Cost of pesticide R&D increases, reports CropLife Latin America

Date:10-16-2024

According to CropLife Latin America, the cost of research and development (R&D) for a new active ingredient in crop protection has doubled over the past 20 years. 

The organization's study compared investments made by companies in this sector between 2014 and 2019 and analyzed historical data since 1995.

The R&D cost for a pesticide reported by CropLife Latin America in 2014 reached US$301 million, double the amount compared to 1995, when it was $152 million. Moreover, the time to bring a new active ingredient to market has also increased: While it took 8.3 years in 1995, it reached 11.3 years in 2014. By 2019, the research and development time extended to 12.3 years.

According to the study presented by CropLife Latin America, the cost increase was concentrated in different areas over the last twenty years. The most evident cost increase was the investment in toxicological and environmental chemistry research, followed by biological development and product registration costs.

"Between 2010 and 2019, the average cost of chemistry (synthesis and formulation) in the research phase increased by 31.6% to $64 million, becoming the largest single cost in R&D for a new agrochemical. The next highest cost is field testing (full-scale and registration) in the development phase, which increased by 23.9% to $58 million," the study says. In turn, the registration costs for a new product in the market have more than tripled in the last 20 years. While in 1995 it was $13 million, in 2014 it reached $42 million. 

In addition to registration, this category includes costs for monitoring, product management, and registration maintenance, covering stewardship activities, responsible product management training, and programs for the proper disposal of empty agrochemical containers.

"Increases in costs associated with product monitoring and handling represent the most significant increases compared to the research conducted in 2014, increasing by 333.2%," said the CropLife Latin America study. This international non-profit trade organization comprises six companies and a network of 27 associations in 18 Latin American countries.

"Investment in research and development, R&D, demonstrates the Crop Science Industry's commitment to innovation that translates into bringing better products to market, that is, safer for health and the environment while being more efficient in protecting crops against damage from pests, weeds, or diseases," CropLife Latin America said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)