AEXCO


	What is AEXCO? What is AFCA? What are Plant Breeder’s Rights (PBR)? What is a PBR Royalty? Terms and Conditions What is AEXCO? Australian Exporters Company or 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. The company was formed to tender for commercialising rights for new oat hay variety releases. AEXCO was selected by SARDI as the successful company to commercialise new hay varieties beginning in 2001. Money collected by AEXCO goes back into the industry to fund much needed research and development and build future export markets for all farmers. AEXCO plays a major role setting breeding priorities to achieve desired export hay quality, encompassing both export market and grower requirements. An example of the linkage is the development of oat varieties that maintain green colour and are adapted to regions with varying seasonal characteristics. As part of the license to market the new oat varieties with PBR, AEXCO liaises with the Australian Field Crop Association (AFCA) to augment the multiplication and commercial release of new varieties. What is AFCA? Australian Field Crop Association (AFCA) is a national organisation of specialised growers of seed. They have selected growers meeting quality assurance requirements to multiply and supply graded and tested seed. AFCA are the exclusive multipliers of seed of all oat hay varieties released to AEXCO as marketers of the newly released varieties. AFCA provide ongoing yearly supplies of graded commercial seed for growers of Oaten Hay, both Export and Domestic, at reasonable market prices. AFCA have a website to assist in purchase of seed, and other information: www.afca-seeds.com.au What are Plant Breeder’s Rights (PBR)? PBR was introduced to stimulate private investment in plant breeding by conferring ownership rights to varieties and thereby the potential to market those rights as part of a commercialisation process. The Plant Breeder’s Rights Amendment Act 2002 gives an owner of PBR the exclusive right to sell, produce or reproduce, import, export, stock or condition the seed of a variety protected by PBR (or license another person or organisation to undertake these activities). The rights are similar to patents or copyright (they record ownership of the genetic material) and are administered under the Act. PBR protection can last up to 20 years for broadacre crops. PBR guarantee ownership of a variety but do not specify how the variety should be commercialised or whether or where royalties should be charged. Key Points • Seed of varieties with PBR protection can only be bought from the owner, commercial partner/licensee or an agent (seed merchant) authorised by the owner. • Growers cannot sell, trade or give away the variety, for seed. • If farmers are unsure of any PBR issues or marketing arrangements, they should seek information from the commercial partner/licensee agent (seed merchant) or owner. • Penalties of $55,000 for a sole identity or $275,000 for a company apply, for failure to comply with the PBR Act. What is a PBR Royalty? AEXCO collects end point royalties for hay produced from varieties with PBR which are then distributed back to owners. Hence royalties are distributed to SARDI and the Rural Industries Research & Development Corporation (RIRDC), based on equity calculations from the research proposal. The royalty payment is 55c per tonne of hay with a 55c per tonne administration fee retained by AEXCO, payable upon delivery of the hay to a export processor. Terms and Conditions • Growers cannot sell, trade or give away the variety as seed • Any export hay produced solely or partially from varieties commercialised by AEXCO will attract the full PBR royalty and administration levy of $1.10 per tonne • Growers are encouraged to give feed back both to AEXCO and AFCA members on varietal performance and future requirements for varieties. • Growers who wish to grow PBR varieties for domestic hay production will pay a $55.00 per tonne seed royalty, since they will not pay an end point royalty. This fee is payable when the seed is purchased. • Growers who harvest a PBR variety seed in lieu of cutting it for hay, after having purchased the original seed for export hay production and do not intend to use that harvested seed for further export hay production will be required to pay $55.00 per tonne royalty on the original amount of seed used to grow that area. • Sunset Clause: Seed purchased for domestic use (with royalty paid) but delivered as export hay in the second year will attract the end point royalty of $1.10 per tonne. • Growers may retain seed for their own use. NOTE: Above prices are GST inclusive.

What is AEXCO?
What is AFCA?
What are Plant Breeder’s Rights (PBR)?
What is a PBR Royalty?
Terms and Conditions

What is AEXCO?
Australian Exporters Company or 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. The company was formed to tender for commercialising rights for new oat hay variety releases. AEXCO was selected by SARDI as the successful company to commercialise new hay varieties beginning in 2001. Money collected by AEXCO goes back into the industry to fund much needed research and development and build future export markets for all farmers.

AEXCO plays a major role setting breeding priorities to achieve desired export hay quality, encompassing both export market and grower requirements. An example of the linkage is the development of oat varieties that maintain green colour and are adapted to regions with varying seasonal characteristics.

As part of the license to market the new oat varieties with PBR, AEXCO liaises with the Australian Field Crop Association (AFCA) to augment the multiplication and commercial release of new varieties.

What is AFCA?
Australian Field Crop Association (AFCA) is a national organisation of specialised growers of seed. They have selected growers meeting quality assurance requirements to multiply and supply graded and tested seed.

AFCA are the exclusive multipliers of seed of all oat hay varieties released to AEXCO as marketers of the newly released varieties. AFCA provide ongoing yearly supplies of graded commercial seed for growers of Oaten Hay, both Export and Domestic, at reasonable market prices.

AFCA have a website to assist in purchase of seed, and other information:
www.afca-seeds.com.au

What are Plant Breeder’s Rights (PBR)?
PBR was introduced to stimulate private investment in plant breeding by conferring ownership rights to varieties and thereby the potential to market those rights as part of a commercialisation process.

The Plant Breeder’s Rights Amendment Act 2002 gives an owner of PBR the exclusive right to sell, produce or reproduce, import, export, stock or condition the seed of a variety protected by PBR (or license another person or organisation to undertake these activities).

The rights are similar to patents or copyright (they record ownership of the genetic material) and are administered under the Act. PBR protection can last up to 20 years for broadacre crops.

PBR guarantee ownership of a variety but do not specify how the variety should be commercialised or whether or where royalties should be charged.

Key Points
• Seed of varieties with PBR protection can only be bought from the owner, commercial partner/licensee or an agent (seed merchant) authorised by the owner.

• Growers cannot sell, trade or give away the variety, for seed.

• If farmers are unsure of any PBR issues or marketing arrangements, they should seek information from the commercial partner/licensee agent (seed merchant) or owner.

• Penalties of $55,000 for a sole identity or $275,000 for a company apply, for failure to comply with the PBR Act.

What is a PBR Royalty?
AEXCO collects end point royalties for hay produced from varieties with PBR which are then distributed back to owners. Hence royalties are distributed to SARDI and the Rural Industries Research & Development Corporation (RIRDC), based on equity calculations from the research proposal. The royalty payment is 55c per tonne of hay with a 55c per tonne administration fee retained by AEXCO, payable upon delivery of the hay to a export processor.

Terms and Conditions
• Growers cannot sell, trade or give away the variety as seed

• Any export hay produced solely or partially from varieties commercialised by AEXCO will attract the full PBR royalty and administration levy of $1.10 per tonne

• Growers are encouraged to give feed back both to AEXCO and AFCA members on varietal performance and future requirements for varieties.

• Growers who wish to grow PBR varieties for domestic hay production will pay a $55.00 per tonne seed royalty, since they will not pay an end point royalty. This fee is payable when the seed is purchased.

• Growers who harvest a PBR variety seed in lieu of cutting it for hay, after having purchased the original seed for export hay production and do not intend to use that harvested seed for further export hay production will be required to pay $55.00 per tonne royalty on the original amount of seed used to grow that area.

• Sunset Clause: Seed purchased for domestic use (with royalty paid) but delivered as export hay in the second year will attract the end point royalty of $1.10 per tonne.

• Growers may retain seed for their own use.

NOTE: Above prices are GST inclusive.