world [BRARY FSECTI0H pro e University Library THY|:N " '' TAT£: UNIVERSITY ENNSYUVANIA Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://www.archive.org/details/worldsurveyofpesOOunit ; world survey of pest control products by Laura G. Arrington under supervision of C. C. Concannon, International Consultant Chemical and Rubber Division George A. Fowles, Director 1 1. S. DEPARTMENT OF COMMERCE, Sinclair Weeks, Secretory IMJSINESS AND DEFENSE SERVICES ADMINISTRATION, Charles F. Honeywell, Administrator For sale by the Superintendent of Documents, U. S. Government Printing Office Washington 25, D. C. - Price 60 cents Foreword This world survey of the pesticide industry is the first of its kind in scope and comprehensiveness covering all segments and phases of the industry in the United States and 66 foreign countries. Included are data on production, consumption, foreign trade, marketing meth- ods, distribution patterns, advertising media, application equipment, and government regulations relating to pesticides. Prospects for in- creasing United States participation in foreign markets are analyzed. The survey is the result of much thought, planning, and effort on the part of both Government and industry. Because of the rapid growth, diversification, and great capacity of the industry, many individual producers and the trade associations of the industry have urged the undertaking of the project. During and since the Korean conflict, United States capacity for production of various pesticides has increased to such a degree that potential output cannot be absorbed by domestic requirements. Out- put of toxic ingredients for pesticides in 1955 at producers level was estimated to be $200 million and installed capacity is perhaps twice as great. Total exports (basic pesticides plus formulated products), valued at $63 million in 1954, in 1955 attained an all-time high of $79 million. Production of basic pesticides abroad has also increased in recent years, especially in Central European countries, and keen competition exists in world markets. The material on foreign countries was obtained from commodity and economic reports submitted by the Foreign Service of the United States in response to a questionnaire sent out in 1954, from official data supplied by foreign governments, and from industry sources. (The Foreign Service reports which form the basis for this study are on file in the Chemical and Rubber Division and may be consulted by interested persons.) The Bureau of Foreign Commerce cooperated in supplying foreign trade statistics. The section on the United States was compiled from information available in the Chemical and Rubber Division, plus statistics from the Bureau of the Census, the Bureau of Mines (U. S. Department of the Interior), and the United States Tariff Commission. Because of time consumed in obtaining replies to the questionnaire, and in preparing the manuscript for publication, most statistical data iii refer to 1953 and 1954. However, it has been possible to include 1955 statistics on United States production and exports of pesticides. World Survey of Pest Control Products was prepared in the Chemical and Rubber Division by Laura G. Arrington under the direction ol C. C. Concannon. Members of the staff who contributed to the work include Louise Evans and Virginia Kinnard. The results of this survey and the reference data in the publication are of special interest to various agencies of the LT. S. Government. Public health programs abroad have grown in scope in recent years and it is essential that Government agencies be informed on the availability of materials for control of malaria and typhus, for ex- ample, in order to implement properly projects in which this country participates. It is believed that this reference work will prove useful to the chem- ical industry, the small business man, and the business community at large. Chas. F. Honeywell, Administrator, Busiriess and Defense Services Administration. IV Contents Page Foreword iii Glossary vii North America and Caribbean Area 1 United States 1 Canada 12 Costa Rica 19 Cuba 21 Dominican Republic 24 Guatemala 26 Haiti 27 Honduras 28 Mexico 31 Nicaragua 36 Panama 38 El Salvador 39 Trinidad and Tobago 42 South America 45 Argentina 45 Bolivia 53 Brazil 56 Chile 60 Colombia 64 Ecuador 67 Paraguay 70 Peru 73 Uruguay 78 Venezuela 80 Europe 84 Austria 84 Belgium 87 Denmark 90 Eire (Ireland) 94 Finland 97 Europe — Continued Page France 99 Germany, West 106 Greece Ill Italy 113 Netherlands 118 Norway 121 Portugal 124 Kumania 125 Spain 126 Sweden 130 Switzerland 134 Turkey 136 United Kingdom 141 Yugoslavia 144 Asia and Oceania 149 Australia 149 Burma 153 Ceylon 155 Formosa (Taiwan) 159 India 161 Indonesia 163 Iran 165 Iraq 167 Israel 170 Japan 173 Lebanon 179 New Zealand 181 Pakistan 183 Philippines, Republic of 186 Syria 189 Africa 192 Algeria 192 Angola (Portuguese West Africa) 194 Belgian Congo 197 Egypt 199 Ethiopia 202 French Morocco 204 Kenya (British East Africa) 206 Liberia 207 Mozambique -. 208 Union of South Africa 211 VI Glossary Until 1955, coined names for pesticides were approved by an Interdepartmental Committee on Pest Control consisting of repre- sentatives of the U. S. Departments of Agriculture, Interior, Army, Navy, Air Force, and Health, Education, and Welfare. Approval for coined names is now within the jurisdiction of the American Standards Association Sectional Committee on Common Names for Pest Control Chemicals, K62. The National Agricultural Chemicals Association, 1145 19th Street, NW., Washington, D. C, publishes lists of coined names as they are approved* There follows a partial list of coined names, for pesticides, with their chemical formulas. Coined Name Chemical Formula Aldrin 1,2,3,4,10,10 - hexachloro - 1,4,4,5,8,8a - octohy- dro- 1,4,5, 8-dimethanonaphthalene Allethrin DL-2-allyl-4-hydroxy-3-methyl-2-cy clopenten - 1- one esterfied with a mixture of cis and trans DL-chrysanthemum monocarboxylic acid (allyl homolog of Cinerin I) ANTU Alphanaphthyl thiourea Aramite 2- (p-tert-butylphenoxy ) isopropyl-2-chloroethyl sulfite BH C (benzene hexachloride) __ 1,2,3,4,5, 6-hexachlorocy clohexane Captan N-trichloromethylthiotetrahy drophthalimide Chlordane l,2,4,5,6,7,8,8-octachloro-3a,4,7,7a tetrahydro-4,7- methanoindane Chlorothion 0, 0-dimethyl-0-3-chloro-4-nitropheny 1 thiophos- phate Coumachlor 3- (alpha - acetonyl - 4 - chlorobenzyl) -4-hy droxy- coumarin Cy clethrin 3- (2-cyclopenthyl) 2-methyl-4-oxo-cyclopenthyl chrysanthemum monocarboxylate DDT Dichlorodiphenyl trichloroethane DD VP Dimethyl dichloro vinyl phosphate Diazinon 0, 0-diethyl-0- (2-isopropyl-4-methyl - py ramidy 1 (6)) Diclone 2, 3-dichloro 1 , 4-naphthoquinone Dieldrin 1,2,3,4, 10,10-hexachloro-6,7-epoxy - l,4,4a,5,6,7,8, 8a-octohy dro-1 , 4, 5, 8-dimethanonaphthalene Dipterex_ 0,0-dimethyl l-hydroxy-2,2,2-trichloroethyl phos- phonate Dithane Disodium ethylene bisdithiocarbamate vn Coined Name Chemical Formula Endrin 1,2,3,4,10, 10-hexachloro-6,7-epoxy-l,4,4a,5,6,7,8, 8a-octahy dro- 1 , 4, 5, 8-endo dimethanonaphtha- lene EPN Ethyl p-nitrophenyl thiono benzenethiophos- phonate Estomite Parachlorophenyl parachlorobenzene sulf one Ferbam Ferric dimethyl dithiocarbamate Glyodin 2-heptadecyl-2-imidazoline glyomaldine Heptachlor ... 1,2,4,5, 6,7, 8,8-octachloro-3a,4,7,7a tetrahydro-4,7- methanoindane H ETP Hexaethyl tetraphosphate and tetraethyl pyro- phosphate IPC Isopropyl-N-phenyl carbamate Isodrin l,2,3,4,10,10-hexachloro-l,4,4a,5,8,8a - hexahy- dro-1 , 4, 5, 8-endo-endo-dimethanonaphthalene Karat hane Dinitro capryl crotonate Lethane Beta butoxy beta thiocyano diethyl ether Lindane Not less than 99 percent of the gamma isomer of benzene hexachloride Alalathion 0,0-dimethyl dithiophosphate of diethyl mercapto- succinate Maneb or Manzate. - Manganese ethylenebisdithiocarbamate MCP _ 2,methyl-4-chlorophenoxyacetic acid Methoxychlor or Marlate l,l,l-trichloro-2,2-bis (p-methoxyphenyl) ethane N abam Disodium ethylene bisdithiocarbamate O vatran Parachlorophenyl parachlorobenzene sulfonate Panogen Methylmercury dicyandiamide Parathion 0,0-diethyl-O-p-nitrophenyl thiophosphate Perthane 1, l-dichloro-a,a-bis(p-ethyl-phenyl) ethane Pival 2,pivalyl-l ,3-indandione Pyrenone Emulsifiable combination of pyrethrins and piperonyl butoxide Strobane Terpene poly chlorinates, consisting of camphene, pinene, and related terpene polychlorinates Systox 0-2-(ethylmercapto) ethyl 0,0-diethyl thiophos- phate TCA Trichloroacetic acid TDE or DDD Contains a hydrogen in place of one of the chlorines on the ethane radical of DDT TEPP Tetraethyl pyrophosphate Thanite Isobornyl thiocyanoacetate Thiram Tetramethylthiuram disulfide Toxaphene A chlorinated camphene 2,4-D 2,4-dichlorophenoxyacetic acid 2,4, 5-T 2,4,5-trichlorophenoxyacetic acid Warfarin 3-(alpha-acetonylbenzyl)-4-hydroxycoumarin Zineb Zinc ethylene bisdithiocarbamate Ziram Zinc dimethyl dithiocarbamate Vlll North America and the Caribbean Area The United States is the largest world manufacturer and supplier of pest-control products. Capacity for annual production exceeds normal domestic consumption and increased exports are desirable. With the exception of the United States, Canada, and Mexico, countries in North America and the Caribbean area do not manufac- ture basic pesticides, and little formulating is done. This area con- tinues to be the biggest foreign market for United States pesticides. Exports to the area rose from $24,413,000 in 1953 to $27,216,000 in 1954, and for 1955 totaled $34,464,000. UNITED STATES Production Growth of the United States pesticide industry in the past decade has been tremendous, both in quantity of output and variety of products, and has resulted in this country's becoming the largest world manufacturer and supplier. Prior to World War II, manufacture of pesticides consisted largely of inorganic products such as calcium arsenate, lead arsenate, paris green, copper sulfate, fluorine compounds, and ground sulfur, along with the botanical insecticides — pyrethrum dust and extract, rotenone dust, and nicotine sulfate. Since the advent of DDT, the trend has been toward organic compounds, and each year a number of new insecticides, fungicides, weedkillers, and the like enter the market. A distinct advantage in increased manufacture of synthetic organic pesticides lies in the domestic availability of basic materials needed for their production. The United States is dependent to some extent on imports of arsenic and lead (for lead arsenate), and pyrethrum and rotenone are entirely of foreign origin. The Census of Manufactures valued 1939 production of all pesticides at $76 million. According to the United States Tariff Commission, sales of synthetic organic pesticides alone totaled $150 million in 1951, $133 million in 1952, $118 million in 1953, and $124 million in 1954. OS I -8 On An O 2 0 On CO 8 0) £ H .•ONHHHO ^'OO O G „„....«. .. G .» .. 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It has been estimated that manufacture of all basic pesticide toxicants (not including formulations) at the manufacturers level was valued at $160 million in 1953, $175 million in 1954, and probably will top $190 million in 1955. (For statistics on output of individual pesticide materials in recent years see table 1.) Consumption The use of pesticides is increasing not only in volume but in variety, and application of specialized products for specific controls is becoming more general. In number of compounds available for control of various insects, fungi, weeds, and the like the pesticide field has expanded more in the past 10 years than during all previous years of its history, and the list is ever increasing. Constant research is being conducted, both by government agencies and private corpora- tions, to discover and test chemical compounds for effectiveness as insecticides, fungicides, weedkillers, and other purposes, particularly for specific controls. Only within recent years have such materials as defoliants been used on plants such as cotton, potatoes, and soy beans. Selective weedkillers have come into common use only within the past decade, particularly on small grains. Pre-emergence weedkillers also are becoming popular. Use of herbicides not only increases output per acre, but reduces the number of man-hours required for a unit of production, thus alleviating to some degree the shortage of farm labor. A rapidly growing market for pesticides lies in protection of stored grain. The United States Department of Agriculture and the Food and Drug Administration, United States Department of Health, Education, and Welfare, are uniting forces in this project which will save thousands of tons of grain as well as provide the public with noninfested cereal products. Also, for control of livestock pests, there are a number of new materials, use of which results in added weight of beef cattle and hogs and increases milk production. Use of various new organic insecticides has been a big factor in control of flies and other house- hold insects, as well as in lessening infestations around barns, dairies, and other outbuildings. Through cooperation of the United States Public Health Service and State and municipal authorities, incidence of malaria has been practically eradicated in the United States. Furthermore, United States Government and municipal authorities have cooperated on a number of successful rat-eradication programs. Table 2 gives domestic disappearance of some major agricultural pesticides in recent crop years. However, these statistics do not take into consideration the ever-growing use of newer commodities, Table 2. — United States Domestic Disappearance at Producers Level of Some Major Pesticides by Crop Years, 1950-51 to 1953-54 1 [Thousands of pounds] Commodity 1950-51 1951-52 1952-53 Benzene hexachloride Calcium arsenate Copper sulfate 3 2,4-D (acid basis) 4__ DDT . Lead arsenate Parathion Pyrethrum (flowers) 5 Rotenone (roots) 5 2,4,5- T (acid basis) 4_ 9,600 39, 583 122, 449 23, 494 72, 688 30, 174 4, 670 7,098 7,027 2, 822 11,067 4, 735 98, 182 25, 298 70, 074 17, 452 4, 511 6, 729 3, 520 2, 937 7,085 7,000 79. 582 26, 122 52, 748 16, 000 3, 000 8, 113 4, 468 4,625 7,61i, 3, 190 74, 054 26, 483 45, 117 16, 000 3,975 7,679 6,428 6 3, 877 1 Based on available information; crop year is from Oct. 1 through Sept. 30. - Gamma isomer basis; includes lindane. 3 Disappearance for all domestic uses, including industrial; calendar-year basis. 4 Export data not being reported separately, figures represent total disappearance at producers level. 5 Imports; includes advanced (powdered), also equivalent of pyrethrum extract imported in 1953-54. 6 Production for calendar year 1954, as reported by the U. S. Tariff Commission. Source: The Pesticide Situation for 1954-5.5. Commodity Stabilization Service, U. S. Department of Agriculture. such as aldrin, dieldrin, endrin, toxaphene, aramite, captan, mala- thion, and the dithiocarbamate fungicides, which probably accounted for about one-sixth of 1954 consumption of pesticides. Foreign Trade Imports of pesticides into the United States are negligible, except for such raw materials as arsenic (for manufacture of the arsenates), pyrethrum flowers and extract, and rotenone-bearing roots. Export markets for pesticides have risen tremendously in recent years. For instance, from $4,975,000 in 1939, they had risen to $18,505,000 by 1945; by 1953 were $49,060,000; in 1954 rose to $62,740,000; and in 1955 totaled $79,133,000. (See table 3 for exports of all pesticides to areas and principal countries of destination in 1945 and 1953-55.) Equipment The latest and most efficient equipment for application of pesticides is used in the United States, and supplies of all types are plentiful. In recent years, spraying and dusting by aircraft has become a common practice. The following information on such application is sum- marized from The Airplane at Work for Business and Industry, published in December 1954 by the Civil Aeronautics Administration of the Department of Commerce. Aerial pesticide application began in 1919 when the United States Department of Agriculture aerially dusted fruit trees infested with caterpillars. Aerial control is now used on more than 200 crops. It is estimated that at present 1 of every 12 acres under cultivation is treated from aircraft. In 1953, commercial agricultural flying totaled 722,300 hours b}- 4,090 aircraft, with between two-thirds and three-fourths of flying time consisting of pesticide dusting and spraying operations. Dusting operations consumed 266,800 hours, and included dusting 13,476,000 acres of cotton with 235,229,000 pounds of finished dust. Flying hours for spraying of forest and crop areas totaled 262,200, with 17,188,000 acres being sprayed and over 47 million gallons of liquid used. Chemicals dispersed as spray included insecticides, fungicides, weedkillers, defoliants, and plant hormones. In 1953, hours spent in dusting were 6 percent below those in 1952, while hours spent in spraying were 20 percent higher. If present chemical treatments remain essentially unchanged, spraying will probably continue to grow and may become more important than dusting. Aircraft were flown approximately 50,000 hours in applying defoli- ants in 1953. Both spraying and dusting are used to distribute these chemicals, which are used principally in the cotton area. Application of growth regulators in aerial sprays is one of the newer uses of importance in fruit-raising areas. These plant hormones can be sprayed on trees to obtain a good "set" of fruit or to thin the fruit, either of these being applied at blossom time, while a third hormone may be applied near harvest time to prevent ripe fruit from dropping. Minor uses of aircraft for application of pesticides include, among others, spraying of towns with insecticides to control flies, mosquitoes, and other insects; aerial distribution of poison bait to control grass- hoppers; and control of algae in flooded rice fields. Marketing and Distribution United States marketing and distribution of pesticides are carried out by producers, formulators, wholesalers, farm cooperatives, such organizations as the National Grange, and retailers of various types — feed and seed stores, agricultural supply houses, and grocery and drug- stores (for household and garden pesticides). The larger producers and formulators employ numerous traveling salesmen and agents to promote their particular products. The Department of Agriculture, in cooperation with State authori- ties and organized groups of individuals, aids in controlling infestations of grasshoppers and mormon crickets on rangelands. The Federal Government also carries on projects to control insects in national forests and parks. In case of heavy infestations of army worms or other pests, Department of Agriculture personnel advise State au- thorities and individual farmers concerning pesticide use. The De- partment of Health, Education, and Welfare distributes insecticides 5 s 8 e IS 8 Ik. O I S 1 3 I CMi-HCOOlCOCO'HHCOOOcD 00 CTH>r}r^rci— I CD "* N >0 tH •<* tH €^1> 1> OS TtH CO IC CO 1> 0? 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V) IH & o >> 8 a 03 ih y fl 0 02 W is fe- a D es o d d i— i -H CQ 96 borne in mind that virtually no raw materials are available locally and that the Irish market is limited by the size of the country and a small population. Possibilities as a production and distribution base exist for a United States company interested in entering the small Irish market and expanding into Continental Europe. Except for new products not available elsewhere, prospects for increased participation of United States pesticides in the Irish market are not very encouraging, principally because freight rates place them in a noncompetitive category. While the quality of all United States pesticides is unquestioned, in some instances freight rates per ton are stated to be higher than the combined cost and shipping charges of a comparable European product. To improve their market position in Ireland, United States pesticides must be able to compete with the lower priced British products which have the additional benefit of a preferential customs duty and lower freight charges. FINLAND (Based on report by E. Kaukokallio, U. S. Embassy, Helsinki) Production The domestic pesticide industry supplies most of the DDT, zinc arsenate, and warfarin used in Finland. Numerous imported com- pounds under trade names are sold in the Finnish market, but com- pounding from imported and domestic basic ingredients and semifinished products is more extensive. There are more than 20 importers, distributors, and compounders of pest-control products, 5 of which are of major importance. Official statistics on production of pesticides are not available. Consumption With introduction of new pest-control products, such as DDT and BHC, the use of pesticides for all purposes has increased greatly. Consumption is promoted by dissemination of advice on correct selection and application of pesticides by principal manufacturers, compounders and importers, and by farm and household advisory organizations. A total of 127 pesticide products was sold in Finland in 1953. Compared with previous years, DDT lost ground to the thiophosphates and BHC for agricultural purposes. Powdered arsenic continues to have a steady demand from agriculture. For household and storage pest control, DDT ranked first in powders and sprays in 1953, but when fumigants and aerosols are included, the largest area was treated 97 Table 30. — Finnish Sales of Three Principal Toxic Substances for Pest Control, 1953 [Pounds] Toxic substance For agricultural sprays and dusts Household and storage sprays and dusts DDT: 100 percent As 6 percent powder BHC: 100 percent As 0.65 percent powder. Thiophosphates: 100 percent As 1.5 percent powder__ 10, 000 167, 140 1,386 21, 390 6, 160 405, 050 15, 780 263, 500 110 16, 980 Source: Finnish Government Bureau of Plant Protection. with BHC (including lindane). Among rodent-control products, warfarin ranks first in use. Malathion is currently being subjected to official tests preparatory to possible introduction on the Finnish market. It appears that use of pesticides in Finland will definitely increase in the next few years and that by 1960 sales probably will be at least 50 percent above those in 1954. Foreign Trade All imports into Finland are subject to license. Principal suppliers of pesticides are the United Kingdom, West Germany, the Nether- lands, and Denmark. Disinfectants and plant-protection materials are specifically included in Finland's bilateral trade agreements with these countries. A shortage of dollar exchange has greatly limited purchases from the United States (see table 31). United States exports of pesticides to Finland are unimportant, amounting to only $30,000 in 1954 and $48,000 in 1955. Equipment Certain types of spraying and dusting equipment are supplied by domestic manufacturers, but models and prices are not always satis- factory. A shortage exists in engine-driven sprayers for orchards, tractor-driven low- volume sprayers, knapsack sprayers, and fan-driven dusters, because currency restrictions limit importation. Projects are under way for domestic manufacture of valves for aerosol dispensers. Marketing and Distribution Pesticides are imported and sold through usual trade channels. Compounders purchase basic ingredients and semifinished products direct from foreign suppliers or through local importers and agents. 98 Table 31. — Finnish Imports of Pesticides, 1953 Import classification and principal countries of origin Disinfecting preparations, n.e.s., fungicidal, insecti cidal and other similar preparations: Denmark France Germany, West Netherlands United Kingdom Other countries Total Quantity (pounds) 55, 000 35, 200 316, 800 187, 000 272, 800 49, 200 915, 000 Value (U. S. dollars) 27, 846 38, 930 109, 035 19, 745 92, 742 16, 592 304, 890 Source: Finnish official statistics. Imported finished pesticides are sold through manufacturers' local representatives. Major importers, manufacturers, and compounders publicize their products by means of descriptive pamphlets, leaflets, and newspaper and trade journal advertising, in the Finnish and Swedish languages. The Plant Protection Bureau of the Ministry of Agriculture exercises control over advertising of pesticides to prevent unfounded or mis- leading statements. Government Decrees and Regulations Production and sale of pesticides are governed by the Plant Protec- tion Law and implementing decrees. Before release to the market, all pesticides are subject to inspection by the Plant Protection Bureau of the Ministry of Agriculture. Permission for sale of imported products may be given if they have been previously known in Finland and are covered by foreign inspection certificates. Prospective Developments and Trends Apparently no opportunity exists for investment of United States capital and technical assistance in the manufacture of Finnish pesti- cides. The greatest market for United States pest-control products is in the field of new pesticides, some of which are not presently manufactured in Europe. FRANCE (Based on report by Lucienne M. Piquemal, U. S. Embassy, Paris) Production About 100 factories in France manufacture pest-control products; 30 are equipped with modern installations. Production capacity is considered sufficient to satisfy requirements. 99 Copper sulfate, produced by 25 firms, is the oldest and most popular product, but output in 1953 (39,930 metric tons) was almost 30 percent below 1952 production. In recent years di thane and captan have given good results in place of copper sulfate for some applications. Unt;l 1952, di thane was imported from the United States but it is now produced in France under the name of zineb. It costs less than copper sulfate since copper must be imported at relatively high cost. Twenty factories, 10 of which are very large, make synthetic organic pesticides. Total 1953 value of production was estimated at 4 billion francs (350 francs equal 1 dollar). One factory, with annual capacity of 1,500 to 2,000 metric tons, produces DDT; 7 fac- tories manufacture BHC and lindane, with annual capacity of 3,500 tons technical BHC (13 percent); 3 factories make parathion and tetraethyl pyrophosphate. Official production statistics are not available; however, the Chambre Syndicale de la Phytopharmacie, in cooperation with a group of important producers, estimates pro- duction of major pesticides in 1952 as follows (in metric tons): Copper sulfate 55,000 Petroleum oils 1,000 Sulfur (agricultural) 60,000 DDT (100%) 1,000 Arsenates (calcium, lead, and BHC 2, 000-2, 500 sodium) 5, 000 2, 4-D (acid) 500 Other pesticide materials produced in France include carbon bisul- fide, carbon tetrachloride, methyl bromide, mercuric disinfectants, ortho-oxoquinoline sulfate, dithiocarbamate fungicides, dinitro-ortho- cresol compounds, MCPA (2-methyl-chlorophenoxyacetic acid — a weedkiller), alphanaphthyl thiourea (ANTU — a rodenticide), thallium sulfate, zinc phosphide, warfarin, sodium cyanide, and chloropicrin. Principal imported toxic ingredients for pesticides are chlordane, aldrin, dieldrin, allethrin, toxaphene, Diazinon, captan, methoxychlor, and 2,4, 5-T. Six major firms manufacture household pesticides which are sold throughout France under well-known trademarks. Raw materials are obtained from French chemical companies. The most popular household insecticides are compounded from BHC, lindane, chlordane, naphthalene, paradichlorobenzene, pyrethrum, and DDT. Annual value of French production of household insecticides has been esti- mated at 1.5 billion French francs (approximately $4.3 million). Do- mestic production is claimed to be sufficient to meet demand. The quality of French household insecticides is said to be good and to compare favorably with products manufactured in other countries. Quality of aerosols has improved in recent years and sales are in- creasing. French production of aerosol bombs is estimated at 2.5 to 3 million units per year. New products include a refillable aerosol, an atomizer, a box of matches for repelling insects, a fogger, and an electric lamp to disperse lindane powder. 100 Consumption Annual consumption of agricultural pesticides varies because of changing weather conditions and degrees of infestation, but is generally estimated as follows (in metric tons): Copper sulfate 50, 000 Sulfur (agricultural) 40, 000-60, 000 Arsenates (calcium, sodium, and lead) 5, 000- 6, 000 Alkaloid compounds (nicotine, rotenone, pyrethrum) 5, 000- 6, 000 Petroleum oils 1, 000- 1, 500 DDT (100%) 1, 000- 1, 500 BHC and lindane 2, 000- 2, 500 2,4-D (acid) 500 A general increase in consumption of agricultural pesticides is fore- seen, due to continued efforts of the French Government and private interests to modernize French agriculture, and to the development of more scientific agricultural methods under the sponsorship of the Ministry of Agriculture. The annual retail value of household insecticides marketed has been estimated at 3 to 4 billion francs. For a country with 43 million inhabitants, this may be considered small ; on the other hand, the tem- perate climate contributes to keeping down flies and mosquitoes. General improvement in household hygiene is also responsible for a decrease of household insects. Foreign Trade Import licenses are granted for pesticides meeting the following conditions : (a) When originating in an OEEC (Organization for European Economic Cooperation) country and appearing on the list of "liberated products"; (b) When originating in countries with which France has signed a trade agreement (within the limit of allotments) ; (c) When originating in other countries, when the product is not manufactured in France or is produced only at considerable outlay of foreign exchange for raw materials, or cannot be purchased from countries in categories (a) and (b) above; (d) When payment for such imports is effected by compensation transactions. The following credits, under existing trade agreements, were allotted in 1953 for the importation of pesticides (excluding raw materials) : (Thousands of French francs) Germany 30, 000 Belgium-Luxembourg 5, 600 Netherlands 18,000 Switzerland 8,000 United Kingdom 20, 000 101 Below is a list of organic pesticides imported from the United States in 1953 and the first 9 months of 1954 (excluding compensation transactions), with corresponding value of dollar exchange granted by the French Government. 