AMF IN CANADIAN AGRICULTURE 1

Use of arbuscular mycorrhizal fungi in apple orchards to increase uptake of nutrients and
water from soil
Amina Hassan
Section 103, Wed 8:30 am
26 November 2019
AMF IN CANADIAN AGRICULTURE 2

Table of Contents
PART I: PRODUCT DESCRIPTION ........................................................................................................................ 3
INTRODUCTION ......................................................................................................................................................... 3
INNOVATION AND ITS BENEFITS ............................................................................................................................... 4
PART II: PRODUCT IMPLEMENTATION ............................................................................................................ 6
POTENTIAL SUPPLIER ............................................................................................................................................... 6
CONTACT INFORMATION OF POTENTIAL SUPPLIER ............................................................................................... 6
TRANSPORTATION..................................................................................................................................................... 6
EVALUATION OF MARKETING STRATEGIES AND OPPORTUNITIES ........................................................................ 7
EVALUATION OF EXPORT POTENTIAL ..................................................................................................................... 8
PART III: CRITICAL ANALYSIS OF INNOVATION .......................................................................................... 9
PRODUCTION AND COST ANALYSIS.......................................................................................................................... 9
GOVERNMENT FUNDING ......................................................................................................................................... 11
OTHER COSTS AND UNKNOWNS ............................................................................................................................. 12
FUTURE STUDIES REQUIRED .................................................................................................................................. 13
CONCLUSION ........................................................................................................................................................... 14
AMF IN CANADIAN AGRICULTURE 3

PART I: PRODUCT DESCRIPTION

Introduction

As climate change continues to progress, it may have potentially catastrophic impacts on

Canadian agriculture, and so it is important to examine possible methods of mitigation. Yusa et

al. (2015) indicated that climate change will likely result in increased drought in Canada,

particularly in the southern and interior regions. Historically, droughts lasting ten or more years

have been observed only once per century; however, projections of the Palmer Drought Severity

Index (PDSI) indicate that the occurrence of such events will increase to up to three times per

century (Yusa et al., 2015). The annual mean temperature in Canada increased by 1.7°C between

1948 and 2016, which is around twice the global average (Government of Canada, 2019).

Furthermore, the average annual temperature is projected to continue to increase between 1.8°C

and 6.3°C by the end of the 21st century (Government of Canada, 2019). The threat of worsening

drought conditions is further exasperated by the world’s rapidly growing population. As noted by

Fess et al. (2011), the world’s population is expected to reach 10 billion people by 2050, which

will result in the need for more crop production than ever before.

Apples are a valuable Canadian crop. In 2018, apples accounted for 20.4% of the total

value of fruit in Canada at $233.6 million (Statistics Canada, 2019). They are also nutritious and

valuable to overall human health, providing antioxidants and fibre while being low in fats,

calories, cholesterol and sodium (Volk et al., 2015). As seen in Table 1, in 2017, the average

Canadian consumed 10.16 kg of apples, placing them as the third most consumed fruit behind

bananas and melons (Agriculture and Agri-Food Canada, 2019).

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Table 1 Amount of Fresh Fruit Consumed per Person in Canada (2017)

Fruit Kg per person

Bananas 15.70

Melons 10.88

Apples 10.16

Oranges 9.43

Note: Data for fresh fruit consumed per person obtained from Agriculture and Agri-Food Canada

(2019).

Unfortunately, apple production is likely to encounter many issues related to drought as

climate change progresses. Bolat et al. (2014) found that in apples, drought stress decreased the

shoot length, diameter, weight and budding success of the plant. As noted by Volk et al. (2015),

drought stress may also cause wilting, leaf yellowing, premature fruit ripening and increased

susceptibility to disease. All of these factors negatively affect the health of the plant and may

lead to reduced crop yield. This creates both economic losses for farmers and issues regarding

food security.

Arbuscular mycorrhizal fungi (AMF) can form mutualistic symbiotic relationships with

plants, in which water and nutrients, most notably inorganic phosphate, are transferred from the

soil to the plant, while organic compounds are transferred to the AMF (Berdeni et al., 2018). The

AMF Rhizophagus irregularis can colonize a variety of plants, including woody perennials such

as orchard crops (Berdeni et al., 2018).

Innovation and its Benefits

Although climate change is a serious issue, it presents an incentive for new technologies

and innovations to be developed. The use of the AMF Rhizophagus irregularis in commercial
AMF IN CANADIAN AGRICULTURE 5

apple orchards in Southern Ontario has the potential to mitigate the effects of drought by

increasing the uptake of water and nutrients from the soil. AMF are found naturally in many

soils, but by deliberately increasing the concentration of AMF present, it can be used as a tool to

improve Canadian agriculture in the face of climate change. This would serve to reduce drought

stress on apple trees during dry seasons or in times when water is scarce, which is likely to occur

more frequently as a result of climate change (Yusa et al., 2015). Previous research regarding the

effects of AMF on crop production is promising. Berdeni et al. (2018) found that AMF

application led to greater disease resistance in apples. Additionally, Ceballos et al. (2013) found

that the application of AMF led to increased yields in cassava. The alleviation of drought stress

in apple trees would help to prevent reduced crop yields and thus promote food security while

also preventing economic loss to Canadian farmers.

