LATIN AMERICA 2019 AGROWAGROW

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LATIN AMERICA 2019 AGROWAGROW
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                     Agribusiness intelligence

Latin America 2019
LATIN AMERICA 2019 AGROWAGROW
LATIN AMERICA 2019 AGROWAGROW
Agrow
                                                                                                                                                              Agribusiness intelligence

                                                                   Contents
                                                                   02	Latin American agchem sector sees
                                                                       turning point from long slump

                                                                   06              Latin America back to leading GM crop adoption

                                                                   08	Interview: Crop protection industry in South America
                                                                       sight a turning point due north

                                                                   17	Latin America-related mergers, acquisitions
                                                                       and deals in 2019

                                                                   19	New active ingredients registered or launched
                                                                       in Latin America in 2019

                                                                   22	
                                                                      Brazil Ag Ministry defends agchem use
                                                                      and product approvals

                                                                   23              Brazil Anvisa confirms regulatory changes on agchems

                                                                   24              Brazil Ag Ministry sets agchem priority list

                                                                   24              Brazil states’ MPs seek neonic bans

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www.agrow.com                                                                                                                                              Agrow | Latin America 2019 /                    1
LATIN AMERICA 2019 AGROWAGROW
Latin American agchem
                                   sector sees turning point
                                   from long slump
                                   Signs of a rebound in the Latin American         country market for crop protection sales,
                                   market were confirmed earlier this year          and last year’s business brought the
                                   when Phillips McDougall published its            country out of a three-year slump
                                   figures for the crop protection market in        exacerbated by a glut of inventory in the
                                   2018. The region led global growth with an       distribution channel. The market fell to
                                   11.1% increase in the market. The financial      $8,863 million in 2017 from a high of
                                   performance of the top six companies             $11,736 million in 2014. Another reason
                                   within the region during the first quarter       attributed to the decline was the
                                   further confirmed that the resurgence            insecticide market suffering from the rise
                                   continues into this year - all top companies     in adoption of Bayer/Monsanto’s
                                   registered organic growth in Latin America.      genetically modified insect-resistant and
                                                                                    glyphosate-tolerant Intacta RR2 Pro
                                   Phillips McDougall reported that sales in        soybeans. But that was partly offset by
                                   the region rose by some 11% to $14,181           increased prices.
                                   million last year. The rise came after three
                                   consecutive years of decline after the peak      Last year, consultancy Datagro, which
                                   of $16,122 million in 2014.                      collected data from soybean-growing
                                                                                    states such as Parana and Rio Grande do
                                   Last year’s growth came largely from             Sul, calculated that fewer bags of soybean
                                   Brazil, which grew by 13.4% to 10,053            produce would pay for the major required
                                   million. The country market benefited from       inputs such as seed, agrochemicals and
                                   reduced inventory levels driving product         fertiliser. The situation in the year to
                                   purchases and higher product prices. The         August was trending in growers’ favour.
                                   country remains the world’s largest              That was despite a rise in agrochemical

                                   Crop protection market in Latin America
                                   Year                           2014            2015         2016         2017        2018
                                   Market value ($m)             16,122      15,525          13,287       12,764       14,181
                                   Source: Phillips McDougall.

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LATIN AMERICA 2019 AGROWAGROW
prices, as the value of soybeans had         biological products, had been approved by      the national health surveillance agency,
grown faster.                                mid-June.                                      the Anvisa. The latter subsequently issued
                                                                                            counter proposals to accelerate toxicology
The country’s biologicals market is          The Ministry insists that the increasing       assessments.
trending higher at a far greater rate. The   rate of approvals is due to improving
biologicals crop protection market grew      efficiencies in the registration processes     Draft legislation PL 6299/02 from Luis
by 77% last year to R$464.5 million ($123    that have been implemented in recent           Nishimori MP and a group of draft bills on
million at the current rate) among           years. That includes moving to electronic      a similar theme, such as PL 3200/15, are
associates of the Brazilian biological       and fewer paper-based submissions,             expected to go to a plenary vote of
control enterprises association, the         sources say. The Ministry also says that       Parliament later this year. Elections late
ABCBio, according to Ministry of             approvals mean fewer monopoly                  last year returned more MPs with the
Agriculture. The figures cited associates    provision of recently patent-protected         backing of the agribusiness sector, many
that reportedly account for 70% of the       active ingredients.                            of whom are expected to support the bill.
market. The Ministry notes that the rise
contrasts with just 17% growth globally.     The advances have led to controversy           Late last year, the country’s three
Another study late last year found that      from MPs, with one seeking to reverse the      competent authorities agreed a deal with
almost two out of five of Brazilian          approval of some 60 products, leading the      the Brazilian institute of cotton grower
growers used biological crop protection      Ministry to defend the rise in the form of     association, the IBA, to create a new and
products for at least part of their crops,   FAQs on its website.                           unified agrochemicals approval system. It
but more than half (57%) were unaware                                                       would provide co-operative technical
of the technology.                           The Ministry of Agriculture has determined     assistance in developing the integrated
                                             which pesticide products should get            system on pesticides to facilitate a
Brazilian and Paraguayan authorities have    priority analysis in 2019. The 40 selected     reduction in registration times for new
agreed to co-operate on crop health          ais come from 22 companies. It seeks to        active ingredients and for generic
matters, particularly with the control of    prioritise the registration of products for    products. The system should be
Asian soybean rust (Phakopsora               the control of pests listed of great           operational within two years.
pachyrhizi). The incidence of rust is the    economic importance or for those that
major target for agrochemical products in    have few alternatives available, and           Glyphosate
the countries. The Ministries highlighted    include soybean rust, and lepidopteran         The Anvisa recommended the continued
actions such as exchanging information on    pests such as Helicoverpa spp, Chrysodeixis    registration of glyphosate herbicide with
pesticide registrations.                     includens and Spodoptera spp.                  some additional risk assessments. It
                                                                                            determined that the herbicide not be
Approvals                                    Registration regime                            classified as carcinogenic, mutagenic, toxic
The Ministry of Agriculture has reported     A bill is to come before the Brazilian         for reproduction, or a cause of foetal
that 2018 saw a record year for approvals    Parliament that would, if passed, bring        malformation. The proposals include
of chemical and biological crop protection   major changes to the agrochemical              exposure limits and a ban on the
products. Approvals of biologicals were up   registration system. It would cut the need     concentrated product for home and
30% and of other products by 9%. The         for approvals of three agencies to one, and    garden use. The agency has recently
latter was a more than three-fold increase   has the backing of business, the Ministry      closed the public comment period on the
since 2015. Generic products dominated.      of Agriculture and even, last year, the        recommendation.
                                             lower house of Parliament’s agriculture
Approvals have continued at a similar pace   select committee. Last year, the               The findings and recommendation came
since the turn of the year. Some 211         environmental agency, the Ibama,               after a long delay in the herbicide’s
authorisations, variously of chemical and    indicated its opposition to the bill, as did   reassessment. That brought controversy

