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Dismay and concern have greeted the decision by Bayer Crop Science to exit its Hastings research site and stop work on any new crop product trials in New Zealand.
Bayer鈥檚 NZ managing director, Chris Miln, told Farmers Weekly the current operating environment and regulatory landscape in NZ make it challenging to justify the company鈥檚 time and the expense required to commence research projects that introduce pipeline products.
The departure is also likely to see the loss of two experienced research staff from the company鈥檚 NZ office.
The move reflects growing dissatisfaction among agri-chem companies over the significant time delays they face in getting new products approved in NZ.
PGG Wrightson CEO Stephen Guerin told Farmers Weekly PGW has enjoyed a long association with Bayer, trialling and helping develop new crop treatment programmes.
鈥淚 think NZ must be concerned about this,鈥 he said.Despite the loss of the research property, Guerin said, PGW will try to continue its collaboration work 鈥 though the job is only made more expensive and complex with Bayer and its property鈥檚 absence.
Miln confirmed Bayer intends to retain a strong commercial presence in NZ, focusing on current registered products and the numerous products under assessment by regulatory authorities.
Guerin hopes Bayer鈥檚 move will send sufficient signals to the government about the urgency of moving Environmental Protection Authority (EPA) changes along quicker.
His concerns are echoed by Dr Liz Shackleton, CEO of Animal and Plant Health NZ (APHNZ).
鈥淚t is no secret all the multinationals are revising their futures in NZ. It is a deeply worrying prospect when companies of the scale of Bayer do not see a future here in NZ. What does that say to other companies?鈥 she said.
A recent EPA review made multiple recommendations for streamlining the agency鈥檚 approvals rate.
But Shackleton said these have not yet been delivered, and she urged the government to move with haste.
The Bayer research farm near Hastings has 600 apple trees, 1100m of grapevines, 50 peach trees and a cropping-forage trial area.
Longtime AgResearch scientist and weeds expert Dr Trevor James said the site is a valued resource. He noted Bayer has been a respected corporate citizen, making significant contributions to areas like managing weed resistance and industry seminars over the years.
Ten years ago Bayer鈥檚 NZ-based trials and research were instrumental in introducing more NZ farmers to fodder beets as a high value feed supplement.
鈥淚 can partly understand it [withdrawing]. NZ is simply so small, our total chemical use for pesticides would be less than any Australian state. We are talking big dollars in Australia, and it鈥檚 a very competitive market here now,鈥 James said.
Dr Rachel Kilmister, R&D manager at NZ Apples and Pears Incorporated, said despite NZAPI having an extensive research programme finding long-term solutions to issues like loss of treatment chemistry, it could not do it all itself.
鈥淲e are extremely disappointed to see the innovation pipeline shrinking in NZ. The sector needs access to sites where research can be undertaken in commercially relevant settings where it is safe to fail.鈥
She said it would be difficult to commercialise and adopt new solutions in the absence of such a site.
HortNZ CEO Kate Scott echoed the disappointment felt by industry. But she said HortNZ is not surprised, given how complex, time-consuming and resource intensive it has become to get horticulture products approved and registered in NZ.
鈥淭his closure reinforces just how critical it is to have a regulatory system that is efficient, predictable and fit for purpose. We need a regulatory system that encourages innovation and investment, rather than deters it.鈥
She said she hopes the Ministry for Regulation鈥檚 review recommendations lead to meaningful change to resolve the ongoing issues and delays.