MARKET POTENTIALFOR GENE EDITING

Dr. Roger Johnson

RCJ Consulting

Denison, Iowa

Swine Summit 2018

Presentation Overview

■ The Challenges We Face

– Global

– Local

■ The Opportunities That Lay Ahead

– Global

– Local

■ Genetic Improvement Overview

– Traditional Strategies

– “New Generation” Strategies

▪ Genetic Engineering

▪ Cloning

▪ Gene Editing

2

THE CHALLENGES WE FACE

3

Global Challenges2014 2050

■ World Population 34%

■ Urbanization

– from 54% to 66%

■ Middle Class

– from 50% to 70%

Source: 2014 GAP Report 4

5

Average Calorie Consumption

Source: ccafs.cigar.org/bigfacts 6

Global Agricultural Output

■ Protein Revolution by 2050

– 2x livestock, poultry & fish

➢ 70% in Developing Countries

➢ Grains & oilseeds demand

■ Protein Revolution – 2013 to 2030

– Poultry & Eggs 63%

– Milk 55%

– Ruminant Meat 44%

■ Protein Revolution – 2013 to 2023

– Fish consumption 9%

Source: 2014 GAP Report 7

Source: biotech-now.org 8

Productivity GAP

Source: 2014 GAP Report 9

Grains & OilseedsDemands & Supply by 2050

■ Current Growth Target

60% by 2050

– Corn 67%

– Rice 42%

– Wheat 38%

– Soybean 55%

Source: ccafs.cigar.org/bigfacts 10

Focus on United States of America

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12

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No Shortage of Ag and Food Issues

■ Animal Welfare– Sow Housing, Rearing Practices

■ Antibiotic usage/resistance

■ Traceability

■ Export Barriers (Russia, China, EU)

■ Food Safety, Product Recalls, Imported Items

■ Local, Organic, Slow Food Movement

■ Immigration

■ Environment/Carbon Footprint

■ Food for Fuel-Ethanol

■ Sustainability

■ Nutritional Components of Food-Fat, Sodium, Gluten

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Meat Industry Buzz Words

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■ Local

■ Factory Farms

■ Group Housed

■ Free Range

■ Made in Rural America

■ GMO vs non-GMO

■ Natural

■ Organic

■ ABF

■ Never Ever

■ Never Ever3

■ Sustainability

■ Global Market or Consumers

■ Meat of Choice

■ HSUS & PETA

■ Food Fusion

■ Slow Food vs Fast Food

■ Animal Care Legislation

■ Superbugs

■ “Nightmare Bacteria”

■ Trans Fatty Acid

■ Gluten Free

■ Third Party Inspections

■ Carbon footprint

Changing Perception of “Responsibility”

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Market Share of Major Exporters5-year Average

Others

Argentina

Australia

Canada

EU

Former USSR

United States

Source: USDA, Foreign Agricultural Service, Production Supply and Distribution (PS&D) Database17

OR …THE OPPORTUNITIESTHAT LAY AHEAD

18

Source: https://21stcenturysocialcritic.blogspot.com/p/methane-information-and-discussions.html19

Arable Land Needed to Produce Fixed Quantity of Crop Products

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Source: FAO

68%

Land

Requirement

in 50 years

USA Corn Yield Trends

Source: USDA-NASS (as of Jan 2017)

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Adoption of GE Corn in USA - 2000-2017

Source: USDA, Economic Research Service using data from USDA, National Agricultural Statistics Service, June Agricultural Survey.

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Adoption of GE Soybeans in USA1996 - 2010

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GENETICIMPROVEMENTSTRATEGIES

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Traditional Strategies

▪ Selective Breeding vs

Natural Selection

▪ Within Line Selection

▪ Crossbreeding

• Inbreeding

• Outbreeding

• Rotational

• Terminal

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“New Generation” Strategies

■ Genetic Engineering

– Alteration & recombination of genetic material under laboratory conditions

■ Transgenics

■ GMO

■ Cloning

– Process of producing similar populations of genetically identical individuals

■ Gene Editing

– Insertion, deletion or replacement of DNA at a specific site in the genome

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Conventional Breeding vs Genetic Engineering

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Result GMO Grains

First Successful Clone: Dolly

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Cloning Summary

PROS

1. Produce the best animal

population.

