UPDATE: US Regulators Speed Seed Oversight After Delays -DuPont Executive
02 Setembro 2009 - 6:19PM
Dow Jones News
DECATUR, IL (DOW JONES)--U.S. regulators are speeding their
assessment of new high-tech crop seeds following "frustrating"
delays to the oversight process, the head of DuPont Co's (DD)
agribusiness unit said.
DuPont's Pioneer Hi-Bred International business has been playing
catch-up with rival Monsanto Co. (MON) in introducing genetically
modified seeds and traits that boost crop yields by providing more
resistance to bugs and herbicides.
Paul Schickler, Pioneer's president, said a "bit of uncertainty"
had emerged among regulators assessing the new products and pushed
the approval process from an average of 18 months to around three
years.
Schickler said Pioneer had ploughed more resources into
regulatory affairs as part of efforts to introduce six new biotech
traits between now and 2013.
"We are getting signals that they've had the message and are
speeding up," Schickler said in an interview at the Farm Progress
trade show in Illinois.
Canadian regulators this week approved new Pioneer seed traits
for corn and soybeans. Their U.S. counterparts have already cleared
the soybean trait, and Schickler expects approval for the corn to
follow soon.
Cindy Ragin, a spokeswoman for the USDA's Animal and Plant
Health Inspection Service, said reviews of biotech seeds are each
unique and can be longer or shorter depending on individual
circumstances.
"There's no set time frame for review of these things. Some take
longer than others. There could be different reasons," Ragin said.
"Anything could happen during that process where we may have to go
back and ask for more information [from the company]. We may have
to conduct additional studies. It's not formulaic."
Proponents of the high-tech seeds maintain they are essential to
boost yields to meet expanding global food demand given constraints
on useable land and water shortages. Critics, notably in European
countries that continue to ban genetically modified crops, said
long-term effects on the ecosystem have yet to be full tested.
Robb Fraley, Monsanto's chief technology officer, acknowledged
in an interview that the costs associated with securing regulatory
approval had increased.
However, better testing procedures had kept the overall cost of
bringing the new seeds to market constant. A new trait costs
between $100 million and $150 million and can take up to 10 years
from formulation to launch, he said.
Fraley said the sharp spike and subsequent decline in
agricultural commodity prices hadn't affected its targeted spending
on research and development, which remains at about 10% of revenue.
Monsanto evaluates its pipeline of projects at least twice a year
and uses a three-year weighted average of crop prices in its
analysis.
Schickler said the slowdown in regulatory approval wasn't
restricted to the U.S., though he acknowledged there remained
"growing pains" in the oversight of an industry that is just 12
years old.
The investment required to develop new GM crops has seen the
sector concentrated around six multinationals, and Schickler said
he was unsurprised by the recent announcement that U.S. competition
officials are examining parts of the sector - including marketing
of GM seeds - for possible abuses.
"There's a lot of investigative [work] to get a sense of whether
there is an issue or not," he said.
DuPont and Monsanto are embroiled in an often-heated spat over
alleged patent infringement. Monsanto has also bristled at
accusations from a lobby group with ties to DuPont about its
dominance of the GM seed market.
-Doug Cameron, Dow Jones Newswires; 312-750-4135;
doug.cameron@dowjones.com
(Bill Tomson contributed to this story)