Grain Producers Australia keeps an eye on US hybrid wheat

Global seed maker Syngenta is preparing to release the new wheat type for the upcoming US growing season, Reuters news agency has reported.

The seeds were developed via a complex crossbreeding technique and could offer higher yields at a time when global supplies are under threat due to climatic conditions and the war in Ukraine.

In is biggest-ever release of hybrid wheat seeds, the Chinese-owned Syngenta said it would offer enough seed onto the US market to plant about 2000-2800 hectares (5000-7000 acres) - which is only a small fraction of the nation's planting, but would offer a significant step forward in the development of hybrid wheat internationally.

Syngenta is ahead of a number of global seed companies and researchers developing hybrid wheats and claimed its variety, to be sold in the US under the AgriPro brand, could increase yields by as much as 12-15 per cent, Reuters reported.

Responding to the breakthrough, Grain Producers Australia (GPA) research, development and extension spokesman and southern director Andrew Weidemann, told Farm Weekly successful commercial hybrid wheat technology could be good news for Australian growers, offering the potential to boost farm profitability and sustainability, particularly if higher yield varieties could off-set rising input costs.

"Delivering yield improvements for the nation's biggest grain crop is especially critical now, given the major costs increases we've seen for key inputs such as fertiliser, fuel and pesticides - and escalating supply chain pressures - over recent years,'' Mr Weidemann said.

"Whilst the most recent harvest has seen another record return estimated at about 62 million tonnes, it has also been the most expensive crop we've ever planted, placing growers under significant economic pressure.

"Continued yield improvements, however, will help mitigate some of the economic risks presented by this continuing high-cost production environment."

GPA and other Australian farming representative groups understand the potential benefits of developing new hybrid seed technology for the nation's wheat producers.

Already scientific innovations and genetic breakthroughs in hybrid seeds have delivered major yield improvements with game-changing results for other grains, ranging from corn and barley to peanuts and tomatoes.

Hybrid corn seeds have been used since the 1930s, and is relatively easy to produce.

But the road to the market has been particularly slow and difficult for hybrid wheats - which combine positive traits from two parents plants and could be tailored to local growing conditions - as it is a more expensive and difficult process, with potentially less financial returns than other crops.

Reuters reported that three independent seed companies that produced hybrid wheat under an agreement with Syngenta were unsure of the economic benefits it could deliver, and that it would take longer to determine how cost effective it would be to produce the best seeds.

"Wheat is the only major food crop that has not yet benefitted from significant techification,'' said Syngenta's Seeds head of North America cereals operations Jon Rick.

Syngenta is aiming for a full commercial seed release in 2024, with subsequent hybrids being improved on the basis of crop data the company collects from the US growers trialling it this year.

Recent value figures were not available, but in 2015, it predicted the hybrid wheat seeds market could potentially reach $3 billion by 2032.

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Competitors have said they were aiming to launch hybrid wheat seed brands in the second half of the decade.

Mr Weidemann said Australian growers needed to keep pace with global trends and that GPA supported continued research collaborations and investments to try to deliver genuine yield gains and a similar economic uplift for Australian wheat producers.

"Australian growers need to keep pace with global production trends with new innovations in our grain production systems, or face being potentially left behind in a highly competitive global market where we face competition from heavily subsidised competitors," he said.

Mr Weidemann said Australian grain producers would need to decide whether to adopt hybrid wheat seed technology, if any varieties become commercially available in the future, by considering the overall economics and agronomic needs for their farm businesses, including weighing up the benefits of paying up-front hybrid seed costs and end-point royalties against any potential yield gains, from season to season.

"GPA also welcomes continuing work and investments between Australian researchers and partners, to explore the commercial and agronomic viability of hybrid wheat, whilst recognising these key challenges,'' he said.

"Such developments can also deliver benefits to help Australian growers mitigate production risks and grow more quality grain for exporting from a major source of supply, to help feed the world."

In its submission to the current Federal parliamentary inquiry into food security, GPA said the volume of grain exported from Australia was estimated to be about 60pc of the national crop, representing more than 46mt, for the five-year period up to 2021-22.

The submission also said good policy and strong investments were needed to ensure Australian grain producers and the grains industry remain internationally competitive and could withstand the multiple serious challenges it faced, such as high input costs, supply chain constraints, climate volatility with droughts and floods and biosecurity risks.

GPA's submission, and its 2022 election policy document, also called for greater government support and investment in local manufacturing, to boost local supply of these key farm inputs, to support grower productivity and sustainability.