Mexico has become an important player in the ag-bio world. This field has benefited from the formation of important centers of research in the country and it is expected that opportunities of investment in new companies will be growing for years to come.

The world of ag-bio (agriculture-biotechnology) has changed dramatically in the last fifteen years. Gone are the days in which agriculture was only about seed improvement, crop production, fertilizers and pesticides. Although this part of the business is still important, opportunities are constantly emerging for new enterprises to enter the field.

The ag-bio business today is an integral part of other areas of enormous importance besides food and even in the world of food there have been some spectacular changes affecting the ag-bio business. Two important industries that are now intimately connected to de agro-bio business are clean energy and public health. Ag-bio is at the historic intersection of food, health and fuel and, as such, it reaches into every corner of our daily lives and every corner of our world. It is not an exaggeration that the world economy depends, and is affected by, the ag-bio industry in fundamental ways.

Agriculture has historically been a keydetermining factor in Mexico’s economy and health. However, never before it had the opportunity of becoming a high value added industry as it does right now. The advances in biotechnology of the last twenty years have spilled over into agriculture and completely transformed and converted it into the new industry. Discoveries in molecular biology, plant biology and genomics have completely changed the ag-bio landscape not only in Mexico but also in the rest of the world.

In Mexico these discoveries are led by several centers of scientific excellence all around the country, which, in some instances, have formed alliances to strengthen their scientific capabilities and their ability to commercialize their science. Some of the best Mexican academic institutions have formed technology transfer offices and commercial arms to promote and monetize their inventions. Mexican governmental agencies have come to realize that this is the best way of maintaining and financing these prestigious institutions and are supporting the effort in many different ways.

Two important efforts that combine private and public financing to not only promote but also to help commercialize inventions coming from Mexican institutions, are the Mexican Life Science Alliance and Guanajuato’s Technology Transfer and Commercialization Initiative. The corollary of these efforts is the creation of new businesses and start-ups around these institutions.

The Mexican Life Science Alliance was initiated in 2007, with the support of Merck & Co., and in collaboration with the UCSD San Diego Dialogue, together with four Mexican regions: Cuernavaca, Guadalajara, Monterrey and Irapuato.

Developed to create a common view of regional development based in the life sciences, the Mexican Life Sciences Alliance strives to drive economic development of Mexican regions by transforming scientific and technological capabilities into high value-added companies and products for the benefit of society. The alliance places under one roof several of the key Mexican research centers in ag-bio and therefore offers opportunities for global companies and investors to tackle many of the important problems in the industry.

Also in 2007, the State of Guanajuato, through its Ministry of Economic Development, created a unique state initiative for Technology Transfer and Commercialization. This initiative focuses on protecting the intellectual property created in all the scientific centers of the state and then subsequently commercializes it either by technology transfer or the formation of new global companies. This effort is unique in Mexico, and has already produced important alliances and new businesses between the Guanajuato region and the US, Europe, and other regions of Mexico. Furthermore, the state has also created other initiatives to facilitate the formation of new companies and the attraction of global companies and investors. Among them is the Ag-bio industrial park, and the Ag-BioPolo. These two are large initiatives that offer infrastructure, incentives, land, and other facilities to attract such companies and potential joint ventures to the state.

Ag-bio business in Mexico has benefited from the formation of important centers of research in the country such as Cinvestav and Langebio in Guanajuato, the IBT in Cuernavaca, and several others. Within the Ag-bio industry these centers are inventing new technologies and forming new companies in and around health, food and fuel.

Food
Ag-bio has transformed the way agriculture is practiced around the world and Mexico’s researchers are in the forefront of this change. New crops resistant to insects, and other parasites, are continually being discovered, as well as new plants that can better use soil nutrients.

New crops that can resist different climate changes, altitudes, and drought conditions are also been developed. For example, a group of scientists from Cinvestav has recently finished the sequencing and mapping of the corn genome. This enormous effort was accomplished ahead of much larger and betterfinanced international groups outside Mexico. Since corn is one of the major global crops, this project has already attracted the attention of several international companies and governments interested in mining the data generated.

Other discoveries have also influenced the way crops like soy and rice are grown, and new efforts are undergoing that will affect other high value crops like avocado.

Fuel
The rising prices of oil and potential near shortage of fossil fuels have increased the interest in alternative (clean) sources of energy.In Silicon Valley alone (the largest center of capital venture in the world) the investment in clean energy companies has already surpass investment in other typical areas such as software, and healthcare.

The production of biomass as a source of clean energy such as ethanol, natural gas, or diesel, is one of the largest growing areas in today’s economy. Here again ag-bio intersects with these endeavors in important ways and the discoveries recently made in Guanajuato, and other Mexican institutes, could be of large financial importance.

Mexican scientists are working with private investors and international companies to generate energy from such diverse sources as seaweed, agave, vegetable residues, and low-value crops. The improvement and commercial feasibility of these biomass-to-energy projects depends in large part on the wealth of technical know-how and experience that these Mexican researchers bring to the table.

Health
Ag-bio has now a dominant role in health that extends itself to several areas, many of which are in the purview of the research activities of Guanajuato’s scientists. Interesting among them is the production of animal vaccines in plants. Vaccine production in plants provides an inexpensive way of production and an easy vehicle of delivering these vaccines to protect diverse domestic species such as chickens, pigs, and fish.

Mexican researchers are also focusing on high value added compounds obtained from plants, that can become food supplements or nutraceuticals (natural food supplements that have a therapeutic effect). Cinvestav’s scientists have isolated from strawberries valuable nutraceuticals that improve memory and cognitive function, as well as natural compounds with anti-cancer activity from vegetables like broccoli. This approach creates opportunities that go outside the classical model of agricultural business and increases its value in an exponential fashion.

In summary, with Mexico as an important player in ag-bio, the opportunities of investment in new companies will be growing for years to come. We see this as a unique prospect to make a mark in a transformative industry that would create thousands of well-remunerated jobs and a substantial return for shareholders.