2. Reproduce endangered or even

extinct species.

3. Way to quickly create more

sources of food, especially meat.

4. Good for genetic testing and

drug research.

5. Bring back lost pets.

CONS

1. Cannot bring back a beloved pet’s

personality.

2. Can be seen as animal cruelty.

3. Is expensive.

4. Reduces genetic diversity.

5. Human cloning?

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Market Acceptability of Cloned Animals

2001 – 2008

■ FDA's Center for Veterinary

Medicine (CVM) asked livestock

producers to voluntarily keep food

from clones and their offspring out

of the food chain until CVM could

further evaluate the issue.

■ Iowa State Fair Champion Steer

– 2010 Champion was a clone

of 2008 Champion

– As a pre-caution, the meat

did not enter the public food

chain

Post-2008

FDA CVM concluded:

■ Cloning poses no unique risks to

animal health

■ Composition of clone food products

no different from conventional food

products

■ Therefore, no additional risks to

people eating food from clones or

clone offspring

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Gene Editing

■ Insertion,

deletion or

replacement of

DNA at a

specific site in

the genome

■ Techniques

– CRISPR

– TALENs

– ZFNs

– ODM

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First GE Approval: Salmon■ AquaBounty Technologies (early 1990’s)

■ Chinook Salmon can not mate with Atlantic Salmon

■ Genetic Editing

– Growth hormone gene from Chinook Salmon Atlantic Salmon

– GH regulator gene from Ocean Pout Atlantic Salmon

■ Results

– 2x Faster Growth■ 36 mon 18 mon

– Improved FE

■ USA

– Approved (11/2015)

but

– Not Available

■ Canada

– Approved (4/2016)

– Available (8/2017) 32

Species Target Targeted Trait/Goal

Cattle

• Intraspecies POLLED allele substitution • No horns

• Myostatin (gene knockout) • Increased muscle yield

• Beta-lactoglobulin (gene knockout) • Elimination of milk allergen

• Insertion of lysostaphin transgene • Disease resistance

• Insertion of lysozyme transgene • Disease resistance

• Insertion of SP110 transgene • Resistance to tuberculosis

Food Animal GE Applications

Knockout = inactivation of gene function

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Food Animal GE Applications

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Species Target Targeted Trait/Goal

Pig

• CD163 (gene knockout) • PRRS Virus Resistance

• Interspecies RELA allele substitution • African Swine Fever Resistance

• Myostatin (gene knockout) • Increased muscle yield

• “Puberty gene” • Eliminate Physical Castration

Source: Tousignant, 2015

Knockout = inactivation of gene function

Species Target Targeted Trait/Goal

Chicken• Ovalbumin (gene knockout) • Elimination of ovalbumin in egg

• Insertion of Immunoglobulin heavy chain locus • Germline gene editing

Goat

• Myostatin (gene knockout) • Increased muscle growth

• Prion protein gene knockout • Elimination of prion protein

• Beta-lactoglobulin gene knockout • Elimination of milk allergen

Sheep • Myostatin (gene knockout) • Increased muscle yield

Food Animal GE Applications

Knockout = inactivation of gene function

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Gene Editing Summary

PROS

1. Goodbye to inherent diseases

2. Longer and healthier lifespan

3. Solving problems – one at a

time, thus making the future

better

4. What’s wrong with looking good?

CONS

1. Not meant to be flawless

2. Too early to know

3. Playing God?

4. Designer babies?

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Gene Editing Status

■ January 2017

■ Draft FDA regulation

■ View “Animals whose

genomes have been

altered intentionally”

as drugs.

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#187

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Development & Adoption of

New Technology

➢ Misinformation Creates Fear

➢ Therefore, it is essential to tell

“THE” Story

rather than

“A” Story