R&D costs soaring for agrochemical industry, says report

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By Martin Banks
- 25th February 2010
There is a lot of fear about the safety of food at present

Phil Newton

The cost of agrochemical innovation for R&D firms has risen by 68 per cent in the last 10 years, according to a new report.

The study says that the process leading to the authorisation of a new agrochemical product has become "complex, costly and time consuming".

There has been a "particularly steep rise" in the development costs of toxicology and environmental chemistry, it says.

One of the report's key recommendations is that in drafting future agriculture legislation the EU should "stick to a science-based regulatory framework and keep a close eye on food security".

The report, commissioned by the European Crop Protection Agency (ECPA) says it takes an average of 9.8 years between the first research tests and authorisation of agrichemical product.

This, it argues acts as a "restraint" on innovation in the sector.

The average number of products which make it through to the development stage has declined from an average of four in 1995 to only two in 2000 and 1.3 on average in 2005-08.

"Despite the EU's Strategy 2020 aspiration to 'grow innovation', the reality for our industry is quite the opposite," said ECPA's Phil Newton.

"It is becoming very hard to justify agrochemical R&D in the EU.

"At the same time, if we consider that the need for agricultural innovation is urgent and crucial to facing critical global challenges like food security, invasive species and climate adaptation, we can see that such a lengthy time line and high cost certainly impedes a rapid response.

"There is a lot of fear about the safety of food at present but our industry has become an easy target for whatever groups that wish to oppose what we are doing.

"The message we want to convey to EU policymakers is that future legislation for this sector should be based on science rather than on often unfounded fears."

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