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LATIN AMERICA 2019 AGROWAGROW
LATIN AMERICA 2019 AGROWAGROW
with a federal judge ordering the               presenting criteria to be employed in the     In December, authorities in Brazil, Canada
suspension of any new registrations of          re-evaluation of agrochemicals from 2020.     and the US agreed to workshare on
glyphosate-based herbicides last August                                                       agrochemical assessments for products
due to the delay. Another judge                 The agency anticipates reassessing four       destined for use on minor crops.
overturned the order the following month.       pesticide ais next year. Pesticides have
                                                indeterminate approvals in Brazil. The        Colombia’s Ministry of Work issued a
Meanwhile, an Argentine province has            selection of pesticides is to be based on     decree last August to adopt the globally
banned the herbicide. In June, the              “the best technique for assessing the risks   harmonised system for classification and
province of Chubut became the only one          to the population, such as the risk of        labelling of pesticides and other chemical
to prohibit the manufacture, marketing          causing cancer or genetic mutations”, and     products. The new system is due to come
and use of the herbicide. Following             to include international reference bodies     into effect imminently.
unanimous support in the provincial             such as the European Food Safety
legislature, the governor signed the decree     Authority (EFSA) and the US EPA.              Uruguay has issued a resolution setting EU
after he had promised to veto any ban.                                                        and US agrochemical competent authority
                                                Late last year, the Argentine plant and       as a reference point for outstanding
The agency has also recently ended a            animal health inspection service, the         national residue limit approvals. Last year,
decade-long re-evaluation of the                Senasa, ordered bans on five agrochemical     the country ended the phase out of all
herbicide, 2,4-D. It concluded that the         ais. It banned the manufacture and import     agricultural uses of the herbicide, atrazine.
phenoxy herbicide’s approval be                 of the insecticide/acaricide, diazinon, the   The country’s Agriculture Ministry has
maintained subject to new use                   insecticide/acaricide/nematicides,            concluded that several neonicotinoid
restrictions. It identified risks for           carbofuran, carbosulfan and aldicarb, and     insecticides’ approvals be maintained,
farmworkers and herbicide users, setting        the acaricide, dicofol, and formulations      while it has “extended requirements” of
exposure limits on the herbicide.               based upon them. The ais were used in         mandatory prescriptions for their sale. It
                                                seed treatments. The Senasa also banned       issued a resolution earlier this year on
Brazil is to set its own parameters for         the import, marketing, and use of             three neonicotinoids, clothianidin,
assessing the level of toxicity in pesticides   trichlorfon and dichlorvos with a 180-day     imidacloprid and thiamethoxam, as well
for potential risk to humans. The Anvisa is     phase out.                                    as chlorpyrifos.

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www.agrow.com                                                                                             Agrow | Latin America 2019 /          5
LATIN AMERICA 2019 AGROWAGROW
Latin America back to
                                   leading GM crop adoption
                                   The adoption of genetically modified crops        consider cases of “low level presence [LLP]”
                                   increased in Latin America last year. The         of GM material in produce.
                                   increase was led by Argentina. The country
                                   recorded the highest increase of any              The South American trading bloc, Mercosur,
                                   nation, not only in Latin America but             has recently adopted a mechanism to
                                   globally, according to Phillips McDougall.        reduce the adventitious presence of GMOs
                                   The GM crop area in the country rose by           among member states. Whenever there is
                                   13.2% to 24.9 million ha.                         a commercial authorisation of a GMO for
                                                                                     use in food or feed in a member state, that
                                   Brazil saw an increase of 1.9% in its GM          state must inform the others through the
                                   crop area and remained the second-                Agricultural Biotechnology Commission, the
                                   largest country globally at 49 million ha         CBA, within 30 days. Mercosur includes
                                   of plantings.                                     Argentina, Brazil, Paraguay and Uruguay.

                                   The area in the rest of Latin America rose        One year ago, the Brazilian Senate’s
                                   by 3.4% to 6.1 million ha, making the             environment committee approved the
                                   region’s total GM crop area reach some            support of a Senator to a parliamentary bill to
                                   80 million ha.                                    remove a warning label on foods containing
                                                                                     GMOs. The move was to back a lower house
                                   In November last year, Argentina presented        of Parliament bill that seeks to remove labels
                                   a “declaration” advocating the adoption of        marked with a “T” in a yellow triangle. The T
                                   gene editing at the WTO in Geneva,                stands for “transgenicos” – or GMOs. The bill
                                   Switzerland, while indicating that they           will go to a plenary session of the Senate.
                                   should not be regulated as GM crops. The
                                   statement was presented on behalf of a            Approvals
                                   group of countries including Australia, Brazil,   Approvals of GM crops maintained a strong
                                   Canada, Paraguay and the US, delegates of         pace, and even accelerated in some
                                   each of whom backed the presentation from         countries. However, in Mexico, bans on GM
                                   the floor of the WTO event.                       crop trial approvals remains in place while a
                                                                                     moratorium on planting in Peru is also still
                                   Argentine Agri-industry Ministry                  in force.
                                   representatives even called upon the EU to
                                   approve the import of several GMO events.         In Argentina, there have been seven
                                   Argentina has repeatedly requested that           commercial approvals for GM crops since
                                   the EU review its regulatory frameworks to        last August. Those include four so far this

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LATIN AMERICA 2019 AGROWAGROW
year, two for cotton and one each for
maize and soybeans. Argentine authorities
approved the country’s first GM drought-
tolerant soybean technology late last year.
The Ministry of Agriculture authorised
Argentine Bioceres group’s affiliate,
Indear’s, herbicide-tolerant and drought-
resistant IND00410xMON04032 soybeans.

At the turn of the year, Argentina was
reportedly close to approving a GM wheat
line. The drought-resistant HB4 line from
the Bioceres group is one step away from
being available to Argentinean farmers. The
developers were waiting for the findings of     raised with the government also mulling          Early last year, Brazil’s industrial property
a report from the Agroindustry Secretariat      the approval of GM cotton and maize.             agency, the INPI, found that Bayer legacy
on the foreign and domestic markets                                                              company Monsanto’s patent for its Intacta
impact of HB4 wheat.                            The Brazilian agricultural research              RR2 Pro soybean technology should be
                                                corporation, the Embrapa, has launched its       declared void. The attorney general’s
Brazil’s biosafety authority, the CTNBio,       GM golden mosaic virus-resistant (EMB-           office has since filed a petition requesting
recommended the approval of at least 12         PV051-1) feijao beans in Brazil. The             that the patent be declared void. The
GM products since August last year. They        Embrapa is the first organisation globally to    patent runs until 2022.
included four confirmed with a fifth            develop a GM bean disease-resistant event.
pending a request for opinions so far this                                                       In July last year, a Brazilian court ruled that
year. In April, the country’s Ministry of       In February, the Argentinean government          Monsanto deposit royalties on its Intacta
Agriculture was to imminently decide            rejected claims that the country was the         RR2 Pro soybean technology into an escrow
whether to authorise use of GM dicamba          source of traces of genetically modified         account. The money is to be deposited until
herbicide-resistant crops. A technical          herbicide tolerant GT73 oilseed rape seeds       the outcome is known of the case brought
evaluation on risk containment measures         found in seeds sold under Bayer’s Dekalb         against Monsanto’s royalty charges by the
on the herbicide’s use would be carried out.    brand in France and Germany. It said that that   grower groups.
Some associations have raised concerns of       the alleged adventitious presence of GMOs in
dicamba’s volatility, citing cases in the US.   oilseed rape imported by Bayer to France from    The Brazilian public prosecutor’s office,
No decision has yet been made public.           Argentina would have partly come from a          the MPF, filed a civil action to suspend the
                                                “counter season production” that Bayer would     commercial use of GM glyphosate
Bolivia has approved this year the planting     have made from the import of French seed to      herbicide-tolerant crops. The targets
or use in ethanol production of two GM          Argentina under OECD certification.              included products that had been
soybeans. The approvals are for                                                                  approved by the CTNBio, while the
glyphosate-tolerant and insect-resistant        Intacta payment disputes                         national health surveillance agency, the
Intacta RR2 Pro soybeans and the drought-       Soybean farmers in ten Brazilian states          Anvisa’s, toxicological reassessment of
tolerant HB4soybean. The only previously        have filed to join a legal petition with         the herbicide was pending. That
approved GM event in Bolivia was                growers from Mato Grosso state seeking to        reassessment has been concluded and
glyphosate-resistant soybeans. Indications      ensure that Bayer’s Crop Science division        public comments have been taken. A final
of a change in government policy towards        deposits royalties on GM seed technology         decision based on the conclusions and
a more favourable view of GMOs have been        into an escrow account.                          comments is imminent.

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LATIN AMERICA 2019 AGROWAGROW
Interview: Crop protection
                                   industry in South America
                                   sight a turning point
                                   due north
                                   The recent rebound in the agrochemical market in Latin America
                                   has restored confidence within the industry as regulators change
                                   direction. Agrow’s Robert Birkett talked with CropLife Latin
                                   America’s president and CEO, Jose Perdomo, and Brazilian
                                   generic agrochemical industry association, the Aenda’s, chief
                                   executive, Tulio Oliveira about: the rebound in the agrochemical
                                   market and whether it was a new turning point; the accelerating
                                   Brazilian product approval processes; and anticipated changes
                                   governing the sector in several Latin America countries.

                                   By Robert Birkett

                                   Robert Birkett (RB): Phillips McDougall        of products based on the
                                   recently issued findings that the              insecticide for the control of
                                   agrochemical market in Latin America,          earworms (Helicoverpa
                                   and especially Brazil, rebounded last year     armigera).
                                   after a multi-year slump. Do you agree
                                                                                                                   Tulio Oliveira
                                   with the consultancy’s assessments that        RB: Will this persist?
                                   the major drivers are reduced stocks and
                                   high prices from Chinese suppliers?            TO: Yes. Real interest rates are low in
                                                                                  Brazil, and distributors will not financially
                                   Tulio Oliveira (TO): Yes, Phillips McDougall   benefit from increasing the stock levels.
                                   is right. Another factor was the sales from    We also anticipate further surprises from
                                   recently authorised emamectin benzoate         price levels in China in the second
                                   insecticide. That reduced contraband sales     semester.

8   / Agrow | Latin America 2019                                                                               www.agrow.com
Built for success
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RB: You mean you expect further                    The progress with digitised systems as well    JP: There are 32 active ingredients in the
significant price rises?                           as the imposition of more rational analysis    queue for analysis in Brazil, four of them
                                                   rules have facilitated the work of technical   are particularly “novel”. These consist of 15
TO: Yes, we see that prices will likely surprise   evaluators.                                    fungicides, nine herbicides and eight
on the upside, depending on the product in                                                        insecticides awaiting analysis. Most of
the next few months.                               RB: Is the trend leading to increased          these new molecules have already been
                                                   completion for products on the market?         approved in countries that have agricultural
Jose Perdomo (JP): The                                                                            relevance and well-established regulatory
feeling is that the market in                      TO: We do not have access to any               systems based on scientific criteria.
Brazil will grow modestly this                     monitoring of prices, but that would be a
year with stock levels                             logical progression – more products,           They include 19 ais that are approved in the
returning to normal. This was                      lower prices.                                  US and Canada, 18 in Australia, 17 in Japan,
                                 Jose Perdomo
partly down to use against a                                                                      16 in the EU and 15 of them in neighbouring
significant pest [Helicoverpa                      RB: Do you expect this trend of rising         Argentina. This obviously leaves Brazilian
spp], which has finally been controlled.           approvals to be maintained or improved?        agriculture at a competitive disadvantage.
Indeed, the US-China trade war has
handed Argentina and Brazil a leading              TO: It will improve. The Anvisa [national      RB: What sectors or areas should be
position with grain trade with China. We           health surveillance agency] has presented      prioritised for approvals?
feel bullish in the region as we have a large      proposals for formulated product
proportion of global arable land, and              registrations. Companies would submit          TO: Well, the main crops in Brazil are coffee,
application rates per hectare are lower in         close to 20 scanned forms with test results    cotton, maize, pasture, soybeans, sugar
Brazil today than other major global               and the computer would make the                cane and wheat. These crops and their
agricultural markets, including Europe.            evaluation based upon them. Technicians        pests are those targeted for new products.
                                                   would merely check and review some
RB: What new trends are evident with               details, if necessary.                         RB: Legislation to change existing
certain products or pest/disease targets                                                          pesticide registration law in Brazil gained
in the market?                                     RB: And what of approvals for new              the approval of a key parliamentary
                                                   molecules? Is an increase in such              select committee last year, and is
TO: The major change we are seeing is that         approvals anticipated?                         expected to come before a plenary
sales of products containing two or three                                                         Parliament this year. Bill PL 6299/02
active ingredients are growing strongly and        TO: Today, there are some 20 new active        comes from Luiz Nishimori MP. When will
are likely to continue doing so.                   ingredients in the registration process        it be presented for a vote in Parliament?
                                                   queue, but nothing that would
RB: What are the major active ingredients          revolutionise the control of pests or          TO: The bill is ready, and Mr Nishimori MP
in Brazil?                                         diseases. But some have different modes        expects to submit it to a plenary session
                                                   of action and would be very important for      late this year. It will certainly have
TO: Glyphosate, 2,4-D, mancozeb,                   pesticide resistance management, an            amendments added to it, but should pass.
acephate, mineral oil, atrazine, paraquat,         increasingly present phenomenon.               It will then go to the Senate.
imidacloprid, oxychloride and
thiamethoxam. And none of them are new.            Mr Perdomo cites an even higher number of      RB: What is behind the moves to amend
                                                   pending ai applications.                       the agrochemical law in Brazil?
RB: Which active ingredients of the past
five years are proving to be popular?

TO: We do not have information as the
government only provides data on sales
volumes of products that are supplied by at
least two companies.

RB: Official reports show that approval rates
rose strongly in 2018 and the first half of
this year in Brazil. Are approvals running at
record rates as reported? And why are
authorisations ahead of recent years?

TO: No, this has been due to peculiar
situations. In 2017 and in previous years,
most of the registration and post-
registration processes were submitted on
paper. That led to hindered and slow
evaluations of dossiers by the authorities.

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TO: The truth is that there is more
discussion among environmentalists
opposing the bill, rather than an analysis of
any changes to the current Law
(7802/1989). The main change would cover
deadlines for evaluating registration
applications. If the registration is not
granted within two years after the
application, the applicant company would
be able to market the product through a
temporary registration. The configuration of
the risk assessment would be better
defined. And, the export of products would
be free of registration.

