April 20, 2016

Every crop protection product that reaches the market costs US$286 million and takes 11 years of research and development to ensure the highest safety and efficacy standards, according to a new report.

The report found the industry spent a total of US$2.6 billion on new innovations in 2014.

CropLife International (CLI), CropLife America (CLA) and the European Crop Protection Association (ECPA) commissioned Phillips McDougall, an independent consultant specialising in market analysis for the agrochemical industry, to research the cost of bringing a new active ingredient to market.

The report found the cost of bringing a new product to market has increased by 55% since the turn of the century. Much of the increase in cost can be attributed to a rise in the volume and complexity of environmental safety and toxicology data required by regulatory bodies to ensure products are safe.

Meanwhile, the time commitment to bring a product to market has increased from eight years in 1995 to more than 11 years now, reflecting the rigorous research and development phase and delays in regulatory decisions.

"The crop protection industry continues to invest heavily in cutting edge innovations to help farmers around the world to protect their crops from pests," Howard Minigh, CEO and president of Croplife International, said. "Given the growing cost, the report demonstrates why we need predictable and risk-based regulations alongside robust intellectual property rights to give companies the confidence to continue to invest."

"Crop protection products have never been more thoroughly tested and screened to ensure product safety, which is why regulators must ensure that the process for review does not change at a moment's notice," Jay Vroom, president and CEO of CropLife America, remarked. "The US established two governing Acts, FIFRA and FQPA, that guarantee health and safety of the public, while ensuring a clear path for pesticide registration. The recent regulatory decisions have strayed from these guidelines by depending on less stringent scientific standards, causing concern about the ability for companies to bring new, more environmentally sound technologies to the market."

"Our industry is founded in science, and as this report demonstrates, it takes years and significant resource and scientific expertise to get even close to bringing one of our innovations to market, however the increased politicisation of science in Europe is making that process more and more difficult," Jean-Charles Bocquet, director general of the European Crop Protection Association, said.

- European Crop Protection Association