In the last five years we have introduced eight new crop protection products to the Canadian marketplace.
The launch of these generic chemical products has had a dramatic impact on Canadian chemical pricing. Experience and research both show that when a generic product is introduced into the market, the price of the active ingredient to farmers drops by at least 25%.
One example is the introduction of MPower® Aurora® herbicide in Western Canada in spring 2010, which caused an immediate and dramatic drop in wild oat herbicide pricing across Western Canada. Within 30 days of launching Aurora the average price for competitive wild oat herbicides dropped by $4 per acre. With an average of 16 million acres of treated wheat in Western Canada, the combined savings in 2010 and 2011 for wild oat products have resulted in over $120,000,000 in improved profitability for farmers.
The eight new products in five years is just the beginning. In the next five years we intend to introduce no less than a dozen new crop protection products including:
-Broadleaf weed control for cereals
-Grassy and broadleaf weed control in pulses
-Grassy and broadleaf weed control in canola
-Disease control for
cereals and oilseeds
-Seed treatments and foliar applied
-Seed treatments and foliar
applied for multiple crops
Canada has lagged far behind the rest of the world in generic crop protection products, and the result has been higher pesticide costs for Canadian farmers. Globally, well over 50% of the crop protection products used are generic off-patent products. In Canada, due to regulatory hurdles and a strong lobbying effort by the multi-national chemical corporations, generics have under 20% market share.
The tipping point is around the corner. The introduction of our first eight crop protection products and the coming pipeline of products is creating the critical mass needed to improve farm profitability by lowering input costs. Make the Shift to Maximum Performance and Minimum Price with NewAgco – the leader in the introduction of generic chemicals into the Canadian marketplace.