1954 (Jan.- 195S Sept.) Allethrin None $43,500 Chlordane $7, 100 16, 650 Dieldrin 12, 600 18, 100 Aldrin 48, 200 89, 450 Toxaphene 5, 550 20, 750 DD (dichloropropene and dichloropropane — a soil fumigant) _ _ 34, 650 188, 450 Household insecticides are not imported. Table 32 shows imports of agricultural pesticides into France in 1953 and 1954. France ships copper sulfate, sulfur, and arsenates to its overseas territories and certain countries in the Middle East, South America, and Europe. Furthermore, despite competition, France is slowly developing a foreign market for organic pesticides, particularly with countries having limited supplies of dollars and which prefer to pur- chase where payment can be made in francs, even at a higher price. Exports of household insecticides are only to French overseas terri- tories and do not exceed 1,000 metric tons a year. Table 33 gives French exports of agricultural pesticides in 1953 and 1954. Table 32. — French Imports of Pesticides, 1953 and 1954 [Quantity in pounds; value in U. S. dollars] Import classification and principal 1953 1954 countries of origin Quantity Value Quantity Value Disinfectants, insecticides and similar preparations : Germany, West 411,158 437, 834 76, 279 588, 187 115,301 127, 980 134, 641 48, 578 209, 331 33, 414 No cou ntrv Switzerland United Kingdom breakdown available United States _ _ All other countries Total 1, 628, 758 24, 251 553, 944 5,107 1, 672, 630 60, 627 533, 163 Preparations for agriculture and horticulture, total 24, 418 Source: French official statistics. Equipment France manufactures all the various types of spraying and dusting equipment required for agricultural purposes. In 1953, 34 percent of production was exported to overseas territories and 10 percent to foreign countires. It is claimed that French equipment is high in quality and that prices are competitive with those from other countries. 102 Table 33. — French Exports of Pesticides, 1953 and 1954 [Quantity in pounds; value in U. S. dollars] Export classification and principal countries of destination 1953 Quantity Value 1954 Quantity Value Disinfectants, insecticides and similar preparations : Algeria Belgium and Luxembourg Brazil Cameroon Denmark French East Africa French Equatorial Africa French Morocco Italy Madagascar Martinique New Zealand Switzerland Tunisia Turkey Uruguay All other countries Total Preparations for agriculture and horticulture: Algeria Brazil French East Africa French Morocco Italy Madagascar Tunisia All other countries Total 10, 438, 120 353, 397 571, 432 487, 437 115, 301 3, 625, 685 284, 614 2, 010, 816 786, 601 4, 795, 005 198, 194 714, 511 277, 780 1, 277, 345 1, 406, 976 214, 287 4, 733, 055 1, 662, 054 119, 715 312, 220 116,606 71, 403 455, 912 66, 100 432, 117 50, 303 677, 243 67, 753 57, 803 112, 848 225, 321 129, 369 84, 552 698, 471 Country breakdown not available 32, 290, 556 5,339,811 31, 806, 426 550, 268 71, 429 37, 919 314, 376 18, 078 62, 390 155, 204 109, 348 86, 484 20, 981 9,846 59, 607 9, 199 14, 996 8,990 32, 753 6, 191, 703 Country breakdown not available 1, 319, 012 242, 855 206, 351 68, 144 Source: French official statistics. In 1953 France produced 104,611 spraying and dusting units of all kinds, having a total weight of 2,180 metric tons, and imported only 49 tons of such equipment, including 8 tons from the United States. There are a few manufacturers of small sprayers for household insecticides. Other dispensers for these products are designed and manufactured at compounding plants. Marketing and Distribution Methods of distribution for agricultural pesticides vary according to producers and importers. Large companies, in general, have agencies in the principal towns to supply wholesalers, agricultural cooperatives, and retailers. There are 1,500 to 2,000 cooperatives which it is claimed distribute 50 percent of pest-control products consumed by French farmers. Smaller manufacturers employ sales 103 agents who usually also handle fertilizers and general farming supplies. For distribution of household insecticides, large firms generally have agencies in the more important French cities. Others use whole- salers' distributing channels or have their own traveling salesmen. Wholesalers generally handle household insecticides in conjunction with cleaning products. Various retail outlets for household insecti- cides are drug stores, pharmacies, grocery stores, department stores, and chain stores. French prices for pesticides are established by manufacturers except for copper sulfate and sulfur, which are still under government control. Distribution costs generally represent about 35 percent of retail price. General French trade practices apply to the pesticide industry — direct purchase payable by drafts at 30 to 60 days. Advantageous payment arrangements are allowed to customers who place orders for household insecticides during the winter months. Payment for these orders may be postponed until May or June and manufacturers grant discounts which may run as high as 5 percent for out-of-season orders. New packing techniques enable products to retain their toxic qualities, even though kept in stock for several months. The Ministry of Agriculture and international organizations do not control distribution of pesticides; this function is left to private con- cerns. For experimental purposes, or when upon rare occasions it becomes urgent to fight a particular pest in a given area, the Min- istry of Agriculture may appoint its departmental agents to supervise control methods. When a government emergency program is in- volved, the pesticides distributed are either sold at very low prices or donated. Advertising of pesticides is strictly prohibited until sale of the prod- uct is authorized by the Ministry of Agriculture. Issuance of the regular permit ("homologation") sometimes takes several weeks, but a termporary sales permit may be obtained with relatively little delay. Trade circles recommend that manufacturers and importers of agricultural pesticides popularize their products by publication of pertinent information in French trade journals. Among the major scientific journals specializing in pesticides are Phytoma, published by the Chambre Syndicale de la Phytopharmacie and sponsored by the Ministry of Agriculture; La Defense des Vegetaux, published by the Ligue Nationale de Lutte contres les Ennemis des Cultures (National League for the Fight Against Agricultural Pests) ; and the weekly bulletin of the Ministry of Agriculture. The Ministry of Agriculture has published a recent survey of agricultural newspapers, a copy of which is on file in the Chemical and Kubber Division. Agricultural fairs afford excellent advertising opportunities. Cer- tain important producers of agricultural pesticides devote substantial 104 funds to participating in local fairs. Some have equipped trucks for advertising their products which travel from fair to fair. All types of advertising media are used for household insecticides: Motion pictures, newspapers, trade journals, women's magazines, posters, etc. Manufacturers make generous distribution of adver- tising materials, such as small posters, display boxes, and gifts for children (caps, glasses, blotters, cards, and the like). Government Decrees and Regulations Legislation governing trade in pesticides is contained in "Regime des Substances Veneneuses et Toxiques" (Legislation on Poisonous and Toxic Substances), summarized below: (a) Pesticides cannot be sold in France without an official permit issued by the Ministry of Agriculture and known as "homologation." The request for such permit is filed with the Vegetable Protection Bureau at the Ministry of Agriculture. Applications are submitted either by the manufacturer or by the importer who must furnish all pertinent data, together with samples of the products. Commodities which have been granted this official permit are registered on official lists kept by the Ministry of Agriculture. (b) For transportation purposes, pesticides have been classified into three categories: (1) Toxic; (2) Narcotic; (3) Dangerous. The decree of November 19, 1948 (on file in the Chemical and Rubber Division) has codified this legislation. Household insecticides are under the same general rules as other pesticides. (A publication outlining government regulations appli- cable to these products is on file in the Chemical and Rubber Division.) Prospective Developments and Trends Trade sources indicate that United States pesticides (both agri- cultural and household) enjoy an excellent reputation in France, and that, although domestic production is largely able to meet require- ments, French users are interested in procuring United States pesti- cides, particularly new or specialized products. Prices for United States pesticides are competitive and sometimes even lower than for domestic products, despite the French import tariff of 25 percent. The principal deterrent to greater imports from the United States is lack of dollar exchange. In 1953, for example, only $160,000 was allocated for imports of United States pesticides. Annual requests for import licenses exceed the amount of dollars allocated, and im- ports from the United States have been more or less limited to ex- perimental shipments for testing under French field conditions. In recent years, the French pesticides industry has to some extent developed ties with United States producers, either through establish- 379238—56 8 105 merit of plants in France by United States firms or through licensing arrangements. It is probable that increased future participation of United States pesticides (both agricultural and household) in the French market lies along these lines. Establishment of a United States factory in France or a licensing arrangement between a United States and a French firm requires prior approval of the French Government. In general, that approval is given when the proposal will serve to reduce the amount of foreign exchange which otherwise would be required, or where resulting activities would increase France's export trade and thus provide additional foreign currencies. WEST GERMANY (Based on report by J. C. Leary and L. Salzer, U. S. Consulate General, Dusseldorf) Production West Germany is one of the world's leading producers of all types of pesticides. Detailed information as to production of various commodities is unobtainable; the only official data are the following figures supplied by the Federal Statistical Office, Wiesbaden: 1953 Production of Seed Dressings, Plant-Protection and Pest-Control Agents (Metric tons) Inorganic 22, 003 Organic 23, 768 Other 7,965 Total 53,736 Although the above tabulation gives no information regarding toxic ingredients, some idea of the relative importance of various pest- control products may be obtained from the data under "Consumption" below. Almost 200 firms are engaged in the production of pesticides in West Germany. The largest is Farbenfabriken-Bayer AG., Lever- kusen, but there are many others of importance, including Farbwerke Hoechst, Frankfurt/Main; Schering AG., Muellerstrasse 170-172, Berlin; and E. Merck, Darmstadt. Certain raw materials such as crude sulfur (most of which comes from the United States) and copper are imported. However, the growing importance of, and preference for, synthetic pesticides has made West Germany practically self-sufficient in pest-control products. 106 Consumption Official statistics on consumption of pesticides in West Germany are not available, although it is estimated that domestic sales for agricultural purposes amount to about $24 million per year, about 20 percent of which is for control of pests in vineyards. An article entitled "The Size and Importance of Chemical Plant Protection Measures," by Herr H. Drees, appearing in a trade paper (Nachrichtenblatt des Deutschen Pjianzenschutzdienates) in July 1954, covered the fiscal year 1952-53 (April 1 to March 31). This article outlines the major agricultural pest-control measures taken during that period, which probably accounted for two-thirds of consumption of pesticides. A summary of the article follows. General plant-protection and pest-control measures carried out by West German agriculture ;n 1952-53 cost approximately $14,688,000, broken down as follows: Insecticides, $4,752,000; fungicides, $5,952,000; herbicides, $2,640,000; ovicides, $1,344,000. Crop dustings with insecticides in 3 major sectors cost about $4,550,000 (70 percent on root vegetables, 25 percent on viticulture, and 5 percent on oleaginous plants) and accounted for about 92 percent of total consumption of insecticides. Measures against the Colorado beetle accounted for $3,360,000, with about 96 percent of potato fields being treated. Insecticides employed were calcium arsenate (about 1,700 metric tons, of which 950 came from 1952 production and 750 from stocks), and synthetic organic compounds (DDT and BHC, a total of about 4,800 tons). Oleaginous plants were treated with 800 tons of synthetic organic dusting agents at a cost of $215,000. For protection of vineyards against the grape- berry moth, organic phosphatic insecticides and DDT in about a 60:40 ratio were used at a cost of $1,175,000. About 1,000 tons of 10 percent DDT were used for this purpose. Around 100 million liters of winter spraying solutions (tar oil and dinitrocresol) were used on 20 million apple and pear trees (about one-fourth of total trees). For seed treatment about 920 tons of mercury-base fungicides were consumed at a cost of slightly over $1 million. About $4,500,000 was spent on copper-base fungicides, as follows: On root crops, $1,920,000; for vineyards, $1,630,000; on orchards, $96,000; and for miscellaneous purposes, $850,000. Potatoes were treated with almost 2,000 metric tons of copper-base agents against late blight. For protection of vine- yards, 4,500 metric tons of copper oxy chloride (15-18 percent copper content) were used, and an additional 150 metric tons (45-50 percent copper content) was used against scab on fruit trees. About 3,000 metric tons of sulfur-base fungicides were applied on vineyards. It is estimated that 4,500,000 acres of grain are overgrown with weeds. In 1952-53 around 1,375,000 acres of weed-infested grain 107 were treated with organic weedkillers at a cost of $2,640,000. Other herbicides, such as calcium cyanamide and dinitrocresol are used, but statistics on consumption are not available. Nonagricultural use of pesticides (household, protection of stored products, rat and fly control, etc.) account for not more than 3 percent of total consumption. According to officials of the Federal Ministry for Food, Agriculture, and Forestry, an annual increase in consumption of pesticides of $2,500,000 to $3,500,000 will take place in the next 5 years. Foreign Trade German imports of pesticides are very small and are not expected to increase significantly. (See table 34.) Table 34. — West German Imports of Pesticides, 1954 Commodity classification and principal countries of origin Quantity (pounds) Value (U. S. dollars) Agents for disinfection, pest control, eluding weedkillers and fungicides: Belgium. _ and the like, in- 45, 856 14, 550 68, 343 76, 940 145, 724 184, 305 30, 203 101, 632 159, 613 5,238 Denmark 8, 572 France__ 26, 905 Netherlands _ _ _ _ _ 22, 858 Sweden _ _ 27, 381 Switzerland _ .__ __ 146, 670 United Kingdom 28, 810 United States. _ _ 47, 620 Reimports 1 48, 810 Total 827, 166 362, 864 1 Official trade statistics do not define "reimports.' Source: Official trade statistics of West Germany. West Germany, a highly industrialized country and a traditional producer of pesticides, is important in the world market for these commodities, with exports totaling around 30 percent of production. Considerable quantities of pesticides are exported to neighboring European countries, but Latin America, particularly Central America, is by far the most important market and purchased more than 40 per- cent of West German exports in 1953. New Zealand, China, Japan, and countries in southern Africa are other important customers (see table 35). The overall total of pesticides exports is increasing and this trend is expected to continue, but no important shifts in the distribu- tion pattern of exports are likely. Increased selling efforts are planned, particularly in South and Central America. Major competition in foreign markets for pesticides is from the United States and Great Britain, since products from these countries compare favorably in price and quality to those produced in West 108 Germany. United States competition is particularly severe in Latin America, where shipping charges are an important factor. Equipment Germany is an important producer of spraying and dusting equip- ment. In 1953, there were 350,000 portable and 86,000 mobile spray- ing and dusting units in the country. West Germany exports plant- protection machinery, and imports are negligible. In general, United States machinery is more expensive than similar models produced in Germany, but there is often a market for equipment differing from domestically produced types. Marketing and Distribution The normal flow for distribution of pesticides is from factory to wholesaler (or central cooperative) to retailer (or local cooperative) to farmer. Government purchases are limited to special projects. Government Decrees and Regulations There are no government controls on production of pesticides. Distribution controls are confined to sales regulations for materials poisonous to man and animals. The existing (1940) Police Ordinance on the Marketing of Poisonous Plant Protection Media was ainended on July 22, 1954, by addition of phosphatic insecticides to the list of items covered by sales regulations. Of importance is the certifying procedure of the Biologische Bundesanstalt fuer Land- und Forstwirtschaft (Federal Bio- logical Institute for Agriculture and Forestry), Breunsweig-Glies- marode. In contrast to fertilizer and seed marketing, for which certi- fication is compulsory, testing and certification of pesticides is a voluntary procedure to which practically all producers submit. The system functions so well that no producer would find a market for a new pesticide unless it had the official recognition of the Biologische Bundesanstalt. Prospective Developments and Trends Opportunities for use of United States technical knowledge in West Germany lie principally in the licensing of German firms to manufacture United States pesticides. West German producers follow developments closely and are alert to new pesticides which are promising in effectiveness and economic possibilities. There are already a large number of licensing and cross-licensing agreements between manufacturers in the two countries. 109 Table 35. — West German Exports of Pesticides, 1954 Commodity classification and principal countries of destination Quantity (pounds) Value (U.S. dollars) Agents for disinfection and the like, including weed killers and fungicides: Algeria Argentina Australia Austria Belgium Belgian Congo Brazil Bulgaria Canada Ceylon Chile China Colombia Costa Rica Denmark Ecuador Egypt Finland Formosa (Taiwan) France French Morocco Greece Guatemala Hong Kong Indonesia Iran Italy Japan Lebanon Luxembourg Mexico Netherlands New Zealand Nicaragua Norway Pakistan Peru Philippine Republic Poland Portugal Rumania Saar Salvador Saudi Arabia Sweden Switzerland Syria Thailand Turkey Union of South Africa United Kingdom Uruguay Venezuela Yugoslavia All other countries 1 Total 110, 450 862, 440 213, 405 951, 505 2, 285, 509 1, 268, 086 1, 881, 626 41, 226 159, 613 1, 120, 157 327, 824 2, 343, 049 1, 679, 905 99, 207 2, 413, 376 204, 587 434, 086 98, 986 54, 895 733, 250 372, 577 222, 444 528, 002 18, 519 932, 766 103, 837 1, 549, 834 121, 032 87, 302 91, 711 1, 385, 371 7, 134, 086 182, 761 1, 564, 605 287, 039 379, 412 436, 070 153, 881 400, 135 491, 846 173, 282 84, 877 2, 789, 260 128, 308 1, 812, 622 877, 210 110, 450 217, 153 429, 236 273, 811 160, 054 406, 308 373, 018 273, 811 1, 166, 621 43, 092, 433 44, 287 268, 815 80, 002 330, 007 597, 869 217, 861 416, 675 28, 096 32, 382 43, 334 114, 764 474, 533 396, 436 26, 905 388, 579 122, 860 38, 572 79, 763 79, 525 284, 530 61, 906 98, 097 75, 240 31, 191 208, 337 27, 143 540, 963 123, 574 48, 334 31, 905 818, 826 968, 115 113, 336 149, 527 114, 288 32, 620 252, 624 45, 715 60, 716 105, 716 145, 479 35, 477 208, 576 40, 715 379, 055 233, 576 33, 810 157, 146 349, 055 89, 526 42, 144 92, 621 79, 049 98, 335 277, 863 10, 236, 395 i Those countries to which less than $25,000 worth were shipped, Source: West German official trade statistics. 110 The high standard and volume of German production, customary preference for German-manufactured products, well-established do- mestic trade channels, and freight and other costs involved preclude increased sales of United States pesticides in West Germany. It is unlikely that these factors can be overcome and that United States exporters of pest-control products can improve their competitive position in Germany. GREECE (Based on report by P. Hudson and F. Triandaphyllides, U. S. Embassy, Athens) Production The Chemical Products and Fertilizer Co. is the only Greek firm producing pesticides. Before World War II most Greek pesticides were based on copper or arsenic compounds. With commercial development of the new synthetic organic insecticides, the above company began manufacturing formulations based on BHC and DDT. According to the firm, formulation of various trademarked pesti- cides in Greece in recent years has been composed of the toxic ingredients shown in table 36. Table 36. — Greek Production of Pesticides and Toxic Ingredient Used Toxic ingredient Production (pounds) 1951 1952 1953 1954 (Jan. June) BHC 3 percent BHC 1 percent ._ BHC 10 percent Lindane Ferrous sulfate (99 percent) Copper sulfate Nicotine sulfate (45 percent) Sulfur (40 percent), copper sul- fate (8 percent) Pyrethrum (0.2 percent), DDT (4 percent) Sulfur 53, 647 165, 484 1,023 54, 965 197, 483 265 101, 420 2,640 25, 210 310,880 72, 060 135, 540 420, 200 306, 460 3,060 419, 320 113, 520 178, 200 77, 820 232, 550 870 26, 400 288, 200 40, 550 21, 680 354, 450 101, 860 248, 050 63, 030 80, 850 290 24, 210 233, 133, 11. 200 980 925 555, 830 44, 000 245, 410 Source: The Greek Company of Chemical Products and Fertilizers. Pesticides are formulated largely from imported raw materials, but BHC is produced from locally manufactured chlorine and imported benzene. Copper oxychloride is made from scrap copper and hydro- chloric acid. Sulfuric acid also is locally manufactured. Ill Consumption Official statistics on consumption are not available, but it closely approximates production plus imports. The government imports through the Agricultural Bank of Greece, and private trade in pesti- cides is not encouraged. The greater portion of consumption is for agricultural purposes, with little household use, but in recent years considerable amounts have been used for public health purposes. Agricultural use is gradually increasing, particularly in the field of organic weedkillers in small grains. Foreign Trade Greece does not export pesticides. See table 37 for 1954 imports by principal countries of origin. This table indicates that the United States has considerable competition in the Greek market from the United Kingdom and West Germany. Equipment The most commonly used spray equipment is the knapsack type, but since World War II some power-driven sprayers have been imported. Efficient low-cost sprayers and dusters are needed to improve results and reduce cost of pest control in Greece. Recent bids for procurement of power sprayers were awarded to German firms because of low price. Table 37. — Greek Imports of Pesticides, 1954 Commodity classification and principal countries of origin Quantity (pounds) Value (U. S. dollars) Copper sulfate: United Kingdom Other countries Total Insecticides, in general Belgium France Germany, West Netherlands United Kingdom United States Other countries Total 3, 488, 910 3, 319, 210 334, 115 312, 200 6, 808, 120 646, 315 15, 712 2,076 308, 675 106, 605 520, 454 138, 981 306, 900 45, 370 294, 435 83, 506 1, 441, 266 476, 187 21, 193 12, 813 2, 908, 635 865, 538 Source: Greek official trade statistics. Marketing and Distribution Most pesticides are purchased on a bid basis according to specifica- tions established by the Agricultural Bank. Imported materials are 112 distributed to branch offices of the Bank which, in cooperation with the unions of the Agricultural Cooperatives, make them available to farmers. Foreign pesticide producers have agents and distributors in Greece, but business on a private-trade basis is limited because of the large portion of imports brought in by the Agricultural Bank. Bank sales are on short-term or "cultivation" loans, the farmer paying at harvest- time. Other sales are on a 3 to 6 months' credit basis. Government Decrees and Regulations Law No. 2147, published in the official gazette on June 5, 1952, provides for the prevention and control of pests and diseases and the organization of the phytopathological service. Particular categories include: Phytosanitary supervision of agricultural production Control of pests and diseases by governmental agencies: Compulsory control Control by the cooperative organizations Inspection of pesticides Penal clauses Organization of the Phytopathological Service and Council. This law was put into effect immediately with the exception of the section on inspection of pesticides, which will go into force after the Minister of Agriculture proposes a Royal Decree and it is issued. Prospective Developments and Trends Greece imports most raw materials required for production of pesticides and it is doubtful that domestic output will rise to any extent. There appears to be little prospect for increased imports by private Greek companies; the principal purchaser of agricultural pesticides probably will continue to be the Agricultural Bank. ITALY (Based on report by R. R. Melone, U. S. Embassy, Rome) Production Total Italian pesticide production was valued at $44,000,000 in 1953, compared to $48,060,000 in 1952, and $39,550,000 in 1951. About 60 firms produce several types of pesticides; additional firms engage exclusively in compounding and packaging operations. There are relatively few firms in the latter category because the majority of Italian pesticide manufacturers also formulate finished products. 113 Below is an estimate of annual output of principal pesticides (probably includes formulations) produced in Italy and the number of manufacturers of each. Number of Commodity: Metric tons manufacturers Copper sulfate 75,000 13 Copper oxy chloride 4, 000 7 Sulfur and its derivatives (pesticides) 50, 000 25 Iron sulfate 3,000 7 Calcium and barium sulfides and polysulfides 7, 100 16 Carbon bisulfide 1,100 11 Arsenates 1,850 10 Nicotine compounds 250 8 DDT 1,650 9 BHC 1, 600 2 The Italian chemical industry is well developed and most basic chemicals required for manufacture of pest-control products can be obtained locally. However, Italy must import all copper needed for making copper compounds, as well as certain raw materials required in the production of many basic chemicals. No direct or indirect subsidy is given domestic pesticide manu- facturers. The only benefit is refund of a portion of the transaction tax (in effect since August 1954) paid on all pesticides exported from Italy. The refund is on percent of the value of the exported product. Consumption Total value of pesticides used by Italian farmers in 1951 was esti- mated at $36.8 million, and in 1952 rose to $44.8 million. Consump- tion in 1953 amounted to 149,010 metric tons with an estimated value of $44.5 million. Tables 38 and 39 show volume of important pesticides consumed in agriculture and used by Italian public health authorities in anti- malarial campaigns. Statistics on consumption of household insecti- cides are not available. Foreign Trade The quantity of pesticides imported in 1953 was exceptionally large compared with that of 1952 and 1951, but represented only about 4 percent of the value of pesticides consumed by Italian farmers in that year. The substantial increase in 1953 imports was largely due to the fact that during that year (as well as in the early part of 1954) the United Kingdom and Belgium-Luxembourg were able to supply large quantities of copper sulfate at prices lower than those quoted by domestic manufacturers. In fact, copper sulfate accounted for 82.8 percent of the quantity and 66.7 percent of the value of all pesti- cides imported into Italy in 1953. Less important pest-control 114 Table 38. — Italian Consumption of Agricultural Pesticides, 1949-50 to 1952-53 Commodity Consumption (metric tons) 1949-50 i 1950-51 > 1951-52 1952-53 i Copper sulfate Copper oxy chloride Other copper compounds 2 Sulfur (refined, sublimed and wettable) Sulfur, cupric Iron sulfate Sulfides and polysulfides Carbon bisulfide Arsenates Barium fluosilicates Zinc phosphide . Petroleum oil derivatives Quassia wood and extract Nicotine compounds DDT s BHC4 Chlordane Phosphatic insecticides Sodium cyanide DDs 2,4-D and derivatives MCPA and derivatives 6 Other pesticides 70, 436 3,575 56 37, 324 4,462 3,030 6,069 1, 194 2,046 54 39 3,802 175 477 1,524 813 133 34 78, 136 6,045 109 45, 059 5, 137 2,540 6, 101 1, 101 2, 755 63 54 3,308 256 310 1,386 1,253 107 79 12 415 269 131 918 429 469 863 939 731 44 63 3, 191 240 246 860 1,387 51 194 339 206 221 30 19 55, 912 3,522 116 36. 