Regulation and welfare demands put pressure on research budgets, says Dow AgroSciences

UK - December 05, 2005

Rising costs of discovery and regulation along with changing crop production needs means the research focus of global agrochemical businesses is shifting from crop protection to solutions focused on human health and welfare, says Dow AgroSciences.

Speaking at the Dow annual media lunch, Head of Development and Registration, Anne Thompson, explained how times are changing for Dow AgroSciences, part of the world's largest chemical company.

The cost of research continues to rise and today, an average agrochemical business is investing some 7.5 % of its turnover into research.  However, the rising cost of regulation means that the way this money is divided up has changed considerably.

Existing product management accounts for 43% of R&D costs; within this, re-registration represents 18% of total R&D expenditure.  A further 25% of the R&D budget is devoted to maintenance of registration, including additional approvals of existing products; the discovery process accounts for the highest proportion of the overall R&D budget, 31% according to a study released recently by Phillips McDougall.

"Just 15 years ago, up to 75% of that investment would be in biology and discovery of new molecules," said Ms Thompson.  "In 2004, the industry statistics show that this has fallen to just 53% as the burden of regulation increases.  Regulators must ensure the protection of public health and the environment in a way that is proportional to risk and does not hinder economic growth.  We must all play our part in ensuring that we have a balanced approach to risk and continue to educate the public."

In the past year, two of Dow AgroSciences major products, mancozeb and chlorpyrifos, have completed their reviews under the EU's Annex 1.  For the company, it is good news at the end of a long and expensive exercise.

"We have spent millions in providing the data and evidence necessary to provide the independent experts scrutinising our products with the information they require," said Ms Thompson. 

"It will not stop there as we move forward to country registrations and Annex III.  These costs reflect the critical assessments that are made, largely to protect the consumer and the environment."

As well as defending existing products, Dow AgroSciences continues, through focused research to seek innovation.  The past year has seen the launch of its insecticide Tracer into the vegetable and fruit markets.  Based on spinosad, this is an insecticide that is meeting the needs of both food retailers and consumers for "natural" products.

Plant breeding will figure more in the Dow portfolio.  In the UK, the company already markets Nexera oilseed rape which crushes to produce the high oleic, low linolenic rapeseed oil Natreon.  Demand for this is growing from food processors keen to reduce saturates and transfatty acids.  

"This is just the first of a range of products from plant breeding programmes that will focus on delivering products to protect the health of the nation.  A recent study estimates that by substituting half the traditional vegetable oils used in the UK for frying and crisping would lead to a 5-6% reduction in saturates in the average diet, even more for young people who are high consumers of snack foods."

Dow AgroSciences are particularly committed to the UK.  The company still has a research station near Newbury which provides a unique opportunity, not just for trials concerning its own products, but also for issues such as game cover crops, field margins and other issues that will come increasingly important on farms across Europe.