Nufarm Limited’s share price has fallen by 11.73% today’s market, trading at $6.65 at the time of writing.
Over the last month Nufarm Limited [ASX:NUF] shares have been declining, trading from $8.43 on 10 July to $7.54 on 10 August this year — a fall of 10.34% in just 34 days.
The company sells herbicides and Glyphosate-based products, specialising in crop protection.
How Glyphosate registrations are affecting Nufarm Limited’s share price
Nufarm is grappling with the aftermath of a lawsuit between chemical giant Monsanto, and a man that claimed its Glyphosate-based products caused his cancer. A Californian jury found Monsanto liable on 10 August.
This recent media attention and scare around Glyphosate could be contributing to Nufarm’s sudden drop in share price. That’s despite Nufarm stating that it did not expect that these issues would have any impacts on its business.
On 6 august a Brazilian judge ruled that existing registrations of Glyphosate would be suspended within the next 30 days, until the government completes its regulatory review of the product, which has been ongoing for about 10 years.
It is expected that several agriculture-related associations will lodge appeals against this ruling, including the local crop protection association, Brazilian health agency ANVISA, as well as the Brazilian Ministry of Agriculture.
With these appeals expected to be lodged next week, Nurfarm anticipate being able to sell its Glyphosate-based products in the upcoming Soybean season.
Will Nufarm Limited’s share price bounce back?
Nufarm remains hopeful that this issue won’t have any impacts on its business, but only time will tell. Shareholders should keep in mind that despite the verdict, the product has had a 40-year history of what Nurfarm, as well as many global regulatory authorities, deem safe use. Glyphosate continues to be an important tool for farmers.
Regulatory authorities around the world have approved the use of Glyphosate, including the US environmental protection Authority, the APVMA here in Australia and more recently the European Food and Safety Authority.
Nurfarm states that will continue to work with regulatory authorities across the world in order to maintain its Glyphosate registrations.
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