827 5,942 2,925 6,960 953 1,235 12 72 2,225 160 215 853 1,929 65 245 307 385 129 17 61 i August 1-July 31. 2 Copper oxide and copper carbonate. * Wettable and nonwettable powders, emulsions, and solutions, 4 Technical basis and gamma isomer in wettable and nonwettable powders, emulsions, and solutions. 8 Dichloropropane and dichloropropene (a soil fumigant) . 8 Methyl chlorophenoxyacetic acid (a weed killer) . Source: Italian Central Institute of Statistics. Table 39. — Pesticides Used in Italian Antimalarial Campaigns, 1950-53 Product (toxic ingredient only) Consumption (metric tons) 1950 1951 1952 1953 DDT (solutions of various percentages) __ Chlordane (74 percent emulsionable solu- tion) Methoxychlor (40 percent solution) Dieldrin (40 percent solution) Other products 229 18 370 150 14 193 21 2 10 255 1 1 1 Source: Office of High Commission of Public Health, Rome. products imported are: Other copper compounds, sodium cyanide, botanical insecticides (rotenone, pyrethrum, etc.), and all domestic requirements of aldrin, allethrin, chlordane, dieldrin, dinitro-ortho- cresol compounds, dithane, warfarin, and petroleum oils. Italian exports of pesticides consist chiefly of refined and sublimed sulfur and DDT. The exportation in 1954 of a large quantity of 115 copper sulfate (to Greece and Turkey) is an exception to the usual pattern. Because Italy was unable to maintain its exports of refined and sublimed sulfur at the 1952 level, overall pesticide exports dropped considerably in 1953 and remained low in 1954. Exports of domesti- cally produced DDT to a large number of countries are continuing at about the same pace as in 1951 and 1952. A significant change in the pattern of Italian exports of pest-control products probably will not occur in the near future. Table 40. — Italian Imports of Pesticides, 1954 Commodity classification and principal countries of origin Quantity (pounds) Value (U. S. dollars) Pyrethrum Copper sulfate: Austria United Kingdom Other countries Total Disinfectants, insecticides, fungicides, weedkillers etc.: France Germany, West Switzerland United Kingdom United States Other countries Total 25, 794 796, 178 12, 097, 743 1, 102 191, 802 69, 742 1, 113,435 393 12, 855, 023 1, 183, 570 174, 604 41, 232 1,531,315 369, 864 1, 414, 692 187, 546 607, 808 120, 338 433, 645 72, 634 250, 663 50, 791 4, 412, 727 842, 405 Source: Italian official statistics. Table 41. — Italian Exports of Pesticides, 1954 Commodity classification and principal countries of destination Quantity (pounds) Value (U. S. dollars) Copper sulfate: Greece _ _ 3, 279, 783 1, 054, 240 146, 826 299, 342 Turkey _ _ _ _ _ _ 122, 920 Other countries _ _ 16, 912 Total. ________ 4, 080, 849 439, 174 Insecticides, fungicides, weedkillers, disinfectants, etc.: Czechoslovakia _ _ _ _ 336, 201 99, 648 37, 699 266, 536 17, 587 Italian Somaliland_ _ 36, 227 Liberia ___ __ ____ 17, 498 Other countries _ __ ______ 76, 608 Total, __ _ _ _ _ _ 740, 084 150, 920 Source: Italian official statistics. 116 Equipment The supply of equipment needed for spraying and dusting is ade- quate. (It is not reported whether domestic or imported equipment is used.) Marketing and Distribution Most imported pesticides arrive from the United States, Germany, United Kingdom, and Switzerland. Other countries, particularly Germany, offer lower prices for many products than does the United States; for instance, BHC, grain fumigants, lindane, paradichloro- benzene, parathion, sodium chlorate, warfarin, 2,4-D, and 2,4, 5-T. Imports are acquired through direct purchase. European suppliers usually request payment by irrevocable letters of credit but when dealing with reputable and well-known importers, terms of from 30 to 90 days are often granted. Pesticides are marketed by importers acting as exclusive distributors for foreign manufacturers. The greatest portion of pesticides used in Italy is purchased and distributed by the Federazione Italiano dei Consorzi Agrari, Rome, a very large farmer cooperative having branches throughout the country. This organization, as well as the Alto Commissariato per L'Igiene e la Sanita' Publica, Rome (the public health authorities conducting the antimalarial campaign), sometimes purchases directly from foreign manufacturers. More often, however, they buy through exclusive distributors after a product has been proved effective. No pesticides are presently being distributed in Italy by the World Health Organi- zation, but negligible quantities are procured under the productivity program sponsored by ICA. Newspapers and appropriate Italian trade journals are successful advertising media for promoting sales of pesticides, particularly of household insecticides. Posting of billboards and distribution of descriptive literature in agricultural communities, as well as publica- tion of literature suitable for circulation to the Italian equivalent of United States county agents, are also helpful. Government Decrees and Regulations In accordance with a decree of September 21, 1954, pesticides are subject to registration with the Office of the High Commissioner of Public Health in Rome. Procedures are similar to those applying to medicinals. Hence, pesticides can be imported into Italy subsequent to registration only by a local firm acting as exclusive representative- distributor for the actual foreign manufacturer. The appointment of such a representative must be made by power of attorney duly legalized by the Italian diplomatic or consular mission in the country of the foreign principal. The above requirements apply only to 117 packaged pesticides ready for sale to the consumer, not to products imported in bulk. Under existing laws, the Interministerial Price Committee fixes wholesale and retail prices for copper sulfate and copper oxychloride. November 1954 prices (per pound) were as follows: Wholesale Retail Copper sulfate (98-99 percent) $0. 10 $0. 104 Copper oxychloride (16 percent copper) .09 . 0927 Prospective Developments and Trends The domestic industry can supply at least 95 percent of Italy's pesticide requirements. Since there is no indication of an extensive increase in consumption in the foreseeable future, the Embassy does not envisage any opportunity for investment of United States capital or technical knowledge in the Italian pesticide industry. Nevertheless, because of cheap labor, geographic location, and the liberal policy governing trade with countries in the European Payments Union, Italy should be considered by United States companies planning to manufacture pesticides in Europe for sale in Europe and the African and Asiatic countries in the Mediterranean area. The Italian Government limits dollar imports to essential items not produced domestically or obtainable from countries in the European Payments Union. Thus, any improvement in the competitive position of United States pesticides is predicated on Italy's ability to liberalize trade with the dollar area. NETHERLANDS (Based on report by G. J. Deitz, U. S. Embassy, The Hague) Production There are eight pesticide manufacturers in the Netherlands, most of whom also produce industrial chemicals. Over 90 percent of DDT output is by N. V. Insecto, Oss. Raw materials for the manufacture of pesticides are largely imported, although chemicals required for production of DDT are provided by the Royal Netherlands Salt Company. (See table 42 for estimated production of pesticides in 1953.) Consumption Present consumption of pesticides in the Netherlands is small compared to potential use. Because of the rapid development of new products, an estimate of future consumption is not possible, There is 118 a trend toward pesticides of less toxicity to man and animals, and important discoveries in that field would change the present pattern of consumption. (See table 43 for estimated consumption of pesticides in 1952.) Foreign Trade Leading foreign suppliers of pest-control products are West Ger- many, the United Kingdom, and the United States. In 1954, West Germany furnished an increased portion of supplies. Equipment There is an ample supply of modern spraying and dusting machinery in the Netherlands. Exports of such equipment are substantial. Table 42. — Estimated Production of Pesticides in the Netherlands, 1952 [Toxic ingredient] Commodity Production (metric tons) Commodity Production (metric tons) DDT 300 600 40 500 1,000 3,500 900 100 Tetramethyl thiuram disul- fide BHC 30 Parathlon Methyl chlorophenoxyacetic acid(MCPA) Dinitrocresol 400 Copper oxychloride__ Thalliumcompounds, strych- nine compounds, and methyl bromide. Lime-sulfur__ _ _ __ Sulfur (agricultural) 100 Organic mercury compounds. Tar-oil washes. 2,000 Source: Netherlands Ministry of Agriculture. Table 43. — Estimated Consumption of Pesticides in the Netherlands, 1952 I [Toxic ingredient] Commodity Consump- tion (metric tons) Commodity Consump- tion (metric tons) DDT 200 200 150 300 1,500 1,800 800 60 Tetramethyl thiuram disul- fide BHC 30 Parathion Arsenic trioxide. _ _ _, 120 Dinitrocresol. Thallium compounds, strych- nine compounds, and methyl bromide Copper oxy chloride Lime-sulfur. 50 Sulfur Tar oils. 1, 800 Organic mercury compounds. Source: Netherlands Ministry of Agriculture. 119 Table 44. — Netherlands Imports of Pesticides, 1954 Commodity classification and principal countries of origin Quantity (pounds) Value (IT. S. dollars) Paradichlorobenzene : United States Other countries Total Copper sulfate: Belgium Other countries Total Insecticides, fungicides, etc.: Packaged in tablet form, total Other than packaged in tablet form Belgium Germany, West Switzerland United Kingdom United States Other countries Total Source: Netherlands official statistics. 110, 230 2,205 17, 424 264 112, 435 17, 688 2, 213, 418 187, 391 205, 656 16, 896 2,400,809 222, 552 101,412 89, 232 1, 067, 026 3, 829, 390 1, 507, 946 1, 194, 893 376, 987 108, 025 8, 084, 267 224, 400 805, 200 240, 768 304, 128 100, 848 39, 600 1, 714, 944 Table 45. — Netherlands Exports of Pesticides, 1954 Commodity classification and principal countries of destination Quantity (Pounds) Value (U. S. dollars) Paradichlorobenzene, total Copper sulfate, total Insecticides, fungicides, etc.: Packaged in tablet form, total Other than packaged in tablet form Belgium Brazil Colombia Cyprus Ecuador Finland French Morocco India Indonesia Nicaragua Surinam Sweden Turkey Yugoslavia Other countries Total Source: Netherlands official statistics. 875, 226 34, 478 220, 460 1, 108, 914 1, 031, 753 202, 823 178, 573 59, 524 216,051 1, 243, 394 1, 331, 578 2, 431, 674 723, 109 266, 757 227, 074 275, 575 189, 596 2, 032, 641 11,519,036 97, 944 4,224 157, 344 181, 896 109, 032 26, 664 23, 760 24, 816 21, 120 75, 768 106, 656 345, 840 64, 416 17, 952 52, 536 7,920 68, 640 460, 947 1, 587, 963 120 Marketing and Distribution With regard to quality and packaging, United States pesticides compare favorably with domestic or other foreign brands. However, prices for United States products average about 5 percent more than for pesticides from European countries. It is reported that sales under irrevocable letters of credit and slow deliveries by United States firms are deterrents to greater participation in the Dutch market. German and British exporters generally sell under payment against documents, and at times German exporters extend 30 days' credit. Government Decrees and Regulations All pesticides sold in the Netherlands must have the approval of the Plant Inspection Service, which carries out extensive tests before granting licenses. Regulations establish an interim prior to harvest when certain highly toxic pesticides can not be used on food crops. Prospective Developments and Trends Consumption of pesticides in the Netherlands is expected to increase. Dutch manufacturers use modern techniques and equipment is gen- erally good. Increased sales of United States products in the Netherlands are dependent on appointment of local representatives who will actively promote such sales, broadening of credit terms, and speedier deliveries; NORWAY (Based on report by B. Leborg and W. F. Spengler, U. S. Embassy, Oslo) Production The only pest-control products manufactured in Norway are sodium chlorate, micronized sulfur, and lime sulfur, all of which are produced from domestic raw materials. The domestic supply of elemental sulfur is particularly plentiful. Other pesticides consumed in Norway are imported, almost entirely in finished form. Some packaging is done locally, particularly of DDT products. According to the Ministry of Commerce, there are four producers of pesticides. One company produces 500-600 metric tons of micro- nized sulfur annually, most of which is exported; another manufac- tures 1200-1300 tons of sodium chlorate, most of which also is ex- ported; two companies produce small quantities of lime sulfur, output of which totaled 125 tons in 1952, but has since declined. 379238—56 9 121 The hormone type of pest-control products — weedkillers and growth stimulants — were formerly purchased from the United States but now are obtained from a manufacturer in Denmark operating on a license from a United States firm. No subsidies are granted Norwegian producers of pesticides. In- stead, the producer of sodium chlorate is required by government regulation to market part of his production domestically at prices below the world market. Consumption Official statistics on consumption are not available. As Norway is almost entirely dependent on imports for most pest-control products, import statistics would indicate consumption with the exception of sodium chlorate and sulfur. In 1953, 1,104,705 pounds of insecticides and related materials, with a value of $308,000, and 46,300 pounds of rodenticides, valued at $25,000, were imported. The 1954 statistics show little change — 1,187,270 pounds of agricultural pesticides, valued at $365,120. In general, demand for pesticides is comparatively small, largely because of climatic conditions (long winter and short, comparatively cool summer) . So far herbicides have been used mainly in horticulture and only recently have been applied on agricultural crops. Consump- tion is expected to increase substantially in coming years, particularly in grain fields. According to an agricultural census, on June 30, 1954, Norwegian grain acreage totaled 464,500 acres. Hence, the potential market for organic weedkillers is sizable. Both the Ministry of Agriculture and a representative of the trade are of the opinion that consumption of pesticides will double by 1960. Foreign Trade See import statistics under "Consumption" above. The leading supplier of pesticides to Norway is the United Kingdom, which fur- nishes between one-fourth and one-third of annual requirements. Other leading suppliers are Denmark, the United States, Sweden, West Germany, and the Netherlands, in approximately that order. Except for relatively large exports of sodium chlorate and some mirconized sulfur, Norway seldom exports pesticide chemicals. Equipment The shortage of spraying and dusting equipment which prevailed during the early postwar years has been overcome and there is now an ample supply in Norway. 122 Marketing and Distribution Because of the limited Norwegian market, most importers find it cheaper to obtain pesticides in finished form, but some large dis- tributors prefer to package products and sell under their own trade names. Pesticides are imported and distributed by wholesalers who prefer to deal directly with foreign exporters or manufacturers rather than through local import commission agents. It is the general opinion of the trade that United States pesticides compare very favorably with those of other supplying countries, particularly with regard to quality. However, European products are lower priced, and payments for imports from the United States are usually on a basis of cash against documents while European exporters frequently grant from 3 to 9 months' credit. The preferred advertising medium for pesticides appears to be Norwegian trade journals. Advertisements may be under the name of either the manufacturer or the manufacturer's Norwegian dis- tributor. Government Decrees and Regulations All pest-control products for use in agriculture must be approved by the Norwegian Plant Protection Institute under the Ministry of Agriculture. Biological tests on new products require from 1 to 2 years. Eodenticides must be tested and approved by the Health Directorate, which may require that tests be repeated every 6 months. All imports into Norway must be licensed by the Export-Import Directorate of the Ministry of Commerce. Imports from the United States are restricted by lack of dollar exchange. As a rule, no product obtainable from countries in the Organization for European Economic Cooperation (OEEC) can be imported from the United States unless the United States price is at least 15 percent lower. Prospective Developments and Trends The Norwegian market for pesticides is too small to support profitable production aside from those already being manufactured, and there would seem to be little opportuntiy for introduction of United States capital or technical knowledge in the domestic industry. OEEC countries have a distinct advantage in the Norwegian market for pesticides, since most of their pesticides are "free listed" and licensed automatically for import. Licenses for imports from the United States are granted only for those products which cannot be obtained from an OEEC country, or where a considerable price advantage exists. Many products formerly purchased from the United States are now manufactured in Europe. One example is 123 warfarin, which was introduced into Norway under its United States trade name some years ago but now is imported from West Germany. Other factors affecting the competitive position of United States pest-control products are price, terms of payment, and delivery time. Importers state that payment by cash against documents hinders imports of United States pesticides since European suppliers give relatively long credit terms. Most pesticides are imported early in the year, distributed during the spring and summer, and paid for in the fall when crops are harvested. With respect to delivery time, importers suggest that United States pesticide manufacturers should assemble stocks in European free ports from which deliveries could be made as quickly as European suppliers could ship from their factories. PORTUGAL (Based on report by J. J. Jova and D. F. Barboasa, U. S. Consulate, Oporto) Production The Compahnia Uniao Fabril is the only manufacturer of copper sulfate, insecticidal sulfur, calcium arsenate, and sodium fluoroacetate. Copper sulfate production in 1953 was 13,662 metric tons, and in 1954, 10,823 tons. Statistics on the company's output of insecticidal sulfur, calcium arsenate, and sodium fluoroacetate are not available. Under licensing arrangements with the Geigy Company of Switzer- land, the Industria Nacional de Productos Quimicos began manufac- ture of DDT (100 percent) in 1949 and in the next 3 years produced 70 to 80 metric tons annually. However, in 1953 only about 31 tons were manufactured. In the same year the company produced about 1,200 pounds of coumarin-base rodenticides. Kaw materials for pro- duction of DDT are available domestically with the exception of monochloro benzene, which is imported. High prices for domestic raw materials raise production costs to such an extent that only tariff protection enables the one manufacturer to compete with imported DDT. Consumption Data on consumption of pesticides in Portugal are not available. Production plus imports (see "Foreign Trade") probably closely approximates consumption. Foreign Trade Import statistics do not give a breakdown on commodities. Table 46 gives over-all figures and countries of origin. Portugal does not export pesticides. 124 Table 46. — Portuguese Imports of Insecticides and Similar Preparations, 1952-53 [Quantity in pounds; value in U. S. dollars] Country of origin 1952 1953 Quantity Value Quantity Value Belgium-Luxembourg 390 50, 715 22, 050 1, 600 639, 450 141, 120 2,053 840 72, 275 8,680 3,255 182, 245 78, 400 525 94, 815 145, 530 83, 790 123, 480 235, 935 134, 505 15, 618 29, 750 Germany, West- 109, 830 Netherlands __ _ _ 32, 095 Switzerland _ _ _ 56, 630 United Kingdom. 54, 880 United States _ _ 59, 850 Other countries.. _ _ __ 10, 955 Total _ ______ 857, 378 346, 220 833, 673 353, 990 Source: "Comniercio Externo," National Institute of Statistics. Equipment With the aid of U. S. Government agencies, the Portuguese Agri- cultural Department was supplied with spraying equipment, which is being used extensively in a program of teaching farmers how to obtain larger crops and to improve the quality of agricultural products. Some individual farmers have acquired their own equipment, but most rent machinery at low rates from the farmers guilds of which they are members. Marketing and Distribution Pesticides are sold through distributors located in all agricultural centers or directly to the farmers guilds. Prospective Developments and Trends The consensus seems to point to little increase in the use of pesticides in Portugal. Most farmers have very low incomes, use antiquated farming methods and spend little on pest-control products except for protection of vineyards. Domestic production of pesticides was down in 1953, and imports were below those in 1952 (poundwise). RUMANIA (Excerpts from an article in Rumanian Foreign Trade, August 1954, edited by the Chamber of Commerce of the Rumanian People's Republic, Bucharest) In recent years the Rumanian chemical industry has developed greatly. Based on large resources of raw materials — coal, oil, salt, 125 and natural gas — and using the most modern equipment, this industry is now composed of numerous big units such as "Carbochim," "Arge- sul," and the B. H. Brea works. The Rumanian chemical industry is concerned with manufacturing various products used in agriculture which will increase the yield of grain, fruit trees, and vineyards, and the growth of flowers and vegetables. Many pesticides are now made in such quantities as not only to meet domestic requirements but also to allow a margin for export. In the course of research work undertaken to displace copper com- pounds in the treatment of honeydew melons, a number of products have been tested, such as "Henda" (hexanitrodiphenilamin), and "Tiodin" (thyocanodinitrobenzene), which have given promising results. DDT and BHC are manufactured and used in sizable quantities. DDT is applied against insects on plants and for protection of stored grain. BHC is used in combating weevils, locusts, and insects which damage the cotton crop and fruit trees. By making use of the in- active isomers of BHC, two additional important products have been obtained, namely "Hexa" (hexachlorobenzene) with fungicidal prop- erties (used as a seed protectant), and "Penta" (pentachlorophenol), used for wood preservation. The Rumanian chemical industry also produces ANTU (alphanaphthyl thiourea), widely used for control of rats. Production of 2,4-D is being considered. Research work is constantly carried on in the field of pesticides and the range of products is being widened. It is anticipated that, in addition to providing materials for protection of Rumanian agricul- ture, the industry will also export considerable quantities of pest- control products. SPAIN (Based on report by M. Dela Sierra, U. S. Embassy, Madrid) Production Domestic production of pesticides has reached such proportions that very few import licenses for these compounds are granted. There are 155 Spanish manufacturers of pesticides, of which the following number manufacture the products indicated: Insecticides: Arsenicals 25 Organic synthetic compounds 75 Oil emulsions 66 Other 60 126 Fungicides: Copper compounds 34 Sulfur and derivatives 21 Compounds of sulfur and copper 15 Other 1 Mixtures of insecticides and fungicides 10 Disinfectants 29 Other pesticides 52 As evidenced by the above figures, many firms manufacture several types of pesticides; only three firms are known to produce virtually all types. Approximately 600 pesticide products of domestic manu- facture and 60 foreign pest-control products are registered for dis- tribution in Spain. In 1953 Spain produced the following major pesticide materials (output in 1954 is estimated to be approximately the same): Metric ions DDT 500 BHC 600 Lindane 120 Oil emulsions 4, 823 Arsenicals 1, 500 Copper sulfate 16, 807 Sulfur (for pesticides) 17, 000 Hydrocyanic acid 154 Compound H-24, a terpene derivative based on turpentine, also is manufactured and used against plant lice and other harmful insects, as well as for control of ants. Spanish production of DDT, BHC, lindane, nicotine, and arsenicals is reported sufficient to supply domestic requirements, as well as is sulfur used for pesticides. Chlordane, pyrethrum products, synthetic hormone compounds, and synthetic cryolite are manufactured (prob- ably formulated) in small quantities. Consu mption Data on annual consumption of pesticides are not available, although apparent consumption may be computed by adding imports to domes- tic production. About 80 percent of production is used for agricul- tural purposes, 13 percent for household uses, and 7 percent for public health. There is need for additional education of the farmer before use of pest-control products will measurably increase. When benefits to be derived from application of pesticides in agriculture are more fully known, undoubtedly consumption will rise.. Foreign Trade At present, import licenses for pesticides are granted only for essen- tial commodities not produced in Spain. 127 Spain imports copper sulfate as well as copper for its domestic pro- duction. Sodium cyanide and calcium cyanide also are imported. Kotenone is imported in small quantities. Aldrin and dieldrin insecti- cides have been imported and tested, but have not yet (1954) been authorized for sale. Seed disinfectants, such as copper salts and organic mercury compounds, are imported, as are some rodenticides. All imports into Spain are subject to license, which must be obtained by the importer before any shipment will be cleared by the customs. Permit for importation of goods in general may be granted for trans- actions of the following types: (1) "Sin divisas ni compensacion," or without foreign exchange when the importer has officially declared that he holds funds abroad and wishes to import products not normally produced in Spain; (2) "Cuenta combinada," or combined account, when a firm which must import certain foreign products for its normal activities obtains permission to establish a special import-export account; (3) "Cuenta de_compensacion,"_or individual barter transaction accounts; and i^f#^ifi§^S i*sh%. # . (4) Regular imports for which exchange is granted.^ Validity of import licenses is generally 3 months, and expired licenses are seldom renewed. The exporter must furnish to the Spanish im- porter a pro forma invoice, in sextuplicate, to be attached to the im- port license application, showing the f. o. b. foreign port price of the goods to be imported. Freight and insurance charges for calculating the c. i. f. Spanish port price should also be included. Since production capacity for some pesticide materials is twice as much as actual output, it would appear that Spain could produce these commodities for export. However, cost of manufacture is high and Spain's potential foreign markets are considered unimportant. Nevertheless, the Government includes pesticides in the most favor- able exchange rate group for exports (37.245 pesetas=U. S. $1). Table 47. — Spanish Imports of Pesticides, 1953 Commodity classification and principal countries of origin Quantity (pounds) Value (U.S. dollars) Copper sulfate: Chile 117, 260 4, 342, 580 $17, 598 Germany. _ __ __ _ ___ 495, 419 Total. _ 4, 459, 840 513,017 Compounds used in combating plant and animal diseases: France _ _ _ _ _ 80, 080 333, 740 459, 360 14, 520 38, 208 Germany _ _ _ ___ 105, 196 Netherlands ____ _ 127, 736 Other countries ___ 5,264 Total_ _ _______ 887, 700 $276, 304 Source: Spanish official trade statistics. 