Could Plant Science contribute to a Sustainable Growth of Specialty Coffee Industry?

Norman Borlaug Institute

October 27th 2010 

Dr Vincent Pétiard Vpetiard@naturesourcegenetics.com

Could Plant Science contribute to a Sustainable Growth of Specialty Coffee Industry?

Outline

Introduction

The Agro Food Chain

Challenges for the future of Tropical Commodities

Will Agro Seed Industry take up these challenges?

Intellectual Property Rights?

How Could Plant Science help?

One Example: Coffee Cup Quality

Conclusions

Nestlé Research Center2005-04-11 NRC/QS -2

Technology Providers

Seeds, Crop Protection Growers Primary

ProcessingSecondary Processing Retail Consumer

Ingredients

Up-stream innovation can be valuated without vertical integration (Virtual Vertical Integration)

Seeds

The Agro – Food Chain

Down-Stream Stakeholders were currently not Interestedin Up-Stream Stages of the Agro-Food Chain

but today:

They are increasingly concerned by sustainability for:

Securing the supply of safe and affordable raw materials, Corporate Social Responsability, Image and PR issues

The Agro – Food Chain

SAI Platform member companiesCampina

Consortio Int. 

Ortofruticoli

Danisco

Dole

Ecom

Efico

Findus

Fonterra

Friesland Foods

Groupe Danone

Kraft

McCain Europe

McDonald’s

Nestlé

Neumann Kaffee

Gruppe

Sara Lee

Tchibo

Unilever

Volcafe

Source: Syngenta based on FAO statistics, World Bank

1960 1980 1995 2025E

World populationArable land per capita

0.45 ha

0.32 ha 0.27 ha

0.21 ha Arable land constant

Improved yield required to meet demand

Long-term growth

Global calorie consumption to double by 2025

– Population increase

– Calorie intake increase

Food requirement

Challenge of Meeting the World Food Demand

What Challenges For Tropical Commodities?

Market demand is increasing especially for premium specialtyproducts

Production is increasingly competing with food and  non­foodcommodities (e.g. biofuel)

Public institutions are increasingly less devoting to the R&D of perennial tropical cash crops

No significant private sector devoted to the genetic of  perennial,tropical cash  crops

What Challenges For Tropical Commodities?

Without continuous genetic improvement, farmers will be lessinclined to continue planting traditional tropical cash crops

Without significant investment in new genetic resources, it will beimpossible to respond rapidly to new production pressures (e.g.new diseases/insects)

HOWEVER

Improving yield of tropical crops would decrease pressure on landand water resources permitting society to meet other demands

Highest value in leveraging with crop protection in tropicalcountries might bring seed industry in tropical business 

Coffee profitability is strongly challenged by other crops

Coffee Palm oil Rubber

Yield (kg/ha) 750 17100 1770

Cost of production/kg (Bath) 32.9 1.5 20.4

Cost of production/ha (Bath) 24700 26500 36150

Price/kg (Bath) 47.0 2.8 53.6

Income/ha (Bath) 35250 47280 94750

Profit/ha (Bath) 10550 20730 58600

Farmers motivation is affected by the erosion of coffee profitability

The field yield and the National production are rapidly decreasing

0

500

1000

1500

2000

2500

3000

Prof

it (U

SD/H

a)

2006 2007 2008 2009 2010

Year

Profitability comparison among para rubber, oil palm, coffee and improved varieties of coffee in Thailand

RubberOil PalmCoffeeImproved var coffee

(An Innovation Driven Business)

Turn Over Worldwide = $ 42 000 M (2010)

- Field Crops = 90 %- Vegetables = 10%

R&D expenses = 12% of Turn Over = $ 5 000 M (2010)

Look for Added Value Downstream (De-Commoditization)

Three Key Questions:

- Would Seed Industry diversify to tropical crops?- When? On what Crops?- Looking for what IP and Added Value?

Will Agro Seed Industry Take Up these Challenges?

