Crop Protection Growing Twice as Fast in Southeast Asia


The increasing focus on seed technology by multinational companies leaves an open door for post-patent producers and distributors, according to recent research by Rabobank.

“Current growth in Southeast Asia is much higher for generic companies than the big six,” Rabobank’s Vaishali Chopra told attendees at the FCI Trade Summit in Kuala Lumpur on Monday. This structural shift to biotech research and development may lead to patent molecules losing market share to generic molecules, she said during the event’s opening session.

Southeast Asia’s crop protection market is growing twice as fast as the world average, about 5%-6% growth in value every year. Post-patent companies can capitalize on these growth factors by raising their concentration on premium formulations, research and development of combination products, and co-marketing opportunities with multinationals.

In addition, the demand for higher quality foods in emerging economies gives crop protection companies an opportunity to restructure their portfolios away from low-margin non-selective herbicides to higher margin fungicides for specialty crop and vegetables.





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