128 Equipment Machinery for spraying and dusting is domestically produced but as a rule is not of the quality needed for up-to-date farming practices. Approximately 31 manufacturers and 7 importers of spraying and dusting equipment are registered in Spain. Two Spanish firms are engaged in aerial crop dusting and spraying under concession granted by the Ministry of Agriculture : Servicios Agricolas Aereos, S. A., which holds 80 percent of the concession (this firm is associated with a United States firm engaged in aerial agricultural work). Aeroteonica, S. A., which holds the remaining 20 percent of the concession. Marketing and Distribution Manufacturers' local representatives who have their own sales agents are the preferred media for distribution of pesticides. Protection against plagues is dependent on the "Seccion de Fitopatologia y Plagas del Compo" (Service of Phytopatology and Plagues) of the Directorate General of Agriculture, which buys and distributes insecticides whenever a plague threatens the national interest. Advertising is usually arranged for by the importer or sales repre- sentative with support from the foreign manufacturer. Prior to distribution, all advertising material and publicity on pesticides must be censored and approved by the Directorate General of Agriculture. There is keen competition in pesticides, which are among the most highly advertised commodities in Spain. Government Decrees and Regulations All pesticide materials and equipment for agricultural use must be approved by and registered with the Ministry of Agriculture Regis- trar's Office of Phytosanitary Products and Equipment. All products sold must bear a label showing the registry number, name of the pro- ducer, and the chemical formula. No imported pesticide will be released by the customs if not pre- viously registered with the Registrar's Office. (Decree, September 10, 1942; Order, December 16, 1942.) Products for household and public health use must be approved by the Ministry of Interior and registered at the Office of the Inspector General of Pharmacy before they may be sold. Such products also must bear a label giving registration number and the chemical formula. (Order, May 8, 1947.) 129 Prospective Developments and Trends Trade sources indicate that further investment in the pesticide business is not advisable, as national production already practically covers domestic requirements and capacity is greater than present output. However, the industry feels that there are opportunities for participation of United States technique in the pesticide industry in collaboration with Spanish firms. The chronic shortage of dollar exchange necessitates limiting of imports from the United States to essential items not produced in Spain and not available from soft-currency sources. Therefore, any increase in United States exports of pesticides to Spain probably will consist of products manufactured only in the United States. SWEDEN (Based on report by Georg Frostenson, U. S. Embassy, Stockholm) Production About 70 Swedish firms, 20 of importance, compound and pack pest-control products. All the firms are principally blenders and packers. Use of toxic ingredients of domestic origin is small. . Production (probably formulation in some cases) of pesticides in 1951 (latest year available) was as follows (in million tons): Arsenic products 18, 531 Copper sulfate 1, 078 Sodium chlorate 3, 489 Sulfur, agricultural 15, 033 Seed treatment materials. 451 Herbicides, etc 4, 760 Insecticides (probably formulations) 1, 015 Chemicals for production of pesticides, such as ethyl alcohol, phosphoric acid, sulfuric acid, and chlorine, are manufactured in Sweden. Consumption Use of pesticides has increased at a rapid rate and has more than doubled since 1948, as indicated by tables 48 and 49. It is estimated that distribution of pesticides as to application in 1953 was in the following percentages: Agriculture, 74; horticulture, 18; forestry, 3; public health, 2; household, 3. 130 Table 48. — Approximate Consumption of Pesticides in Swedish Agriculture and Horticulture for 1948, 1952, and 1953, with Projected Use in 1960 [Metric tons I Commodity Consumption Estimated 1948 1952 1953 use in 1960 Insecticides _ _ 1,570 1, 110 1,058 62 46 2,683 2,396 2,593 159 470 2,369 2,869 3,249 307 293 3, 200 Fungicides 4, 000 Weedkillers 6, 000 Rodenticides 500 Miscellaneous x (2) Total 3,846 8,291 9,087 13, 700 1 Compounds for control of storage insects, etc. 2 No basis for estimate. Source: The Agricultural Economics Institute. Table 49. — Sweden: Approximate Consumption of Principal Pes- ticide Materials, 1953 [Metric tons] Commodity classification Insecticides containing principally: DDT BHC Chlordane and lindane Thiophosphates Arsenic Nicotine Winter sprays Other Fungicides: Seed-treatment compounds (principally mercury) Other (copper, sulfur, etc.) Weedkillers (largely sodium chlorate) Rodenticides (principally coumarin compounds) Total 9,550 Total con- Toxic ingred- sumed ient 840 101 990 148 85 17 380 27 95 80 17 5 95 10 148 7 500 4 2,369 24 3,449 1, 213 582 0) 1,636 1 Less than one metric ton. Source: The Agricultural Economics Institute and trade estimates. Consumption of pesticides imported in minor quantities was as follows : (Metric tons) Dieldrin 1-2 Lindane 25 Parathion 25 Pyrethrum 3 2,4-D 50 2,4,5-T 50 Aramite 5 Piperonyl butoxide 12 Malathion 3 Heptachlor 1 131 The factors which indicate a continued and relatively rapid increase in the long-trend use of pest-control products are: The Swedish farmer enjoys government income guaranties at a relatively higher level ; high farm wages increase profitability of chemical weed control ; use of brush-killing materials in forestry is expected to increase; Swedish farms are relatively well mechanized and collective use of spraying and dusting equipment is common; dusting from airplanes is well established; adequate information services on types of pesti- cides and application methods are available; the importance of rat and fly control is more fully recognized since the typhus cases in 1953 and 1954. On the other hand, reduction in oil-crop cultivation has caused a temporary decrease in the use of insecticides. Foreign Trade Volume of imports of pesticides has increased considerably in pro- portion to rising use. Imports of ready-made compounds have de- creased in favor of toxic ingredients and now amount to less than 15 percent of pesticide imports. Availability of superior products will continue to be the most inportant factor in determining the source of supply. In that regard the United States is outstanding, but increased competition may be expected from West Germany. The small domestic market and increased competition limits Sweden's possibilities of synthesizing pest-control products or building up an export market. Production of DDT in Sweden has been discontinued for competitive reasons. See table 50 for statistics on Swedish exports and imports of pesticides in 1953. Equipment Spraying and dusting equipment is in adequate supply. The owners of large farms have their own equipment and most small farmers can avail themselves of custom spraying and dusting services. Marketing and Distribution Pesticides are generally imported through local agents, with one firm handling about three-fourths of the total. These products are subject to an import duty of 15 percent ad valorem except for pesti- cides from the United States which were "free listed" on October 1, 1954. Foreign manufacturers advertise in newspapers and periodicals. Some Swedish manufacturers (probably formulators) also have a broad educational program which includes issuance of pamphlets and dissemination of information to farm schools, agricultural advisors, and farm organizations. 132 Table 50. — Swedish Foreign Trade in Pesticides, 1953 Commodity classification and principal countries of origin or destination IMPORTS Copper sulfate: Belgium and Luxembourg Denmark Germany, West United Kingdom Total Insecticides, fungicides, etc.: Denmark Germany, West Netherlands Switzerland United Kingdom United States Other countries Total EXPORTS Insecticides, fungicides, disinfectants (including sheep and cattle dressings), and similar preparations: Australia Belgium-Luxembourg Bulgaria Other cou ntries Total Quantity (pounds) 522, 490 24, 251 108, 025 533, 513 1, 188, 279 17, 637 156, 527 52, 910 22, 046 130, 071 13, 228 2,205 394, 624 11,023 88, 184 26, 455 6,614 132, 276 Value (U. S. dollars) 50, 232 2,705 10, 819 53, 323 117, 079 22, 604 54, 096 26, 662 54, 869 37, 094 15, 456 6,569 217, 350 9,853 4,637 19, 900 4,443 38, 833 Source: Swedish official trade statistics. Government Decrees and Regulations Control and inspection of domestic and imported pesticides are conducted by the State Plant Protection Institute in accordance with its original instruction (SFS No. 579, December 16, 1932) and Public Law No. 589, September 22, 1953, concerning registration of pest-control products. A pesticide may not be sold unless it is registered. The registering firm is required to declare the contents of the product, submit a sample, and give information concerning toxicity to humans. The Institute makes no biological tests prior to registration but may make a chemical analysis of the sample, in which case a certain fee is charged in accordance with the law. A pesticide toxic to humans is also subject to the Poisons Act of 1943 (SFS No. 877, November 26, 1943) or to special instructions given in each individual case by the State Institute for Public Health. The Board of Health may prohibit the sale of dangerously toxic pesticides. 133 Another law (Public Law No. 718, December 11, 1953) prohibits the use of pesticides on blossoming plants visited by bees, but the Board of Agriculture may grant exemptions. Prospective Developments and Trends Opportunities for investment of United States capital in the Swedish pest-control industry are believed to be very limited. On the other hand, United States technical knowledge would be welcome because of the limited scope of Swedish research in this field. New United States products are constantly being introduced and tested in Sweden. With the "free listing" for imports of United States pesticides into Sweden, dollar liberalization, and the popularity of United States products, Swedish imports of pesticides from the United States are expected to increase. SWITZERLAND (Based on report by J. A. Lehrs and M. B. Caluori, U. S. Consulate General, Basel) Production Swiss requirements of pesticides are largely met by domestic pro- duction. Official production statistics are not released, but trade circles estimate that output of pesticides in both 1953 and 1954 was valued at $7,360,000. There are eight major producers of pesticides in Switzerland, listed below with principal products manufactured. Firm Pesticides produced Remarks J. R. Geigy, A. G., Basel Insecticides Fumigants Fungicides Weedkillers Rodenticides Specializes in DDT Sandoz, Ltd., Basel Fungicides Specializes in copper products Ciba, Ltd., Basel Fungicides This large chemical-pharma- ceutical firm has recently added the manufacture of pesticides Specializes in BHC under Dr. R. Maag A. G. Chemische Insecticides Fabrik Dielsdorf, Zurich. Fumigants license from Imperial Fungicides Chemical Industries Weedkillers Rodenticides Cupra S. A., Renens, Vaud__ Fungicides Specializes in copper sulfate A. G. vorm. B. Siegfried, Insecticides Manufactures on a small scale Sefmgen. Fungicides Weedkillers Rodenticides Chemisch-Technische Werke Insecticides Manufactures on a small scale A. G. Muttenz, Baselland. Fungicides Weedkillers Agrochemie A. G., Bern Insecticides Fungicides 134 Switzerland has very few natural resources, hence practically all raw materials for the manufacture of pesticides are imported. Consumption Official consumption statistics are not available, but only about half of production is consumed domestically. Probably 80 percent of pesticides consumed is in agriculture, with most of the balance being used for household purposes. There are no endemic diseases in Switzerland, and use of pesticides for public health purposes is believed to be insignificant. It is not expected that consumption of pesticides will increase to any extent in the near future. Foreign Trade In view of the existence of a highly developed pesticide industry in Switzerland, imports of these products are insignificant. A large volume of production is exported, mostly in the form of active in- gredients. Available trade statistics cover copper sulfate and fungi- cides only, as shown in table 51. United States exports of pesticides to Switzerland dropped from 390,000 pounds ($298,000) in 1954 to 276,000 pounds ($216,000) in 1955. The major portion of exports in each of these years consisted of miscellaneous agricultural insecticides and related materials and household and industrial disinfectants. Equipment No shortage of spraying or dusting equipment exists in Switzerland. Marketing and Distribution Imported pesticides are usually bought through direct purchase. Principal distributors of pesticides, both those of Swiss origin and imported commodities, are the several agricultural cooperatives. Household insecticides are distributed mainly by wholesalers in the chemical-pharmaceutical field to drug and department stores for retail sale. Samples of advertising material used by Geigy, Sandoz, and Ciba are on file in the Chemical and Rubber Division. Government Decrees and Regulations Sale of both domestic and imported pesticides for agricultural use is permitted only after extensive biological and toxicological tests and 135 Table 51. — Swiss Imports and Exports of Copper Sulfate and Fungicides, 1954 [Quantity in pounds; value in IT. S. dollars] Principal countries of origin or destination Imports Exports Quantity Value Quantity Value Australia _ _ __ 19, 934 13, 073 10, 031 78, 369 17, 857 20, 944 7,976 21, 605 25, 787 132, 276 30, 542 80,211 21, 730 Austria __ _ _ ___ 19, 942 Belgium and Luxembourg Brazil _ _ _ _ 778, 307 88, 504 9,305 120, 625 Canada _ _ _ _ 14, 271 Colombia 21, 227 France Netherlands _ _ 71, 900 9,627 6,929 17, 470 United Kingdom 22, 046 5,115 4,997 2,789 21, 799 United States _ 102, 888 Uruguay __ 33, 766 All other countries 9,404 1,847 96, 657 Total 886, 772 107, 764 458, 605 486, 609 Source: Swiss official trade statistics. approval by one of the three Federal Testing Stations. Household preparations are tested by the Swiss Toxic Commission of the Federal Health Office. Containers of all preparations, whether for agricultural, household, public health, or industrial use, must show the amount of toxic in- gredients. Pesticides with a toxic content exceeding the allowable percentage must, in addition, be marked by a skull and crossbones. Prospective Developments and Trends Switzerland's agricultural production is restricted to its present size, generally speaking, and farmers are well instructed on the use and value of pesticides. The well-developed domestic pesticide in- dustry can largely meet the relatively small Swiss requirements for pesticides. Hence, local trade circles feel that there will be no increase in imports of pest-control products from the United States or else- where, except by the introduction of new and specialized commodities. TURKEY (Based on report by L. I. Scranton, U. S. Embassy, Ankara) Production Turkey has two or three small plants engaged in mixing or formu- lating pesticides, but none has had outstanding success thus far, due in large measure to lack of foreign exchange for importation of toxic 136 ingredients and to limited facilities which do not warrant an aggres- sive marketing program. One of the largest formulators, with a capacity of approximately 2,500 metric tons, in 1953 produced only about 1,500 tons, consisting of DDT preparations (10 and 50 percent), cereal seed dressing (non- mercurial), locust poison, and a few other items. All toxic ingredients are imported and are reported to include DDT, BHC, metaldehyde, thallium sulfate, methoxychlor, dithiocarbamate fungicides, piperonyl butoxide, and toxaphene. About 80 percent of output is taken by the Ministry of Agriculture and the Turkish Sugar Company for use on state farms or in control campaigns carried on under supervision of these agencies. The remainder is sold on the open market. A nicotine sulfate factory is under construction with the expecta- tion that nicotine sulfate will be used in domestic agriculture and nicotine extract will be exported. It is being financed by the In- dustrial Development Bank, with a credit of approximately $64,000 for equipment which has been ordered from Germany. Domestic raw materials available for production of pest-control products include : Talc and similar inert materials, said to be in ample supply; Alcohol, output approximately 8 million liters and could be in- creased ; Benzol, byproduct of the steel industry (volume unknown) ; Sulfuric acid, with principal source as byproduct of Karabuk Iron and Steel Plant (greatly increased supplies are expected from instal- lations to process gases from the Murgul Copper Mine), with domestic requirements on the rise due to completion of the new superphosphate factory at Ishenderun; Chlorine, produced by Sumer Bank alkali and cellulose factories from hydrolysis of sea salt; Copper, ample supplies of raw material from Murgul and Ergani Copper Mines, although none processed for pesticides ; Sulfur, from Kecubolu Plant, of high purity suitable for use in dry form (wettable types are imported) ; Nicotine, ample supply from tobacco industry. Consumption Official data on consumption are not available. According to re- cent information, the Ministry of Agriculture budget for 1954 in- cluded approximately $1,080,000 for purchase of pesticides materials, of which the following were indicated as some of the more important items: Pounds 10 percent DDT 537, 900 50 percent DDT 173, 800 379238—56 10 137 Pounds BHC 523,600 Cotton dust 121, 000 White oil 268, 400 Mercuric seed dressing 1, 342, 000 Nonmercuric seed dressing 990, 000 HZ 32 and 132 A (toxic ingredient not known in Chemical and Rubber Division) 253, 000 Sulfur 22, 660 Methoxychlor 22, 705 Strychnine sulfate 5, 500 Parathion 5, 500 Thallium sulfate 2, 200 Methyl bromide 19, 800 Other 16, 500 Information from the Ministry of Public Health, responsible for malaria control, indicates that approximately 1,000 metric tons of DDT products were used for that purpose in 1953. While use of pesticides has increased several fold in the past few- years, present consumption is only a small percent of the amount needed or which may be consumed in the future in view of the agricul- tural and industrial development under way in Turkey. Virtually all pest-control operations are carried on by, or under supervision of, government agencies, such as public health, sugar companies, and the Ministry of Agriculture (through provincial sta- tions of its Plant Protection Services). A few individual farmers, particularly orchardists and vineyardists, conduct their own control work, but by and large the widespread use of pesticides by farmers for a variety of urgent needs has not yet developed. Greatly expanded use may be anticipated in the future, dependent upon (1) ample sup- plies readily available at reasonable prices in all rural districts; (2) con- tinued education and demonstration work among farmers, by both governmental and private agencies, on the economic benefits to be derived and approved methods of application; and (3) increased initia- tive by farmers in taking measures to protect their own crops rather than depending upon the government to do the job for them. A rough idea of the need and potential demand for pesticides in agriculture is indicated by the list of major crops and controls needed to improve and increase production, given below. Quantity Protection measures needed Agricultural crops: Cereals Cotton. 27,500,000 acres. 15,000,000 acres. Seed dressings, weedkillers, poisons for locusts and other insects Dusts, sprays, and fumigants against green boll worm, pink boll worm, and other cotton insects 138 Agricultural crops- Continued Tobacco Pulse crops (peas beans, lentils etc.) Vineyards Citrus Other fruit Olives Filberts Livestock Stored products: Cereals Tobacco Dried fruits Quantity 375,000 acres. __ 1,150,000 acres- . 1,625,000 acres. _ 6,000,000 trees __ 59,000,000 trees. 38,000,000 trees- 142,000,000 trees 62,000,000 head- 2,000,000 metric tons in 1953 stored for redis- tribution and export by- government agency 100,000 tons a year 100,000 tons a year Protection measurers needed Control of thrips and diseases Control of various insects and diseases Insect, bacterial and virus con- trol Various insects Various insects and diseases Olive moth, dacus fly, etc. Various insects External and internal para- sites An estimated yearly pest damage of $295 million to $320 million, based on statistics originating in the Ministry of Agriculture, included the following pests: U. S. dollars Grasshoppers 35, 700, 000 Grain diseases 71, 000, 000 Fruit web moths . 14, 280, 000 Codling moth 5, 355, 000 Cotton insects 7, 150, 000 Citrus insects 8, 925, 000 Olive insects 5, 355, 000 Nut insects 3, 570, 000 Vineyard insects 2, 855, 000 Aphids 2, 140, 000 Wild pigs 250, 000 Rats 180,000 The above figures are of interest only as they indicate in a general way the scale of the pest-control problems confronting farmers and agencies responsible for agricultural improvement and development in Turkey. They also give some indication of potential marketing possi- bilities in an expanding and technologically improved economy. Foreign Trade Official trade statistics do not provide specific information as to type and quantity of pesticides included. Pesticides are not exported from Turkey. The only available import data are as follows: 1952 1953 Quantity Value Quantity Value Products for control of rats and mice_ __ __. 362 2,331 $298, 450 1, 305, 405 53 5,290 $45, 875 Insecticides, etc _ 1, 720, 740 Total 2,693 1, 603, 855 5,343 1, 766, 515 139 Equipment Since most pest-control work is carried on by, or under supervision of, governmental agencies, the bulk of equipment for pesticide applica- tion is held by those agencies. An agricultural equipment survey of 1952 shows a total of 20,112 sprayers and 3,746 dusters in the country, types and sizes unspecified. Equipment reported to be in the hands of the Ministry of Agriculture in 1954 for plant protection operations included: 536 motorized sprayers, 201 motorized dusters, 9,320 pressurized knapsack sprayers, 3,317 ordinary knapsack sprayers, 1,100 ordinary knapsack dusters, 2,000 gopher guns, 2,122 mole guns, 825 flame throwers, and 120 trucks and pickups. The Ministry of Agriculture owns and operates for the benefit of farmers a large number of motorized cereal seed cleaners and treaters which are stationed at various points where farmers can bring seed for treatment. There is need for simple hand-operated equipment to be used by farmers. The application of weedkillers in grain crops, undertaken on a commercial scale for the first time in 1953, has thus far been done by airplane on the large holdings of the state farms. If chemical weed control becomes more general, animal-drawn and tractor-operated equipment for this purpose will be needed. Marketing and Distribution United States pesticides compare favorably with European products as to quality. Since a high proportion of purchases of United States products have been made by governmental agencies, largely through the use of foreign-aid funds, United States trade names may not have become widely known among general users. Owing to shortage of dollar exhange, private importers recently have been unable to bring in significant quantities of pesticides from the United States. Some European representatives have aggressively advertised and promoted sale of their products. Despite shortage of foreign exchange sufficient to meet demand for pesticides, they have distributed excellent educational and promotional materials, including leaflets, circulars, colored charts and wall posters for agricultural offices and schools, and educational films. (Samples of advertising material used are on file in the Chemical and Rubber Division.) Government Decrees and Regulations All pesticides must be tested and approved by agencies of the Minis- try of Agriculture before permits for importation and sale are author- ized. (A translation of the regulation of February 1, 1954, is on file in the Chemical and Rubber Division.) 140 Imports of pesticides, except 100 percent DDT, became subject to tariff charges of 25 percent ad valorem on July 1, 1955. Imported chemicals are subject to a general transaction tax of 18 percent of the value. Domestically manufactured products are free of the transac- tion tax (Law No. 4939). Technical DDT is reported to be exempt from all duties and taxes. Prospective Developments and Trends Potential markets for pesticides in Turkey are enormous. Lack of education as to the benefits to be derived from use of these materials, as well as low farm income, are deterrents to a rapid increase in consumption. Lack of dollar exchange also presently handicaps importation of United States pesticides by private Turkish importers. UNITED KINGDOM (Based on report by G. A. Ellsworth, U. S. Embassy, London) Production Detailed information on output of pesticides in the United Kingdom is not available. The Census of Production for 1948 listed 49 manu- facturers of "Disinfectants, antiseptics, insecticides, weedkillers, sheep and cattle dips, and like products," with a total output valued at $24,725,000. The Census for 1950 (latest available) altered the heading to "Fertilizer, disinfectant, insecticide and allied trades," and listed 224 establishments with a gross production amounting to $94,357,800. A reliable source has estimated current production of DDT and BHC at an annual rate of 2,000 long tons each. Major synthetic pesticides are manufactured in the United King- dom, with the exception of aldrin, dieldrin, chlordane, and captan. Botanicals — nicotine, pyrethrum, rotenone — are imported, but extrac- tion takes place in the United Kingdom. Such raw materials as lead for lead arsenate are also obtained from abroad. Consumption No figures or estimates are available on consumption. Foreign Trade Exports of pesticides increased annually from 1949 to 1952, but dropped in 1953. Some recovery took place in 1954. Table 52 gives exports of pesticides for January-November 1954. Table 53 gives available statistics on United Kingdom imports of pesticides in 1954. 141 Table 52. — Exports of Pesticides from the United Kingdom, January-November 1954 Commodity classification and principal countries of destination Rodenticides : Australia Indonesia Ireland (Eire) New Zealand All other countries. Total Weedkillers: Argentina Belgium British Guiana Chile Denmark Finland Greece Ireland (Eire) Kenya Mauritius Netherlands New Zealand Southern Rhodesia Sweden Union of South Africa. United States Uruguay All other countries Total. Nicotine, nicotine sulfate, and insecticides ing nicotine: Israel Japan Peru United States All other countries contain- Total. All other insecticides and fungicides Anglo-Egyptian Sudan Australia Canada Ceylon Channel Islands Denmark Egypt Gold Coast India Ireland (Eire) Italy Kenya Netherlands New Zealand Pakistan Singa pore Southern Rhodesia Sweden Trinidad and Tobago Quantity (pounds) 29, 984 11,536 45, 472 12, 656 66, 640 162, 288 323, 456 283, 696 148, 848 243, 936 424, 704 159, 600 116,704 569, 968 103, 712 481, 824 280, 000 749, 616 151, 648 290, 800 288, 064 70, 000 183, 568 606, 416 7, 476, 560 Value (U. S. dollars) 13, 440 40, 884 10,976 51, 184 52, 860 169, 344 1, 531, 040 1, 545, 600 486, 192 6, 297, 312 458, 864 176, 624 835, 632 653, 968 3, 230, 416 837, 088 511,392 968, 688 653, 968 700, 336 549, 808 698, 432 323, 904 329, 952 997, 360 22, 011 17, 770 22, 093 8,578 62, 737 133, 189 187, 541 39, 829 60, 724 91,015 48, 718 49, 824 47, 361 201, 746 48, 544 159, 024 51, 326 224, 201 54, 709 115,864 78, 933 39, 344 81, 744 382, 191 1, 962, 638 12, 685 34, 000 7,589 58, 845 71,316 184, 435 301, 621 873, 873 506, 542 640, 324 124, 975 115, 653 188, 844 173, 793 372, 355 294, 858 200, 301 263, 713 183, 733 341, 746 125, 756 125, 434 126, 751 142, 993 163, 718 142 Table 52. — Exports of Pesticides from the United Kingdom January— November 1954 — Continued Commodity classification and principal countries of destination Quantity (pounds) Value (U. S. dollars) All other insecticides and fungicides — Continued Turkey Union of South Africa Uruguay Yugoslavia All other countries 1, 957, 648 518, 896 677, 376 505, 792 10, 158, 848 238, 679 189, 422 179, 094 149, 044 2, 507, 563 Total Grand total. 35, 605, 136 8, 530, 785 43, 413, 328 10,811,047 Source: British Board of Trade, Statistics Division. Table 53. — Imports of Pesticides into the United Kingdom, January-November 1954 Commodity classification and principal countries of origin Quantity (pounds) Value (U.S. dollars) Disinfectants, insecticides, weedkillers and sheep and cattle dressings, except tobacco offal and nicotine insecticides: Denmark. __ . _ 111,328 184, 240 123, 088 153, 328 71, 232 156, 128 658, 560 265, 664 37, 657 Germany. West _ __„ _ _ 161, 726 Italy... 30, 925 Netherlands 125, 893 Kenya. _ _ 676, 251 Switzerland. _ _ _ 244, 454 United States. 387, 560 All other countries. _ 96, 421 Total 1, 723, 568 1, 760, 887 tnd nicotine insecticides: Nicotine, nicotine sulfate t Netherlands. _ 7,728 10, 752 11, 200 112 6,316 Peru __ 4, 329 Union of South Africa. 3,215 All other countries 182 Total 29, 792 14, 042 Grand total 1, 753, 360 1, 774, 929 Source: British Board of Trade, Statistics Division. Equipment Lack of equipment, for some time a limiting factor in the efficient use of pesticides, has been almost completely overcome. Marketing and Distribution No information is available on these subjects. 