Argentine seed law to be revised to attract more biotechnology investments


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Argentine seed law will be revised in the future in a bid to attract more biotechnology investments.

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Argentine seed law to be revised to attract more biotechnology investments

  1. 1. Argentine seed law to be revised to attract more biotechnology investmentsSummary: Argentine seed law will be revised in the future in a bid to attract morebiotechnology investments.Tag: GM crop, Rice, Pesticide, Fertilizer, RegistrationThe Argentine government is revising its seed law and expects that the new seed law will attractthe multinational companies to increase their investment in biotechnology business, so as topromote the development of the biotechnology industry in Argentina, according to CCM’sSeptember issue of South America Crop Protection Monthly Report.The new seed law draft established by the National Seed Committee (CONASE) is submitted to atemporary committee organized by Argentine Ministry of Agriculture. The temporary committeesmembers are from the Farm Bureau and seed companies producing transgenic products, andthey discuss some details of the draft at a meeting, but there is still no consensus so far.Unlike the current seed law, the new seed law draft is mainly focused on the transgenic soybeanroyalty payments problem. Argentine farmers generally use the new soybean seeds generatedfrom the old seeds bought from the seed companies without paying any royalty so as to cut theplanting cost, but the new law is to prevent farmers from doing so, since this action has hurt manyseed companies, thereby eroding their willingness to invest in Argentine biotechnology business.Corn planting area is the second largest in Argentina, but different from soybean seeds, cornspollination process dilutes the transgenic traits quickly and farmers need to buy corn seedsdirectly from the companies every year to enjoy the yield-enhancing benefits.Currently, the main argument is how to implement the royalty payments for the seed companiesin the future. It is estimated that the new law will be continuously debated over the next fewmonths and the Ministry of Agriculture is optimistic that the Congress may pass the draft at theend of 2012. "Weve decided to push forward the seed law draft in an effort to prompt Argentinato be a leader in food production," Agriculture Minister Norberto Yauhar said in a press release inAug. 2012. Although the new seed law will raise the farmers cost in planting soybean, the yield-enhancing benefits brought by the new transgenic soybean seeds such as the new productsmade by Monsanto and the promising future of soybean processing industry in Argentina willguarantee the farmers interest to some extent.As the new seed law will have the potential to improve the income from the seed royaltypayments, many multinational enterprises are optimistic about the future of the Argentinebiotechnology market.
  2. 2. Carlos Becco, Director of Syngenta Soybean Department in Argentina, believes that theestablishment of the new seed law is a good news for the country, which not only helps hiscompany increase the competitiveness in Argentina, but also creates more favorable conditionsfor attracting new investment in Argentina. The data statistics reflect the importance of the royaltypayments in biotechnology investment. According to the information of the seed industry, theR&D of a new event represents an average investment of USD136 million and an average term of13 years.The new seed law will help companies recoup their investment in a shorter period and improvecompanies willingness to invest in new programs, thereby promoting the development ofbiotechnology. Among the biotechnology companies, Monsanto will become the biggestbeneficiary when the new seed law is officially launched. Recently, transgenic soybeans plantedin Argentina are mainly the Roundup Ready (RR) soybean produced by Monsanto.As the new seed law will be launched in the future, it is believed that the transgenic business inArgentina will recover, regaining the competitiveness against Brazil and even returning to thedominating position in South America.Before 2006, the total authorized transgenic products in Argentina surpassed Brazil, dominatingthe biotechnology field in South America. But in 2006, the Brazilian government established acountry-level biotechnology policy which redesigned the regulatory framework for transgenicapplication process. This policy streamlined the application process and made the benefitsobtained by seed companies more reasonable. Thanks to Brazilian governments action,biotechnology investment environment in Brazil gradually became attractive and manymultinational enterprises decided to develop their biotechnology business in Brazil instead ofArgentina.In addition to the multinational companies, Brazilian enterprises are also willing to invest inbiotechnology business under the favorable policy. For instance, an imidazolinone tolerantsoybean co-developed by Brazilian Agricultural Research Corporation (Embrapa) and NationalInstitute of Agricultural Technology (INTA) now is at the final stage of testing and will be launchedin the coming years.Due to the lack of the royalty protection in Argentina, the transgenic development in Argentinahas stagnated and is surpassed by Brazil. According to the statistics, adding the new soybeanand corn from Dow AgroSciences approved by the Argentine government, Argentina hasapproved a total of 27 events including corn, soybeans and cotton as of Aug. 2012, comparedwith 33 in Brazil. Argentina has more maize events approved than Brazil, 20 versus 18. As forsoybeans, 5 events have already been authorized in Brazil, versus 4 in Argentina.
  3. 3. Source: South America Crop Protection Monthly Report 1209 of South America Crop Protection Monthly Report 1209:GM crops help increase consumption of pesticides in BrazilSoybean seed in Brazil may be in short supply in 2012/13Venezuela to import more rice by exporting ureaBrazil sells rice in stockBrazil to invest USD18.9 billion in fertilizer industryPesticide companies face difficulties in registration in Latin AmericaBrazil extends credit limit for corn plantingArgentine seed law to be revised to attract more biotechnology investmentsCheminovas Authority ® gets registration in BrazilProficol enters Peru pesticide marketEcuadorian government continues efforts to control snail plagueArgentina starts new round of control for grapevine mothsCassava pests may break out in Southern BrazilBrazilian transgenic planting area to increase by 12% in 2012/13South America Crop Protection Monthly Report , a monthly publication issued by CCMInternational on 31th of every month, offers timely update and close follow-up of South AmericasCrop Protection industry dynamics, analyzes market data and finds out factors influencing marketdevelopment.About CCMCCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff ofmore than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis,Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its newproprietary product ValoTracer.Please visit for more informationGuangzhou CCM Science & Technology Co., Ltd.17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou510070, ChinaTel: 86-20-37616606
  4. 4. Email: econtact@cnchemicals.comSource: