Crop protection challenges as Bayer closes Hastings research site - Dr Jacqueline Rowarth

The development of new chemicals has enabled more people to be fed with fewer inputs. Photo / Duncan Brown

THE FACTS

• Bayer Crop Science is closing its Hastings research site.
• The 2019 NZIER report estimates New Zealand’s economy would lose between $7.5 billion and $11.4b without crop protection products.
• AgResearch has estimated that pasture pests cause economic losses of up to $2.3b.

Twenty years ago, the news that Bayer was buying Aventis CropScience from its owners, French-based Aventis and German-based Schering, was regarded as a boost for New Zealand.

A bigger range of products was envisaged, giving more options for targeting weeds and pests in agriculture.

Increased understanding of the interactions of biology, physics, chemistry and the environment has enabled huge progress in targeting specific weeds and pests over the years.

This has allowed decreased chemical use and improved outcomes.

The development of new chemicals, which have enabled more people to be fed with fewer inputs, is subject to rigorous research to ensure safety.

Phillips McDougall calculated in 2018 that the world’s leading manufacturers of crop protection products invested more than $3 billion annually into research and development of new products.

The overall research and development investment by the major research-based companies has been 7%-10% of annual sales over the last 50 years.

“With this high level of investment, companies have continued to develop and improve the efficacy and safety profiles of products to ensure high and enhanced regulatory standards are met and farmers are provided with effective tools to provide nutritious, safe and affordable food,” Phillips McDougall said.

The research and development overseas means that New Zealand testing can focus on the unique conditions and native flora and fauna here.

The 2019 report from the New Zealand Institute of Economic Research estimated that, without crop protection products, New Zealand’s economy would lose between $7.5b and $11.4b.

KPMG has conservatively estimated the economic value of the animal health industry to be $430 million in revenue with approximately 1100 employees, “but importantly, the industry underpins the production of many interconnected industries that collectively generate the majority of New Zealand’s export revenue”.

In sobering research, pasture pests have been estimated by AgResearch to cause economic losses of up to $2.3b, showing the need for the development and use of new products.

Given New Zealand’s reliance on the primary sector and hence on the tools it can use to combat pests and diseases, the news that Bayer Crop Science is closing its Hastings research site and stopping work on any new crop product trials is deeply concerning.

The problem for the industry is that the regulation process for new products makes it difficult to justify the time and the expense required to undertake research projects here.

Bayer is not the only company that is unhappy.

Dr Liz Shackleton, chief executive of Animal & Plant Health NZ, has stated that many multinational R&D companies have made it clear they have lost confidence in the approvals process for new trials and products in New Zealand.

A reduction in the number of applications is evidence.

Listen to Hamish McKay interview Dr Jacqueline Rowarth on The Country below:

She also says the industry remains committed to change, providing regulators with data, solutions and offers of engagement to support.

“Our future depends on it,” she says.

Whether or not new products can be used in New Zealand is the mandate of the Environmental Protection Authority.

Sapere’s 2023 report explained the function of the EPA and its current state.

“New Zealand invested approximately $3.9m in 2022-23 to assess applications to manufacture or import hazardous substances and to reassess the safety of already approved chemicals.”

This level of funding is considerably less than in other countries. Hence, the ever-increasing delays in approvals.

The fact that “New Zealand spends only 7% of what Australia does on assessing hazardous substances, 37% of what Australia spends on a per capita basis, and 45% on a GDP-adjusted basis” speaks volumes.

Last week, the EPA sent out a newsletter setting goals to cut the waiting list for new products.

But “increasing the number of new active ingredients and higher complexity assessments, with the aim of completing nine of these assessments by 30 June 2026″ indicates the scale of the problem.

What is the opportunity cost to farmers and growers of waiting another year?

Dr John Caradus, president of the NZ Institute of Agriculture and Horticultural Science, and principal scientist for Grasslanz Technology, says it’s huge.

“The fear is that these multinational companies won’t bother to even send any chemicals or, if they do, the cost may be prohibitive.

“New Zealand must align the cost of, and time taken for, effective regulation with our small market size.

“Otherwise, we will be left high and dry with few options to manage weeds, pests and diseases within the primary sector, which, after all, underpins our economy.”

The message is clear, in my view.

The EPA needs appropriate funding as well as regulatory change.

New Zealand’s future depends upon it.