143 Government Decrees and Regulations Manufacturers producing pesticides are covered by the Factories Act. All poisonous products, as scheduled in the Poisons Acts, must conform to the conditions of the Pharmacy and Poisons Act, 1933, and the Poisons Rules, 1952, before distribution. The Agriculture (Poisonous Substances) Act, 1952, gave the Minister of Agriculture power to make regulations to protect workers against risk of poisoning from the use of toxic chemicals in agriculture. The Agriculture Poisonous Substances Regulations, 1954, S. I., 1954, No. 828, states precautions which must be taken by employers and employees when using dinitro weedkillers and organic phosphorus insecticides. There is a voluntary arrangement for the notification of the Ministry of Agriculture of new toxic chemicals used in agriculture or new uses of known toxic chemicals (Second Zuckerman Working Party Report, Toxic Chemicals in Agriculture, Residues in Food). Also in operation is a voluntary "Approval Scheme for Crop Protec- tion Products." Under this scheme, manufacturers guarantee to conform to specifications prepared jointly by representatives of the Ministry of Agriculture and the trade, or abide by conditions so agreed upon. Labels for the products are approved by an independent committee. Approved products appear in a list issued by the Ministry of Agriculture. Prospective Trends and Developments The United Kingdom pesticide industry is well developed and progressive. Backed by well-organized technical, research, and sales staffs, it not only produces needed pesticides, but also in most cases gives technical advice on the efficient use of these materials. The pesticide industry is extremely competitive, making almost a complete range of products for domestic consumption and for export to a wide area of the world. While there might be a market for specialized pesticides not made in the United Kingdom, probably greater possibilities exist in licensing arrangements with British manufacturers for production in that country. YUGOSLAVIA (Based on report by W. N. Turpin, U. S. Embassy, Belgrade) Production Yugoslav pesticides produced entirely from domestic raw materials are copper sulfate, copper carbonate, mercury powder, colloidal sulfur, and nicotine. Other pesticides manufactured or formulated, 144 some raw materials or concentrates of which are imported, include dinitro orthocresol, DDT, BHC, sulfur, and lead arsenate. Produc- tion for calendar year 1953 is given below. Commodity: Metric tons Copper sulfate 15, 133 DDT 3,000 Dinitro orthocresol 1, 200 BHC 500 Copper carbonate 400-500 Colloidal sulfur 300 Lead arsenate 300 Nicotinol 100 Nicotine concentrate 30 Each of the above commodities is produced by one firm only, with the exception of copper sulfate (three), and dinitro orthocresol (two). Copper sulfate is manufactured from domestic copper and sulfuric acid; output is limited chiefly by availability of copper. Lead for lead arsenate and nicotine are available, but dinitro orthocresol concentrate is imported, as are lindane and some DDT concentrate. Most Yugoslav pesticides are compounded or packaged domestically. Several firms are* engaged either in negotiations for license to manu- facture other pesticides, or in test production. Manufacture of parathion by three plants began in 1954, and one firm is making mercury dusting powder under license from Bayer (Germany). Consumption Official consumption figures for 1952, estimated consumption of pesticides in 1953, and projected consumption for 1960 are given in table 54. Foreign Trade See table 55 for foreign trade data. Copper sulfate has been a substantial export item since before World War II, and Yugoslavia has productive capacity to supply considerably more. Output depends on price of copper sulfate relative to the price of copper, and exports have dropped during the past few years to about half the 1950 level. Except for small quantities of copper carbonate, other pesticides are not presently exported, although it is expected that DDT preparations will soon enter the foreign market. Near Eastern and South American countries have shown interest in obtain- ing Yugoslav pesticides and it is expected that as the country's productive capacity grows there will be an exportable surplus of additional commodities. Foreign exchange difficulties have prevented import of pesticides in quantities needed and, as a result, the Yugoslav chemical industry 145 Table 54. — Yugoslav Consumption of Pesticides, 1952 and 1953, and Projected Use in 1960 [Metric tons] Commodity 1952 actual 1953 estimated 1960 projected BHC (benzene hexachloride) Colloidal sulfur Copper carbonate Copper sulfate Cyanides DDT Dinitro orthocresol Lead arsenate Mercury powder Nicotine Nicotinol Parathion Sulfur Sulfur dioxide Zinc phosphide 500 300 400-500 14, 000 n. a. 3,000 1,200 300 n. a. 10 100 n. a. 3,000 n. a. n. a. 120 32 20 9,000 n. a. 365 130 50 102 15 n. a. 17 3,000 n. a. n. a. 500 100 3,000 16, 000 20-30 1, 140 2, 550 2,000 550 10 140-150 3,000 50 10 n. a. Not available Source: Federal Plant Protection Service (1952 and 1953): Ten-Year Plan for Agricultural Development (1960). is attempting to make licensing arrangements with foreign firms for manufacture of pesticides needed to meet domestic demand. Equipment Lack of adequate equipment is one of the serious handicaps to use of all pesticides. In particular, there is a shortage of portable sprayers for use in vineyards. There was no production of these sprayers during or immediately after World War II, although three small independent factories are now manufacturing about 20,000 units a year. An additional factory in Maribor is making a small motor sprayer, about 700 having been produced. Attempts to interest large farm machinery producers in manufacturing suitable types of spraying and dusting equipment have so far met with no success. Some equipment was imported under British aid in 1953. The most urgent needs are for hand dusters, small portable motor dusters, light motor sprayers, and fog sprayers for the olive groves. Marketing and Distribution Imports are made by direct purchase. The normal course of distribution is approval of the product by the Bureau of Plant Pro- tection, then sales through local representatives or visiting agents directly to Yugoslav commercial outlets. Advertising by United States firms would be of no value unless the firm were represented by a Yugoslav agent. The agent would know how best to bring the products to the attention of Yugoslav farmers, 146 Table 55. — Yugoslav Foreign Trade in Pesticides, 1954 Commodity classification and principal countries of origin or destination Quantity (pounds) Value (U. S. dollars) EXPORTS Copper sulfate: Hungary _ 881, 840 315, 699 2, 204, 843 33, 730 $77, 285 Turkey- 32, 487 USSR 198, 096 All other countries 1, 324 Total _ _ __ 3,436, 112 309, 192 IMPORTS Plant protection preparations: France. _ ___ __ . _ 65,711 17, 659 6, 668 4,323 Switzerland 2, 916 All other countries 4, 669 Total. __ _ _ _ _ 90, 038 11, 908 Insecticides, etc.: Austria 68, 475 42, 659 229, 750 281, 303 45, 992 562, 261 5,732 4, 503 Belgium and Luxembourg. 2, 950 Germany, West _ _ _ 117, 252 Netherlands 168, 996 Switzerland 9, 056 United Kingdom. 169, 960 All other countries 1,613 Total ___ 1, 236, 172 474, 330 Disinfectants: Netherlands _ ... 53, 133 237, 551 7,508 18, 521 United Kingdom. 37, 273 All other countries _ 3,767 Total _ _ _ _ 298, 192 59, 561 Grand total, imports 1, 624, 402 $545, 799 Source: Yugoslav official trade statistics. whether through advertising and demonstrations or by conducting direct negotiations with the Bureau of Plant Protection, which agency is in general charge of pest control and is the key to distribution of pesticides in general. Government Decrees and Regulations Control of pesticides is under the Basic Law on Protection of Plants from Diseases and Pests, published in Official Gazette No. 26, June 23, 1954. Regulations under this law are promulgated from time to time. 147 Prospective Developments and Trends Under the Yugoslav law, no United States capital can be put into equity investment in the country. Technical assistance to the pesticide industry would be very valuable, but should be fitted into the general program of Point IV technical assistance. United States manufacturers desiring a share of the Yugoslav market should appoint alert and capable local agents, preferably visiting the country to select the agent and also to acquaint them- selves with local conditions. One large United States firm has a representation agreement with a Yugoslav firm and is negotiating for an agent. Providing suitable dusting and spraying equipment also would doubtless improve chances of success in entering the Yugoslav pesticide market. Although it seems doubtful that the Yugoslav econ- omy will permit sizable pesticide imports in the immediate future, the government is increasingly aware of the problems of agriculture and is now making credit available to individual farmers, as well as to state farms and cooperatives, for buying equipment. Technical authorities are anxious to improve both the quality and amount of pesticides used and demand for these products may increase. In time, the Yugoslav market may become important, especially for licensing arrangements and the sale of concentrates. 148 Asia and Oceania Except for production in Australia and Japan, and a few plants in other areas, pesticides are not manufactured in Asia and Oceania. This area remains the third largest export market for United States pesticides, with India and the Philippines the major market. AUSTRALIA (Based on report by K. J. Dorr, U. S. Consulate General, Sydney) Production Australia is largely self-sufficient in the production of pesticides, except for specialized commodities, many of which are imported from the United States. Principal manufacturers of basic chemicals for pesticides are Im- perial Chemical Industries of Australia and New Zealand, Ltd. (a subsidiary of the British concern), Monsanto Chemicals (Australia) Ltd. (a subsidiary of the United States firm), and Timbrol, Ltd., an Australian company. Eighteen or twenty additional firms formulate various pesticides. Production data on individual items are not available and overall volume is reported only on a value basis. Manufacturing Industries, 1952-53, No. 3, Chemicals, Drugs and Medicines, Commonwealth Bureau of Census and Statistics, states "Production of disinfectants and all pesticides in the fiscal year 1952-53 (April 1-March 31) was valued at $12,898,000. " This is a consider- able increase over the $4,203,943 output reported for 1949-50. In general, Australian production of pest-control products is based on domestic raw materials. Principal exceptions are white arsenic, imports of which totaled 2,244 long tons ($283,212) in 1953-54, and pyrethrum flowers, 140 long tons ($124,922). The usual procedure is to import new pesticides for testing and adapting to Australian conditions, then inaugurate domestic production if possible. No government subsidies for production of pesticides have been granted. The prevailing tariff schedule and exchange control and import licensing systems have protected domestic manufacturers. 149 Consumption Official consumption data are not available. Information acquired from the three principal manufacturers forms the basis for the follow- ing estimates of average annual use: Commodity: Long tons Benzene hexachloride 500-600 DDT 500-700 2,4-D 400-600 2,4,5-T 200 Dithiocarbamate fungicides 250 Parathion 20-40 Phenothiazine (for worm infestation in sheep) 500-1, 000 Sodium chlorate 100 Lead arsenate 500 Copper fungicides (mostly copper sulfate and copper oxychloride) _ 1, 000-1, 500 Sulfur 700 White oil 700 Projected consumption of pest-control products is extremely difficult to estimate. Benefits derived from application of pest-control prod- ucts are well known and use is widespread. Total consumption is expected to increase in the next 5 years, but consumption of particular items will vary according to needs and development of new or better products. For example, nicotine sulfate has been largely replaced by phenothiazine, and lead arsenate usage fell off with the advent of DDT. Likewide, the hormone-type herbicides have tended to sup- plant arsenic and sodium chlorate for weed control. Foreign Trade Australian imports of pesticides have been principally new products which, when tested and adapted to local conditions, have been pro- duced domestically if the size of the market warranted. The United States, followed by the United Kingdom, has been the principal source for new products. Such basic raw materials as pyrethrum and arsenic also must be imported. New Zealand is the principal destination for exports, which totaled $510,000 in 1953-54. It is not expected that the foreign trade pattern will change in the near future. Due to a chronic shortage of dollar exchange, Australia has compre- hensive and detailed exchange control and import licensing systems governing dollar imports. There is no dollar allocation for imports of pesticides; each import application is "considered on its merits," which means that approval will be granted only if the pesticide is not available domestically or from other nondollar sources. 150 Equipment Australian farms are relatively well mechanized and the past few good crop years have resulted in increased use of mechanical farm equipment. Australia manufactures a variety of dusting and spraying equipment and thus is not entirely dependent on imports of these commodities. Marketing and Distribution Domestic producers of basic pest-control chemicals generally sell to other firms which compound branded products for wholesale dis- tribution. A similar distribution pattern is followed for imported products. Because of the exchange-control system, it is not possible to make comparisons as to price and quality among United States, other foreign, and domestic pest-control products. Table 56. — Australian Foreign Trade in Pesticides, 1953-54 1 Commodity and country of origin or destination Value (U.S. dollars) IMPORTS Lead arsenate : United Kingdom Copper sulfate: United Kingdom Other countries Total Benzene hexachloride: France Germany Netherlands Union of South Africa United Kingdom Total Fly papers Nicotine spraying preparations Rotenone spraying preparations Insecticides and disinfectants, not elsewhere included: Germany United Kingdom United States Other countries Total Washes and dips in liquid or powder, arsenical: United Kingdom Washes or dips in liquid or powder, non-arsenical: United Kingdom Other countries Total Weed, scrub, and tree killers See footnote at end of table. 12, 105 134 340 722 135, 062 1, 270 30, 240 71, 920 9, 590 15, 900 128, 920 3, 150 7, 920 740 30, 010 119, 400 24, 475 890 174, 775 33, 585 12, 915 240 13, 155 9, 375 151 Table 56.=- Australian Foreign Trade in Pesticides;, 1953-54-^*Con. Commodity and country of origin or destination Value (U.S. dollars) IMPORTS— Continued Pyrethrum flowers, including pulverized: Kenya Tanganyika Other countries Total Grand total EXPORTS Copper sulfate Benezene hexachloride Nicotine spraying preparations Other insecticides and disinfectants, not elsewhere included: Australian territories Hong Kong Malaya New Zealand Pacific Islands Other countries Total Washes and dips (sheep, cattle and horse) , liquid and powder Weed, scrub, and tree killers: New Zealand Other British countries French Associated States and Dependencies Total Grand total 99, 820 24, 300 780 124, 900 643, 687 1, 290 6, 495 675 51, 280 26, 180 50, 890 56, 500 21, 540 23, 770 230, 160 10, 560 254, 810 15, 100 215 270, 115 519, 295 i April 1-March 31. Source: Australian official statistics. Government Decrees and Legislation Each Australian state has a pest-control product act which requires the registration of such products with a state organization, usually the Department of Agriculture. (A list of pest-control products registered in the state of Victoria — representative of commodities registered in the other states — is on file in the Chemical and Rubber Division.) Prospective Developments and Trends Because of exchange restrictions, the United States share of the Australian market probably will not increase. In the event full ster- ling convertibility is attained, United States products might have a price advantage, at least until protectionist policies eliminate the spread between cost of United States products and those from the United Kingdom or other nondollar areas. 152 Although the use of pest-control products is increasing, the rate of increase is diminishing. The past 5 years have seen a doubling of domestic production. However, local trade contacts believe that the initial period of raising production to meet domestic needs is over. Therefore, it would appear that the best opportunity for United States manufacturers lies in production in Australia, either through licensing an existing manufacturer or by establishing a subsidiary. The local acceptance of a new pest-control product would be a most propitious opening for introduction of an additional manufacturing facility. The availability of basic raw materials would be the principal problem facing a new producer. BURMA (Based on report of J. H. Boulware, U. S. Embassy, Rangoon) Production No pesticides are manufactured in Burma nor are any raw materials for their production available in appreciable quantities. Compounding and packaging operations by a local druggist involve preparation of DDT and BHC emulsions for retail sale but are insignificant on a national scale. Consumption Burma is a potential market forfpesticides but is not of great im- portance as an immediate outlet. Insecticides comprise the great bulk (probably 95 percent or more) of all pesticide imports and are used primarily for public health and sanitary purposes. Agriculture is potentially a large consumer but at present only small amounts ol DDT and BHC are used on crops. Virtually no effort is made tc control pests of stored grain and each year large losses occur from infestations. Extensive use of pesticides is likely to require several years of education and experience. A serious handicap is the tradition against destroying life (including insect). Primary consumers of insecticides are the army and navy (40 per- cent), public health services (30 percent), the general public (^per- cent), agriculture (10 percent), and the Burma railways (5 percent). A spokesman for the Army Medical Service reports that require- ments for the defense services are 19,000 imperial gallons of 25 percent DDT emulsion, 29,000 pounds of 75 percent DDT powder, 1,000 gal- lons of 20 percent BHC emulsion, and about 12 tons of 6.5 percent gamma content, water-soluble BHC. Central Medical Stores reports that annual requirements, primarily for malarial control work, are about 50 tons of 75 percent DDT. The Department of Agriculture states that peanut growers use about $2,000 worth of DDT a year for insect control. 379238—56 11 153 Foreign Trade Principal imports, primarily from British sources, are DDT, BHC, mosquito repellants, and various household sprays for use against flies and mosquitoes. In 1955 United States exports of pesticides to Burma consisted entirely of DDT, 25 percent and over, and totaled 706,000 pounds, valued at $237,000. This total varied only slightly from that in 1954. Until recently, Burma purchased virtually all pesticides from the United Kingdom. As a part of the foreign aid program, United States DDT was used in malarial-control work. However, because of the shortage of dollars, nearly all commercial purchases are from sterling or soft-currency sources. Compilations from the Rangoon Daily Customs List show imports in the first 6 months of 1954 of DDT valued at $17,850; insecticides, $3,000; and "disinfectant fluid," $8,600. Also, 500 cases (size unknown) of DDT were imported from Italy and 17 cases of "insecticides" from West Germany. A local importer reports that the DDT from Italy was for the army and that prices were more favorable than those of the United Kingdom. Insecticides are imported on open general license from the sterling area, but require import licenses when obtained from the United States or other dollar areas. Equipment Only simple spraying equipment is used in Burma, such as hand- operated units for spraying houses or breeding places of mosquitoes in malarial-control programs. Table 57. — Imports of Pesticides into Burma, 1953 Commodity and Country of Origin Copper sulfate: United Kingdom India Total Disinfectants: Belgium and Luxembourg India Value (U s. dollars) 6, 975 910 7, 885 8, 365 8, 505 Commodity and Country of Origin Disinfectants — Continued Japan United Kingdom United States West Germany Other Total Grand total Value (U. S. dollars) 405 109, 660 85, 060 1,020 1,340 214, 355 222, 240 Source: Burmese official statistics. Marketing and Distribution The major distributor of insecticides in Burma is the Imperial Chemical Industries (Export) Ltd., a United Kingdom firm. Several 154 other firms have local agents who import on letters of credit from producers abroad and sell to the government as well as to the retail trade. Oil companies import limited quantities of sprays for fly and mosquito control. Trade sources report that prices for United States products are slightly lower than for those of British or European origin, but lack of dollar exchange precludes imports from the United States on a more substantial basis. Government Decrees and Legislation There are no known government controls or regulations affecting production and distribution of pest-control products. Prospective Developments and Trends In the foreseeable future, it is doubtful that Burma will offer an opportunity for investment of United States capital or technical knowledge for the manufacture of pesticides. As the country de- velops, the market should increase and, unquestionably, herbicides and fungicides, as well as additional insecticides, will find a place in the Burmese economy. However, indications are that a number of years will be required before these products will be used sufficiently to warrant establishment of a manufacturing plant. To cut down losses in stored grain and beans, the government is considering a program of insect control, but has set no time for its initiation. Most storage is under control of the State Agricultural Marketing Board, Rangoon, which probably would purchase insecti- cides for use in any such program. CEYLON (Based on report by E. Fernand, U. S. Embassy, Colombo) Production No pesticide industry exists in Ceylon (1954). On the whole, Ceylon's requirements for pesticides are imported; however, a fungicide, used in tapping rubber trees, is locally manufactured under the name "Candarsan." Ingredients of this compound have not been clearly defined and often imported products are preferred. A DDT-caustic soda-chlorine factory is being erected at Parantham, about 210 miles north of Colombo, by the government with assistance from UNICEF and World Health Organization. The government has voted 11 million rupees ($2.3 million) for establishment of this factory; plant equipment valued at $400,000 will be contributed by 155 UNICEF and WHO. The factory is scheduled to go into production in the latter part of 1955, and annual estimated output is 500 tons of technical DDT. Consumption Statistics on consumption of individual pesticides are not available, but major use is by agriculture on tea, rubber, and coconut planta- tions. In the past, the Ceylon Government health services consumed about 325 short tons of technical DDT each year in control of malaria. However, with the success of this program, annual use is now down to about 200 tons. The filariasis-control program annually uses 90 tons of 5-15 gamma BHC, 500 gallons of 2,4-D amine salt, and 500 gallons of Teepol 410 (chemical composition not known). A principal local dealer reports that about 90 percent of fungicides imported are various copper compounds used for controlling blister blight on tea. Some imported insecticides are used to combat various pests on rice and a small amount against insects attacking tea, but the major portion of insecticides is used by government health author- ities. All sulfur imported is used for dusting rubber trees against oidium attack. As oidium in rubber and blister blight in tea are being extensively controlled, import figures will probably remain fairly constant for fungicides, but for weedkillers and insecticides will undoubtedly increase. The Department of Agriculture fumigates plants and fruit imported into Ceylon, as well as rice and other cargo from plague-infested areas. Cocoa exports, particularly to the Philippines and Australia, also are fumigated before shipment. Hydrogen cyanide is the principal ma- terial used for fumigation purposes and in 1953 about 8,000 pounds were consumed. Principal pesticides used locally are DDT and BHC formulations, copper fungicides, and sulfur dusts. Other pesticides consumed are dieldrin, aldrin, toxaphene, chlordane, endrin, and malathion. Foreign Trade Ceylon's requirements for pesticides are filled primarily by the United Kingdom. Other important suppliers in the past 2 years have been Italy, Canada, and West Germany. In the period Janu- ary-August 1954, the United Kingdom supplied 4,315,000 pounds, principally fungicides, and 1,232,000 pounds of sulfur was imported from Canada. The United States was the principal supplier of in- secticides in the first 11 months of 1954. 156 Table 58. — Ceylon Imports of Pesticides, 1954 [Value only— converted to U. S. dollars] Countries of origin Insecticides Fungicides Commonwealth countries and British possessions : India. _ ___ _ ___ 8, 130 2,730 2, 630 65, 000 235 1,380 Singapore ___ Union of South Africa _ _ _ __ _ _ United Kingdom. ____ ___ __ __ 725, 000 Other 50 Total 78, 725 726, 430 Foreign countries: Germany, West ;__ __ _ _ 1,040 2,960 355, 360 570 10, 590 Switzerland United States _ _ 106, 740 505 Other 25 Total _ 359, 930 117, 860 Grand total _____ 438, 655 844, 290 Source: Ceylon official statistics. Equipment The Ceylon Director of Agriculture states that lack of suitable and adequate spraying and dusting equipment is a major limiting factor in the use of pesticides. Appropriate types of equipment have been tested and evaluated but, because of high cost, the average Ceylonese cultivator cannot afford them. The government is establishing a pool of equipment, furnished by Canada under the Colombo Plan, which can be hired by cultivators at nominal rates. In early 1954, over 2,000 acres of rubber were sprayed by helicopter to combat oidium — a costly experiment which proved no more effec- tive than spraying from the ground. The Department of Agriculture is experimenting with new machin- ery for spraying and dusting paddy (rice) against pest attack. A low- volume power sprayer known as a mist blower (operated from the shoulders of an operator) has been tried out using DDT emulsion concentrates against paddy leafhoppers and swarming caterpillars. Almost complete control is reported to have been achieved. Marketing and Distribution Distribution of pest-control products is through local agents who also are wholesalers and retailers. Most Ceylonese firms buy on irrevocable letters of credit. Firms having long-established relations with foreign concerns may receive credit. The Department of Health Services buys through tenders from various countries. The lowest bid is accepted provided the insecticide conforms to WHO standards. 157 The chief advertising media are local press and trade journals, but motion pictures and commercial radio programs also are utilized. Government Decrees and Regulations There are no regulations currently affecting production or distribu- tion of pest-control products, but the government is contemplating a regulation embodying some features of the United States Insecticide, Fungicide, and Rodenticide Act and the United Kingdom Agricultural Poisons Act. Prospective Developments and Trends Demand for agricultural insecticides is growing because of the increased areas under cultivation, the government's food-production drive, current experimentation with new methods by the government and planting industries, and the trend toward modernization of agri- culture. A considerable need for rodenticides exists in all seaports, transportation centers, and large storage places. The government has allocated 5 million rupees ($1,052,600) for construction of ware- houses which will add 130,000 tons of storage space to the 180,000 now available and provide storage space for 4 million bushels of rice. The Rubber Research Institute of Ceylon states that a market exists for a good grasskiller costing less than $10.50 per acre; such a product would have wide application on rubber estates. The Institute has been in touch with United States and other foreign firms regarding this matter. Although United States pesticides compare very favorably with imports from other sources, prices are higher. Also imports of pes- ticides from the United States and other foreign countries are dutiable at 10 percent ad valorem, whereas similar products from British Commonwealth countries are admitted free of duty. Judging from the following extract from the speech of the Ceylon Minister of Industries in the Senate on September 16, 1954, there is an opportunity for foreign investment and technical knowledge in Ceylon: We would like to see new lines of production and industries where special types of experience and technical skill will be developed and where domestic production is either wanting or in very small supply at the moment. The best form of foreign investment I consider should be the supply of capital goods, technical knowledge and the use of foreign patents. 