IP for New Varietiesof Tropical Crops:

Plant Breeder Rights

Knowledge building about quality and processing drivingfactors for guiding purchasing and processing,

Securing a Sustainable Supply (better profitability due to betteryield), 

Development of new varieties for new products (new quality fornew products), 

Rapid Distribution of new Varieties at an affordable Price

Trace‐ability of raw materials

Corporate Social Responsibility, PR, Image

…….

How Could Plant Science help?

One Example: Coffee Cup Quality

To assess Genetics / Environment / Post Harvest / Processing Interactions

One Example: Coffee Cup Quality

Is the variety a key element for cup quality?

Are there markers CORRELATED to cup quality characteristics?

What are the main chemicals DETERMINING cup quality?

Can we distribute optimal/improved varieties?

Can we trace coffee variety/origin up to the shelf?

29/10/2010 NRC/PS ‐ 16

COFFEE CATALOGUE COLLECTION

Producing countries

Growing in a non producing country

Identification via DNA fingerprinting

Selection ofArabica & Robusta

accessions

Growers Large scale propagation

Recommendationof

best varieties

Agronomic and quality evaluation

CATALOGUE

In vitropropagation

Comparativefield trials

Updating: Introductionof new varieties

Cryostorage

Is the variety a key element for cup quality?

High source of diversity still not assessed in Ethiopian varieties

3 of the top 5 quality varieties

are original Ethiopian varieties

Cultivated varieties

Ethiopian accessions

Axes 1 & 2 : 48.8

: CCC varieties

-2.3

-1.3

-0.3

0.7

1.7

-1.8 -1.3 -0.8 -0.3 0.2 0.7 1.2 1.7

FAO-Ethio Illababor-Ethio Jimma-Ethio Keffa-Ethio unknown-Ethio Sidamo-EthioWellega-Ethio Bourbon BourbonxTypica Catui CatimorxCatui CatimorIntrogressed Sarchimor Typica Typica/Bourbon Hybride de timor

28.7%

8.2 %

Ethiopian arabica

Cultivated group

29/10/2010 19

R2 = 0,87

10

11

12

13

14

15

16

17

10 11 12 13 14 15 16 17

Observed value

Cal

cula

ted

valu

e

R2 = 0,88

2

3

4

5

6

2 3 4 5 6Observed value

Cal

cula

ted

valu

e

Robusta ArabicaOutstanding

Varieties

A ratio of Biochemicals is well correlated to cup quality but:no cause to effect relationship;

Are there markers correlated to cup quality ?

2002‐06‐03 NRC/PS/Vp2002‐19 20

What are the main biochemicals determining cup quality?

Two possible approaches

Biochemicals(Metabolomics)

Genetic background(Genomics)

Sensory(Processing)performances

1. The genetic approach2. The biochemistry approach

2

1

3

1

3

2

21

Discovery of Cup Quality Determinants

Biochemical QTLs are matching with sensory QTL’son linkage group B.

M3720.01202911.7R1034.0

C2_At1g0538511969913.312583517.0

R26424.512673030.9M35436.1AY22027138.8CMA10839.7R16841.4CMA27642.8M49745.1A883447.7CMA06148.9

C2_At5g2089055.6M46458.613035361.2C2_At5g2262063.412943166.4CMA06875.0R24077.8M42885.412266587.4124158B88.712416089.3CMA27190.212108694.7CFGA05497.7R21699.7123888102.1126661104.8AY2462106.0123238107.4A8792109.0120037111.5R336112.2M364116.1CMA010116.3121491116.9R26119.6123332120.4122764121.5C2_At4g01880122.6A8793131.8

A

1218760.0CMA2593.3M4814.4CMA0575.712994312.1AY242913.512498619.5AJ87189519.9

12368228.9C2_At3g1067030.212339135.612051738.6CMA29339.112226142.112390942.713061245.313180646.7M32948.2BAC_DK46CO2_3750.312366956.6CMA14764.8M37165.612625070.012997271.1CMA23973.012020680.5C2_At2g2129084.3M43184.812007488.0CMA00289.4CMA27091.512390395.212082396.5CMA26598.8122680104.5131684106.3C2_At5g49820107.1M327108.3M472108.9122056113.8AY2464114.8124278116.0CMA298119.1M508122.1

