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East West Seeds Company expands its research and development activities in The Philippines

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Manila, The Philippines
May 21, 2007

By Melody M. Aguiba, Manila Bulletin via  via SEAMEO SEARCA Biotechnology Information Center

The country’s biggest hybrid vegetable seed producer East West Seeds Co. Inc. (EWSC), is embarking on a P78-million research and development (R&D) biotechnology facility so as to keep up with global R&D trends.

A pioneer in developing hybrid vegetable seeds in the Philippines, EWSC will begin to construct by the end of the year the R&D facility in Lipa, Batangas. It will become operational in one year.

"We will further improve our R&D efficiency because that’s where our strength is. The heart and soul of our business is R&D. We are a leader in R&D in tropical vegetables," said EWSC Founding Partner and Director Benito M. Domingo in an interview.

The R&D facility will be supported by state-of-the-art biotechnology equipment. It will complement existing experimental site and limited parental seed production of EWSC in Ildefonso, Bulacan and the Seed Production Research and Training Center in Ilocos.

EWSC has been focusing on raising yield of lowland varieties (like ampalaya, eggplant, squash, and tomato) which take up 90 percent of its seed products. Raising yield of these varieties is also a major source of incremental income of farmers.

The company’s putting up a modern R&D facility will likewise boost its export potential even as this income stream is targeted to bring in million in earnings this year, up by an estimated 20 percent from its 2006 export earnings. Among its export markets are India and Thailand. A potential future market is Africa.

Because of the promising prospects of the hybrid vegetable industry in the Philippines, EWSC has been an interest of acquisition by certain bigger agricultural research companies.

"Everytime, people would approach us for a buyout. But we’re not for sale. Multinational companies want a control of the market. But we can’t sell it even at $ 300 million," Domingo said.

EWSC had investments of at least about P1 billion in the Philippines.

Despite a focus on hybrid tropical vegetables, EWSC has been actively diversifying its products as it has tied up with Cornworld Breeding Systems Corp. on producing hybrid rice seeds which also faces an enormous growth prospect with the country’s aim for rice self-sufficiency.

The tie-up firm HyRice Seed Technology, claiming not only high yield but a high germination rate for hybrid rice seeds, will produce seed for 7,000 hectares of rice land for the next season (May to October).

Co-founded by Dutch breeder Simon Groot in the early 1980s, the company takes up 70 to 75 percent of the local hybrid vegetable market and 55 percent of the total vegetable market. Also a leader in Asia, it has offices in Indonesia , Vietnam , and Thailand.

Because of the increased economic benefit of its hybrid vegetables to farmers, EWSC has received a $ 200,000 grant from KFW Bank-member DEG of Germany, a one of such kind of grant given to a private company, which trains farmers on technologies.

The two-year project called Public Private Sector Partnership (PPSP) is on-going in Quezon and Zambales where farmers and agricultural technicians are being trained in growing high-yielding hybrid vegetable varieties.

The grant of DEG, one of the largest European finance institution for private sector promotion, has a counterpart fund equivalent also to $ 200,000 on the part of EWSC.

Technologies being taught to farmers include mulching (moisture retention technique in plant), drip irrigation (water-saving technique in watering through pipes), and use hybrid seed varieties.

EWSC has extensive germplasms or gene banks of plant with diverse characteristics such as resistance to pests, diseases, and environmental stress and keeps plant pathology programs for vegetables’ disease resistance.

It has been engaged in modern techniques like tissue culture involving reproduction of crops by culturing of seedlings from sterile laboratory and molecular marker-assisted breeding.

EWSC believes that with the commercialization of hybrid technology, the Philippines can even displace some of its upland vegetable imports including cabbage, cauliflower, salad tomato, sweet pepper, and carrots.

Hybrid vegetables, produced from cross-breeding of two varieties with superior characteristics, have given farmers yield advantage owing to disease resistance, big size resulting in bigger harvest, and shorter maturity.

One tropical vegetable, hybrid patola, has a yield of up to 30 metric tons (MT) per hectare, is harvested early, and has attractive long, straight, dark bright green color.

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