158 FORMOSA (TAIWAN) (Based on report by J. W. VanderLaan, U. S. Embassy, Taipei) The island of Formosa is separated from the Chinese mainland by less than 100 miles. Only 24 percent of its 13,885 square miles is cultivated agricultural land. The principal crops are rice, sweet potatoes, tea, and sugarcane. During the Japanese occupation, pest control was not developed and methods were often ineffective. In 1950, efforts to correct this situation were undertaken by the Joint Commission on Rural Recon- struction (a Chinese- American organization) . During the past 4 years JCRR has attempted to educate farmers in the use of proper pesticides and to demonstrate the benefits to be derived through pest control. From July 1, 1949, through December 31, 1953, JCRR used the following pesticides in demonstrations: Metric tons 10 percent DDT 350 Tobacco waste 297 Lead arsenate 223 Calcium cy anamide 100 Tribasic copper sulfate „ 142 Derris powder 70 Lime-sulfur 29 Production The government-owned and operated Taiwan Agricultural Chemical Works, Kaohsiung, is the principal producer of pesticides in Formosa, manufacturing both DDT and BHC. Production of DDT in 1951-53 was as follows (in metric tons) : 1951 1952 195S 100 percent technical 124 88 118 75 percent wettable 106 10 percent powder 555 266 55 Capacity for production of DDT is much greater than actual output, which depends on local demand. A goal of 575 metric tons of 100- percent DDT was established for 1954, including 500 tons of 75 percent wettable for the WHO malarial program. All raw materials for manufacture of DDT and BHC are imported. The Taiwan Agricultural Chemical Works and the Taiwan Alkali Company manufacture BHC, the combined output being about 600 metric tons a year of BHC up to 90 percent gamma content, sufficient to meet local needs. About 180 tons a year of rotenone insecticides are manufactured from locally grown derris root. A small quantity of nicotine is produced by the TACW. Pyrethrum powder, made from domestically grown pyrethrum, is used in the manufacture of joss 159 sticks and mosquito repellant. TACW produces resin-soda and lime- sulfur mixtures. The Chinese Petroleum Corporation has developed a summer oil which has been used successfully in combating armored scale-insects in fruit orchards. Consumption Production data indicate consumption of DDT and BHC. In 1953 successful experiments were made with "Folidol" (a German phos- phatic insecticide) for control of rice borers. Additional supplies of Folidol were ordered in 1954. Other phosphatic pesticides have been imported and tested, but consumption has been limited to experi- mental use. Small amounts of 2, 4-D, warfarin, and DD mixture have been imported but are not extensively used. In 1952, a 4-year, island-wide malaria eradication program with DDT residual house spraying was adopted under WHO, aimed at protection of 150,000 people in 1952 and 1,500,000 in 1953. Foreign Trade In 1953 imports of insecticides and disinfectants totaled 112 metric tons, valued at $108,000. Detailed statistics are unavailable. The United States was the principal source, followed by the United Kingdom, Japan, Hong Kong, West Germany, and Australia. During that year FOA-financed imports of pesticides were valued at $25,529. Equipment Requirements for sprayers and dusters increase proportionately with use of pesticides. In 1952 JCRR procured 5,200 sprayers and 800 rotary hand dusters from Japan. The Provincial Food Bureau and JCRR jointly bought 520 hand-operated semiautomatic sprayers and 520 rotary dusters of local manufacture in 1953. These have not proved entirely satisfactory but efforts are being made to improve the quality. The first consignment of 85 motor-driven sprayers, imported from the United States under the ICA (then FOA) procure- ment program, arrived in Formosa in 1954 and have been distributed m various districts for demonstration purposes. Because of the low purchasing power of the Taiwanese farmer, market for mechanical equipment will be limited and purchase and distribution of sprayers and dusters will be concentrated in the farmers associations, the Provincial Department of Agriculture and Forestry, and the Provincial Food Bureau. National corporations, such as the Taiwan Sugar Corporation, Taiwan Pineapple Corpora- tion, and Taiwan Tea Corporation, obtain equipment for their own use through regular commercial channels. 160 Marketing and Distribution Most pest-control products and equipment have been introduced through efforts of JCRR and distributed to farmers through local associations. There are practically no wholesale distributors, and retailers carry only small stocks of household insecticides. Tradi- tionally, farmers favor Japanese products until extensive demon- strations prove the superiority of new United States products. Under present foreign-exchange regulations all commercial imports are on a letter-of-credit basis. The import duty on insecticides, disinfectants, and the like is 22}i percent ad valorem. Besides ICA procurement on behalf of JCRR and Chinese Govern- ment purchases through the Central Trust of China, commercial sales are made through registered importers. The outstanding advertising medium for reaching the Formosan farmer is Harvest, a biweekly farm journal jointly sponsored by JCRR and the U. S. Information Service and having 38,000 paid subscribers. Its address is HARVEST, 1, Section 1, Chi Nan Road, Taipei. Government Decrees and Regulations There is no legislation or regulations affecting production and distribution of domestic and imported pesticides. Generally speaking, foreign exchange is not made available for imports of products manu- factured locally in sufficient quantities for domestic needs. In view of the urgent need to increase agricultural production, every encour- agement is given to farmers to use pesticides to reduce crop loss from insects and disease. Prospective Development and Trends The limited size of the Formosan market for pest-control products necessarily restricts opportunities for United States capital invest- ment in this field. Brochures and sales literature on new products and methods, particularly for control of pests on the principal crops, and offers of free demonstrations through JCRR, farmers associations, and other organizations would seem to be the most effective methods for developing the market for United States pesticides. INDIA (Based on material on file in Chemical and Rubber Division) The use of pesticides in South India was until 1911 largely confined to a few large-scale coffee, tea, and rubber plantations. Arsenicals were the chief insecticides used and were viewed by farmers with 161 suspicion because of toxicity. The inception of a Department of Agriculture in Madras and the publicity conducted by that Depart- ment have increased the popularity of modern insecticides in South India. Although much progress has been made in use of pesticides on such commercial crops as acrecanut (used as a vermifuge for control of tapeworms, particularly by veterinarians), tobacco, and coconut, their use on most fields crop is still limited by economic conditions. At present, South India's entire requirement of pesticides is met by imports from Bombay State and foreign countries. Production At a cost of $189,000, the Mysore Fertilizer Company recently in- stalled the first two modern insecticide-formulating plants in South India, one in Madras and the other in Kuppam, Andhra State, with monthly production capacity of 500 and 200 tons, respectively. The plants will formulate insecticides, rodenticides, and fungicides based on DDT, BHC, lindane, toxaphene, chlordane, aldrin, dieldrin, and endrin, with initial technical collaboration from Gerdau India Corpo- ration, Inc., New York, N. Y. According to the American representa- tive, the Kuppam factory already has gone into production (May 1955) and the Madras plant was scheduled to go on stream shortly after June 1, 1955. Some raw materials are imported from soft- currency countries, but specialized products are imported from the United States under import licenses. These two plants are expected to meet a major portion of South India's requirements for formulated pesticides, thus greatly reducing imports. Kecent Indian press reports indicate that the government is planning to set up a second DDT factory in Alwaye, Travancore-Cochin, with capacity of 1,400 tons of DDT per year, at an estimated cost of $1,570,000. The first government-owned DDT factory, with annual capacity of 700 tons, was erected near New Delhi, with the assistance of the United Nations International Childrens Emergency Fund and the United Nations Technical Assistance Administration. Capacity of this factory was expected to be doubled by the end of 1955. Alkali and Chemical Corporation of India, Ltd. began manufac- turing BHC at Rishra in 1952. Capacity of this plant is 1,500 tons a year (gamma content unknown). Tata Chemicals has established a plant for producing BHC in western India. Alkali and Chemical Corporation produces chlorine, and benzene is available from Indian sources. Total requirements for BHC are stated to be 2,500 tons a year. 162 Consumption Consumption data are not available. Although agriculture is a large consumer of pesticides, the principal use, particularly for DDT, is for public health purposes. Foreign Trade Official statistics on Indian imports of pesticides are unavailable, but there is a large market for United States pesticides. INDONESIA (Based on report by C. W. Snider, U. S. Embassy, Djakarta) Production Modern synthetic pesticides are not manufactured in Indonesia. In 1954, an estimated 10 tons of locally grown derris (approximately 8 percent rotenone) was processed and about 50 tons of pyrethrum flowers were grown. A small quantity of sulfur is processed for use as fungicides. Imported concentrated products are compounded domes- tically. Two factories, located in Bandung and Solo, process derris. Several small firms manufacture a mosquito repellant consisting of a short coil of slow-burning sawdust containing 5 percent pyrethrum. A small DDT factory is reportedly being established near Surabaja. There are also several Chinese-owned firms which bottle a household insecticide consisting of DDT in a petroleum solvent. Sufficient derris and pyrethrum are grown locally, but all other raw materials and toxic ingredients for production of pesticides are imported. Consumption Estimated 1954 consumption of pesticides was as follows: Household insecticides (toxic ingredients are lindane, BHC, and 5 percent DDT) _ .gallons __ 350,000 Derris (8 percent rotenone) metric tons __ 20 DDT (75 percent) do 2,500 (1,500 agricultural, 750 public health, 250 household) Dieldrin do 15 (public health) Pyrethrum do 100 163 The following figures represent consumption of private tea estates on Java and Sumatra (in metric tons) : DDT (50 percent) 450 Copper oxychloride 750 Sulfur 2,000 Miscellaneous insecticides (BHC, dieldrin, etc.) 50 Two trade-marked products, consisting of DDT in a coal-tar base 450 Government requirements are estimated as approximately 50 percent of those of private consumers. Foreign Trade Indonesian imports of pesticides over the past 3 years have shown a slow but steady increase. DDT compounds rose from 1,744 metric tons in 1952 to 2,375 tons in 1954. The United States has been, and probably will continue to be, the principal source for Indonesia's imports of pest-control products. Exports of Indonesian pyrethrum and derris have dropped to neg- ligible proportions. Derris production for export is now considered a "dead" industry, but there is a possibility for development of pyreth- rum for world markets. Equipment Present condition of spraying and dusting equipment is unsatis- factory, mainly because import restrictions make its replacement and the acquisition of modern equipment difficult. Portable knapsack sprayers are in better supply because of ICA imports of some 2,500 units a year for use in the antimalarial campaign. A small factory in Jogakarta, almost the exclusive supplier of well-made locally built insecticide sprayers (copied from a Japanese patent), reports it has many unfilled orders because of lack of brass sheets. Estates are increasing use of mechanical equipment, but small landholders have little equipment because of the cost factor. Marketing and Distribution Outside of government procurement, there is keen competition in the BHC and DDT markets. United States pesticides compare favorably with those of other supplying countries, principally the Netherlands and the United Kingdom. The Netherlands is particularly competi- tive with regard to materials for use on the large estates. Countries other than the United States sell to Indonesia on direct purchase contracts. Czechoslovakia exported about 135 metric tons of pesticides to Indonesia in 1954 under a bilateral trade agreement. Channels of distribution, in order of relative importance are: Local agents, foreign company representatives, ICA, government agencies, 164 and United Nations agencies. Commercial firms attempt to maintain stocks of pest-control products, particularly those for estate use, but under present conditions, imports usually are made on the basis of contracts from the estates. Imports of packaged household pesti- cides are almost entirely by two petroleum companies which arrange distribution to retail outlets through large wholesaling firms. Government Decrees and Legislation There are no specific government laws or regulations affecting the production and distribution of pest-control products. Prospective Developments and Trends f! Present opportunities for United States capital and technical knowledge in Indonesia's manufacture of pest-control products are doubtful. Pyrethrum processing has some promise of future develop- ment, possibly with the help of foreign investment. The United States share of Indonesia's pesticide market is expected to increase in the next few years, principally because of ICA procure-, ment for public health use. For instance, proposed imports from the United States for this purpose in 1956 are 2,800 metric tons of DDT and 100 tons of dieldrin. In the agricultural field, where competition is keenest, consumption of pesticides is expected to decline as foreign estate owners leave, although increased use of these products by small Indonesian landholders will compensate for some of this loss. Recommendations for further improving the competitive position of United States products are: Appointment of capable local representa- tives, with good connections in agricultural circles and among appropri- ate government agencies; increased promotional work, including field demonstrations; more United States company participation in, and identification with, procurement under assistance programs. IRAN (Based on report by H. C. Lint, U. S. Embassy, Tehran) Except for locust-control work, which is entirely a government operation, and the mosquito-control work undertaken in 1951 under Point Four, control of insects is in the experimental stage. Production The principal pesticide manufactured in Iran is agricultural sulfur. Present capacity is 150 tons, but two other plants under construction will increase production to 450 tons a year. Crude sulfur is recovered 165 at Abadan in the oil-refining process. A small quantity of copper sulfate is manufactured. The only sulfuric acid plant is operated by the Iranian Army where copper sulfate is produced from locally smelted copper. Data on output are unavailable but it is believed to be small. The National Iranian Oil Company annually manu- factures from 200,000 to 250,000 gallons of fly spray under the name "IMSHI." Consumption The major portion of pesticides consumed in Iran is by the locust control agency and the public health agency of the government. In both cases actual insecticides are furnished by the Operating Mission, with the exception of some BHC locust bait supplied by Soviet Russia in the past 2 years. The principal household insecticide is a kerosene-pyrethrum spray which is not considered as effective as well-known United States brands. Prospects are that use of pest- control products will increase very slowly. Foreign Trade Statistics on imports of pesticides are not available, but estimates of total imports of these products are: Metric tons DDT (100 percent basis) (used primarily for mosquito control) 1, 000 BHC (largely for locust poison) 100 Parathion 10 Equipment Only knapsack and pump-type household sprayers are manufactured in Iran; both types are of rather unsatisfactory workmanship. The Operating Mission has imported several hand-operated types of United States sprayers for demonstration work. At present, the need for knowledge of benefits to be derived from pesticide applications is greater than that for equipment. Marketing and Distribution The few merchants handling imported pesticides, mainly from the United States or Switzerland, buy for cash. As western European countries, particularly Germany, strive to obtain a greater share of the Iranian market, some sort of credit basis may be established. By far the greatest portion of imported pesticides is distributed through the Operating Mission for Iran. 166 Government Decrees and Regulations Pesticides for agricultural use are imported duty free. No inspec- tion service exists and the only assurance of obtaining a quality prod ; uct is the reputation of the manufacturer. Prospective Developments and Trends While United States products have a good reputation in Iran, possi- bilities for increased sales will depend upon further demonstrations on effectiveness of the materials; better education of farmers on use and advantages of pest control; alertness of the Iranian representative of the United States manufacturer; and better credit terms to compete with other sources for pest-control products. In addition, United States manufacturers should package their products more substantially for shipment to Iran. They might also offer color charts on insects and methods of control to the Ministry of Agriculture for forwarding to "county agents" so trade names of products and name of manufacturer may become familiar to potential users of such products. However, reform and modernization of agriculture in Iran are likely to be slow. IRAQ (Based on report by Elwyn F. Chase, U. S. Embassy, Baghdad) Production Pesticides are not produced in Iraq. A household insecticide, "ISHMI," is imported in bulk from the United Kingdom by the Khanaqin Oil Company for local bottling, but this is a small operation. Iraq produces both petroleum and sulfur, but no plans exist for man- ufacturing pesticides from these materials. Consumption The principal pesticides consumed in Iraq in 1953 were as follows: BHC: 115 metric tons (Ministry of Agriculture, 100; private sales, 15). Used for locust baiting and control of date palm leaf hopper. Aldrin: 15 metric tons — used for locust control. DDT: 125 metric tons (Ministry of Health, 117; Ministry of Agri- culture, 6; private sales, 2). Used for fly and mosquito control and the sunn pest. "ISHMI": 50 tons. (This product consists of DDT and p}^rethrum in a refined petroleum-base product.) 167 In addition to the above products, the following pesticides, now im- ported in negligible quantities, are believed to have good prospective consumption: Chlordane: For control of ants, cockroaches, and termites. Dieldrin: Used experimentally for date palm leafhopper and may replace BHC for this purpose. Endrin: Used experimentally for spiny bollworm. Malathion: Used experimentally for control of the sunn pest. Parathion: Used for control of the sunn pest. Warfarin: For control of rats and mice. Weedkillers: There is believed to be a good future market for weed- killers, but extent of potential demand is unknown. According to information obtained from an ICA entomologist, po- tential demand for the above products is very large. However, future use will depend on results of research and possible shift from one product to another for specific control measures. Foreign Trade There are no separate tariff categories for pesticides, and specific data on imports of these items are unavailable. Pesticide distributors claim that imports have steadily increased in recent years. The United Kingdom is the principal source for imports, the United States the second. Equipment Lack of spraying and dusting equipment handicaps use of pesticides to some extent, but the major limiting factor is lack of awareness of Iraqi farmers in pest-control methods. Equipment currently in use, even hand sprayers and dusters, is exclusively of British origin except for two United States Piper Cub airplanes. The Iraqi Govern- ment plans to buy four more Piper Cubs in the near future. Marketing and Distribution The Iraqi Government can be expected to remain the major pur- chaser of pesticides for the present, because of the need for further education of farmers in useaof such products. Advertising is a minor factor in promoting sales to the government, as purchases are on the basis of the lowest bid for comparable materials. However, for new or superior United States products, technical and descriptive literature would be useful in getting the product story across to government agencies. Such literature should be sent to the Ministries of Health and Agriculture and to the Central Foreign Purchasing Board, Ministry of Finance, all in Baghdad. Newspaper advertising should be moderately successful in reaching 168 the educated large landholder, but would not be effective with most small farmers because of the high rate of illiteracy. The principal channels of distribution are: Sales agents, for sales to distributors and large users. Iraqi subsidiaries of foreign manufactures, for sales to distributors and large users. Ministries of Health and Agriculture, for government requirements for public health and agriculture. U. S. Operations Mission, Baghdad, for public health and agricul- tural needs. British manufacturers' terms are direct sale. The Iraqi Govern- ment buys through the Central Foreign Purchasing Board if the amount exceeds $2,800; if less, the Ministry concerned buys direct. The largest supplier of pesticides for both government and private use is Imperial Chemical Industries, which does business through an Iraqi branch office. Government Decrees and Regulations There are no regulations affecting the production and distribution of pest-control products, either domestic or imported. Imports from hard-currency countries (including the United States) require import licenses, which are not difficult to obtain for products essential to agriculture. Prospective Developments and Trends The Ministry of Health is considering the manufacture of DDT, but there are no other known plans to produce pest-control products. Present volume of consumption does not warrant manufacture, and unless additional basic raw materials are produced, domestic manu- facture of pest-control products seems remote. Impetus for increased use of pesticides is provided by the Iraqi Government which, however, still has a lot of pioneering work to do. Its program is largely in the experimental stage except for the locust campaign, which is well organized and has been successful. Expansion in the Iraqi market probably will be slow. Iraq is in the sterling area and United States products generally cost more than British. ICA experts in agriculture and health programs help to acquaint Iraqis with United States pesticides, but promotion of sales is an individual company problem. It should be approached by the appointment of good sales agents or distributors by factory representatives who first visit Iraq and study the market sufficiently to understand its problems and potentialties. United States manu- facturers should be prepared to take a long-term view and to work closely and patiently with their local agents. Any further increase in foreign business probably will be by firms that are well represented by distributors who have had a hand in market development. 379238—56 12 169 ISRAEL (Based on report by C. Haut, U. S. Embassy, Tel Aviv) Production Domestic manufacture of pest-control products has so far been limited to about 10 factories compounding and formulating imported toxic ingredients. Some of these plants also produce petroleum oils and weedkillers from imported raw materials. Present annual output of petroleum oils containing 80 percent oil is estimated at 2,500 metric tons a year and is consumed almost entirely by the citrus industry. Production in early 1955 of DDT (100 percent), copper oxide, and 2,4-D was scheduled by Makhtashim, Ltd., in three plants at Beer- sheba. Electro-Chemical Industries (Fruitarom) Ltd., Haifa, was ex- pected by the end of 1955 to inaugurate its plant for manufacture of caustic soda, chlorine derivatives, and various insecticides. Makhteshim's DDT plant, built under an agreement with J. K. Geigy of Basle, will have an annual capacity of 350 metric tons, which will supply all of Israel's needs. The copper oxide plant has annual capacity of about 750 tons. The third plant will manufacture 2,4-D and capacity will exceed domestic requirements. Makhteshim is al- ready producing chlorine at a rated capacity of 1,000 tons a year, about half of which is needed for Makhteshim use, while the rest will be marketed. Ethyl alcohol for the manufacture of DDT is produced locally, but copper for copper sulfate must be imported. Kaolin clays required as fillers for formulated pesticides come from deposits in the Negev at from 6,000 to 7,000 metric tons a year. It is estimated that not more than 20 percent of raw materials for production of the above pesticides will be imported. Makhteshim's production program for the first year is as follows: Metric tons DDT (100 percent) 200 Copper oxide 200 2,4-D 50-100 Paradichlorobenzene 10 Parachlorophenol 50 Makhteshim also has a formulation plant which already markets DDT, aldrin, dieldrin, nicotine, lindane, and sulfur insecticides. Although the Israeli Government is desirous of promoting domestic manufacture of pest-control products, as well as compounding and formulating, to conserve foreign exchange and develop local industry, no direct subsidies are granted to pesticide producers. Formulating and compounding activities are estimated to have resulted in a foreign exchange saving of $500,000 in 1954. 170 Consumption Current annual consumption of pesticides in Israel is estimated at 5,000 metric tons ($1 million), of which over 90 percent is believed to be used for agriculture. The detailed breakdown below is based largely on trade sources since official figures are not available. Estimated 1954 Consumption of Pesticides and 1955 Requirements [Metric tons] Product 1954 consump- tion 1955 require- ments Petroleum oils 2,500 1,500 300 150 100 50 30-40 20-30 30 20 20 15 15 15 14 10 17 3, 500 Sulfur 2, 000 Cryolite 300 DDT (100 percent) 50 Copper oxide _ _ __ 65 Copper sulfate __ 40 Dithane_ _ _ __ _ _ 40 Methoxychlor __ _ _ _ 65 Nicotine sulfate 40 2,4-D 13 Endrin 40 Lindane . 3 Dieldrin 8 Ethylene dibromide _ __ 8 Aldrin _ _ _ n. a. Lead arsenate 13 Other .__ 8 Source: Plant Protection Division, Ministry of Agriculture. Israeli trade sources are of the opinion that consumption in 1960 will be double that in 1954, although what commodities will be in general use at that time is not known since many products now con- sumed might be replaced by newer types. Foreign Trade Official statistics on imports of pesticides into Israel are unavailable. Principal suppliers in 1954 were the United States (40-50 percent), West Germany (30 percent), and the United Kingdom (15 percent), with lesser quantities from Sweden, Denmark, and the Netherlands. Since the beginning of 1954, the United States has been the supplier for specialized materials and sulfur; West Germany the leading source for copper oxides, copper sulfate, lindane, and ethylene dibromide; and the United Kingdom for BHC, 2,4-D, lead arsenate, nicotine sulfate, and copper sulfate. The inauguration of domestic production of various pesticides probably will result in reduced purchases from West Germany while imports from the United States and the United Kingdom should remain at a high level. Exports of pest-control products from Israel are planned to a num- ber of countries. Small quantities have already been shipped, such as 171 DDT to Cyprus and petroleum oils and processed sulfur to Turkey. Among other possible export markets envisaged are Greece, Yugo- slavia, Italy, Spain, and East Africa. Equipment The Ministry of Agriculture and distributors of plant-protection materials and of farm machinery have stated that, while there is lack of certain small spraying and dusting equipment and accessories, it constitutes no serious deterrent to the overall use of pesticides. Marketing and Distribution Regular channels of distribution are importers, local agents, and foreign company representatives. Sales of pesticides usually are in conjunction with other agricultural chemicals and supplies. Pur- chases from West Germany are handled through the Reparations Company in Tel Aviv. Terms of sale usually are on a cash basis against letter of credit. The prevailing shortage of ready cash, on the other hand, forces Israeli distributors frequently to sell on 3 to 6 months' credit. The Ministry of Finance usually channels requests for imports to countries where prices are lowest and/or to those for which foreign exchange is available. Current advertising media (newspapers) appear inadequate. There is need for such media as field demonstrations and film exhibitions. Trade sources indicate that packaging pesticides in smaller con- tainers might be of benefit in stepping up sales. Government Decrees and Regulations Domestic manufacture of all pest-control products, sales of both local and imported materials, and selection of pesticides to be imported are rigidly controlled by the Plant Protection Division of the Ministry of Agriculture. The Division prohibits sale of new pesticides without prior registration and approval and controls local distribution of numerous approved items. (A copy of the Plant Protection Rules of 1950 is on file in the Chemical and Rubber Division.) The excellent research work being done by the Plant Protection Division, agricultural experiment stations, and the Hebrew Univer- sity, together with that carried out in the laboratories of the Ministry of Health and a few large producers, is a major factor in the steady increase in pesticide consumption. The Plant Protection Division and its staff of entomologists promotes the use of about 150 registered pest-control products through publications and the dissemination of detailed instructions on many pest-control problems. 