INTERGRAIN have moved to allay fears growers could be forced to pay higher charges on End Point Royalties (EPR's) or that farmer to farmer trading will be restricted, under the plant breeding company's new partnership with Monsanto.
The ground breaking deal was announced late last month, giving Monsanto a 19.9pc minority interest in InterGrain.
The WA State Government remains InterGrain's majority shareholder (57pc) along with the Grains Research and Development Corporation (23pc).
In the collaboration, Monsanto and InterGrain will exchange wheat germplasm for breeding.
InterGrain will also gain access to breeding technology tools and services for genotyping and marker development from the world's biggest source.
Industry was consulted about the move leading up to the recent public announcement, offering solid support to a move that could potentially halve traditional plant breeding program times.
InterGrain CEO Bryan Whan said industry's reaction was cautious but positive during the consultation phase, with the hard questions asked about the deal's impact on farmer to farmer trading.
Dr Whan said industry members were extremely excited about the new deal while others raised questions about Monsanto's intentions with EPR's.
"They certainly asked questions we would expect them to ask," he said.
"Overall, I was pleasantly surprised by some of the comments we received.
"Some said it was really exciting and offered their congratulations, saying they saw it as a great thing.
"They said it was very positive and appreciated what it means for EPR's.
"But we have been at pains to say it is business as usual; we won't have a multinational now telling us how to operate.
"One of the things that was non-negotiable for us, a deal breaker, was farmer to farmer trading.
"But it was also very clear Monsanto did not have a problem with that.
"They basically said, 'you know how to operate and interact with industry and we want you to continue doing that because it's not our intention'.
"It's something we have to talk a lot more about with industry and we will hold more meetings.
"The WA Government and GRDC are still shareholders; they are clearly representing the grains industry and we will be guided by that."
Dr Whan said when InterGrain released new varieties it did not view seed selling as being profitable.
He said InterGrain wanted new varieties to reach farmers "as quick as we can" and promoted seed trading between farmers.
Dr Whan said InterGrain's commercial partner Nuseed managed a website that helped to facilitate farmer to farmer seed trading.
InterGrain chairman Dale Baker said farmers stood to make more money from adopting new wheat varieties and not from buying and trading huge amounts of seed.
Dr Whan said the Monsanto deal would not change the way his company managed EPR's.
"EPR's go back into developing better wheats and our aim is that farmers will see the value of what we are producing and that the EPR is well worth it."
Monsanto Australia Business Lead Peter O'Keefe said fierce competition in germplasm and wheat variety development would remain in the Australian market, among the active biotech companies.
"There are a number of strong players who will all be positioning themselves in Australia," he said.
"There's going to be plenty of competition and that's good for the growers."
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