CLAIMS that imports of Chinese glyphosate have leapt by almost 400 per cent because they are "dumped" in Australia for less than prices at home will be tested by federal customs officials.
Local crop chemical makers Nufarm and Accensi, who petitioned Canberra to mount an anti-dumping investigation, say cheap fully formulated glyphosate products are seriously undermining the local formulation industry.
Despite wet seasonal conditions in 2010-11 triggering a surge in weed growth and a subsequent boom in farm glyphosate use, local production of the broad spectrum herbicide fell 20 per cent.
In the same period Chinese imports jumped a whopping 393pc.
"We certainly support a competitive market, but we want to compete on a fair basis," said Nufarm Australia's general manager, Lachie McKinnon.
However, Western Australian-based importer 4Farmers has dismissed the dumping allegation as "nonsense", warning primary producers would pay the price if anti-dumping penalties were imposed on companies selling Chinese versions of the widely used product.
"Fully imported glyphosate comfortably accounts for the majority of generic glyphosate on the market and the source of this would largely be China," said general manager Neil Mortimore.
"Who knows what it (a dumping duty) might increase glyphosate prices by?
If a Customs and Border Protection Service study of 2011 prices shows Chinese chemical sold here for less than it did in China, anti-dumping laws will force local resellers to pay the difference in the price charged, plus a penalty.
Mr Mortimore said 4Farmers, which distributes in WA and the eastern States, would fight the allegations "on behalf of farmers".
He also hoped to submit information from the Chinese before submissions closed on March 19.
Mr Mortimore said past dumping claims made by Monsanto in 1996 and 2001 had been dismissed as nonsense.
But the peak body representing crop chemical manufacturers and the plant science industry, CropLife Australia, has eagerly offered to assist the customs inquiry with any evidence it can muster to help prove the allegations.
"Our industry currently faces some major threats. Dumping is one of these but it's only a component of a much broader range of illegal international trade challenges," said CropLife chief executive officer, Matthew Cossey.
"This is a significant and serious issue for the Australian plant science industry which we've fought hard to bring to the attention of the government for action.
"The government must ensure our plant science industry, worth more than $1.5 billion to the Australian economy each year, is protected against international trade rules breaches, such as dumping."
Also supporting the investigation is local buyer of unformulated active glyphosate ingredient from China, Titan Ag, which is worried about the high quality standards in local formulation businesses being undermined by ready-prepared imports.
Titan Ag director Andrew Ericsson warned that while Australian customs officials may find Chinese manufacturers more helpful to work with than a decade ago, the Chinese would do all they could to prove they were not selling product at "dumped" prices.
He said manufacturers were paid a five per cent Chinese Government rebate on sales of formulated product and therefore had plenty of incentive to retain their market to Australia.
Titan sources chemical ingredients from China, but formulates them locally based on strict Australian industry expectations.
As a low cost player in the local market, however the company is frustrated its product lines don't always receive that recognition because some cheap poorly manufactured Chinese imports have tarnished the glyphosate business.
"Our preference is to support local formulation businesses - we want to maintain the reassurance of local production and quality control," said Mr Ericsson.
Nufarm's Mr McKinnon said his company had a major capital investment to protect and wanted continue to reinvest significant sums in new glyphosate-based products.
"We have a long-term commitment to continue supplying Australian farmers with locally developed products which aid productivity and help them compete with other agricultural exporters," he said.
Nufarm operates major glyphosate formulation facilities at Laverton North in Victoria and at Kwinana in WA and is Australia's leading supplier and formulator of the herbicide.
"We have built our business on the basis of being able to successfully compete with other glyphosate suppliers," Mr McKinnon said.
He said a similar application made by Monsanto in 1996 on glyphosate acid was rejected by customs and another dumping duty application was made in 2001 by Monsanto was dismissed.
* FarmOnline would like to apologise for any confusion caused by an incorrect headline that appeared on an earlier version of this article.
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