172 Prospective Developments and Trends The Israeli market for pesticides is limited by both population and geographic factors. United States capital has played a large part in the establishment of the two plants which were to begin production in 1955, but further investment at this time does not seem advisable unless exclusively for export. Opportunities may exist for licensing arrangements with basic chemical plants which could be adapted to include specific pesticide materials. United States pesticides compare favorably with those of other suppliers in both quality and price. With initiation of domestic manufacture, imports are expected* to falLoff and this may have some impact on Israeli purchases of United States pesticides. Neverthe- less, the trade believes that United States firms can hold their present position and, so far as the more highly technical, newer products, and raw materials are concerned, possibly increase their sales by an effective advertising campaign and, when feasible, by extending credits to Israeli importers and distributors. JAPAN (Based on report by G. E. R. Meyer, U. S. Embassy, Tokyo) The Japanese pesticide industry is well developed and can supply much of the country's requirements. However, lack of adequate basic research results in dependence on outside sources for newly developed materials which may be superior to those now employed in Japan. Although pesticides have been used for many years in Japan, only since World War II has there been wide acceptance for use on rice and other staple food crops. After World War II, the Japanese Government granted subsidies of 30 to 40 percent of the cost to farmers purchasing pesticides for protection of staple food crops. In 1954, this subsidy was reduced to 10 percent. To offset the de- crease, prices of popular agricultural pesticides have been reduced as domestic production expands. Many pest-control products formerly imported are now manufactured locally in quantities sufficient to meet all domestic requirements. Production Except for mercury compounds used for disinfecting grain and seed potatoes, most prewar pesticides in Japan were of simple composition. The introduction of dust-form pesticides, such as DDT, later BHC and still more recently, parathion, and new uses for mercury com- pounds changed the entire picture for the Japanese pesticide industry. 173 In 1954, about 290 tons of parathion, out of total requirements of 500 metric tons, was produced, and total demand will be met from domestic production in 1955. Production of MCP (methyl chloro- phenoxyacetic acid) was inaugurated in early 1954, and later that year manufacture of calcium cyanide (formerly imported from Germany) was begun. Table 59. — Japanese Production of Pesticides, in Finished Form, 1953-54 [Metric tons] Commodity Calendar year 1953 Pesticide year 1954 Agricultural: BHC (12 percent gamma equivalent) : Dust In emulsion For water solution With pyrethrum Calcium arsenate Copper sulfate Copper and copper-mercury compounds Derris dust DDT: Dust In emulsion For water solution With pyrethrum Lead arsenate Lime sulfur Mercury compounds (seed disinfectants) Mercury compounds, dust Methyl bromide Parathion Pyrethrum Oil emulsions Rosin-caustic soda mixture 2, 4-D Other Total agricultural Public health and household: BHC: Dust For solutions Camphor preparations DDT: Dust Petroleum solution Powder for water solution Emulsion Naphthalene (repellant) Paradichlorobenzene Pyrethrum : Coils Emulsion Phosphorus rodenticides Total, public health and household . 26, 562 95 807 271 957 4,500 4,252 189 966 900 341 271 1,443 10, 665 947 7,289 274 Not made 118 4,790 259 298 186 66, 380 4,307 2,213 240 733 4,914 24 122 3,080 1,400 1,400 750 78 19, 261 21, 400 180 700 100 1,000 4,600 3,500 170 1,100 750 500 600 350 700 750 24, 000 400 10, 580 320 4,300 270 500 620 2, 11, 90, 390 Not available. Sources: Agriculture— Japanese Agricultural Pesticides Industry Association, 1953; Ministry of Agricul- ture and Forestry, 1953-54 estimates. Public health and household— Ministry of Welfare. 1954 data not available. 174 Consumption Use of pesticides in Japan began around 1920 and until the middle 1930's was limited largely to protection of fruits, vegetables, and tea. Later, and particularly since World War II, consumption increased considerably with the acceptance of DDT, BHC, and other organic products, as well as a willingness to substitute newer pesticides as they were developed. More interest is shown now in rodent control and means for protecting forests against insects and disease. Consumption is determined to a large extent by the outbreak of crop diseases. For instance, in 1953 the Japanese rice crop suffered from outbreaks of rice blast and rice stem borers. The Japanese Ministry of Agriculture and Forestry experimented in 1954 on a pest- control program in farm communities in order to ensure greater safety measures as well as proper timing and uniformity of application. (See table 60 for consumption of pesticides in 1951-54 and projections for 1960.) Foreign Trade Japan's requirements of derris and cube roots are imported on an automatic-approval basis. Such roots formerly were received in shredded form from Formosa, Belgian Congo, Peru, and Malaya, but powdered cube root of high uniform quality is now imported from the United States. Normally, 60 to 70 tons of nicotine sulfate is imported annually to supplement nicotine obtained from waste leaf supplied domestically. All imports are subject to availability of foreign exchange. Thus, importation of pesticides manufactured locally is not normally allowed unless there is a domestic shortage. Importation of new pesticides is permitted in quantities sufficient to allow examination and thorough experimentation. If found acceptable, the new pesticide is registered by the Ministry of Agriculture and Forestry as suitable for importa- tion and local sale and foreign exchange is allocated in amounts sufficient for practical trial. When possible, only concentrated forms of pesticides are imported. The Japanese pesticide industry is reported anxious to find a suitable substitute for parathion, which is considered too highly toxic for safety. The importation of the newer pesticides varies greatly from year to year, dependent to a large extent upon their acceptance by the Ministry of Agriculture and Forestry and the public. As domestic production of leading pesticides develops, it is anticipated that imports of raw materials and intermediates will increase and those of finished pesticides decrease. Japan is not a large exporter of pesticides, although certain products have traditionally been exported. Prominent among these are py- rethrum flowers and other pyrethrum products, naphthalene, and camphor. Immediately following World War II, Japan also exported 175 Table 60. — Japanese Consumption of Pesticides, in Finished Form, 1951-54 and 1960 [Metric tons] Commodity 1951 1952 1953 1954 (Esti- mated) I960 (Esti- mated) Agricultural: BHC: Dust_ _ _ _ 10, 322 61 365 74 700 4,000 1,929 76 686 516 350 74 12, 000 1,630 243 23, 899 77 964 136 431 4,000 3, 137 108 954 858 393 141 12, 000 1,335 448 32 126 3,356 136 435 40 210 146 30 102 25, 305 92 657 129 643 4,500 4,237 234 850 825 322 259 10, 665 1,400 625 6,487 94 3,980 205 7,816 81 269 260 217 77 20, 000 100 700 100 600 4,600 3,200 220 800 750 300 300 11,700 1,500 420 18, 000 80 4,000 150 10, 200 120 250 300 450 208 25, 000 100 In emulsion Powder (water soluble) BHC-pyrethrum mixture Calcium arsenate 1,000 100 600 Copper sulfate 5, 000 Copper- mercury compounds __ Derris preparations _ 3,500 150 DDT: Dust 500 In emulsion __ 500 Powder (water soluble) DDT-pyrethrum mixture Lime-sulfur _ 200 200 10, 000 Lead arsenate _ 1, 500 Mercury compounds (for seed disinfectants) 750 Mercury compounds, dust 25, 000 Nicotine sulfate 88 2,371 51 50 Oil emulsions 4, 000 Methyl bromide _ 300 Parathion _ 20, 800 Pyrethrum _ 134 388 143 40 Rosin-caustic soda mixture 2,4-D 200 900 Zineb (a dithiocarbamate) 1, 100 Other 16 450 Total, agricultural 26, 217 53, 494 70, 229 79, 048 101, 940 Public health and household: BHC: Dust_ _ 4,307 2,213 240 5,793 3,074 1,000 78 1,400 750 5, 100 2,800 250 6,000 3,050 900 85 2,000 600 8,000 For solutions. _ __ 3,500 Camphor insect repellent- 300 DDT, dust and other prepara- tions. _ __ 7,000 Naphthalene. _ 4, 100 Paradichlorobenzene 2,000 Phosphorous rodenticides __ 100 Pyrethrum coils_ 2,000 Pyrethrum in emulsion 600 Total public health and household _ _ _ _ 18, 855 21, 785 27, 600 Source: Agricultural— Japanese Agricultural Pesticides Industry Association. Public health and house- hold—Ministry of Welfare. 1951 and 1952 data not available. DDT and BHC. Mercury seed disinfectants were formerly exported to Manchuria and Korea, but these markets no longer exist. The high cost of some raw materials and delay in improving techniques and introduction of new pesticides, as well as failure to keep pace with development in other countries, have contributed to lack of export markets. Exploiting a strong domestic demand for pesticides has proved easier than attempting to establish foreign markets. 176 Table 61. — Japanese Imports of Pesticides, 1950-54 [Metric tons] Commodity 1950 1951 1952 1953 1954» Nicotine sulfate 49 90 69 30 70 108 70 30 70 104 120 27 60 Denis and cube root _______ 45 Parathion 231 EPN (ethyl-p-nitrophenyl thiono-benzene phosphonate) _ _ 7 34 DD (dichloropropene-dichloropropane) TEPP (tetraethyl pyrophosphate) 100 53 36 Malathion ___ _ 1 306 17 Zineb (a dithiocarbamate) 25 15 400 2,4-D (all types) _ 7 20 Calcium cyanide. 21 59 i January-September only. Source: Ministry of Agriculture and Forestry. Japan hopes that new and larger foreign markets may be estab- lished in Southeast Asia as a result of introduction of Japanese agri- cultural techniques to those countries. Since the government re- duced its consumer subsidy, there has been some concern among pesticide manufacturers about the need to increase exports. Equipment The shortage of adequate pest-control spraying and dusting equip- ment is said to be a major limiting factor in pest-control work, par- ticularly in forest areas. Probably the most adaptable equipment for use in Japan is 2- to 2.5-horsepower mobile sprayers and 1.2-horse- power portable dusters. Sprayers retail at about $280 and portable dusters at $125, hence this type of equipment is usually purchased by agricultural cooperatives or villages. The government hopes to alleviate the shortage of spraying and dusting equipment in the next few years by granting consumer sub- sidies and making direct purchases. During 1954, $600,000 was budgeted for this purpose. Marketing and Distribution Japan imports pesticides from European countries as well as from the United States. Imports usually are made by agents and dis- tributed by wholesaler-manufacturers. Such concerns may produce certain pesticides as well as compound and repack imported materials for distribution through their own sales networks. Registration of a new pesticide by the Japanese Government for sale and use is based on recommendations by experimental stations which also are responsible for explaining use of these new products to consumers. Trade agreements and allocations of foreign exchange also determine sources of supply. 177 Effective advertising alone is not sufficient to establish a market for a new pesticide in Japan; favorable reports by national and pre- fectural agricultural experiment stations are essential. Therefore, it would appear advisable that representatives of United States producers be given liberal sample amounts for testing purposes and complete instructions on use of the material. Government Decrees and Regulations A number of important government regulations control manufacture of and trade in pesticides. The Agricultural Chemicals Kegulations Law (Law No. 82, July 1, 1948) requires registration with the Ministry of Agriculture and Forestry of all agricultural pesticides manufactured, imported, or processed for local sale. All containers must show regis- tration number, ingredients, directions for use, place of manufacture, etc. That law also outlines other governmental control measures over registered agricultural chemicals. The Law for Control of Poisonous and Powerful Agents (Law No. 303, December 28, 1950) requires registration of manufacturers, im- porters, and dealers handling "poisonous" and "powerful" agents and outlines methods to be used for marking containers and coloring the pesticides for easy identification. The following are listed as major "poisonous" and "powerful" pesticides: "Poisonous" pesticides: Phosphorous rodenticides, cyanide fumi- gants, mercury and copper-mercury compounds, nicotine preparations (more than 10 percent nicotine), arsenate preparations, Fratol (sodium fluoroacetate) , TEPP, parathion, EPN. "Powerful" pesticides: Zinc sulfate, sodium chlorate, potassium chlorate, alkalis (containing 6 percent or more caustic soda), chloro- picrin, copper compounds, nicotine powder (nicotine 10 percent and less), carbon disulfide, barium carbonate, formalin, derris preparations (rotenone more than 2 percent), methyl bromide. Cabinet Order (No. 28, February 22, 1952) Concerning the Handling of Sodium Fluoroacetate and Cabinet Order (No. 95, May 18, 1953) Concerning Handling of Parathion limit these pesticides to agricultural and forestry uses. The Orders also provide for proper marking, methods of application, and disposal of containers, and specifically provide that Fratol and parathion shall be used only by authorized organizations, such as the national government, municipalities, and agricultural cooperatives under the guidance of an authorized tech- nician. The Plant Quarantine Law (No. 151, May 4, 1950) designates certain plant pests and diseases considered harmful (rice blast, rice leaf blight, rice planthopper, rice stem borer, black rice bug, rice leaf miner, rice leaf beetle, wheat and barley rust, mildew, scab, and snow blight) and outlines measures to be taken for forecasting and control- 178 ling their outbreak. The law also provides for a government subsidy, limited to 50 percent of the cost, to purchase pesticides, sprayers, dusters, fumigators, and the like necessary to control these insects and plant diseases. The Pharmaceutical Affairs Law (Law No. 197, July 29, 1948) stipulates that the Ministry of Welfare must approve the manufacture, importation, and sale of pesticides for household and public health and welfare use. Prospective Developments and Trends Japan will depend on imports of new pesticides and techniques until basic research is improved. There appears to be a real attempt to become self-sufficient in the supply of pesticides. For this reason, it may be expected that patent license and technological agreements concerning new and effective pesticides will be welcome. Cultivation of a market in Japan for United States pesticides, therefore, depends on the introduction of new products more effective than those now in use. Because of low-income level, low-cost pest- icides are most popular, especially those suitable for diseases and insects affecting staple crops. LEBANON (Based on report by K. Salam, U. S. Embassy, Beirut) Production and Consumption No pest-control products are manufactured in Lebanon and pro- duction is not anticipated in the near future. Official statistics on consumption of pesticides in Lebanon are not available. Below are estimates secured from trade sources. Annual consumption Product : (thousands of pounds) Sulfur compounds 662-772 DDT 110-121 Spray oils 88-110 BHC compounds 44-55 Lead arsenate 44-55 Parathion compounds 15-22 About 100,000 pounds of DDT and all BHC compounds imported are consumed for public health and household purposes. Consump- tion of pest-control products is on the rise and this trend probably will continue. Responsible factors are: Increasing awareness of Lebanese farmers of benefits to be derived from use of pesticides; expansion of agriculture; improved facilities for obtaining and using pesticides; and general improvement in the farmers' income level. 179 Foreign Trade The principal sources for Lebanese imports of pesticides are the United States, the United Kingdom, France, Belgium, and Germany. For the past 4 years imports from the United Kingdom, France, and Belgium have been decreasing, whereas imports from the United States have risen. Between 7 and 10 percent of Lebanon's imports of pesticides are reexported, about two-thirds going to Jordan and the remainder to Syria, Iraq, Saudi Arabia, and Kuwait. Equipment Spraying and dusting equipment is in adequate supply in Lebanon, but small farmers often lack credit facilities to obtain it. Marketing and Distribution With the exception of imports from German sources, which sell on credit terms of 3 to 12 months, pesticides are imported on direct- purchase terms. The only foreign distributor of pesticides is British Imperial Chemical Industries. All other distributors are local agents and, with the exception of one in Tripoli (Lebanon), are located in Beirut. Most Lebanese farmers purchase pesticides direct from agents in Beirut. Some large farmers act as intermediates between the agent and small farmers and often extend credit. Advertising is carried out by local agents, some of whom organize trips to agricultural areas, carry on demonstrations, and try to pop- ularize control of insects and diseases on agricultural crops. On the whole, United States pesticides rank first in quality but in general are higher priced than products from other countries. To promote sales of their products, United States firms should appoint able and active local agents, equip them with adequate advertising material, and absorb a portion of the costs of demonstrations and similar activities. Government Decrees and Regulations No special legislation or regulations govern or affect production and/or distribution of pest-control products in Lebanon. Prospective Developments and Trends With the exception of petroleum, raw materials for production of pesticides are not available locally and a domestic industry is not indicated. High cost of United States pesticides, compared with that of products from other countries, is a deterrent factor in increased 180 participation in the Lebanese market. The competitive position of United States products could be improved by extending credit when- ever practicable. Beirut is a natural geographic center for trade between the West and other Arab countries, and United States firms might consider establishing stocks of pesticides in Lebanon from which to supply other Middle Eastern countries. The Beirut Free Zone probably could be used for formulation of pesticides from active ingredients shipped from the United States, thereby reducing costs for finished products. NEW ZEALAND (Based on report by Elaine D. Smith, U. S. Embassy, Wellington) Production There is virtually no New Zealand production of toxic ingredients used in the manufacture of pesticides. The industry is confined to processing of imported toxic materials by addition of fillers, wetting agents, and the like. With few exceptions raw materials are imported. The latest published production data for pesticides, for the year ended March 31, 1953, show production (formulation) of industrial and household pesticides at 940,975 pounds, valued at $113,325; and pesticides for agricultural and horticultural use, 581,950 pounds, valued at $149,570. The Farmers' Fertilizer Company, Ltd., Auckland, produces copper sulfate, but not enough to meet requirements. With the exception of clays, copper scrap, and packaging materials, all pesticide require- ments are imported, mainly from sterling sources. There are no government subsidies to pesticide formulators, but an import duty protects them from foreign competition. Consumption Consumption of copper sulfate is about 200 long tons a year; of technical DDT, 140 tons. About 50 tons of cube root are imported each year. Consumption data on other products are not available. According to the trade, outlook for increased consumption of pest- control products is good. The number of companies either specializ- ing in or giving increased attention to marketing pesticides has increased from 4 to 10 in the past few years. Foreign Trade Under New Zealand's program to reduce dollar expenditures, im- ports of goods from the United States are controlled by a licensing 181 program. Principal supplying countries are Australia and the United Kingdom. The 1955 Licensing Schedule classifies "wettable sulfurs,, and "insecticides and fungicides for agricultural uses" as goods for which applications for license to import will be considered on their individual merits. In 1950 about 16 percent of pesticides imported into New Zealand were of United States origin; in 1951, 11 percent; in 1952, about 6.2 percent; and in 1953, slightly more than the 1952 level. The tariff on United States pesticides is 3 percent. Table 62 shows value of New Zealand imports by classifications and countries of origin for 1952 (latest available data). Table 62. — Imports of Pesticides into New Zealand, 1952 Classification and Country of Origin Value (U. S. dollars) Classification and Country of Origin Value (TJ. S. dollars) Insecticides and fungicides: United Kingdom _ _ _ 293, 734 110, 042 44, 898 29, 554 5,966 Weedkilling preparations: 89, 857 536, 239 63 650 Australia Australia West Germany Belgium United States West Germany 20 880 Other Other 13 522 Total Total 484, 195 744 200 Copper sulfate: United Kingdom Lead arsenate: United Kingdom 43, 948 59, 424 646 256, 693 132 244 Australia Australia Other _ _ _ ___. Total 388, 937 TotaL. __ __ 104, 018 DDT: Australia _ _ _ _ _ Nicotine sulfate: 50, 075 9,391 4, 706 United Kingdom 51 805 Other 175, 000 United States __ _ 59, 466 47, 450 TotaL. _ _ _ Total 278, 961 Sheep dip: United Kingdom __ 715, 400 2,338 Other Total 717, 738 Source: New Zealand official statistics. According to available statistics, exports of all pesticides from New Zealand totaled $11,905 in 1952. It is not anticipated that this trade will increase. Equipment Generally speaking, there is adequate spraying and dusting equip- ment, much of it domestically produced. Any special type not locally available may be readily imported from the sterling area. 182 Marketing and Distribution New Zealand formulators consider United States pesticides superior in quality to those from other sources and prices are competitive. The principal deterrent to higher United States imports is the exchange situation. Terms of sale for imports of pesticides are direct purchases by letters of credit. Distribution is generally by local agents. Government Decrees and Regulations Conditions of sale, packaging, and labeling of poisons are covered by the Poisons Act, 1934, and the Poisons General Regulations, 1937, with amendments, administered by the Health Department. In addi- tion, the Departments of Agriculture and Scientific and Industrial Research (part of the Department of Industries and Commerce) operate a service known as the "Certification of Therapeutants" in which insecticides and fungicides are tested under New Zealand condi- tions and are certified if certain requirements are fulfilled. Prospective Developments and Trends Under present circumstances, little opportunity exists for invest- ment of United States capital and technical knowledge in the domestic manufacture of pest-control products. The New Zealand Government is gradually relaxing exchange and licensing restrictions, and imports from the United States should be more easily obtained. Since finished pest-control products are manu- factured, it is doubtful that imports of these commodities will increase ; but since New Zealand is dependent on imports of toxic ingredients for preparation of finished pesticides, United States exporters should have an opportunity to compete in the New Zealand market for con- centrated materials. PAKISTAN (Based on report by A. W. Dias, U. S. Embassy, Karachi) Insect-control measures in Pakistan constitute one of the most practicable methods for increasing much-needed food production. A conservative estimate places losses from insects and disease at 10 percent in agricultural crops and much more in fruit yield. Production A DDT plant was recently erected at Nowshera, Northwest Frontier Province, by the Pakistan Industrial Development Corporation with the assistance of the United Nations. It is expected that initial pro- 183 duction will be 200 metric tons a year, which will gradually be in- creased to 700 tons. At present, Pakistan is entirely dependent on imports to meet its requirements of pesticides. The Government of Pakistan does not grant subsidies to any in- dustry. However, in order to encourage investment in industrial development, local manufacturers are granted various concessions, such as a 5-year exemption of 5 percent of capital investment from super-tax and income tax on profits of industrial undertakings estab- lished prior to April 1, 1955; exemption of these profits from business- profits tax; and exclusion of capital goods and essential raw materials from import duties. Consumption Locusts are a major menace to agricultural crops in West Pakistan. Control of breedings in that area, in addition to international efforts to destroy this pest in Arabia, Afghanistan, India, and Iran, has averted huge losses. Infected areas are sprayed with aldrin or baited with BHC-impregnated rice dust under the supervision of the Depart- ment of Plant Protection, which has an Anti-Locust Organization equipped with motor transport, control equipment, and aircraft. ICA also has been operating one to three planes in Pakistan in demon- strations of locust control. The Plant Protection Department coordinates fruit and crop pest- control projects which are conducted by the various provincial depart- ments of agriculture. Control of sugarcane pyrilla on some 8,000 acres in the Northwest Frontier Province has resulted in a 20 percent increase in sucrose content in addition to substantially larger yields. Similarly, fruit production has risen with use of pesticides. Recent large-scale attempts have been made to control the rice stem borer in Sind and Punjab and the rice jassid in Sind. In 1954, efforts also were made to control cotton pests. About 90 percent of DDT consumed in Pakistan is used for public health purposes; other commodities are used for protection of agri- cultural crops. Official statistics on consumption are not available. Foreign Operations Administration (now ICA) estimates for 1953 are as follows: Commodity: Metric tons DDT 1,035 BHC 58 Sulfur 25 Aldrin 20 Grain f umigants 20 Other 11 Assuming an upward trend in the development of new arable land, it is believed that use of pesticides will quadruple by 1960. 