Saskatchewan, Canada
May 13, 2016
SPG has several pulse market classes or specific varieties that have been tendered to a number of processing and exporting companies for the purposes of developing market demand and production. Many of these agreements are expiring in the near future and SPG is determining whether to release these classes broadly, renew agreements with those companies or other options. Before making those decisions, SPG is seeking input from growers and other stakeholders regarding their views on commercialization of pulse varieties and the market classes/varieties with agreements expiring in the near future.
Please read below for more information on SPG's Variety and Tender Release programs. To provide input to SPG, click here. Deadline to provide input is Friday, June 3, 2016.
About SPG’s Variety Release Programs
As part of the SPG’s pulse breeding agreement with the University of Saskatchewan’s Crop Development Centre (CDC), growers, through their levy contributions, provide significant funding to the CDC pulse-breeding program. That partnership also provides SPG with the exclusive commercialization rights to varieties developed by the CDC. Distribution of the new varieties occurs through one of two SPG commercialization programs – the Variety Release Program or the Tender Release Program as outlined below.
Variety Release Program
The Variety Release Program (VRP) is a seed distribution program managed by SPG where Select Seed Growers can access breeder seed of new broadly adapted varieties developed by plant breeders from the CDC. To date, 115 varieties have been released through the variety release program. SPG releases these varieties royalty free.
The program’s purpose is to increase growth of the pulse industry in Saskatchewan and Western Canada through the rapid uptake and acceptance of new and improved pulse varieties. Crops included as part of this program include pea, lentil, chickpea, bean, and faba bean. Any nationally recognized Select Seed Grower whose provincial pulse grower organization has an agreement with SPG is eligible to apply for breeder seed through this program.
Tender Release Program
The Tender Release program is designed for varieties or classes developed by the CDC that are unique and have little or no established market demand, require additional effort and investment to develop and would not succeed if released broadly through the VRP.
SPG will consider tendering the exclusive rights out to a variety or market class if:
- There is limited demand/small product volume
- Marketing could result in premiums for producers
- Demand has a unique geographic market
- Markets currently supplied by Saskatchewan production will not be disrupted
- CDC pulse breeders need to work closely with the trade to develop an emerging market class
- A closed loop system is needed to protect intellectual property
Varieties or classes that fit into any or all of the above criteria may be tendered out by SPG whereby interested parties apply for exclusive distribution rights of these varieties or classes. The successful candidate then can exclusively distribute the class or varieties for a predetermined period of time. The companies that are awarded the exclusive rights pay royalties back to SPG to be reinvested back into research and market development since all pulse producers in Saskatchewan have contributed to the development of those varieties. Additional financial compensation may also be required such as and upfront payment and/or an annual research contribution fee to pay for the continued development of the market class.
The intention of the TRP is that through increased collaboration and communication with processors and exporters, development and commercialization of tendered varieties will be more efficient, economical, and beneficial to the Saskatchewan pulse producers. No seed royalties are charged to Saskatchewan growers to grow varieties released under the TRP. However, in some cases, there is limited market demand for some market classes or limits on seed availability, which places limits on the overall size of some of these programs.
SPG has a number of market classes/varieties that have been tendered out. Several tender agreements are coming to an end in 2017 and 2018, including
- Large Red Lentil (KR-1, KR-2 CL) – AGT Foods/Saskcan
- Spanish Brown Lentil (CDC SB-1, CDC SB-2, CDC SB-3 CL – Simpson Seeds
- Green Cotyledon Lentil (QG1, QG2, QG3 CL) – AGT Foods/Saskcan
- Large Seeded Food Grade Faba Bean (FB9-4) - AGT Foods/Saskcan
- Yellow Bean (CDC Sol) – Scoular Canada (formerly Legumex Walker)
- Black Bean (CDC Jet, CDC SuperJet, Blackstrap, Blackcomb) - Scoular Canada (formerly Legumex Walker) and Martens Seeds
- Slow to Darken Pinto Beans (WMI, WMII) - Scoular Canada (formerly Legumex Walker) and Keg Agro
SPG can choose to renew exclusive arrangement with partners, release the market class broadly through the VRP or other options. There are many considerations to take into account in making these decisions, including performance of the tender partners to date, prospects for growth and an assessment of the need for exclusivity for the market class or variety to succeed. Grower and other stakeholder input is one important consideration for SPG.
Please click here to provide input to SPG.
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