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An online monthly research publication by the Ivey Business School
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Impact
Volume 15, Number 10
October 2009
Working well together
With the
appointment of David Sparling, Ivey is
recognizing the potential of a bio-based future
When
former President George Bush announced his
support of ethanol as a way of increasing energy
independence, critics felt that the move would
do little to reduce carbon emissions. But with
new breakthroughs in science, biofuels are
becoming a viable green alternative. “The amount
of research going on in the bioproduct and agri-food
industries is incredible,” says Ivey professor
David Sparling. “And the potential for change is
really dramatic.”
Sparling is
Ivey’s Faculty Chair of Agri-Food Innovation and
Regulation, a position recently created with a
$2 million grant from Agriculture and Agri-Food
Canada through the Agricultural Adaptation
Council. Sparling joins Ivey from the University
of Guelph, where he served as Associate Dean for
Research and Graduate Studies in the College of
Management and Economics. In his research he
focuses on the issues facing the agri-foods,
agriculture, and biotechnology industries.
Recently
Sparling conducted a study of Canada’s
bioproducts sector, based on surveys from
Statistics Canada from 2003 to 2006. Sparling
expected to see an industry undergoing growth,
but was surprised to find that the bioproduct
industry actually shrunk in Canada during this
time. Although the number of bioproduct firms
increased slightly from 232 to 239, the number
of people employed dropped by half, and the
revenues declined from $3.1 billion to $1.8
billion. “One reason was the lack of policy and
direction in Canada with respect to bioproducts,”
he says. “Now that we’re seeing new government
programs and support, I expect that the results
will be dramatically different in the next
survey.”
Sparling is
looking forward to his new role at Ivey. The
agri-food and bioproducts industries have become
increasingly complex and interlinked, creating
huge regulatory challenges. The key to change,
he says, is creating a good policy environment
to support the industry. “Whether you’re looking
at agriculture, biotechnology or bioproducts,
what’s coming across loud and clear is that
collaboration and partnerships matter more than
ever,” says Sparling. “Success depends on
partnerships between universities, research
institutes, businesses and governments –
everyone sitting around the table when policy
decisions are being made.”
The green energy
conference held at Ivey’s Lawrence Centre in
April brought together participants from all
these areas to address renewable energy issues
related to the production of food. One of its
recommendations was a single coordinating group
to shepherd firms through the regulatory
process, identify areas for streamlining, and
promote co-ordination across ministries.
Sparling has a number of current research
streams. He is studying the challenges facing
firms in the biotechnology industry, such as
managing the regulatory framework, and
developing an infrastructure. He’s also looking
at the impact of regulation in the agri-food
business. For example, there are many functional
foods, such as blueberries, that have proven
health benefits. Yet Canada’s regulatory system
makes it very hard to make health claims without
a significant investment.
Over the next
months Sparling will be examining federal
government support for agriculture. Currently 90
percent of the money directed to agriculture
goes into business risk management programs,
like farm income support. “We’re exploring how
we can shift policy and resources toward things
that will really matter to the industry in the
future, like food health and innovation and the
environment,” he says.
About 70 percent
of farms in Canada have revenue of less than
$100,000 per year. Local food initiatives, which
tend to result in higher prices, may be one way
to support small farms. Sparling feels that
government policy does not distinguish
adequately between the different roles and needs
of small and large farms, and he wants to change
that.
Small farms also
depend greatly on their off-farm income, and
Sparling is tracking business patterns in rural
Ontario to see where the job opportunities are.
“Bioproduct and biomass refineries tend to be
located in rural areas because that’s where the
biomass is,” says Sparling. “These create jobs
in rural communities, which often help Ontario
farmers.”
Sparling says
that his new role as Chair is to “make change”.
His goals are to help streamline the regulatory
role, support innovation through research, and
reach out to bring all the stakeholders
together. “Canada has the resources, the
science, and the people to be ahead in these
areas,” he says, “but we haven’t had the
coordinated focus to be really successful on a
global scale. To succeed in the future we need
to adopt new technologies, processes and
policies, and get everyone working well
together.”
Professor
David Sparling holds the Agri-Food Innovation
and Regulation Chair
Professor Sparling's Homepage
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