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1 Impact of Urban Turf Rule Sandy Simon Senior Director, Government Affairs Florida Consumer Fertilizer Task Force West Palm Beach, FLORIDA November 2,

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Presentation on theme: "1 Impact of Urban Turf Rule Sandy Simon Senior Director, Government Affairs Florida Consumer Fertilizer Task Force West Palm Beach, FLORIDA November 2,"— Presentation transcript:

1 1 Impact of Urban Turf Rule Sandy Simon Senior Director, Government Affairs Florida Consumer Fertilizer Task Force West Palm Beach, FLORIDA November 2, 2007

2 2 United Industries Corporation, A Subsidiary of Spectrum Brands

3 3 Topics of Discussion Nutrient contributions of current turf products Products Affected by Rule Products Compliant / Non-compliant with Rule Required Changes Company resources needed to comply with Rule

4 4 Topics of Discussion United Industries – number of affected products Cost associated with labeling compliance Formulation Changes – Fertilizer Input Costs Compliance Challenges –State Ordinance vs Inconsistent Local Ordinances

5 5 Turf Products – Nutrient Contributions Nitrogen (lb per 1,000 sq ft) –Rate: 0.5 lb – 1.4 lb –RAN: Typical = 0.72 – 1.0 lb –CRN: Typical = 0.3 – 0.5 lb

6 6 Turf Products – Nutrient Contributions Phosphate –0.09 lb (lawn fertilizer) –1.0 lb (starter fertilizer)

7 7 Required Changes – Lawn Products [ 7.2% CRN (25% of Total N) ]16 # Bag for 5,000 sq ft 3.2# / 1,000 sq ft Total N / M sq ft = 0.93 lbs RAN = 0.70 lb and CRN = 0.23 lb Environmental Caution Statement Do not apply near water, storm drains, or drainage ditches, Do no apply if heavy rain is expected. Apply this product only to your lawn, and sweep any product that lands on your driveway, sidewalk or street, back onto your lawn.

8 8 Some Products affected by Rule  P2O5 = 0.16 lb  RAN = 0.5 lb  CRN = 0.62  Total N = 1.12 lb / M

9 9 Products Affected by Rule Remove “Lawn” from product name, remove lawn directions for use Amended or New Federal & State Registration for fertilizer / pesticide combination products to add Environmental Caution Statement or change formulation. Starter not a part of brand name so use as a starter turf fertilizer is prohibited.

10 10 Company Internal Cost Undefined Review product offering & Identify Affected Products Change Management – Gate Approval process Formulation Change & Cost Customer Notification & Approval Graphic Design Development / Change Label Review & Approval Process New Bags / Prepress / Printing Inventory Management

11 11 DOACS: Specialty Fertilizers 152 Licensed Companies 1,453 Registered Brands ~ 300 Brands labeled for Lawns –20.6% of registered brands –§ Registration and licensing –Register each brand and grade –Does not accurately reflect number of affected labels

12 12 DOACS: Specialty Fertilizers For: United Industries # Labels Number of rate compliant labels …. 65 Lawn Fertilizer…………………… Garden Fertilizer w/Lawn use…….. 36 Lawn Fert/Pesticide………………. 18 Total labels.………………………… 130

13 13 Financial Impact for Label Revision Rate Compliant – (Add Environmental Statement) –~ $2, – Graphic design, plate change and label review. –~ $162,500 for updating 65 labels

14 14 Financial Impact for Label Revision Lawn Fertilizer and Garden Fertilizer with Lawn Uses –47 Labels affected –Reformulation, resize container, graphic design, new plates and new registration –~ $15,000 per container ($10K for plates, $2.5K for registration, etc) –~ $705,000 to comply with Rule

15 15 Financial Impact for Label Revision Lawn Fertilizer / Pesticide Combination Products –Application rate determined by pesticide ai –Reformulate nutrient content & add environmental statement –Reformulate pesticide ai (new EPA registration) –New registration fee ($4,360) and Amendment fee ($3,280) –New state registrations (National = $12,000 per product) –(18 labels * $12,000 = $216,000) + (9 brands * $3,280 = $29,520) –~ $245,000 for Combination product changes

16 16 Financial Impact for Label Revisions $162,500 + $705,000 + $245,000 = $1.11MM $8,557 – Average per product label –Based on 130 United Industries labels $5,130,000 for the label changes –~ 300 Products labeled for Lawns - (DOACS Estimate) –Assume 2 sizes for each Registered Brand & Grade (600 bags) –Does not include water soluble garden fertilizers with use directions for lawns

17 17 Reformulation Impact *Urea$350 *Ammonium Sulfate$230 *Diammonium Sulfate$400 *Muriate of Potash$300 Controlled Release Nitrogen (CRN) –$600 to $1,000 per Ton –Sulfur-Coated Urea, Polymer-Coated Urea, Methylene Urea Increase CRN from 15% to 30% = 10% of input cost *Per Ton - Green Markets October 29, 2007

18 18 Compliance Challenges Florida Urban Turf Rule __ State-wide Ordinance –IFAS supports the Rule as an interim measure –Rates provide minimum N & P requirements for turfgrass health –Protective of the Environment –Impacts labeling, formulation and registration –Rule enforced through registration and field monitoring –Provides uniformity which is vital to interstate and intrastate commerce –Allows for routine distribution of products into Florida

19 19 Compliance Challenges Multiple Local Ordinances –Requires an assortment of new product formulas –Cost prohibitive to develop and produce multiple low volume products –Distribution complex and cost prohibitive –Significant increase in consumer products to cover additional formulation and distribution costs.

20 20 Consumer Education Right Product Right Place Right Time Right Rate + Right Practice and Right Message

21 21 Questions Sanford R Simon Thank you for your Attention


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