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Corporations and Pesticides

By Barbara Dinham. Corporations and Pesticides. Multinational Corporations. Develop, manufacture, sell pesticides Influence farmer’s decisions on pest management and agricultural development Critical to develop safer pest management Merging Investing in GM crops.

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Corporations and Pesticides

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  1. By Barbara Dinham Corporations and Pesticides

  2. Multinational Corporations • Develop, manufacture, sell pesticides • Influence farmer’s decisions on pest management and agricultural development • Critical to develop safer pest management • Merging • Investing in GM crops

  3. History of Pesticide Market • 60s and 70s: growing • 90s: leveled off • Late 90’s: created unprofitable synergies • 2001: CropLife International: include both pesticides and agricultural biotechnology • 2000s: • Pesticide market shrunk • High research costs • Tight regulations • Limited room for market expansion • Led to consolidation and mergers • 6 companies control 75-80% of market • GM seed market grew rapidly • Less concentrated • 10 companies control 30% of market • Shift towards combination of seeds and pesticides

  4. Research • Costs ~10% of company’s sales • Biotech and finding new active ingredients require long-term, costly research • 2000: ID to sale: 9 years • Causes consolidation • Necessary: • Keep lead in market • Maintain variety in products • Meet regulatory standards • Big six: $3.2 billion/yr

  5. Advertising • Targets social and cultural values • 1940s-60s: stress science • 1970s-80s: domination of nature • 1990s: harmony, working with nature • Developing Countries: scantily clad women, extravagant claims of improved yield

  6. Developing Countries • Produce out-of-patent active ingredients • India • China • Argentina • Including extremely hazardous pesticides • Over 2000 companies involved in pesticide production and packaging

  7. Market in Developing Countries • Growing • Mainly insecticides • Many small-scale farmers • Cost relative to farm income far higher • Aggressive marketing and increase in high yield varieties • Especially Asian countries showing increasing use and dependence on pesticides • Much of this may be unnecessary • Better training and access to info • Integrated pest management (IPM) strategies

  8. FAO Code of Conduct (1985) • International Code of Conduct on the Distribution and Use of Pesticides • To protect human health and the environment • Voluntary, but CropLife International requires members to comply • Register formulation of active ingredients • Led to banning or restriction of dangerous pesticides in industrialized countries • Improved pesticide laws and regulations in developing countries • BUT many times there is not the money to implement • Many banned pesticides still used in developing countries • 1995: no improvement on health, lower environmental standards

  9. 2002: revised code • Prohibit importation, sale, purchase of highly toxic products • Prohibit production of pesticides which require expensive or hard to get protective equipment • Ad standards • Licensing of pesticide retailers • Product stewardship guidelines • Lowest toxicity formulations • Expert medical advice available 24/7 • Protective clothing available and convenient • BUT Company obligation stops at distributor level

  10. Companies Avoiding Liability • Principle 13 of the Rio Declaration: • States shall develop national law regarding liability and compensation for the victims of pollution and other environmental damage. States shall also cooperate in an expeditious and more determined manner to develop further international law regarding liability and compensation for adverse effects of environmental damage caused by activities within their jurisdiction or control to areas beyond their jurisdiction. • European Commission (EC) amended Product Liability Directive to include chemicals • International Standards Organization (ISO) established voluntary guidelines • Little luck holding manufacturers accountable, but better luck with corporations • Legal action very difficult in developing countries

  11. Lack of Info and Education • Huge problem in developing countries • All information coming from producers • Learn to use from neighbors or traders • Traders often do not know risks or best pesticides for problems • Some can’t read labels • Informal trading

  12. “Safe Use” • Training initiative to address problem that farmers had insufficient info and training in pesticide use funded by government • Train distributers • Inform and educate end-users • Improve poison control centers • Educate children • Promote positive perception of industry • 3 pilot projects: Kenya, Thailand, and Guatemala • Now about 70 projects • Studies show behavioral changes temporary • Still lacking resources and equipment

  13. Corporate Strategies in Developing Countries • Seek development aid funding to promote products • IPM • Safe Use • Extending markets for hazardous products • Influence policies to promote inappropriate products

  14. Solutions • Governments and companies must implement FAO Code of Conduct • Company projects that: • Do not encourage unnecessary pesticide use (IPM) • Do not associate pesticides with safety (Safe Use) • Paid for by the company, not public funds • Find safer and more sustainable pest management solutions • Remove most toxic pesticides from market • Safer products and technologies

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