. Researchers studied the full genome of the two rice types and found that although the species are identical in certain gene regions, they have two distinct genetic histories.

Ag Showcase Preview

Sun, 22 May 2011 15:58:13 -0600

The third annual Ag Innovation Showcase starts tonight with a reception at the Danforth Plant Science Center. We are hosting a members only dinner at 7, also at the Danforth, where we will talk about some new resources available to GAIN members.

Tomorrow, I will be moderating a panel called "Strategic Partnerships: From Investment to Acquisition." Panel members include:

Spencer Maughan, vice president, Venrock (GAIN member)
Derek Rapp, CEO, Divergence, acquired by Monsanto (GAIN member)
Dan Tomso, manager bioscience technology and licensing, Bayer CropScience LP
Sharon Berberich, business development/licensing leader, technology licensing and commercialization, Dow AgroSciences (GAIN member)

We have a good mix on investors, innovators and corporate viewpoints.

One of my questions to the panel will be along these lines: "Sometimes potential strategic partners interests will be fully aligned, economic, business development and personal interests, these deals are relatively easy to put together. At other times, parties engage in discussions thinking there are strategic intererests in common only to find that there are no common goals, these fail to come together, again, fairly straightforward. However, in times when interests only partially overlap and each party has other, un-common interests, there can be great motivation to enter into a relationship, but great difficulty in reaching a deal, taking much time, expense and frustration. What then are some suggestions you might have to navigate through these negotiations and come to a truly mutually beneficial benefit, in a minimum of time and expense?" I'll report their responses here this week.

Another question might be related to deals in a recesion or down economy. Who has the upper hand? The innovator with great technology, or the corporate partner with cash and other resources? Or are both on an even playing field? Please comment and follownwith an example of a transaction you were involved with and how the deal did or did not get done in light of an issue related to the economy.

If you are attending Ag Showcase, please stop by our table and introduce yourself.

Five must-read articles from the week of May 1

Fri, 06 May 2011 17:37:41 -0600

We are going to start posting weekly blogs cataloging the top five articles we’ve read in the past week that relate to agricultural technology (agtech), ag innovation, ag investing, biotech and the like. The posts will go up on Fridays so we ensure we have a full week of content to pull from.

If you have a must-read article to share, feel free to post the link to it in the comments below.

So here we go with the top five articles from this week. Read on.

1. “Perennial corn holds hope for cutting environmental damage” from the Des Moines Register (05/03/11)

Can you imagine a time when farmers won’t be prepping their fields in the spring? That could happen within the next 20 years, as a group of scientists and a senior official from the Obama administration are trying to develop perennial versions of corn, wheat, rice and other crops that don't need to be planted every year and wouldn't cause the environmental damage linked to growing conventional grains. The ultimate goal is to produce food with less environmental impact.

2. “Waves of innovation” from Science Progress (05/03/11)

Innovation is the lifeblood of a strong economy, of capitalism. As Science Progress puts it, “It is the key to American prosperity, security, better jobs, and better health, as well as responses to coming challenges like energy security and global warming.” But it isn’t always easy to achieve true innovation. Scientists argue that “there are historic patterns in innovation and industry, [known as kondratiev waves], that can inform science policy in the 21st century.”

3. “Researchers propose ‘whole-system redesign’ of agriculture” from U.C. Davis news (05/05/11)

If the United States is to achieve long-term agricultural sustainability, transformational changes in markets, policy and science – in addition to incremental changes in farming practices and technology – must happen, according to a nationwide group of agriculturalists.

4. “Life sciences venture capital investment rebounds in Q1 2011, but deal volume declines, according to a MoneyTree report” from PR Newswire (05/04/11)

Venture capital investment in the life sciences sector grew by 7 percent in dollars year over year, according to a new report by PricewaterhouseCoopers, “A Case for Cautious Optimism.” That is in contrast to deal volume, which declined by 8 percent compared to Q1 2010. Although deal volume dropped, the report says that venture funds have a long-term interest in the sector and are just being cautious as the economy continues to recover.

5. “India eyes $10 billion from biotech sector by 2015” from the Economic Times (05/04/11)

India’s biotechnology sector posted $4 billion in fiscal 2010-2011 and is set to reach $10 billion revenue by 2015 with the help of innovative products and services, according to a top state official.

Six must-read articles on ag innovation

Fri, 08 Apr 2011 13:00:33 -0600

We've pulled six must-read articles from some of our top sources for agricultural technology, innovation and funding news. Should you come across articles you think should be posted please submit them to Dan Broderick at dan@aginvestors.com or suggest them in the comments below.

1. NVCA Disappointed in House Patent Reform Bill

from NVCA Access

by Kelly Slone

The National Venture Capital Association believes that H.R. 1249, the House of Representatives’ version of “the America Invents Act” is unfriendly toward small businesses and entrepreneurs. Read the article to hear their whole perspective.

2. New Soy-Based Items Hit the Market

from Beyond the Bean, United Soybean Board

by Susan Luke

A group of farmers volunteered time and ideas to help bring 32 new soy-based products to market in 2010. Learn about the impact this will have on the market as a whole in this article.

3. Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of Research Systems

from The World Bank

This 130+ page report, published in 2006, resulted from an international workshop, organized by the Agriculture and Rural Development Department of the World Bank in June 2004 in Washington, D.C. One of the main conclusions of the workshop was that “strengthened research systems may increase the supply of new knowledge and new technologies, but such strengthening may not necessarily correlate very well with the capacity to innovate and adopt innovations throughout the agricultural sector, and thereby with economic growth.” This paper uses an innovation systems perspective to explore which other interventions may be required. You can find the paper on the World Bank website here.