Although, as noted by Ceballos et al. (2013), the potential benefits of using AMFs in

commercial agriculture have been known for many years, AMF are still not used in agriculture

on a large scale; therefore, this would be a new innovation in Canadian agriculture. Although a

reduction in drought stress would be the primary goal when evaluating the potential of AMF

usage, there are also other notable benefits that AMF may provide. Because AMF can increase

the uptake of nutrients from the soil, they may be able to reduce reliance on some chemical

fertilizers (Thirkell et al., 2017). This would be very beneficial as chemical fertilizers are

generally quite costly, and the minerals required to make them are a finite resource that will

eventually be depleted (Fester and Sawers, 2011). Overall, the use of AMF in commercial apple

orchards has many potential benefits and could help mitigate the negative effects of drought

stress caused by climate change.

AMF IN CANADIAN AGRICULTURE 6

PART II: PRODUCT IMPLEMENTATION

Potential Supplier

Since AMF are not currently used in agriculture on a large scale, there are no Canadian

suppliers who sell Rhizophagus irregularis in large enough quantities; however, Symplanta is a

German research laboratory that could serve as a supplier, as they offer larger orders of inoculum

for agricultural purposes upon request and ship worldwide. The AMF is produced in vitro and

shipped in a powdered form (Symplanta 2019).

Contact Information of Potential Supplier

Transportation

The largest transportation cost would be shipping the AMF from Germany to Ontario.

Table 2 shows the estimated cost of shipping from Darmstadt, Germany to major cities in

Southern Ontario.

Table 2 Cost of Transport from Darmstadt, Germany to Major Cities in Southern Ontario

Destination Cost/kg (CAD)

Toronto 173

Hamilton 174

Waterloo 173

Guelph 172
AMF IN CANADIAN AGRICULTURE 7

Ottawa 180

Average 174.4

Note: Cost calculated from FedEx (2019).

The following figure attempts to demonstrate the entire chain of production from supplier to final

product.

Transport of
Apples sold at
powdered
AMF used to supermarkets,
AMF from
Supplier innoculate Apples farmers'
Darmstadt,
(Symplanta) apple Harvested markets or
Germany to
orchards other retail
Southern
locations
Ontario

Figure 1 Production Process from Supplier to Final Product

Evaluation of Marketing Strategies and Opportunities

While the practice of applying chemical fertilizers has been beneficial to agriculture, as

noted by Fester and Sawers (2011), it is well documented that the current rates of application are

neither environmentally nor economically sustainable. This is due to the growing price of energy

and the depletion of rock-phosphorus, which is a finite resource (Thirkell et al. 2017). As a result

of this depletion of natural resources, many consumers have a negative perception of fertilizer

use (Campbell et al., 2012). Thirkell et al. (2017) indicated that because of their ability to

increase nutrient absorption, AMF have the potential to reduce the use of chemical fertilizers

without compromising crop yield. As noted by Honkanen et al. (2007), many consumers choose

to buy organic food, often at higher prices, because it is perceived to be more environmentally

sustainable. Similarly, a possible marketing strategy would be to target the market of organic

consumers by emphasizing how apples grown using AMF require less use of chemical fertilizers
AMF IN CANADIAN AGRICULTURE 8

than those grown without. This type of marketing would likely appeal to the niche market of

consumers who prefer organic products; however, as noted by Agriculture and Agri-Food

Canada (2018), apples are one of the most popular fruits consumed in Canada, and apples

produced using AMF will appeal to most consumers regardless.

In addition to appealing to consumers, the idea of apples grown with AMF must appeal to

producers so that they will invest in it. Similar to the strategy of targeting consumers of organic

products, organic farmers are not able to use chemical fertilizers and must rely on other methods.

As such, the increased nutrient absorption presented by AMF usage, particularly with regards to

inorganic phosphorus and nitrogen may be especially attractive (Thirkell et al., 2017); however,

appealing only to organic apple farms in Southern Ontario would limit the market considerably.

In addition to emphasizing the potential of AMF to prevent reduced crop yield due to drought, it

is also possible to appeal to conventional apple farmers by emphasizing the potential to reduce

the amount of chemical fertilizer required, as it is a very costly input (Thirkell et al., 2017).

