Agrochemical Industry & Sustainable Development

M. Raghavender

Viewpoints

Acknowledgements

Dr. Matthieu Vanhaecke Nufarm

Mr. Dennis Avery “Saving the planet with pesticides and plastics”

Dr. Gerry Stephenson University of Guelph, Ontario, Canada

TO DOUBLE WORLD FOOD PRODUCTION BY 2050

We need advances and better application of both,

&

INTEGRATED PEST MANAGEMENT

CROP GENETICS

Industry’s Purpose

To provide Crop Protection Solutions & thereby ensure food & fibre security.

Sustainable ??

IT MUST !IT MUST !

But how ???

Regulations to ensure Industry’s sustainability

“Regulations” represent our perpetual

effort to replace more environmentally

damaging products with more benign

alternatives.

Global Harmonization of regulations a real challenge, but efforts are on in full force.

Sustainability depends on….

11 The profitability of the manufacturers

22 The productivity & profitability of the growers & health impact on applicators

33 The health of the consumers

44 The environmental impact on society

In all cases the Benefits must out-weigh all associated Risks

Manufacturers' point of view

Benefits must outweigh risks

Grant of Registration

Re

ven

ue

Time (Yrs.)

Patent Expiry

10

20

8

23

Data Generation

& Submission

Data Protection

Ends

First Sales Patent Expiry

Direction of current pressures

Years0 10 15 20 25

100

80

60

40

20

0

-20

-40

-60

-80

-100

$106

TYPICAL CUMULATIVE DISCOUNTED CASH FLOW FOR A SUCCESSFUL

NEW PRODUCT

Years1950 1975 2000 2025 2050 2075 2100

Manufacturers' point of view

Benefits must outweigh risks

Growers' point of view

Growers Plight – Indian Scenario

Cost-Risk-Return structure getting adverse

Growing indebtedness ~ 55% farm house-

holds in Maharashtra are in debt 2005.

Chronic under-nutrition (endemic hunger)

Cost of crop production invariably higher

than the minimum support price

Consequent spate of suicides.

Growers Plight – Indian Scenario

Risk of nature’s fury – earthquakes, droughts, floods & cyclones, incessant & untimely rains

<10% of farmers covered under crop insurance.

Poor post harvest infrastructure & consequent spoilage losses.

Rural credit mechanism does not address the twin issues of “transaction cost” and “risk”.

Pesticides pose health risk to growers & applicators

~3million reports of serious poisoning each year globally

220 thousand accidental deaths

Health problems 13 times higher in developing countries

Chronic effects?

Health risks with pesticides

PesticideToxicity

PesticideToxicity

Human ExposureHuman

Exposure

Depend on

Health risks are preventableProper pesticide use rarely cause health problems

Can be prevented by the continued development of safer pesticides.

Industrialized countries have effective regulatory, educational and training programmes for applicators.

These programmes are expensive to maintain and will be challenge to implement in developing countries.

Responsibility of the Government

Indian Central & State governments need to mobilize over 3 million trainers to cover our 100 millions farms.

May need to rope in World Bank support to augment the inadequate resources of the Agri-extension Dept. eg T&V programmes of the 70s to promote water literacy etc in Chambal region.

Industry resources cannot do justice to education and training programmes.

11

22

33

Economic benefits to growers

Crop losses would be at least 10% – 60% if pesticides are not used.

The economic benefit in Rupee terms is positive (Rs3-5 return on every Rupee spent on pesticide?) depending on cost of pesticide and the ruling commodity prices at harvest.

Low cost Generic pesticides have helped improve farm economics

Need to develop credible data on the indices of “Economic benefits” statewise and cropwise.

Benefits must outweigh risks

Manufacturers' point of view

Consumers' point of view

Growers' point of view

Shift in environmental concerns

1960s1960s

Insecticides

TodayToday

Herbicides

Pesticide Residues – a concern

New low dosage herbicides introduced to lower the risk in general.

Encouragement being given to non-chemical alternatives wherever economically feasible.

Significant international effort addressing residue concerns.

Global Efforts - USA

USA – EPA under FIFRA is

reviewing all prior 1984

pesticides to ensure that

Pesticide Food Residues meet

FQPA standards. Globally

Harmonized System

implementation to resolve MRL

differences within NAFTA

members.

Global Efforts - EU

Procedure involves peer review of Annex II dossier by European Food Safety Authority and commented upon by European Commission Evaluation Group and Member States. Thereafter a positive vote by the Standing Committee on Food Chain and Animal Health to make it to the Annex I list.

Efforts on to establish a positive of active substances (Annex I) that have been shown to be without unacceptable risk to people or environment.

Benefits must outweigh risks

Manufacturers' point of view

Growers' point of view

Society's point of view

Consumers' point of view

• .

Pesticides help save land

Advances in crop protection, breeding and fertility

World Agricultural production tripled since 1960 on 6 million sq miles of land.

We would need to find new land for agriculture equivalent to USA, Brazil and EU combined.

Intensive farming as opposed to extensive farming is the only option

US society’s benefit from Pesticides

Annual pesticide use $6.5billion

Prevents $26billion in crop losses from pests

4:1 returns to growers in dollar terms

Indirect cost of pesticide use $8billion (regulation, training, health & environmental losses)

Total benefit $26billion vs total cost 14.5billion

2:1 return to society on every $ spent on pesticides

Thank You