JP: The Nishimori Bill is an effort led by
organised national farmer groups with the
support of the industry and other
stakeholders to have clear, straightforward        last year]. And for them, the bill is a rallying   under the GHS and acceptance of the
risk assessments for pesticide evaluations         cry to be used at the next election. The           methodology of the US EPA regarding the
in place. As I mentioned earlier, many             expectation is [that it would come into            carcinogenicity classification. The
molecules are not available that are used in       effect] in the second semester of 2020.            community includes Bolivia, Colombia,
other countries. This would not only                                                                  Ecuador and Peru. Has that been approved?
improve predictability, but also allow             RB: The Anvisa is setting new criteria for
Brazilians to compete.                             the selection of active ingredients for            JP: The implementation of the GHS
                                                   reassessment. Ais Pesticides have                  labelling system for agricultural pesticides
There are misconceptions about the                 indeterminate approvals in Brazil, pending         was approved on article 42 of the
measures. The three competent authorities          reassessments. How do Aenda associates             community’s Decisión Andina 804 from
would remain involved (product approvals           view last year’s Anvisa guidelines for a           2015, which regulates the registration and
require the approval of three agencies, the        new regime based on “the best technique            control of pesticides. Implementation of
Ministry of Agriculture, the Anvisa, and the       for assessing the risks to the population,         that requires the approval of a technical
Ibama), but the Ministry of Agriculture            such as the risk of causing cancer or              manual called The Andean Technical
would co-ordinate efforts while relying on         genetic mutation” and to include                   Manual (Manual Técnico Andino -MTA),
work from the other agencies.                      reference to international authorities?            which is expected to be approved and
                                                                                                      published within weeks. Once that
RB: How significant was the approval of            TO: The new criteria have yet to be                happens, the system should be in force
the lower House’s agriculture select               adopted. But, the Anvisa sees them as              within another six months. It has been
committee last year?                               rational in the face of safety pressures in        several years in the making, but we are
                                                   today’s world. (At the time of going to            nearly there.
TO: That was the last barrier to prevent the       press, the criteria are reportedly approved,
bill going to a vote of the full Parliament.       and official confirmation is pending               This latest version of the manual has
Unfortunately, debate around pensions              publication in the official gazette)               already been published in order to take
reform has delayed the passage of the bill,                                                           comments from the WTO. We think it’s
leaving it stuck behind other bills.               As the dominant political party in the             important too that the MTA would allow
                                                   previous government [until this year] – the        for flexible implementation by member
RB: How likely is it that the bill will be         centre left Workers party – was anti-              states taking into account their
approved, and the law changed? And when            pesticides, the main concern was to ban a          institutional capacities and resources. GHS
would the changes come into effect?                larger number of ais. Fortunately, the             requires a degree of sophistication. The
                                                   Anvisa carried out re-evaluations on               manual will be a starting point, and
JP: I was recently in the Brazilian capital and    scientific criteria, as far as possible.           countries will build their resources over
talked to Senators about it. They believe that                                                        time. All member states will need to
something will develop late this year. But there   Our country has tropical climate with a pretty     update their systems to implement this
are other priorities for the new government        diverse range of pests and diseases. That is       but there’s a commitment to do so.
and this measure is relatively low down on         why the safety model cannot be as drastic as
those. But the Minister of Agriculture is          that in Europe. The freedom for the Anvisa to      RB: And on carcinogenicity classification?
strongly committed to supporting the bill.         strictly apply science is total with the
                                                   government that has assumed power.                 JP: On carcinogenicity classification, article
TO: The agricultural parliamentary front,                                                             15 of Andean Community Decision 804
the farming sector’s political wing, has           RB: The trading bloc Andean community’s            determines that authorities will review
gained a lot of seats in Parliament                (Comunidad Andina) adoption of the                 registration applications of crop protection
[parliamentary elections took place late           classification and labelling of pesticides         products, based on methods and criteria

www.agrow.com                                                                                                     Agrow | Latin America 2019 / 13
established by international bodies such as:   repeating calls for additional studies. This   bodies to crop protection products after the
the UN FAO, the EPA, CIPAC, the EFSA, the      should bring common and internationally        application on the crop. The models allow
WHO and IARC.                                  developed practices.                           the phased evaluation of water exposure
                                                                                              required by the Andean Norm 804 and its
However, the member states are to adopt        RB: Do Andean Community nations work           Andean Technical Manual, and should
the methodology of the EPA, including          share on assessments?                          improve product evaluations during their
provisions for risk assessments. We have                                                      registration process.
backed this as it puts in place a more         JP: No. We hope that this will happen with
robust risk assessment framework and           the adoption of these harmonised               They also help evaluate the impact of
more scientific than rejecting anything        methods. But that would be a next step, a      mitigation measures and contribute to the
based on potential hazard. In fact, the EPA    logical evolution. But, we need to learn to    implementation of measures that
travelled to explain their methods and         crawl first.                                   guarantee a safe use of the products for
reasoning for risk assessments to each of                                                     the environment. The models are: the
the Andean countries. Bodies such as the       RB: CropLife Latin America and other           Andean Aquatic Screening Tool (AAST) and
crop protection association in Colombia,       associations have developed a tool to aid      Andean Pesticide Exposure Simulation Tool
Cámara Procultivos de la ANDI, and the         environmental evaluations in Andean            (ANDES). The former rapidly quantifies the
National Health Institute of Colombia have     countries. What is the “simulador              residue levels in shallow water, while
expressed their preference to include such     ambiental” and is it something similar to      ANDES was developed with reference to
assessments rather than for example, the       tools already used elsewhere?                  the climate, soil, crops, and agricultural
hazard-based assessments of the EU.                                                           practices specific to Andean countries. In
                                               JP: The “Simulador Ambiental”                  Peru, these scenarios are applied to
RB: How does that change existing rules?       encompasses two models for the simulation      tomatoes, maize and asparagus.
                                               of pesticide exposure in water. It was
JP: The main change is harmonising among       designed by Waterborne Environmental,          The tiered evaluation concept and the
the member states, and adopting                CropLife Latin America, Colombia’s Cámara      simulation tools that the Colombian and
internationally recognised new methods.        Procultivos de la Andi Colombia, and           Peruvian authorities have gained access to
Countries have had various methods with        Peruvian crop protection association,          are already used in the US, Canada,
Peru using a mix. These have developed but     CultiVida Perú. They are tools designed to     Australia and Japan. They are applicable to
among ongoing complaints have been the         quantify the exposure of nearby water          other countries in Latin America.

