SGS further expands its global presence and services

With the strengthening of the supervision on agrochemicals by governments around the world, and market demand becoming more specialized, premium and diversified, Contract Research Organizations (CROs) in the field of agriculture are continuously improving their innovation and research capabilities and expanding their service portfolios. Meanwhile, this industry is seeing more frequent mergers and acquisitions, along with enhanced collaborations. Emerging markets will certainly see more fierce business competitions. Recently, AgroPages invited SGS to share its respective development status, competitive advantages, challenges and strategies in emerging markets, as well as their investment programs in the future.

Development Status & Competitive Advantages

In recent years, CROs in the field of agriculture have maintained stability and have achieved impressive growth rates, mainly benefiting from increasing market demand, technical skills and high quality services. Diversification of service portfolios, increasing global coverage, driving innovation and research capabilities as well as exploring new businessareas are all necessary factors to ensure continuous development in a fiercely competitive market moving forward.

SGS:“Agriculture is a fast growing business. SGS has been operating in this field for more than 130 years, and continues to grow and develop both its services and its geographic reach.With many years experience in R&D, analytical chemistry, regulatory affairs/registration services and project management, we process laboratory and field studies within the scope of regulatory testing, such as efficacy, residue, biosafety, operator, consumer safety, environmental fate and behaviour of pesticides, as well as eco-toxicological testing.”

“In terms of our position and competitive advantages in the market, our network of facilities is unparalleled, its scope and expertise is unique. We have a presence in all major regions of the globe, some 140 countries, with a superb network of experienced and dedicated experts who operate in a globally consistent and reliable manner. With a global network of truly local expertise, we work with local, regional and global clients.”

Challenges &Strategies of Emerging Markets

Emerging markets are full of growth opportunities for CROs, while some factors, such as the lack of harmonized government supervision system, a deficiency of highly skilled local employees, complicated tax systems, as well as cumbersome labor laws, affect and restrict the expansion and development of CROs in these markets. However, these CROs are still exploring their own development path.

SGS: “SGS has always been able to plan for expansion into new markets. With regard to Brazil, for us, it is no longer an emerging market, but has already reached a certain level of maturity. For example, it has gone through the privatisation phase common to developed markets, such as the European Union and USA. Further east, our strategy has seen the development of agrochemical services for China and India. At present, we have research and development projects in both countries working pre and post homologation, as many of thecontract research elements are still managed by official entities.”

Investment Programs in the Future

CROs will execute expansion plans via M&A, cooperation, focusing on enriching of lab services and construction of wider field trial bases. Meanwhile, CROs will increase consultancy services for marketing and regulation compliance, to meet the clients demand. In addition to existing core services, EAS Group, Syntech and other service providers will expand their seeds/traits businesses.

SGS: “Innovation and demand for sustainable agriculture from clients and regulatory bodies around the world drive the industry, and SGS, to develop new services, technologies and techniques. To support clients in different geographic and climatic regions, working either fertile or less than ideal farmland, we deliver extensive crop management, precision farming and water management services. SGS will soon launch the first private and independent seed quarantine services, and laboratory, in Brazil. As the industry embraces new technologies we are also moving into the field of digital data management – enabling farmers to use readily available data to better understand the actions that should be taken and improve decision-making. Furthermore, the development and registration of biopesticides add to the wide range of service we provide – from field trials to regulatory services.”

“At SGS, we are always looking for strategic acquisitions to reinforce our presence, build on our expertise and to help reinforce our leadership position in key markets, as well as for specific expertise or innovation that has potential to be replicated across our network. We are also finding additional opportunities to expand our service portfolio.”