4. Is Our Agricultural Technology Innovation System Up to 21st Century Challenges?

from Science Progress

by Paul Thompson

This article presents a brief history of the establishment of the USDA by Abraham Lincoln in 1862, through the founding of the land grant universities with their emphasis on USDA-funded agricultural research and how agricultural researchers migrated toward the more “sexy science”(read: fundable) supported by the National Institutes of Health. It discusses the role farmers played in the politics of Washington, D.C., funding decisions, the effect of the proponents of organic farming, and the adoption of genetic engineering by plant scientists. It ends by asking two provocative questions that cause agricultural innovators and investors to pause and reflect on how their role/business models might need to evolve in order to feed -- and fuel -- a hungry world. Read the article here.

5. In the Year 2013

from Farm Industry News

by Kurt Lawton

Take a look back on the technology and innovations that made a lasting impact on agriculture from 1993 to 2003 by reading this article written by Kurt Lawton in 2003 and published in Farm Industry News. In the article, Lawton makes some predictions on the technologies and innovations that will do the same from 2003-2013. How correct is he so far? Read the article to find out.

6. Innovate? Think like a Farmer

from Jim Carroll.com

by Jim Carroll

In this four-minute video clip, noted futurist and innovator Jim Carroll uses the farmer as an example to teach general tips on innovation. Watch the video now.

Connecting investors and innovators

Fri, 08 Apr 2011 10:51:37 -0600

BRDG Park recently interviewed me about the Global Agtech Investors Network and its mission of cultivating innovation in agriculture. Watch the video here.

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Ag innovation news March 2011

Sun, 27 Mar 2011 12:55:00 -0600

These six articles provide an overview of some of the latest news in agricultural innovation, as well as somemore timeless information about the field.

1. The Agricultural Innovation Process: Research and Technology Adoption in a Changing Agricultural Sector

(For the Handbook of Agricultural Economics)

by David Sunding and David Zilberman

Abstract: Written in 2000, the chapter reviews the generation and adoption of new technologies in the agricultural sector. The first section describes models of induced innovation and experimentation, considers the political economy of public investments in agricultural research, and addresses institutions and public policies for managing innovation activity. The second section reviews the economics of technology adoption in agriculture. Threshold models, diffusion models, and the influence of risk, uncertainty, and dynamic factors on adoption are considered. The section also describes the influence of institutions and government interventions on adoption. The third section outlines future research and policy challenges.

Download the PDF.

2. Perennial grains could be the biggest agricultural innovation in eons

It has pretty much become a given that grain crops, such as wheat and barley, need to be started from scratch every spring. This means farmers must buy seeds, use seeding equipment to get those seeds into the soil, then apply a lot of fertilizer and hope for weather conditions that won’t be too hot, cold, wet or dry for germination. There are such things as perennial grains, however - plants that, like the grass in your lawn, simply pick up in the spring where they left off in the fall. While perennial versions of common annual grains have seen little in the way of development, a new research paper says it’s about time they did. The advantages of cultivating perennial grains, the paper’s authors submit, could be one of the biggest advances in the 10,000-year history of agriculture.

Read the article, "Perennial grains could be the bigest agricultural innovation in eons," from GizMag.

Check out this related article, "Increased food and ecosystem security via perennial grains," from Science.

3. Agricultural Innovation Systems: An Introduction

by Andy Hall

View this presentation by Andy Hall about innovations and how systems can help reveal and deal with partnership issues that shape innovation.

Access the presentation "Agricultural Innovations Systems: An Introduction."

4. Innovation Case Study

by Andy Hall and Susanna Thorp

This article describes the implementation of agricultural innovation in India and Nigeria. It is a case study for other nations with a need for agriculture innovation. The article points out that a farmer's capacity for innovation is not only influenced by the farmers own skills and resources but also the larger network of links and networks to which he is attached.

Read "Agriculture needs better innovation, not technology," from SciDev Net.

5. Promoting Agricultural Innovation Systems Approach: The Way Forward

by Riikka Rajalahti

Investments in knowledge systems have featured consistently in most strategies to promote sustainable agricultural development at the national level. The World Bank alone has invested more than 2.5 billion USD into agricultural R&D and advisory services for the past 20 years. Many of these investments have resulted in high returns and pro-poor growth. We have also been fairly successful in strengthening research systems and increasing available knowledge but they have not necessarily resulted in greater use of knowledge and innovation (Rajalahti et al. 2005). Farmer productivity is still often constrained by lack of appropriate technology or access to technology, inputs, services and credit, and by farmers’ inability to bear risks. In addition, farmers’ information and skills gap constrains the adoption of available technologies and management practices or reduces their technical efficiency when adopted (WDR 2008). To address these challenges, we have gradually shifted from strengthening research systems and knowledge transfer towards building innovation capacity, enhancing use of knowledge and creating social and economic change.

Read the article, "Promoting Agricultural Innovation Systems Approach: The Way Forward."

6. Igniting Agricultural Innovation: Biotechnology Policy Prescriptions for a New Administration

by L. Val Giddings and Bruce M. Chassy

This is an excellent article covering a wide range of topics that the government is attempting to address through policy.

Abstract: Agricultural innovations through modern biotechnology have delivered significant economic, environmental, health and consumer benefits in recent years, but the full potential is even greater. Producers have embraced these innovations wherever they have had access, and consumers have purchased everything produced. The principal obstacle to additional innovations that will extend and expand benefits even further is ill-considered and scientifically unjustified or illogically implemented regulation. While the United States has had a comparative advantage over many other countries with a regulatory regime more closely anchored in science than most, regulations and implementation have not kept pace with scientific advances and accumulated experience.

Read the article, "Ignighting argricultural innovation," from Science Progress.

Also be sure to read the response to the above article, by Greg Conko, from OpenMarket.org.