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Pesticide registration in Brazil: clarifying the numbers
Mar. 26, 2019
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Brazil
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As everyone knows in 2018 the Brazilian Ministry of Agriculture approved a record number of pesticide registrations, totaling 450. Notably, this was the result of an effort made by the regulatory authorities.
This record created great excitement and apprehension in the local and international markets.
The excitement resulted from the increased expectations of companies that had ongoing registration processes, especially Chinese and Indian companies, which depended on these approvals in order to access the most sought after market in the world.
The apprehension resulted from the fact that these numbers could mean a trend in streamlining process evaluations and, thus, in the medium term an unparalleled number of approved registrations would reach the market, precisely from the Chinese and Indian companies. More registrations, more players, cheaper prices, more competition.
It is worth highlighting that China is the largest and most important manufacturer of agrochemicals in the world and the main exporter to Brazil. India is also among the main exporters, having the differential of being the longest in the market, with a more significant presence and more experience.
It can be said that the Brazilian legislation of agrochemical registration is the most complex in the world. Reasons for uncertainties, lawsuits, disputes.
Furthermore, it has been disclosed, mainly abroad, that registrations may be approved within 1 to 3 years – which is not true. The numbers alone show a much different scenario.
According to the survey elaborated by AllierBrasil, 70% of the registration of formulated products approved in 2018 required up to 6 years or more – after the application of the registrations. Considering that the formulated products are only evaluated after the approval of their respective technical products, the time taken for the technical product to be approved should also be added.
The same survey showed that in the approvals of equivalent technical products, 53% of the processes were approved within 6 years or more after requesting the applications.
The data above includes the lawsuits against the registrant agencies that some companies chose in order to streamline the start of the evaluations, which have contributed to the reduction for the approval. Nevertheless, the average time for obtaining the registration remained within a period that was too long.
Through this tool, the lawsuit against regulatory agencies showed that 45% of the approved processes took an average of 6.2 years from the start of the registration process to its approval. For the other 55% of the approved registration processes, the average was 2.5 years. This leads to the conclusion that more companies, anxious to obtain their registrations, wait less time to file lawsuits.
In case of rejections of registration applications, the time is much longer. The average time for evaluation conclusion and respective publication of the rejection is 7.2 years for 93.75% of the processes, after the registration application.
This scenario makes the registration of products the main access barrier to the most important agrochemical market in the world.
Meanwhile, other actions to shorten the approval period of the registrations are on the agenda, such as products considered phytosanitary priorities, whose list with the trademarks should soon be published by the Ministry of Agriculture; and the Project of Bill Act No. 6299 which should be analyzed by the National Congress very likely in the second semester of 2019, as commented by the rapporteur of the Project, Congressman Luiz Nishimori, at the 14th AllierBrasil Forum held in February in São Paulo.
About AllierBrasil
For 20 years AllierBrasil has dedicated actively in the promotion of the Brazilian agribusiness abroad, especially in China and India. This resulted in the interest of foreign and local companies to participate in this promising business that can significantly reduce the prices of inputs - provided they have the approval of their registrations.
For 20 years AllierBrasil has dedicated actively in the promotion of the Brazilian agribusiness abroad, especially in China and India. This resulted in the interest of foreign and local companies to participate in this promising business that can significantly reduce the prices of inputs - provided they have the approval of their registrations.
Continuing with the agribusiness disclosure program, in May AllierBrasil is taking an entourage of Brazilian professionals connected to the agribusiness to visit agrochemical factories in China with the purpose of developing technical-commercial partnerships, and will jointly organize the 15th AllierBrasil Forum in Nanjing, China, on May 30.
Source: AllierBrasil
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