AEXCO


	News For Immediate Release November 20, 2008 GROWER BLACK MARKET FOR SEED VARIETIES UNDER THE SPOTLIGHT Growers across Australia ignoring Plant Breeder’s Rights are being targeted in an increased industry surveillance effort and risk hefty fines if uncovered, warns national export hay processors representative Australian Exporters Company (AEXCO). Growers found to be in breach of their PBR requirements face fines of $55,000 for an individual, to $275,000 for a company. Under The Plant Breeder’s Rights Amendment Act 2002, growers are required to pay a royalty and administration levy for export hay produced solely or partially from varieties commercialised by AEXCO. AEXCO is a not-for-profit organisation that represents the majority of export hay processors located in South Australia, Western Australia, Victoria and southern New South Wales. Royalties paid to AEXCO for hay produced from varieties with PBRs are then distributed to the South Australian Research and Development Institute (SARDI) and the Rural Industries Research & Development Corporation. “The royalties received from PBRs are vital in ensuring levels of research and development in the industry are maintained so the national hay industry remains at the international leading edge,” AEXCO chairman Murray Smith said. Mr Smith also indicated that while AEXCO had witnessed a strong take-up of new oat hay varieties among growers across Australia, a worrying trend had emerged of a “farm-gate black market”. “AEXCO is aware some growers across Australia have been avoiding their PBR payments and we are now stepping up our surveillance to stamp out this illegal and damaging practice. We also see this as an important education exercise for the industry on the importance of PBRs and the R&D benefits they provide to all farmers. The future of our export markets is tied to R&D to develop new varieties so those farmers who are dodging PBRs are effectively putting our industry’s future at risk. In many cases, it may simply be an oversight on behalf of a grower and we will be happy to work with them to rectify the situation. However, we will not be afraid to take action against those growers who are blatantly shirking their PBR responsibilities and in breach of the law.” Introduced to stimulate private investment in plant breeding, PBRs give an owner the exclusive right to sell, produce or re-produce, import, export, stock or condition the seed of a particular variety. In this way the rights are similar to patents or copyright and PBR protection can last up to 20 years for broadacre crops. Mr Smith said seed of varieties with PBR protection could only be bought from the owner, commercial partner, licensee or an authorised agent such as a seed merchant. “Growers cannot sell, trade or give away the variety for seed. Some in the industry may believe PBRs are simply lining the pockets of a rich corporate and therefore royalties not paid by an individual grower won’t be missed. However quite the opposite is true at AEXCO. The money collected by AEXCO goes back into the industry to fund much needed research and development and build future export markets for all farmers. “If farmers are unsure of any PBR issues or marketing arrangements it is best to contact their commercial partner, agent or AEXCO for assistance.”

News

For Immediate Release
November 20, 2008

GROWER BLACK MARKET FOR SEED VARIETIES

UNDER THE SPOTLIGHT

Growers across Australia ignoring Plant Breeder’s Rights are being targeted in an increased industry surveillance effort and risk hefty fines if uncovered, warns national export hay processors representative Australian Exporters Company (AEXCO). Growers found to be in breach of their PBR requirements face fines of $55,000 for an individual, to $275,000 for a company. Under The Plant Breeder’s Rights Amendment Act 2002, growers are required to pay a royalty and administration levy for export hay produced solely or partially from varieties commercialised by AEXCO.

AEXCO is a not-for-profit organisation that represents the majority of export hay processors located in South Australia, Western Australia, Victoria and southern New South Wales. Royalties paid to AEXCO for hay produced from varieties with PBRs are then distributed to the South Australian Research and Development Institute (SARDI) and the Rural Industries Research & Development Corporation.

“The royalties received from PBRs are vital in ensuring levels of research and development in the industry are maintained so the national hay industry remains at the international leading edge,” AEXCO chairman Murray Smith said.

Mr Smith also indicated that while AEXCO had witnessed a strong take-up of new oat hay varieties among growers across Australia, a worrying trend had emerged of a “farm-gate black market”.

“AEXCO is aware some growers across Australia have been avoiding their PBR payments and we are now stepping up our surveillance to stamp out this illegal and damaging practice. We also see this as an important education exercise for the industry on the importance of PBRs and the R&D benefits they provide to all farmers. The future of our export markets is tied to R&D to develop new varieties so those farmers who are dodging PBRs are effectively putting our industry’s future at risk. In many cases, it may simply be an oversight on behalf of a grower and we will be happy to work with them to rectify the situation. However, we will not be afraid to take action against those growers who are blatantly shirking their PBR responsibilities and in breach of the law.”

Introduced to stimulate private investment in plant breeding, PBRs give an owner the exclusive right to sell, produce or re-produce, import, export, stock or condition the seed of a particular variety. In this way the rights are similar to patents or copyright and PBR protection can last up to 20 years for broadacre crops. Mr Smith said seed of varieties with PBR protection could only be bought from the owner, commercial partner, licensee or an authorised agent such as a seed merchant.

“Growers cannot sell, trade or give away the variety for seed. Some in the industry may believe PBRs are simply lining the pockets of a rich corporate and therefore royalties not paid by an individual grower won’t be missed. However quite the opposite is true at AEXCO. The money collected by AEXCO goes back into the industry to fund much needed research and development and build future export markets for all farmers. “If farmers are unsure of any PBR issues or marketing arrangements it is best to contact their commercial partner, agent or AEXCO for assistance.”