Thank you, Mr. Rajotte.
I thank the committee for inviting the Plant Biotechnology Institute of the National Research Council to give this short presentation on agricultural biotechnology.
For over 90 years, the National Research Council has successfully played a leadership role in providing scientific knowledge and innovation to meet the constantly changing needs of Canadians and Canadian industry. Dedicated to enhancing Canada's economic growth and the public good, NRC anticipates and performs research and development of an international calibre.
We promote scientific cooperation and act as a catalyst that levers research and development funding from all sectors. We transfer our technologies to industry through licensing agreements, create spinoff companies, and we incubate new firms.
This year, the National Research Council is celebrating its 60th year of research and innovation in Saskatoon, and we are proud of our contributions to the well-being of Canadians. Some of these contributions include the development of canola in partnership with Agriculture and Agri-Food Canada, the University of Manitoba, and the University of Saskatchewan. The Canadian canola industry is now valued at over $11 billion annually--as it provides a nutritionally superior edible oil--and it's playing an increasingly important role in the reduction of transfats in our diets.
The contributions include the development of biotechnologies that can be employed in crop improvement. As an example, we partnered with AgrEvo--which is now Bayer CropScience--and Agriculture and Agri-Food Canada in the development of herbicide-tolerant canola. These new canola varieties are now grown on more than 90% of Canada's canola acreage, and have generated a positive economic impact in excess of $500 million.
In partnership with Agriculture and Agri-Food Canada, we have recently generated and publicly released the world's largest canola genomics database, which comprises over half a million gene tags. We are currently an active member of an international consortium that is doing the complete genome sequence of one of the three plant species that comprise canola.
Our research and commercialization strategy is very closely aligned with the Government of Canada's science and technology strategy, particularly as it relates to the creation of an entrepreneurial advantage and a knowledge advantage. For example, NRC-PBI is engaged in research to enhance crop productivity and yield to address the rapidly rising global demand for food. Using cutting-edge genomics technology, our scientists have identified genes that appear to be associated with drought tolerance, enhanced vigour, and nutrient use efficiency, thereby reducing requirements for costly fertilizers.
We are developing environmentally friendly renewable bioproducts, such as vegetable oil products that can be developed into advanced polymers, lubricants, and biofuels. We're also committed to employing research strategies to further enhance the health of Canada's citizens. For example, we are identifying natural bioactive substances in plants that can reduce the incidence of neurodegenerative diseases, such as Alzheimer's.
We are a strong believer in the power of partnerships to achieve national goals for innovation and competitiveness. We believe that networking at the regional, national, and international levels is essential for success. For instance, NRC has developed a proactive policy for international collaborations. Through formal agreements that have been established with India, China, and Germany, NRC researchers are studying oil seeds, pulses, and natural bioactive compounds to enhance human health and wellness. NRC is an active player in the Saskatoon ag-biotech cluster where complementarity is established through collaboration, reducing duplication.
NRC-PBI has established a 10-year strategic alliance with Dow AgroSciences Canada to improve the seed and oil quality of canola. As a result of this, Dow is now expanding its R and D efforts in Saskatoon by more than 50%. It's another example of where sustained federal investment leads to private sector confidence and investment in a region.
NRC is working in partnership with Agriculture and Agri-Food Canada in developing a national bioproducts program that will include the development of biofuels, biomaterials, polymers, and other chemicals from agricultural biomass.
NRC-PBI established an industry partnership facility in 2003, which now houses seven innovative small companies developing a range of new products and technologies. We also strongly believe in nourishing small and medium-sized enterprises who play an essential role in Canada's innovation system, as you well know.
For example, our work on analyzing the chemical components of plants has resulted in the creation of a new company, Saponin Incorporated, which is pioneering the development of a potential new bioindustrial and biopharmaceutical crop referred to as the “Prairie Carnation”.
As you can see, Canada is very well positioned to capture the tremendous potential offered through research and development on agricultural crops. Our strengths as a nation reside in the fact that we possess more than 60 million hectares of arable land, which places Canada in the enviable position of being able to produce a wide range of foods, environmentally friendly bioproducts, biofuels, and biopharmaceuticals beyond the needs of our own citizens. We thus have the opportunity to export products and contribute to a global bioeconomy that has been valued in excess of $500 billion.
In order for Canada--