Corporate News

There are no major surprises in the figures for 1993 agrochemical sales. Recent trends have been maintained, with global sales of US$25,280 million. This marginal increase over the previous year represents a small decline of 1.7% after adjustment for inflation and currency effects.

Global trends
Ciba Geigy maintained its position as the lead company, with sales of US$2,790 million, but overall the American-based multinationals led sales growth. The exception was the Swiss-based Sandoz, which has nearly 40% of its sales in North America.  European companies were affected by the CAP reforms, which reduced planted area for cereals by 11%.  European farmers also appear to be reducing agrochemical application rates, and using a higher proportion of cheaper generic products. 
    The US companies Monsanto, Cyanamid and Du Pont had major sales increases, Monsanto with a record 17.4%. The mergers during 1993 of Hoechst and Schering, to form AgrEvo, and the Cyanamid acquisition of Shell’s agrochemical business, will lead to greater changes during 1994.
    The relatively static market does not indicate an overall swing against agro-chemicals.  Much of the drop is related to a decline in planted areas of some major crops (cotton down 3.6%, oilseeds, 0.4%, grain 0.9%) and to the weather (flooding in North America, adverse in China, North and South Korea, Thailand). Japan lost 27% of its rice harvest from weather damage and rice blast disease.

UK pesticide market
The British Agrochemical Association’s (BAA) annual review provides its regular useful round up of sales, usage, pesticide and wildlife incidents, regulation and legislation, and residues in food. 
    Total sales by BAA member companies in 1993 were £1,267.7 million, which, even after inflation, represents an increase of 6.4% over 1992.  These figures go against the European trend, showing a strong increase in both the domestic market (up 6.8% on 1992) and in exports.  Exports showed the highest growth, which, at £829 million, represented 65% of total sales. Nearly 40% went to other European Union countries. 
    Given the intended impact CAP reforms, the rise in sales is surprising. Cereals represent the largest area sown in the UK but at 3,095 hectares, this was 12% less than the previous year.  Pesticide inputs on cereals and oilseed rape were down on previous years. However, pesticide use on potatoes, sugar beet, peas and field beans all increased.  Some increases were dramatic, for example on sugar beet, herbicide use increased by 16% and insecticides by 29%.
    The BAA report also provides a useful appraisal of the issues currently of most concern to industry in Europe: 

• the reductions in delays in obtaining pesticide registrations in the UK; 

• the import of pesticides into the UK purporting to be identical to registered products which are not truly identical; 

• an extension of the patent to compensate for the period a product is in development and in the regulatory queue;

• the industry campaign to change the way of measuring pesticide residues in water to controls which are ‘compound-specific and based on scientific fact’ (see PN 22, p. 10);

• efforts to reduce the impact of packaging and packaging waste.

The industry is strongly backing the development of Integrated Crop Management (ICM) as the future pattern for agrochemical products and farming techniques. (See PN 23 p. 12 and this issue pp. 2-3).  Industry is having a certain amount of success in seeing high-profile coverage of ICM schemes it supports, such as LEAF (Linking Environment and Farming).  It has attracted support from retailers such as Sainsbury, and  has influenced government thinking in, for example, Sustainable Development: the UK Strategy.   While these schemes may promote good practice, they are not committed to reducing pesticide use and developing wider sustainable objectives (See PN 23 p. 22). (BD)

BAA Annual Review & Handbook 1994, 4 Lincoln Court, Lincoln Road, Peterborough PE1 2RP.  Additional information from Agrow, World Crop Protection News, No. 206, 22 April 1994.   

[This article first appeared in Pesticides News No. 24, June 1994, page 19]