EU losing agricultural competitiveness due to limited access to innovation — Bayer

The European Union and the United Kingdom risk falling further behind major global agricultural producers, including the United States, Brazil, China, Canada and India, due to the slow adoption of modern agricultural technologies. This is according to a study conducted by Oxford Economics and commissioned by Bayer. The study found that between 2011 and 2023, crop production in the EU grew by an average of just 0.1% annually, compared with 1% in the US, 2% globally and 3.3% in Brazil. The UK recorded no growth over the same period.

The gap between Europe and its global competitors is even more apparent over the longer term. Average EU crop production was only 2% higher than in the previous decade, compared with increases of 16% in the US, 44% in Canada and 51% in Brazil. Meanwhile, crop agriculture contributes €246 bln to EU GDP and €5.7 bln to UK GDP. According to the analysts, every €1 bln of crop production supports nearly €3 bln in output across related industries. Climate change is adding further pressure, already causing estimated annual losses of €17.4 bln to the EU agricultural sector, with losses potentially increasing to €24.8–28.9 bln by 2050.

One of the main challenges is European farmers’ limited access to modern crop protection products and new technologies. According to the study, more than 1,000 active ingredients for crop protection products were authorized in the EU in the early 2000s, compared with approximately 420 today. Over the past seven years alone, farmers have lost access to 92 active ingredients, while only one new synthetic active ingredient has entered the market during the same period. Bayer believes that lengthy approval procedures, increasing administrative requirements and regulatory restrictions are slowing the adoption of innovative seed technologies, modern crop protection products, precision agriculture, automation and artificial intelligence.

Meanwhile, the United Kingdom has adopted a different approach to crop protection regulation since leaving the EU. Since 2022, the country has approved four new active ingredients that remain unauthorized or are still under review in the European Union. In addition, UK regulators have retained approval for 15 active ingredients whose EU authorizations have expired or been withdrawn since Brexit. The study’s authors warn that a possible alignment of UK regulations with EU rules could result in the loss of these approvals, creating additional risks for crop yields and farm incomes.

Despite regulatory restrictions, European consumers generally support the use of modern technologies in agriculture. A survey of more than 8 thsd respondents found that 84% support giving farmers access to the latest technologies and innovations, while 77% believe reducing bureaucracy is important for ensuring food security. In addition, 84% of respondents agree that food security is a matter of national security. Bayer emphasizes the need for a more predictable regulatory framework that would enable faster adoption of new agricultural technologies while maintaining high safety standards and strengthening the competitiveness of European agriculture.

Tags: EU, Bayer, agricultural sector