Since their introduction in 1996, End Point Royalties (EPRs) have sparked debate. Many see them as cutting into farm gate profits while benefiting seed companies. But do they truly fund future variety development and research?

From RAGT’s perspective, EPRs are vital for developing high-performance varieties suited to Australian conditions.

Many of our wheat, barley, and canola have EPRs that support their trialling and adaptation. Our acquisition of our Longerenong Research Centre and specific white wheat breeding program in 2023 underscores our commitment to improving productivity for Australian growers.

Why the Focus on EPRs?

Many growers see EPRs as a financial burden at harvest rather than an investment in future yield improvements. However, the real cost often lies in the upfront expense of establishing a canola crop—especially for hybrids with inbred herbicide tolerance technology that have technology fees associated with them.

While EPRs are tied to actual yields, technology fees are based on potential outcomes. Choosing an expensive GM canola variety can push seed costs above $100/ha, affecting cash flow and increasing risk. In contrast, non-GM canola with traditional technology can nearly halve seed costs per hectare when agronomic circumstances provide the flexibility for it.

This season, RAGT’s non-GM hybrid TTs cost just over $60/ha, and include a free seed treatment, deferred payments, and an establishment guarantee under the SCORE MORE 2024-25 promotion. They do have a success fee (EPR) associated with them, but it’s often a lower financial burden. Plus, deferring costs until harvest preserves cash flow for other inputs during the season.

Recent data shows RAGT Hybrid TT yields are competitive with pricier technologies, making them a strong choice when assessed on cost per hectare and additional incentives.

Which fees cost more?

For a clearer comparison, refer to the following table:

The table highlights how non-GM canola with TT technology can be a strategic investment. It also illustrates how EPRs help avoid steep upfront costs while maintaining harvest profitability. Choosing technology wisely at the outset can impact returns and risk.

In this scenario, yields in excess of 2.81 mt/ha is where the technologies breakeven and the model inverts, however return on investment continues to be stronger as a multiple with the success fee versus technology fee option. Considering that in the majority of cases (see NVT trial tables above), the average canola yield per hectare in medium to high rainfall areas is less than than 2.81 mt/ha, adopting a success fee over technology fee strategy holds a lot of merit.

2024-25 Considerations

With climatic challenges ahead, investing heavily in GM technology means absorbing risk upfront and adopting a lower Return on Investment. A more cautious approach- opting for a TT variety with lower upfront costs and an EPR- may be a safer bet.

For seed selection advice, contact an RAGT Territory Business Manager to discuss the best options for your region and needs.

If you’d like to know more about RAGT’s hybrid canola range, contact your local RASGT Territory Business Manager

NB: This article does not factor in herbicide, insecticide, fungicide, fertiliser, or harvesting costs or specific in crop agronomic requirments Growers should seek independent agronomic and financial advice before making key farming decisions. While every effort has been made to ensure accuracy, RAGT is not responsible for purchasing decisions based on this information

RAGT AUSTRALIA, part of the global RAGT SEMENCES, European market leader in cereals, is proud to announce acquisition of BASF’s open-pollinated wheat seed assets in Australia.

“This new acquisition fits perfectly in our multi species strategy and reinforces our commitment in bringing innovative solutions to Australian farmers and our Partners” said Samuel Gasté, New Markets Territory Director at RAGT SEMENCES. “It will bring another level of genetic diversity in our global cereal offer.”

After the Seed Force integration, which became RAGT AUSTRALIA on January 1st, 2023, RAGT confirms its ambition in Australia by investing in domestic wheat breeding. “Already rich in a recognized portfolio in malt barley, canola, and fodder species, we are convinced that our new wheat range will strengthen our cooperation with the Australian farming industry and our local partners,” said Damien Robert, CEO of RAGT SEMENCES. He added, “This new acquisition complements our existing wheat breeding programs with unique germplasm and will have a positive impact on our worldwide cereals footprint.”

RAGT AUSTRALIA General Manager, Dale Skepper noted “this is a mature breeding program that has already delivered commercial products and a pipeline flow that appears to be rich with genetics well matched to the Australian market. We’re excited to secure this opportunity to launch into the spring white wheat segment, adding to our existing activities in the market. Our team looks forward to working with partners and providing well adapted solutions to Australian farmers, that potentially extend across the globe.”

Mr Skepper emphasised as part of this acquisition, “ we are also very pleased to be welcoming to our team the architect of the program and senior plant breeder, Maqbool Ahmad to continue to steward the program into the future.”

RAGT Australia, is a rapidly growing Australian seed business, breeding, screening and supplying premium cultivars across Australia. The business is 100% focused on assisting growers and processors increase productivity and profitability.

