ArborGen looking to supply GM eucalyptus in the USFriday 18 Sep 2009 ArborGen LLC, International Paper Co.'s joint venture with MeadWestvaco Corp. and New Zealand's Rubicon Ltd., is seeking permission from the U.S. Dept. of Agriculture to sell the first genetically engineered forest trees outside China, according to an Aug. 28 report by Bloomberg. The Australian eucalyptus trees are designed to survive freezes in the U.S. South. This said David Liebetreu, IP's VP of global sourcing, will provide IP with a reliable supply of lower cost wood as timberlands come under pressure from development and the biofuel industry.If Summerville, South Carolina-based ArborGen gains approval, annual seedling sales could reach 275 million by 2018. The company is also seeking USDA's permission to expand a 57-acre test site to 330 acres, mainly in Texas, Florida and Alabama. The U.S. already permits disease-resistant plum and papaya trees, but ArborGen's eucalyptus would become the first engineered forest tree sold in the U.S. China has planted about 1.4 million biotech black poplars since commercialization in 2002. ArborGen sells about 300 million conventional tree seedlings a year to 2,000 customers in the U.S., Australia and New Zealand. David Knott, who manages US$1.3 billion as CEO of Dorset Management in Syosett, New York, said the engineered tree business could take off faster than genetically modified agricultural crop company Monsanto. Monsanto's genetics were used in 88% of the world's 309 million acres of biotech plantings last year, while sales of seeds and genetics has quadrupled since 2002 to US$6.4 billion last year. AborGen could boost yearly sales from $25 million to $500 by 2017, according to Stephen Walker, head of asset management at New Zealand-based Goldman Sachs JBWere Ltd. Source: www.forestweb.com |
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