Corporations and Pesticides

Multinational Corporations have Control  1960s and 1970s the pesticide market was a highly profitable business venture, increasing in sales by 10% each year  But this success soon reached a plateau  By 2002 the market fell from its peak of $30 billion to $27.8 billion  This was due to high research costs and regulations on the pesticides themselves, limiting the production of certain dangerous pesticides  This pressure to increase profits after decrease in economic growth forced companies into consolidation

Consolidation limits Control of the Agrochemical Market  There is now only six companies in control of this market, they control 75-80% of the world’s agrochemical market  The six biggest companies are Syngenta, Bayer, Monsanto, BASF, Dow and DuPont  In 2001 the agrochemical industry changed its name to CropLife International and started producing both pesticides and biotechnology  In 2000s sales from seeds and the genetic modification sector grew and agrochemical sales fell or stayed the same

How to Increase these Sales  Their main focus began to include how to promote new products and how to continue to sell old products  Developing countries become the producers and exporters of pesticides  India and China are the largest producers of generic products, followed by Argentina  In India companies make many hazardous products, that are banned elsewhere in the world and by the WHO (World Health Organization)  Right behind India is China the second largest agrochemical producer

Cost of Research  10% of a companies sales goes to research development  Long-term costly research is needed to fund biotechnological research so advancements can be made and profits can increase  Without this research the big six could not maintain their hold on the market  Development costs of products increased by 21% between  But cost of registering a new chemical was reduced by 15%

Advertising is Key  You must persuade farmers to buy your product  1940s-1960s stressed science  1970s-1980s emphasis on the domination of nature  1990s people began to realize the ecological and social costs and emphasized harmony and working with nature ‘Best against grass. Best for the Land’  Developing countries

Growing Markets in Developing Countries  Pesticide sales decline in rich countries  Developing countries become the target  The most toxic insecticides are used of fruit, vegetables, cereals, rice, maize, cotton, and soybeans- 85% of sales  Grown by smallholders in developing countries  To protect human health and the environment led to the adoption of the International Code of Conduct on the Distribution and Use of Pesticides  But there are not enough human and financial resources to in force these codes

Problems in Developing Countries  Farmers want cheaper products  Still use highly toxic products banned by the WHO are still being used  This market growth in developing countries could be stopped if proper training and information was available to farmers

Pesticides are Easily Accessible  Often sold in small kiosks, markets, shops selling food and other goods  Pesticide dealers are not informed  Farmers are unable to read labels and learn from neighbors how to use  Almost all governments have pesticide laws but enforcement is a problem

Legal Action is Hard to Take  In the U.S. victims are able to use the media to help them with their plea against pesticide companies, but this is not easy for developing countries  In Peru, lawsuit against Bayer-24 children died after exposure to methylparathion  Case was not upheld

Training  In places like Guatemala where large numbers of people have been poisoned by pesticides, companies introduced training programs  At first successful  but behavioral changes were often temporary  Problems arose from irrational behavior, but for small farmers and agricultural workers this behavior is perfectly rational  Melon workers

More problems  Cheap herbicides that are fatal are still used  One tsp of paraquat is fatal and there is no antidote  Use to resemble coca cola, coffee or tea and home storage led to many accidental consumptions  Hazardous pesticides, and others with chronic health concerns, are used freely in developing countries

Authors Resolutions  Governments, public research institutes and development agencies need to promote pest management strategies  They must address the needs of poor farmers  Also new strategies are needed in farming systems where workers work with hazardous products without protection