www.agrow.com                                                                                             Agrow | Latin America 2019 / 15
Latin America-related mergers,
acquisitions and deals in 2019
JANUARY                                         MARCH                                           distribute its line of biostimulants
• American Vanguard acquired Brazilian          • ChemChina subsidiary Adama and                in Brazil.
  crop protection and agricultural inputs         Israeli biopesticide company STK
  companies Agrovant and Defensive.               Bio-ag Technologies agreed an               • US agrochemical company Gowan
                                                  exclusive distribution deal for two STK       acquired the Brazilian agrochemical
• Argentine seed and agrochemical supplier        Melaleuca alternifolia extract-based          company, Cross Link.
  Bioceres group agreed a definitive share        biofungicides in Colombia.
  exchange deal with special purpose                                                          • US data analytics company Sentera
  acquisition company Union Acquisition.        • Brazilian agricultural equipment              FieldAgent and Bayer’s digital agriculture
  The merger was completed in March.              manufacturer Agco and digital farming         subsidiary, The Climate Corporation,
                                                  supplier Solinftec agreed a commercial        expanded their platform partnership.
• Corteva Agriscience agreed a deal to            technology partnership.
  market Canadian biological crop care                                                        • Israeli biopesticide company STK Bio-ag
  supplier Stoller’s Brazilian subsidiary,      • Brazilian digital agriculture start-up        Technologies agreed a deal for US
  Stoller do Brasil’s, bionematicide, Rizotec     company InCeres teamed up with                company American Vanguard to distribute
  (Pochonia chlamydospora strain PC-10).          agricultural equipment manufacturer           its products in Central America.
                                                  Agco and software supplier Tecgraf to
• US agrochemical company Gowan                   launch a precision agriculture portfolio,   JULY
  acquired the Colombian bioproducts              Farm Solutions.                             • Dutch bioproducts company Koppert
  company, EcoFlora Agro, and created a                                                         Biological Systems has acquired Argentine
  new biologicals business unit to be built     MAY                                             business Nitrasoil. The Argentine
  around the EcoFlora brand.                    • Brazilian agricultural inputs supplier        company’s portfolio is dominated by
                                                  Agrofertil Camelo agreed a deal with US       inoculants, and its sales operations cover
• Portuguese agricultural company Sapec           bioproducts supplier Agrinos to               Argentina, Uruguay, Paraguay and Bolivia.
  Agro Business’ nutrients supplier,
  Tradecorp, acquired Brazilian biologicals
  business Microquimica.

• The US rice company, RiceTec, agreed a
  collaboration with the Argentine group,
  Grupo Puerto Las Palmas, for the
  production of hybrid rice seed in the
  country.

FEBRUARY
• US bioproducts supplier Agrinos agreed a
  deal with Mexican crop protection
  company Seferssa to distribute a portfolio
  of its plant nutrition products in Mexico.

• Argentine seed company Satus Ager
  acquired Argentine seed supplier
  Tecnoseeds.

www.agrow.com                                                                                             Agrow | Latin America 2019 / 17
Agrow
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New active ingredients registered or
launched in Latin America in 2019
Company & active ingredient                Use                                              Status

                                                        FUNGICIDES

BASF
fluopyram                                  Maize, soybeans, potatoes,                       Proposed approval in Brazil
                                           coffee & sugar cane

Bayer
bixafen                                    Wheat, barley & oilseed rape	Launched in Chile as Cripton Xpro
                                                                         (with prothioconazole &
                                                                         trifloxystrobin)

                                     INSECTICIDES/ACARICIDES/NEMATICIDES

Corteva Agriscience
sulfoxaflor (trade-marked as Isoclast)     Crops include citrus fruit, cotton, maize,       Approved in Brazil as Verter SC, Exor
                                           rice, soybeans & wheat                           SC, Closer SC, Exor, Verter and Closer.

Mitsui Chemicals Agro
dinotefuran                                Crops include maize, rice, soybeans,             Proposed approval in Brazil
                                           sugar cane, tomatoes, wheat & coffee

                                                    HERBICIDES/PGRs

Corteva Agriscience
florpyrauxifen-benzyl                      Coffee, citrus fruit, cabbages, rice & tobacco   Approved in Brazil
(trade-marked as Rinskor)

                                              BIOPESTICIDES & OTHERS

Arysta LifeScience [owned by UPL}
laminarin [disease resistance activator]   Grapevines, lettuces, onions,                    Proposed approval in Brazil
                                           strawberries & tomatoes

www.agrow.com                                                                                        Agrow | Latin America 2019 / 19
Trend barometer Chemspec Europe 2019
closes with record in visitor numbers
and exhibition space
The 34th and, so far, biggest edition of Chemspec Europe attracted a total of 4,295 trade visitors
from 53 countries to the exhibition grounds of Messe Basel, Switzerland. From 26 to 27 June 2019,
a total of 379 exhibitors from 27 countries presented their innovative substances on a record net
exhibition space of 6,369 m2. With topics such as custom synthesis, nanotechnology and the
booming start-up scene, the International Exhibition for Fine and Speciality Chemicals, once again,
showcased the full potential of the fine and speciality chemicals industry.

