By: Peter Laudeman, Director of Trade Policy, US Wheat Associates
Posted: Dec 23 2024
The global what industry is closely following the expanding development of HB4 wheat. HB4 is the world’s first commercially available genetically modified wheat developed by Bioceres Crop Solutions (NASDAQ: BIOX), a relatively new company based out of Rosario, Argentina. HB4 is a gene from a sunflower that confers drought tolerance in wheat. Bioceres earns most of its money in biological crop protection and crop nutrition products, but the company is investing heavily to commercialize HB4 wheat not only in Argentina, but also the United States and Australia.
Today, farmers in Argentina are growing approximately 120,000 acres of HB4 wheat, and there is smaller scale production in Brazil. There is no HB4 wheat in any capacity in the U.S. today. Bioceres continues to actively pursue regulatory approvals in markets around the world. Some of these approvals are for growing HB4 wheat in the country, and some are food/feed import approvals so that the grain can be imported after being grown by a major exporter. In the U.S., the Food and Drug Administration confirmed food/feed import approval for HB4 wheat in June 2022. More recently, USDA approved HB4 wheat for cultivation in August 2024. Although this USDA approval is a huge step, cultivation approval is different from commercialization. Bioceres still has many steps to go before HB4 wheat will be available to U.S. farmers. Some of these steps include establishing partnerships with U.S. breeding companies, field trials and performance verification in U.S. varieties, and perhaps most importantly, export market approvals. This process is likely to take three to five years or more.
It is a well-established necessity for any new genetically modified seed product to secure food/feed import approvals for major U.S. wheat export markets, but is specifically outlined in detail in the Wheat Industry Principles for Biotechnology Commercialization as approved by the boards of the U.S. Wheat Associates and the National Association of Wheat Growers. In a September 9, 2024, investor call, Bioceres publicly committed to following this Principles document, including the requirement for regulatory approvals in all major export markets before commercialization in the United States.
As Bioceres continues to expand global acceptance of HB4 wheat, they have already secured a variety of other regulatory approvals. In addition to the United States: Argentina, Brazil and Paraguay have also approved HB4 wheat for cultivation. Colombia, Australia, New Zealand, Nigeria, South Africa, Indonesia, Chile, and Thailand have also approved the wheat for food and feed import. Studies of Argentinian wheat varieties with the HB4 trait have shown an impressive 19% yield boost compared to non-HB4 isolines in severe drought conditions. No HB4 trials have been conducted yet with U.S. wheat varieties.
HB4 wheat technology brings promising potential for addressing one of the most significant production challenges U.S. wheat farmers face. Additionally, HB4 may pave the way for other novel genetic modifications that can address pests, disease, and even end-use characteristics. This new chapter of scientific innovation in wheat offers benefits not only for farmers growing wheat, but also for customers seeking a more stable supply and consistent quality. HB4 wheat will certainly be a core global wheat industry driver for several years to come.
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