Think Solutions, Think RAGT.

Learn more about the exciting new additions to our range of wheat varieties

Prime Minister Anthony Albanese is set to make a breakthrough visit to Beijing later this year after China backed down over punitive barley tariffs, leaving coercive trade sanctions remaining against just $2 billion of Australian exports.

China’s Commerce Ministry announced on Friday it advised the Customs Tariff Commission to remove anti-dumping and countervailing duties on barley imports from Saturday.

“The Ministry of Commerce has ruled that it is no longer necessary to continue to impose anti-dumping duties and countervailing duties on imports of barley originating in Australia in view of changes in the Chinese barley market,” it said in a statement.

The Albanese government will now push for the removal of tariffs on wine using the same template of suspending its World Trade Organisation challenge to allow Chinese officials to conduct a face-saving review.

“This is the right outcome … for Australian producers and the right outcome for Chinese consumers,” Foreign Minister Penny Wong said.

When Labor came to office in May last year, about $20 billion of Australian exports to China had been hit with trade sanctions, including coal, timber and barley.

“That’s now been reduced to about $2 billion, so it is very significant progress in that 15 months,” Trade Minister Don Farrell said, confirming Australia would abandon its WTO challenge.

“It is another very positive step in the full resumption of normal trade between Australia and China.”

The outstanding $2 billion includes tariffs of up to 220 per cent on wine, and de facto bans on lobster and red meat from some abattoirs.

The decision to end tariffs on barley exports – which peaked at $900 million in 2018-19 – helps pave the way for Mr Albanese to visit Beijing later this year, although further easing of trade sanctions may be required.

Andrew Tillett and Michael Smith

Australian Financial Review, 04 August 2023

Present in five continents, the seed company RAGT wants to develop its activity and raise awareness of its multi-species strategy. This notably involves grouping together its subsidiaries under the RAGT banner. In Australia and New Zealand, RAGT Australia and RAGT New Zealand came into being on 1^st January 2023.

“The potential for development of our activities is real in South America, Oceania and Africa. We are also exploring North America”, confides Samuel Gasté, New Markets Territory Director at RAGT.

In 2018, RAGT underwent a change in organisation. Previously split into three pillars (cereals and proteins, forage and turf, and hybrids), the seeds activities are since piloted by territory, five worldwide: France, Northern & Central Europe, Eastern Europe, Southern Europe, and finally the New Markets (North America, South America, Africa, Asia, Middle East and Oceania).

“The objective is that each Territory Director guarantees the development of the multi-species strategy of RAGT in the countries they pilot”, explains Samuel Gasté, New Markets Territory Director. “Whereas before, the key to entry was the species, it is now territories”. This is a change that, over some months, has seen the deployment of the RAGT brand on different continents.

“Since 1^st January, two new subsidiaries have joined us” explains Samuel Gasté: RAGT NZ in New Zealand and RAGT Australia, in Australia. These two structures existed before, but under the name Seed Force. In 2020, RAGT, who already owned 40% of the companies, acquired them in total. Since then, it has been important to us to bring these two entities under the RAGT brand to clearly identify the group in each market and highlight the diversity of the solutions we offer. 

“In Australia, we offer malting barley, forage grasses, winter oilseed rape and canola. In New Zealand the demand is more for fodder beet and forage grasses. These two countries account for nearly 50% of the group activity in forage grasses. Our presence in the Pacific region will allow us, over time to develop our activity in South East Asia.”

Increase visibility to be better known

In last November, RAGT acquired Tobin, an Argentinian company specialising in the research, production and commercialisation of sorghum, and is recognised as a major player in this market.

“The objective is to merge this structure with our local subsidiary, RAGT Argentina, to then market our solutions under two brands – RAGT and Tobin,” he continues. “The potential for development in our activities is real in South America, Oceania and Africa. We are also exploring North America. But that won’t happen without recruiting new talent”, he admits. “To communicate and capitalise on the RAGT brand, we need to increase our visibility and international presence – a strategy which will also attract future employees.”

Anne Gilet
Journaliste à Référence-agro

On the 15^th of February the Barossa Improved Grazing Group held their annual conference dubbed ‘From the Ground Up’. The conference included a number of guest speakers to discuss carbon farming, the financial benefits of ewe containment, wool harvesting, and many other topics.

The conference consisted of over 50 attendees, including our very own David ‘Rocky’ Barnett. This conference gave an invaluable opportunity for attendees to ask all the speakers any questions that they might need answered, to give a holistic understanding of the presentation, and be able to apply what they’ve learnt on their farms.