Arcadia Biosciences strives to introduce genetically modified rice in China, which will reduce the cost of farmers and create environmental benefits by reducing greenhouse gas emissions. The case describes the challenges faced by the small agricultural biotechnology companies, in particular, the uneven enforcement of intellectual property in the emerging markets, as well as uncertainty regarding the provision and the market value of carbon credits in the framework of international agreements on climate change. In September 2008, Eric Ray, CEO of Arcadia, faced with an inflection point on its advanced technology, the genes of nitrogen use efficiency (NUE) in rice. It can determine the price to charge for NUE seed by farmers to save their reduced use of expensive nitrogen fertilizers. Or he may run plan to earn income from carbon credits issued under the Kyoto Protocol to China for rice Arcadia, because the reduction of nitrogen fertilizer use will reduce greenhouse gas emissions. Case provides the context of the company; describes advances in seed technology, focused on climate change and related to the issue of resources and the use of fertilizers is of strategic choices facing a start-up company working in the intersection of business, agriculture, and climate change agreement . "Hide
by Arthur A. Daemmrich Source: Harvard Business School 16 pages. Publication Date: January 3, 2011. Prod. #: 711050-PDF-ENG