Additionally, the strategy of targeting the organic consumer market could also allow the apples

grown using AMF to be sold at a slightly higher price point, which may serve as another

incentive for producers to invest in this innovation. Since AMF are not currently used in

agriculture, there is no regional or global competition.

Evaluation of Export Potential

Canada exports approximately 35,000 metric tonnes of apples each year (Agriculture and

Agri-Food Canada, 2019). Although it is the fruit with the greatest marketed production, apples

rank fourth in Canadian fresh fruit exports, indicating that most apples are sold domestically

(Agriculture and Agri-Food Canada, 2019). As noted in Table 3, most of Canada’s fresh fruit
AMF IN CANADIAN AGRICULTURE 9

exports are to the United States, although a large quantity is also sent to Germany and Japan

(Agriculture and Agri-Food Canada, 2019).

Table 3 Top Canadian Fresh Fruit Export Destinations (2017)

Country Volume (Metric tonnes)

United States 192,478

Germany 16,026

Japan 10,584

China 8,662

Note: Data is from Agriculture and Agri-Food Canada (2019).

On a global scale, Canada lags far behind the top producers and exporters of apples, such

as the United States which exports 1,037,000 metric tons of apples every year (United States

Department of Agriculture, 2019). Furthermore, as noted by Agriculture and Agri-Food Canada,

(2019), the value of Canadian exports of fresh fruits has decreased in recent years, down 12.6%

between 2015 and 2017. Although apples are not currently a large export commodity for Canada,

the increased productivity and risk-prevention presented by AMF usage could help Canada to

increase its exports. Apart from this, as fresh fruit is not a significant export for Canada, the use

of AMF in apple orchards is unlikely to affect exports.

PART III: CRITICAL ANALYSIS OF INNOVATION

Production and Cost Analysis

It is difficult to calculate precisely the number of spores that would be required to

inoculate each tree because, as indicated by Thirkell et al. (2017), many biotic and abiotic
AMF IN CANADIAN AGRICULTURE 10

interactions must be accounted for. Plenchette et al. (2004) found that factors such as soil type,

fertilizer and fungicide use, light levels and tillage practices all impact the effectiveness of AMF;

therefore, trials would have to be carried out in order to better understand the number of spores

required per tree and the ways in which environmental factors may affect these amounts. If too

few spores are applied it may result in low rates of colonization, but if excess spores are applied,

then the material will have been wasted. To maximize the profitability of this innovation, the

optimal application must be calculated; however, as this is currently a very difficult process,

AMF are not as cost-effective as they otherwise could be. To create a rough cost estimate despite

these challenges, the recommended quantity of application for lettuce provided on the supplier’s

website can be used. Symplanta (2019) recommends roughly 40 spores/mL of soil to achieve 50-

60% colonization. Although prices may vary for bulk purchases, it costs approximately $2580 to

purchase 10 million spores (Symplanta 2019). If it is assumed that each tree requires at least 60L

of soil, then approximately 2.4 million spores would be required per tree. According to the

Ontario Ministry of Agriculture, Food and Rural Affairs (2019), the average orchard size in

Ontario is 20 acres, with an average density of 400-600 trees/acre. This means that there are

8000-12000 trees per orchard, requiring a total of 19-24 billion spores. The resulting cost would

be approximately $612 per tree or $244,800 to $367,200 per orchard.

Table 4 Number of Spores and Cost Required to Colonize Apple Trees

Number of Trees Spores Required (Millions) Cost (CAD)

1 2.4 612

400 (Small Orchard) 19000 244,800

600 (Large Orchard) 24000 367,200

AMF IN CANADIAN AGRICULTURE 11

Another issue is that in years in which there is no drought, producers will not receive the

intended benefit from this innovation, which may deter investment. Despite the initial costs, in

addition to the drought resistance provided by AMF, other benefits may make the investment

more reasonable. AMF may reduce the required input of costly chemical fertilizers due to their

ability to naturally increase the uptake of inorganic phosphorus and other nutrients from the soil

(Thirkell et al., 2017). This effect may allow producers to save on fertilizer costs. In addition, if

AMF are able to reduce chemical fertilizer use, producers would likely be able to sell their

products at a slightly higher price point, because, as noted by Honkanen et al. (2007), many

consumers are willing to pay more for products that are perceived to be environmentally

friendly, and most people have a negative perception of chemical fertilizer usage (Campbell et

al., 2012).

Overall, this innovation is a costly investment, and the current price point is probably not

realistic for most producers outside of a niche market; however, if funding was put towards

further research regarding cost-efficient production of AMF, it would reduce the initial cost and

allow this innovation to become more widespread.