AY2455133.4M509133.9

R14142.0

AY2462151.0CMA267152.0A8783153.2CMA031153.3R34156.7C2_At4g21800160.5

CMA233169.2

M449177.5

124754186.3124612188.7

CMA222193.6120227197.1

AY2453202.5123557205.8

M362210.6CMA174B212.8

Sensory

B

M3720.01202911.7R1034.0

C2_At1g0538511969913.312583517.0

R26424.512673030.9M35436.1AY22027138.8CMA10839.7R16841.4CMA27642.8M49745.1A883447.7CMA06148.9

C2_At5g2089055.6M46458.613035361.2C2_At5g2262063.412943166.4CMA06875.0R24077.8M42885.412266587.4124158B88.712416089.3CMA27190.212108694.7CFGA05497.7R21699.7123888102.1126661104.8AY2462106.0123238107.4A8792109.0120037111.5R336112.2M364116.1CMA010116.3121491116.9R26119.6123332120.4122764121.5C2_At4g01880122.6A8793131.8

A

1218760.0CMA2593.3M4814.4CMA0575.712994312.1AY242913.512498619.5AJ87189519.9

12368228.9C2_At3g1067030.212339135.612051738.6CMA29339.112226142.112390942.713061245.313180646.7M32948.2BAC_DK46CO2_3750.312366956.6CMA14764.8M37165.612625070.012997271.1CMA23973.012020680.5C2_At2g2129084.3M43184.812007488.0CMA00289.4CMA27091.512390395.212082396.5CMA26598.8122680104.5131684106.3C2_At5g49820107.1M327108.3M472108.9122056113.8AY2464114.8124278116.0CMA298119.1M508122.1

AY2455133.4M509133.9

R14142.0

AY2462151.0CMA267152.0A8783153.2CMA031153.3R34156.7C2_At4g21800160.5

CMA233169.2

M449177.5

124754186.3124612188.7

CMA222193.6120227197.1

AY2453202.5123557205.8

M362210.6CMA174B212.8

B

Comparative mapping of sensory quality andcandidate biochemicals lead to the identification of

compounds determining bitterness

The Benefit of Vegetative versus Seed Propagation for most  Cross Pollinated Perennials 

Seed derived plantation Clonal plantation

Can we distribute optimal / improved varieties?

29/10/2010 23

Robusta Propagation in Thailand 

“Under the Nescafé Plan, Nestlé will distribute 220 million high-yield, disease-resistant coffee plantlets to farmers by 2020. Thishelps farmers to rejuvenate their plantations, thus multiplyingthe yield on existing land and increasing farmers’ income.

Through partnerships with public and private institutions in anumber of countries, including Mexico, Thailand, the Philippinesand Indonesia, Nestlé has already distributed over 16 millioncoffee plantlets over the past ten years.”

Interview of Paul Bulcke, Nestlé CEOAugust 27th 2010

25

Ristretto

Dulsão do Brasil

A rabica SSR Database

Can we trace coffee variety/origin up to the shelf?

26

D E V E L OPM E N T O F A N E W M E T H O DControl Boubon Variety

Adulteration

A llo-pollination

Control Boubon Variety

Adulteration

A llo-pollinationControl Boubon Variety

Adulteration

A llo-pollination

Control Boubon Variety

Adulteration

A llo-pollination

Control Boubon Variety

Adulteration

A llo-pollination

Control Boubon Variety

Adulteration

A llo-pollination

Bourbon reference

Allo-pollination

Adulteration

Batches

accepted

Batches

re jected

High resolution melting

Conclusions

As it has been the case for other crops, Plant Science could take up the challenges faced

by tropical commodities from Orphan Crops such as Coffee:

BUT

Who will take them up? For the profit of whom?