“We are pleased with the results of this
year’s Chemspec Europe which reflect the
positive outlook of the fine and speciality
chemicals industry. For international trade
visitors, Chemspec Europe has become a
key event to stay up-to-date with current
trends and the latest findings in R&D, form
strategic partnerships, and meet with top
decision-makers as well as innovative
start-ups”, says Liljana Goszdziewski,
Exhibition Director of Chemspec Europe, on
behalf of the organisers, Mack Brooks
Exhibitions.

A total of 4,295 trade visitors from 53
countries visited Chemspec Europe 2019,
which is an increase in visitor numbers by
2% compared to the previous event. With a
total of 7,001 attendees from all over the
world, the specialised industry event further
increased its overall attendance (exhibitors,
visitors, press and conference delegates) by    The provisional results of the exhibition   The majority of visitors were manufacturers,
4% compared to the 2018 show in Cologne.        survey show that most visitors came from    distributors, raw material suppliers or
                                                the following industries: fine chemical     equipment suppliers and work in research
Visitors of Chemspec Europe 2019 came           industry, agriculture, plastics, pharma,    and development or for consulting firms.
from a total of 53 countries; primarily from    cosmetics, toiletries and personal care,    The main responsibilities of the visitors
Germany (29%) and Switzerland (23%),            petrochemicals, water treatment, paints     within their companies were senior
followed by France, the UK, India, Italy,       & coatings, polymers, food & feed           management, purchasing and procurement
the Netherlands, China, Spain, Japan,           ingredients as well as adhesives &          and production/ process management.
Belgium and the USA.                            sealants.                                   Visitors were particularly interested in the

20
following products and services: custom
synthesis, chemical intermediates, catalysts,
pharmaceuticals, general chemicals,
agrochemicals, household chemicals and
industrial chemicals.

A total of 379 exhibitors showcased the
full spectrum of fine and speciality
chemicals for a large range of applications
and industries on a record net floor space
of 6,369 m2. Compared to the previous
event this represents an increase in net
exhibition space of 4% and an increase in
exhibitor numbers of nearly 6%.

The major European exhibitor countries were
Germany, the UK, Switzerland, France and
Belgium. Non-European exhibitors mainly
came from India, China and the USA.

Trend barometer and extensive
conference programme
A highlight of this year’s show was the
“Innovative Startups” conference,
organised in cooperation with BCNP
Consultants. In line with the extensive
conference programme, more than 15
start-ups presented their innovative
ideas, substances and approaches in the
fine and speciality chemicals industry.
From “Biotech Fine Chemicals” to
“Scalable Synthesis of Complex Peptides”
and “Polyoxazolines: the next generation
biomaterials”, these conference sessions
were well received and visitors gained
valuable input.
                                                Abou-Gharbia, Moulder Center for Drug          nanotechnological innovations and discuss
Visitors of this year’s show had the            Discovery Research, and the “Pharma            bespoke solutions with industry experts.
opportunity to attend a total of 74             Outsourcing Best Practices Panel”.
conferences and workshops covering              Furthermore, the conference programme          High re-booking rate among
several topics. In cooperation with             included the two-day “RSC Symposium” of        exhibitors for Chemspec
renowned partner organisations, the             the Royal Society of Chemistry, the            Europe 2020
conferences did not only offer insights into    “Regulatory Services Conference”,
trends and prospects, but also encouraged       organised by REACHReady, as well as the        An initial evaluation of the exhibition
exchange and networking with                    “Crop Protection & Fine Chemicals Forum”       survey revealed that exhibitors, visitors
international industry colleagues. The          held by EFCG (The European Fine                and conference delegates were highly
conference programme included the               Chemicals Group).                              satisfied with the show. A large majority of
“Agrochemical Outlook Conference”,                                                             exhibitors already secured their stands for
sponsored by AGROW, as well as the              For the first time, Chemspec Europe            Chemspec Europe 2020 whilst on-site. As
mentioned “Innovative Startups”                 featured a new NanoTECH Pavilion, which        a result, approximately 80% of the total
conference. In the Pharma Lecture               exclusively highlighted companies and          net floor space is already booked and
Theatre, several speakers gave lectures on      organisations from the nanotechnology          reserved for the upcoming exhibition.
trends, challenges and outlook of the           industry. The dedicated on-site area offered
pharmaceutical industry, including a            visitors of Chemspec Europe 2019 an            Further information:
presentation given by Dr Magid                  attractive opportunity to explore the latest   www.chempseceurope.com

                                                                                                                                        21
Brazil Ag Ministry defends agchem
use and product approvals
The Brazilian Ministry of Agriculture has    increased speed of approvals is due to          The criteria on the use of products in
published a defence of crop protection       efficiency gains in the processes made          Brazil is stricter than in other countries,
products and the increasing amount of        possible by reduced bureaucracy within          the Ministry claims. “If we were to use
pesticide approvals in the country. The      the three agencies, the Ministry, the           the Globally Harmonized System of
defence is aimed at the public and comes     environmental agency, the Ibama, and the        Classification and Labelling of Chemicals
in the form of FAQs and a webcast on the     national health surveillance agency, the        [GHS], the index of pesticides classified as
Ministry’s website, and has been followed    Anvisa, it says. The Ministry also notes that   extremely toxic in Brazil would go from
up by a speech from acting Minister          the “vast majority” of approvals in the         34% to around 14%.”
Marcos Montes at an industry forum           past year has not been of new products,
disabusing the public of “disinformation”    but of generic pesticides. There are over
on agrochemical use on Brazilian food.       2,000 products in the registration process,
The Ministry emphasises that it does not     while the legal term deadline is just four
work alone in the analysis of pesticide      months. But there are products still in the
applications or in registering products,     process after eight years, the Ministry
but along with two other agencies that       adds. “The goal of getting products
assess toxicology and environmental          through the process is to approve new
effects of products.                         active ingredients that are less toxic [to
                                             human health] and cause less harm to the
The Ministry answers fears raised over the   environment, and so offer improved
increasing volume of approvals. The          alternatives to older products.”