Government Funding

Due to the high initial cost of this innovation, government funding is essential for any

chance of success. The Canadian government offers a wide variety of programs that provide

financial support to the agricultural sector. One such program is the AgriInnovate program,

which offers loans of up to 50% of eligible costs, to a maximum amount of $10M, to applicants

who are working to create innovative products that increase productivity or promote

sustainability in the agricultural sector (Agriculture and Agri-Food Canada, 2019). The
AMF IN CANADIAN AGRICULTURE 12

innovation of using AMF in apple orchards would be eligible for this program as it would

increase productivity by preventing complications resulting from drought, as well as promote

sustainability due to its potential to reduce the need for chemical fertilizers (Thirkell et al., 2017).

Another program is the AgriRisk Initiatives, which provides financial assistance to applicants

who are developing agricultural risk management tools (Agriculture and Agri-Food Canada,

2019). Using AMF in apple orchards would reduce risks associated with drought, and so the

innovation would likely be eligible for this program. Funding received from these programs

could be used to conduct further research to improve and optimize the effectiveness of AMF use.

Additionally, a portion of the funds could also be used to help subsidize a portion of the initial

costs for producers who wish to inoculate their orchards with AMF. This would help encourage

other producers to invest in AMF, especially those who may be skeptical before seeing results.

Other Costs and Unknowns

Because the use of AMF in agriculture is a novel innovation, many factors are still

unknown. For example, some common agricultural processes have been found to have negative

effects on AMF, which may cause complications. As noted by Cram and Dumroese (2012), some

fungicides may suppress the development of AMF, and high rates of fertilizer application,

especially those high in phosphorous have also been associated with reduced AMF development.

This presents a significant barrier, as AMF usage becomes far less viable if they are not

productive when used alongside other common agricultural practices. It is clear that for the use

of AMF to become widespread in agriculture, further research must be funded. The cost of

conducting this research and the cost of the related equipment and lab space has not been

presented.
AMF IN CANADIAN AGRICULTURE 13

Future Studies Required

Although the use of AMF in apple orchards has potential, the innovation would benefit

greatly from future research in certain areas. Firstly, most of the pre-existing research concerning

the effects of AMF on crop yields has been carried out in controlled environments, rather than as

field trials. Because of this, they may fail to consider various important biotic and abiotic

interactions that impact the effectiveness of AMF (Thirkell et al., 2017); therefore, to properly

evaluate the potential of AMF in commercial agriculture, future research should include more

field trials.

As well, more research should be conducted regarding the effects that modern

agricultural processes have on AMF. As noted by Fester and Sawers (2011), low host diversity

and a high degree of soil disturbance due to tillage are common in modern agricultural systems

and may negatively affect the effectiveness of the AMF. The application of fungicides and

fertilizers that are high in phosphorus may also reduce the effectiveness of AMF (Cram and

Dumroese, 2012). Future studies that examine how AMF are affected by these agricultural

practices are essential to properly evaluate the potential of AMF in agriculture. It would also be

useful to explore the possibility of developing AMF that are resistant to the effects of agricultural

practices or environmental conditions that may otherwise impact their effectiveness. Similarly,

further research concerning the possible development of AMF that are adapted specifically to

thrive in the conditions presented by the soil types and environments of Southern Ontario would

also be beneficial.

Additionally, as noted by Liu and Luo (1994), it is difficult to calculate the optimum

concentration of inoculum required to maximize inoculation potential. The application of too

little inoculum would result in low rates of colonization, and the application of excess inoculum
AMF IN CANADIAN AGRICULTURE 14

would result in wasted material (Fester and Sawers, 2011). Further studies to develop an

effective and accurate method of calculating the optimum AMF concentration for apple trees

would be greatly beneficial. Finally, future research should be conducted to develop more cost-

efficient manners of production for AMF. It is currently quite costly to purchase AMF inoculum,

which presents a significant barrier. Cheaper production would mean that more producers could

affordably introduce AMF to their orchards and allow the innovation to become widespread

without reliance on government funding.

Conclusion

In conclusion, the use of AMF in Southern Ontario apple orchards is a promising

innovation that, with further development, could provide an excellent opportunity to improve

Canadian agriculture. Although this innovation could provide many benefits, it is currently too

costly to be realistic. If more research was conducted regarding the ability to produce AMF more

cheaply and efficiently, it would result in a more realistic price point, allowing the innovation to

become more accessible and widespread. Several government funding initiatives could help fund

further research into the production of AMF. Research should also be conducted to provide a

better understanding of how AMF are affected by various biotic and abiotic environmental

factors and common agricultural practices. Overall, the use of AMFs in commercial apple

orchards in Southern Ontario is an innovation that could prevent reduced crop yields that may

otherwise occur due to a lack of availability of nutrients and water in times of drought; however,

without government funding, the project is currently too costly to be realistic.

AMF IN CANADIAN AGRICULTURE 15

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