US Generic Companies See Opportunities for Growth

The US crop protection market continues to grow a nominal rate of 2% to 3% per year, with fungicides, plant health and seed treatments largely contributing to the growth.

Multi-nationals are “aggressively” looking for ways to bundle products and find new channels in the marketplace. However, with large companies beginning to focus on seeds and traits, generic companies are increasingly seeing growth opportunities arise.

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The move to submit more pre-mix patents are direct efforts to extend the life of formulations and their proprietary positions in the market, said Spencer Vance, president of Albaugh Inc., at the 2012 Adjuvants and Inerts Conference, an event organized by the US Council of Producers and Distributors of Agrotechnology.

Because of this, the generic life of off-patent crop protection products has steadily decreased. Before, a company could maintain sales of a generic product for five to seven years. Currently, the lifespan of generics are typically one to three years.

While multi-nationals are submitting pre-mix patents and placing emphasis on research and development in seeds and traits, they are also increasing their focus on 2,4-D and Dicamba tolerance.

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“Major producers are slowly exiting the chemical industry and are leaving it to generic companies to pick it up,” said Dr. Phil Westra, Weed Scientist at Colorado State University. “Generics have a lot of opportunity because of the kickback from major manufacturers.”

This opportunity is a “huge responsibility” for the generic industry as companies now have to find solutions to glyphosate-resistant weeds, said Jake Brodsgaard, Herbicide Project Manager for Maketeshim Agan of North America.“We are now being looked at to find solutions.”

Globally, the agriculture industry is now experiencing “Roundup Hangover” in which farmers that have been “coating the world” with glyphosate are now feeling the effects, he said.

Solutions to glyphosate resistance include the introduction of new (and old) products and formulations, partnerships, research and education, Brodsgaard said.

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