The Argentine
government is revising its seed law and expects that the new seed law will
attract the multinational companies to increase their investment in
biotechnology business, so as to promote the development of the biotechnology
industry in Argentina
The new seed law
draft established by the National Seed Committee (CONASE) is submitted to a
temporary committee organized by Argentine Ministry of Agriculture. The
temporary committee's members are from the Farm Bureau and seed companies
producing transgenic products, and they 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 soybean
royalty payments problem. Argentine farmers generally use the new soybean seeds
generated from the old seeds bought from the seed companies without paying any
royalty so as to cut the planting cost, but the new law is to prevent farmers
from doing so, since this action has hurt many seed companies, thereby eroding
their willingness to invest in Argentine biotechnology business. Corn planting
area is the second largest in Argentina
Currently, the main
argument is how to implement the royalty payments for the seed companies in the
future. It is estimated that the new law will be continuously debated over the
next few months and the Ministry of Agriculture is optimistic that the Congress
may pass the draft at the end of 2012. "We've decided to push forward the
seed law draft in an effort to prompt Argentina
As the new seed law
will have the potential to improve the income from the seed royalty payments,
many multinational enterprises are optimistic about the future of the Argentine
biotechnology market.
Carlos Becco,
Director of Syngenta Soybean Department in Argentina ,
believes that the establishment of the new seed law is a good news for the
country, which not only helps his company increase the competitiveness in Argentina , but also creates more favorable
conditions for attracting new investment in Argentina
The new seed law will
help companies recoup their investment in a shorter period and improve
companies' willingness to invest in new programs, thereby promoting the
development of biotechnology. Among the biotechnology companies, Monsanto will
become the biggest beneficiary when the new seed law is officially launched.
Recently, transgenic soybeans planted in Argentina
As the new seed law
will be launched in the future, it is believed that the transgenic business in Argentina will recover, regaining the
competitiveness against Brazil
and even returning to the dominating position in South
America .
Before 2006, the
total authorized transgenic products in Argentina
surpassed Brazil , dominating
the biotechnology field in South America . But
in 2006, the Brazilian government established a country-level biotechnology
policy which redesigned the regulatory framework for transgenic application
process. This policy streamlined the application process and made the benefits
obtained by seed companies more reasonable. Thanks to Brazilian government's
action, biotechnology investment environment in Brazil
gradually became attractive and many multinational enterprises decided to
develop their biotechnology business in Brazil
instead of Argentina
In addition to the
multinational companies, Brazilian enterprises are also willing to invest in
biotechnology business under the favorable policy. For instance, an
imidazolinone tolerant soybean co-developed by Brazilian Agricultural Research
Corporation (Embrapa) and National Institute of Agricultural Technology (INTA)
now is at the final stage of testing and will be launched in the coming years.
Due to the lack of
the royalty protection in Argentina ,
the transgenic development in Argentina
has stagnated and is surpassed by Brazil Argentina
has approved a total of 27 events including corn, soybeans and cotton as of
Aug. 2012, compared with 33 in
Brazil Argentina has more maize
events approved than Brazil Brazil , versus 4
in Argentina
Source: South America Crop Protection Monthly Report 1209
Content
of South America Crop
Protection Monthly Report 1209：
GM crops help increase consumption of
pesticides in Brazil
Soybean seed in Brazil
Pesticide companies face difficulties in
registration in Latin America
Argentine seed law to be revised to attract
more biotechnology investments
Cheminova's Authority ® gets registration in Brazil
Proficol enters Peru
Ecuadorian government continues efforts to
control snail plague
Cassava pests may break out in Southern Brazil
Brazilian transgenic planting area to
increase by 12% in 2012/13
South America Crop Protection
Monthly Report , a monthly publication issued by CCM International on 31th of every month, offers timely update and close follow-up of South America 's Crop Protection industry dynamics,
analyzes market data and finds out factors influencing market development.
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