22 / Agrow | Latin America 2019                                                                                          www.agrow.com
Brazil Anvisa confirms regulatory
changes on agchems
The Brazilian national health surveillance   assessment resulting from human exposure       labelling of products. The categories of
agency, the Anvisa, has approved a           to agrochemicals and related substances;       toxicological classification have been
framework amending the regulation of         and proposal (CP No 486/2018), which was       expanded from four to five, in addition to
agrochemicals in the country. It clarifies   a potential normative instruction to set and   the inclusion of the item “not classified”,
the evaluation criteria and toxicological    publish the list of non-active components      valid for products with very low potential
classification of pesticide products, and    of pesticides and related substances that      for harm, such as biological products. A
establishes changes in labelling by          are considered evaluated and the list of       colour chart would be employed to help
adopting the use of information, warning     unauthorised components for use in             identify risks. Toxicity classification would
words and images that help identify          agrochemicals and related products. The        be identified with the following
human health hazards, media report. Its      rules will come into effect once published     classifications: category 1 (red): extremely
board of directors, the Dicol, agreed the    in the official gazette.                       toxic product; category 2 (also red) highly
changes this week.                                                                          toxic; category 3 (yellow) moderately
                                             The rules also provide for the use of          toxic; category 4 (blue) slightly toxic;
The changes were proposed based on the       alternative methods on animal testing,         category 5 (also blue) unlikely to cause
standards of the Globally Harmonised         with the removal of “redundant” animal         harm; unclassified (green).
System of Classification and Labelling of    testing requirements that are scientifically
Chemicals (GHS). Brazil will have rules      unnecessary for regulatory decision-           The toxicological classification of a product
harmonised with those of EU member           making, among other measures.                  may be determined on the basis of its
states and Asian countries, media report.                                                   components, impurities or similar
The driver behind the move is reportedly     Registration and                               products. For each category, harm will be
the facilitation of exports.                 reassessments                                  indicated in case of contact with the
                                             The Anvisa will reclassify agrochemicals       mouth (oral), skin (dermal) and nose
The board resolutions (RDCs) and a           that are already on the market. It has         (inhalation).
normative instruction (IN) jointly create    already issued an information request
the new framework. The proposals were        notice, which registration holders are
submitted for public comments last year.     required to answer. Of the 2,300 pesticides
                                             registered in Brazil, the Anvisa has already
They covered proposals on: public            received data for reclassification of some
consultation (CP No 483/2018) required       1,950 or 85% of products. The Anvisa is
toxicology labelling on agrochemicals and    one of three competent authorities that
non-crop pesticides; proposal (CP No         assess registration application. It assesses
484/2018) on criteria for the evaluation     the impact of products on human health.
and toxicological classification of
agrochemicals and their components;          Labelling
proposal (CP No 485/2018) identifying        Anvisa director Renato Porto reportedly
criteria for dietary and occupational risk   highlights the importance of clarifying

www.agrow.com                                                                                           Agrow | Latin America 2019 / 23
Brazil Ag Ministry sets                                                                          Brazil states’
agchem priority list                                                                             MPs seek
The Brazilian Ministry of Agriculture has
determined which pesticide products
                                                   provide resistance management such as on
                                                   fleabane (Conyza bonariensis) and sourgrass
                                                                                                 neonic bans
should get priority analysis in 2019. The          (Digitaria insularis), as well as new
process aims to prioritise the registration of     combinations of ais already on the market     MPs from several Brazilian states have
products for the control of pests listed of        and a broader number of companies with        submitted bills seeking to ban the sale
great economic importance or for those             registration of generic products.             and use of neonicotinoid insecticides or
that have few alternatives available. Those                                                      insecticides claimed to harm bees, the
major pests, weeds and diseases include            The 40 selected ais come from 22 companies,   generic agrochemical industry
whiteflies, Asian soybean rust (Phakopsora         including four from ChemChina subsidiary      association, the Aenda, reports. Bills have
pachyrhizi) and lepidopteran pests such as         Syngenta, three each from BASF, CCAB and      been presented in the state of Espirito
Helicoverpa spp, Chrysodeixis includens and        Rotam, two each from Bayer’s Crop Science     Santo to prohibit neonicotinoid products
Spodoptera spp.                                    division, Hiara, Cropchem, DowDuPont,         for mosquito control in urban centres, in
                                                   ChemChina subsidiary Adama, and Lemma,        order not to impact bees, and general
For example, on cotton crops, the major            and another 12 companies each have one        bans in the states of Bahia, Piauí, and in
problem facing growers is boll weevils             priority ai (DowDuPont legacy company Dow     Minas Gerais to ban clothianidin, fipronil,
(Anthonomus grandis), for which new                Agrosciences, Sumitomo Chemical, Prentiss,    imidacloprid and thiamethoxam-based
products have been approved, while on              Nelty, DuPont, Nichino, Biorisk, Oxichem,     products.
soybeans, rust disease requires carboxamide        Coromandel, Nortox and UPL).
products in combination with various
triazoles, strobilurins and multi-site products.   The list has been published in the official
Herbicides for priority include those that         gazette.

24 / Agrow | Latin America 2019                                                                                             www.agrow.com
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