184 Foreign Trade Pakistan's economy does not permit a large investment in pesticides. Because of a limited supply of exchange, commercial imports of various commodities, including pesticides, are not at present permitted from dollar areas. Pesticides imported privately are not sufficient to meet require- ments, and supplemental supplies and equipment are furnished by the International Cooperation Administration. Official data on Pakistan imports of pesticides are not available. Equipment Lack of adequate equipment is one of the most serious handicaps in the use of pesticides in Pakistan. There is a large demand for good portable power sprayers for use on fruit and vegetables in Punjab, Northwest Frontier Province and Baluchistan. Marketing and Distribution Distribution of pesticides is usually effected through local agents, foreign company representatives, and the Government Plant Pro- tection Department. Pakistan firms must have import licenses before foreign purchases are made. These firms promote sale of their products through adver- tisements in local newspapers and trade journals and by actual demonstrations. The quality of United States pesticides is considered equal to, if not better than, that of European products. However, lower prices and import restrictions cause importers to obtain much of their re- quirements from European sources. Government Decrees and Regulations The pesticide industry is governed by the same general regulations as other industries, such as participation of indigenous capital in industries established by foreign investors, tariff protection, and tax concessions. Prospective Developments and Trends In view of the country's predominantly rural economy, the pro- motion of industries which increase agricultural yields is one of Pakistan's main aims. Current fiscal policy is intended to provide an incentive to private enterprise and investment in industry. Priority is given to import 379238—56 13 185 of capital goods and raw materials required for the expansion of industry. Technical and financial aid from various countries has helped to establish certain basic industries. United States technical knowledge and know-how could be used to good advantage by Pakistan pesticide manufacturers. Because of import restrictions and lack of dollar exchange, the out- look is not good for increased pesticide markets in Pakistan. United States Government-sponsored exports, particularly for public health purposes, probably will continue. PHILIPPINE REPUBLIC (Based on report by H. V. Geib, U. S. Embassy, Manila) Production Practically no pest-control products are manufactured in the Philippine Republic. Rotenone and nicotine are produced in insigni- ficant quantities by a few farmers and by the Bureau of Plant Industry (for work at its experimental stations). Consumption The Bureau of Plant Industry has been the most important con- sumer of pesticides. In addition to ICA supplies, the Bureau imports pest-control products direct from foreign exporters. Consumption is greatest on agricultural crops. Besides pest-control products brought in by ICA and the Bureau of Plant Industry, reliable trade sources estimate that 300 metric tons of agricultural pesticides and 250 tons of household insecticides were imported by local firms in 1953. The Department of Health consumed 1,418,124 pounds of DDT powder for malaria control in the fiscal year 1953-54, all of which was supplied by FOA. Large quantities of warfarin and Pival were used in the rat-eradication campaign, particularly in Mindanao. Trade sources indicate that by 1960 use of pesticides probably will quadruple 1953 consumption. Since 1951, use of pesticides has steadily increased, due largely to realization that control of insects and plant diseases is a potent factor in raising volume and lowering costs of agricultural production. The serious infestation of rats in the Mindanao area, presence of armyworms and rice stem borers in most parts of southern Luzon, and the infestation of locusts in some Visayan islands and Mindanao, made the government and private individuals more conscious of the problems of control. The budget for fiscal year 1954-55 provided for an ordinary expendi- ture of $229,080 and extraordinary expenditure of $1 million for intensification of the campaign for control and eradication of agricul- tural pests and diseases, including rats. 186 Foreign Trade According to the Bureau of Census and Statistics, value of Philip- pine imports of pesticides was approximately 108 percent more in 1953 than in 1952. Approximately 80 percent came from the United States, 2 percent from Japan, 1 percent from the United Kingdom, and 17 percent from other countries. At the beginning of import control in 1949, volume of pesticide imports was small, so little provision was made for these products in the Import Control Law. Most pest-control products have been brought in under the ICA-Philcusa (Philippine Council for U. S. Assistance) program and under allocations for miscellaneous chemicals. With the expected decrease in ICA-Philcusa imports, the Philippine Republic Act No. 1175 was enacted on June 18, 1954, to include pest- control products among commodities exempted from payment of the 17-percent exchange tax. Philippine statistics on pesticides imported in 1953 are shown in table 63. Table 63. — Philippine Imports of Pesticides, 1953 Import Classification and Country of Origin Quantity (pounds) Value (U. S. dollars) Insecticides: Belgium Germany Hong Kong Japan Netherlands Switzerland United Kingdom United States Total Fungicides: United Kingdom United States Total Disinfectants: Canada Germany Japan United Kingdom United States Total 55, 000 94, 700 81, 685 57, 928 47, 085 23, 078 42, 365 970, 255 3, 110 30, 309 10, 791 14, 565 24, 198 7,054 11,764 287, 388 1, 392, 116 389, 179 3,672 35, 980 1,226 12, 777 39, 652 14, 003 2,378 53, 240 22, 000 17, 085 790, 024 816 3,359 1,825 2,516 161, 378 884, 727 169, 894 Source: Official statistics of the Republic of the Philippines. Equipment Lack of equipment is a deterrent to the use of pest-control products, especially by small farmers who cannot afford to buy necessary 187 sprayers and dusters. Spraying and dusting equipment received by the Bureau of Plant Industry through ICA is far from sufficient. Trade sources indicate that portable spraying and dusting equip- ment of about 2K-gallon capacity is the ideal type and size for Philip- pine farmers. This type is priced locally at $17.50 to $22.50. Marketing and Distribution Pest-control products are imported and distributed through three main channels — Government agencies, ICA, and local importers. Free insecticides from ICA tend to keep commercial volume small but also encourage a larger potential market. Government distribution is limited to various government headquarters, while commercial supplies can be purchased at village stores. Government and ICA purchases are made by public bids or direct purchase, whereas imports by commercial establishments are on a credit basis. Pesticides also are distributed through foreign subsidi- aries. Government Decrees and Regulations Insecticides and rodenticides come under the "Essential Producer" category of the Central Bank with regard to priority in allocating dollars for payment of imports. No regulations exist on distribution of pesticides, but the Bureau of Plant Industry gives priority for their shipment to areas threatened by pests or diseases. Prospective Developments and Trends At present there are no plans for manufacture of pesticides in the Philippines. It would appear that opportunity exists for United States investment in the local manufacture of these products. The present administration is attempting to develop rural areas, in which damage by plant pests and diseases poses a serious problem. According to estimates of the Bureau of Agricultural Extension, the rice stem borer alone caused a loss of approximately $40 million in the 1953-54 crop year. Kadang kadang (disease of coconut) is said to have destroyed over 5% million coconut trees in 1953, resulting in decreased exports of $175 million and a loss of government revenue amounting to $3,750,000. The abaca industry faces a real crisis from mosaic disease. Onion culture in Luzon in 1953 was almost a complete failure because of purple blotch disease. Coffee rust, potato blight, scab, mango leaf- hopper, cornborer, leaf spot disease, pythium root rot, Fiji disease on sugarcane, and many other pests and diseases annually take their toll from field and vegetable crops. Until these pests and diseases 188 are controlled and complete eradication of rats in Mindanao and other infested areas is accomplished, the Philippines will require a large supply of pest-control products. SYRIA (Based on report by M. Thompson and M. Bakhash, U. S. Embassy, Damascus) Production Syrian production of pesticides is limited to a very small output of nicotine sulfate by the Tobacco Monopoly (Regie) and repackaging of imported toxic ingredients. Co nsu mp tion Sulfur is the principal pesticide consumed in Syria and k used primarily for protection of grapes around Damascus. Consumption has risen steadily in recent years to an estimated total of 400 metric- tons in 1953. The large expansion in cotton planting in 1952 and the heavy insect infestation occurring that year resulted in importation of 4,200 tons of cotton dust (3-10-40—3 percent BHC, 10 percent DDT, and 40 percent sulfur). Cotton acreage reduction during 1953, combined with lighter infestation, resulted in greatly reduced consumption and a carryover into 1954 of about 2,000 tons of cotton dust. The Agricultural Bank, the sole importer, purchased no cotton dust in 1954 and 1955 stocks are estimated at about 1,500 tons. Other agri- cultural insecticides, with the exception of BHC, which is used against locusts, are of minor importance in Syria. In 1949 the Ministry of Hygiene and Public Health instituted a program of public education in use of pesticides in Damascus. This program has resulted in increased use of household insecticides, particularly DDT, and in 1953 approximately 126 metric tons were imported. Total consumption of all pest-control products in 1954 was about 1,000 tons, according to latest available statistics and estimates of trade contacts. Foreign Trade The United States provided around 60 percent of Syria's imports of agricultural pesticides in 1953. West Germany supplied about 16 percent, with the United Kingdom, France, Italy, and Belgium fol- lowing in that order. Small quantities of household insecticides have been imported from Western European countries, but the United States supplies the major portion of DDT. 189 Table 64. — Estimates of Syria's Consumption of Pesticides, 1953, 1954, and 1960 [Metric tons — toxic ingredients] 1953 1954 I960 (estimated) Agricultural: BHC 100 150 5 10 2 6 5 30 400 25 50 200 5 3 3 6 5 30 500 25 75 Cotton dust (3-10-40) _ _ _ _ _ _ _ 300 Copper sulfate 10 DDT (100 percent basis) _ 5 Parathion _ __ 10 Fluosilicates 6 Lead arsenate 10 Petroleum oils 80 Sulfur _ _____ 1, 000 Other products 50 Total 733 827 1, 546 Public health and household use: DDT (100 percent basis) 70 50 75 50 70 Other _ 70 Total 120 125 140 Equipment Although there are few modern spraying and dusting units in Syria, this factor is not critical in limiting usage of pesticides. There is a small domestic production of hand dusters, but most equipment is imported. The importation of larger units for public health purposes is confined to the Ministry of Hygiene and Public Health and a few larger municipalities. Marketing and Distribution Common channels of distribution for agricultural insecticides are agents of individual foreign concerns and the Agricultural Bank. The Bank has been the sole purchaser of cotton dust, which is dis- tributed through the Cereals Office. Public health and household insecticides are imported through exclusive agents and the Ministry of Hygiene and Public Health United States pesticides, particularly sulfur and DDT (most com- petitive in price) , are generally preferred to those of other supplying countries. Prices for many United States products are higher than for those from European countries. Also, European suppliers, especially West Germany, offer credit terms up to 2 years. Normal advertising media, such as the press and radio, would not be effective in Syria, since any communication with farmers must be in Arabic. A more effective method would be to provide interested governmental and private organizations with promotional literature and samples of products to be used in actual field demonstrations. 190 Government Decrees and Regulations Basic Syrian regulations governing distribution of pest-control products are contained in Legislative Decrees No. 40 of August 1, 1949, and No. 165 of March 12, 1952. The first of these decrees applies to the sale of chemical products and pharmaceuticals, including industrial insecticides; the second covers agricultural insecticides, chemical fertilizers, and veterinary products. In both instances, the importer or dealer must register his firm with the Ministry of National Economy. An importer of chemical products or pharmaceuticals must pay an initial registration fee of $85, renewable annually for $28. In the case of chemical fertilizers and agricultural insecticides, the fee is $28, renewable at $7. There are various other decrees of minor importance authorizing the Cereals Office to distribute agricultural insecticides, including cotton dust imported by the Agricultural Bank. The selling price of cotton dust is controlled in accordance with Legislative Decree No. 1378 of July 20, 1952. Prospective Developments and Trends There is no known prospect for manufacture of pesticides in Syria and no opportunity for investment of United States capital and technical know-how in such a project. The essential problem in expanding use of pesticides is one of educa- tion. The Ministries of Agriculture and of Hygiene and Public Health only recently instituted a program of general education in the use of pest-control products and, until this information has reached the mass of Syrian people, consumption will not expand sharply. Since price is of primary importance in this market and United States products are usually more expensive than competitive lines, liberal credit terms should be considered. Only through increased promotional efforts can United States producers meet the increasing competition of European suppliers and improve or even maintain their present position in the Syrian market. 191 Africa Belgian Congo and Kenya are the two principal world suppliers of pyrethrum, which is in considerable demand since pyrethrum insec- ticides are nontoxic to humans. The Union of South Africa produces DDT and BHC, and copper sulfate is manufactured in Algeria and Egypt. Elsewhere in Africa there is little manufacturing or formulat- ing of pesticides. Africa is a steadily growing market for United States pesticides. Value of exports in 1954 were about 30 percent above those in 1953, and in 1955 were 58 percent higher than in 1954. ALGERIA (Based on report by E. B. Erickson, U. S. Consulate General, Algiers) Production The only pesticides produced in Algeria are copper sulfate and fluosilicates, both by the Societe Algerienne de Produits Chimiques et D'Angrais, Algiers. Annual output of copper sulfate is approxi- mately 2,000 metric tons, about one-seventh of domestic consumption. About 75 tons of the fluosilicates are produced; only insignificant amounts are imported. Crude sulfur is imported and refined at three plants of Raffineries de Soufre Reunies, with annual production running from 18,000 to 20,000 tons. Raw materials for production of pesticides include ethyl alcohol (a byproduct of the wine industry), available in large quantities; naphthalene (30 tons a year); benzol (100 tons a year); chlorine; and sulfuric acid (small amounts from domestic iron pyrites) . Consumption See table 65 for annual consumption of pesticides in Algeria. Major pesticide dealers estimate that approximately 84 percent of consumption is for agricultural use; 10 percent, industrial; 5 percent, public health; and 1 percent, household. It is not anticipated that consumption will increase significantly during the next few years. Some commodities being used experimentally may come into more general application, if found effective under local conditions. 192 Foreign Trade See table 66 for foreign trade statistics. The largest portion of imports are from France, but the United States and European coun- tries other than France supply materials not available domestically or from French sources. Table 65. — Average Annual Consumption of Pesticides in Algeria Commodity Quantity (Metric tons) Commodity Quantity (Metric tons) Anthracene and yellow oil Barium fluosilicate BHC and lindane 60 75 18 14, 000 300 160 20 10 560 200 Pyrethrum (1 percent) Rotenone (1 percent) Sodium arsenate and arsenite_ Sodium cyanide Sulfur 2,4-D (technical basis) Other (chlordane, zineb, parathion, captan, aldrin, dieldrin, etc.) Total 10 10 15 Copper sulfate 15 DD (dichloropropane and dichloropropene) DDT Lead arsenate 17, 500 50 Methyl bromide 50 Polysulfides 33, 053 Source: Algerian official statistics. Equipment Adequate spraying and dusting equipment is available and applica- tion of pesticides presents no special problem. Helicopters are used to a limited extent. Marketing and Distribution According to local dealers, United States pesticides are preferred, but French products will predominate so long as the dollar shortage exists. French products also have a price-wise advantage since no customs duty is levied on such imports, compared with 25 percent ad valorem on arrivals from other countries. Also, imports from foreign countries are subject to license. Distribution of pesticides is by local agents. Production and dis- tribution are free from government control except that the margin of profit on refined sulfur is fixed by government decree. Terms of sale are usually direct purchase both from French and foreign suppliers. The best type of advertising media for promotion of pesticides is local agricultural trade journals of which there are a considerable number. Prospective Developments and Trends Prospects for increased participation by the United States in the Algerian pesticide market appear to be contingent on availability of 193 Table 66. — Algerian Foreign Trade in Pesticides, 1953 Commodity classification and principal countries of destination or origin Quantity (pounds) Value (U. S. dollars) IMPORTS Preparations of disinfectants, insecticides, fungicides, herbicides, etc.: Belgium __ _ 94, 577 10, 215, 455 99, 648 27, 117 5,291 113,316 520, 286 1, 396, 173 31, 438 France 1, 563 073 Germany _ 51, 592 Italy 5, 948 Morocco _ 9, 962 United Kingdom United States _ 40, 704 65, 111 109, 762 Other countries Total ___„__ 12, 471, 863 769, 185 1, 877, 591 Preparations for agriculture and horticulture — France, total. _ _ _ _ _ _ 159, 141 Grand total _ 13, 241, 048 2, 036, 732 EXPORTS Disinfectants, insecticides, fungicides, cattle dips and sprays, and similar preparations: France _ _ 11,243 129, 630 47, 619 6, 034 Tunisia __ 21, 293 Other countries 4, 240 Total. _ . 188, 492 31, 567 Preparations for agriculture and horticulture: Tunisia _ _ _ _ 7,716 1,543 8, 648 Other countries 1, 094 Total _ ___ _____ _____ 9,259 9, 742 Grand total _ 197, 751 41, 209 Source: Algerian official trade statistics. dollar exchange. For products unavailable in France, the policy is to buy from OEEC countries, if possible, before resorting to the United States. Some pesticides purchased in France are manufactured by affiliates of United States firms, or by firms manufacturing in France under United States license. Probably this is the only means whereby United States capital and know-how can presently participate in the Algerian pesticide market. ANGOLA (PORTUGUESE WEST AFRICA) (Based on report by J. M. Kuhl, U. S. Consulate, Luanda) Production Pesticides are not manufactured in Angola. The economy of the country is based primarily on agriculture, mostly by native farmers who use primitive methods and know nothing of the benefits from use 194 of pest-control products. A number of European farmers use pesti- cides, but such consumption does not warrant production of these commodities in Angola, even if raw materials were available. Consumption Imports of pesticides amounted to 44 metric tons in 1946, declined from that figure for ensuing years, and in 1952 rose to 134 tons. It is believed that consumption of pesticides will continue to increase as farmers are educated to the benefits to be derived from use of these materials. Another factor favoring increased consumption is reset- tlement of Portuguese farmers in Angola. Each colonization project is staffed with agricultural engineers and agronomists who are familiar with pesticides and whose advice will undoubtedly increase use of pest-control products. It is possible that by 1960 consumption will approximate 300 tons a year. Principal consumers are the large agricultural enterprises engaged in production of cotton, coffee, and sugarcane, and quasi-governmental organizations such as the Corn Guild. With the development of large-scale irrigation projects, consumption of pesticides can be ex- pected to increase. Probably about 90 percent of pesticides is con- sumed in agriculture, 8 percent by public health services, and the remaining 2 percent for control of household insects. Foreign Trade Although imports of pesticides more than trebled in the period 1946-52, the United States share of the market decreased. The vol- ume of United States products has remained fairly constant, but participation decreased from 47 percent to 21 percent in 1952. The shift has been toward pesticides of British manufacture, which in- creased from 18 to 47 percent in the same period. The Portuguese share of the market has remained fairly constant. The shift toward British pesticides has been the result of difficulty in obtaining import permits for United States products and the aggressive representation of two British companies operating in Angola. Discussions with im- porters reveal that United States products are preferred on the basis of price and quality, but imports are not licensed if the material can be purchased in Portugal or European Payments Union countries, even though dollar earnings are more than adequate for increased imports from the United States. Equipment Because of the limited use of pesticides in Angola, availability of spraying and dusting equipment is no problem. 195 Marketing and Distribution Direct sale is the customary type of transaction for imports of pesticides. All advertising material should be in Portuguese with appropriate reference to local conditions and infestations. For example, a circular letter advertising a pesticide should contain reference to the specific pests known to be troublesome, rather than make a general claim of protection. Table 67. — Imports of Pesticides into Angola, 1953 Commodity classification and principal countries of origin Quantity (pounds) Value (U. S. dollars) Arsenicals for sprays and dips, total 22, 044 4,596 Insecticides for treatment of cotton, total 5, 487 1,268 Fumigants for trees and agricultural products, total 1,784 1,374 Other pesticides not specified: France __ _ 19, 063 32, 628 90, 318 162, 809 42, 235 5, 747 Germany _ 12, 939 United Kingdom United States 24, 591 31, 123 Other countries 13, 356 Total _ _ _ __ 347, 053 87, 758 Grand total 376, 368 94, 996 Source: Angolan official trade statistics. United States manufacturers of agricultural pesticides might use billboards, which are not common in Angola; the novelty of this method might produce results. Circular letters to prospective con- sumers of pesticides is also a recommended method of advertising, particularly when combined with company-sponsored demonstrations of the products. Government Decrees and Regulations No legislation is known regarding distribution of pest-control products. Prospective Developments and Trends The limited market would not appear to justify United States investment or technical knowledge in manufacture of pest-control products in Angola. A United States firm interested in entering the market should train a local representative in selling methods and provide him with demonstration materials and technical background. 196 The latter would be particularly effective in selling to German farmers who have some of the larger plantations and who appreciate technical information on the products they purchase. The agent should also work closely with the Government Agricultural Service, and such quasi-governmental organizations as the Corn Guild, the Cotton Commission, the Coffee Commission, and the Cereals Commission. Weedkillers, in particular, should be readily accepted, as labor is in short supply; coffee growers especially might be quick to recognize chemical weedkillers as a partial solution to their labor problems. The adoption of irrigation and crop rotation by large plantations will gradually influence native farmers, and once pesticides are in general use by the more progressive agriculturists, their application can be expected to increase. BELGIAN CONGO Production Up-to-date information on production and consumption of pesticides in the Belgian Congo is not available. Material in the Chemical and Rubber Division files indicates that, except for the growing of pyre thrum and a small amount of derris, manufacture of copper compounds (on a small scale) is the only pesticide production in Belgian Congo. The country is one of the two major world producers of pyre thrum flowers and in recent years has supplied approximately half of United States imports of this insecticide material (see table 69 on Belgian Congo exports) . Consu mp tion Consumption probably closely approximates imports, which are rather sizable, with the United States as the principal country of origin (see table 68). Tn the early 1950's it was estimated that output of cotton could be increased 30 percent if diseases and insects could be controlled. Coffee is also subject to insect attack, about 50 percent of the crop being involved annually. A report of March 29, 1955, from the U. S. Consulate General at Leopoldville stated that "COGERCO" (Managing Committee for the Cotton Reserve Fund) had asked for bids on 2,595 metric tons of cotton insecticides, consisting principally of 5 percent DDT, 10 percent toxaphene, and 40 percent sulfur. 197 Foreign Trade According to Belgian Congo trade statistics, the United States is the principal supplier of pesticides to that country, accounting for 70 percent in 1954. Source: Belgian Congo official trade statistics. Equipment No information on equipment is available. Table 68. — Belgian Cong fo Imports of Pesticides, 1954 Commodity classification and principal countries of origin Quantity (pounds) (U Value S. dollars) Disinfecting, insecticidal similar preparations, With copper base: Belgium, fungicidal, and poison weedkilling bait: and 21, 283 27, 818 18, 206 9,376 5,003 France _______ __ 8,444 United States 4, 887 Other countries 4,574 Total 76, 683 22, 908 With sulfur base: Belgium 3,812 6, 686, 217 402 United States 523, 899 Total 6, 690, 029 524, 301 With DDT base: Belgium _ 293, 968 11, 199 851, 255 47, 088 242, 590 1, 352, 313 37, 977 27, 985 French Equatorial Africa 5,000 Germany __ _ _ 121, 449 Kenya __ .. _ 8,543 Switzerland _ _ _____ 65, 213 United States __ _ __ 254, 776 Other countries 21, 123 Total _ __ 2, 836, 390 504, 089 arations : Wood-impregnating prep Belgium 38, 199 57, 207 294, 581 71, 389 127, 904 29, 820 6,958 France. 14, 914 Germany. __ __ 86, 224 United Kingdom. _ __ 6,915 United States _ 36, 297 Other countries _ _ 3,265 Total 619, 100 154, 573 Grand total _ 10, 222, 202 1 205, 871 Marketing and Distribution Imports of pesticides are best handled through local agents. Pur- chases are usually made on a letter-of-credit basis. Government agencies do not distribute pesticides. 198 Importers use the usual type of advertising for pesticides — posters, newspapers, motion pictures, and radio. Table 69. — Belgian Congo Exports of Pyre thrum and Derris Commodity classification and principal countries of destination Quantity (pounds) Value (U. S. dollars) Pyrethrum flowers: France _______ __ ____ 80, 428 56, 932 41, 100 3, 471, 495 28 23, 598 Germany .__ _ __..____ 16, 762 United Kingdom United States __ _ _ ..____ _ 12, 042 1, 020, 547 Other countries _ _ __ ___ 18 Total __ ___ 3, 649, 983 55 1, 072, 967 Pyrethrum powder, Germany 13 Derris root: Kenya ___ _-_ 1, 162 4,760 71 Netherlands 930 Total ___ _____ ___ 5,922 1,001 Source: Belgian Congo official trade statistics. Government Decrees and Regulations As of 1950, there were no specific laws regulating importation or sale of pesticides in Belgian Congo. In the event of a dispute as to quality or standard, the Government General has an officially recog- nized laboratory at Leopoldville where pesticides can be analyzed. Prospective Developments and Trends No information is available indicating recent trends in the use of pesticides. The trend is believed to be decidedly upward, as well as toward newer and specialized products. In recent years, antimalarial campaigns have been undertaken and communal tanks for dipping animals have been established. In 1947, imports of pesticides into Belgian Congo totaled only 720,000 pounds, or less than 7 percent of the amount imported in 1954. EGYPT (Based on report by H. Lardicos, U. S. Embassy, Cairo) Production Two companies — Imperial Chemical Industries and Salmawy and Company — annually make about 7,000 metric tons of formulations based mainly on imported concentrates of BHC and DDT. Salmawy 199 and Company was expected in 1955 to produce 2,000 tons of BHC dust, 400 tons of 50 percent wettable DDT, and 120 tons of 50 percent wettable BHC, all to conform to World Health Organization specifica- tions. In addition, petroleum marketing firms produce household insecticides based on deodorized kerosene and imported raw materials. Chemicals available locally for manufacture of pesticides include ethyl alcohol, chlorine, and sulfuric acid. The Egyptian Government is building a plant in Kafr el Zayat for the manufacture of DDT. It is reported that the United Nations Children's Emergency Fund has contributed the necessary machinery and equipment at a cost of about $250,000. The plant is expected to begin production in 1956 and will have an annual capacity of 200 tons of technical DDT. The manufacture of nicotine sulfate from tobacco waste is under consideration. Consumption See table 70 for annual average consumption of the more important pesticides in Egypt. Foreign Trade Egyptian official statistics do not show separately imports of pesticides, but it is known that DDT, BHC, sulfur, oil emulsions, sodium cyanide, copper sulfate, carbon bisulfide, and weedkillers are imported. The quantity of DDT imported varies with infestations. Because of a serious cotton insect infestation in 1951, large quantities of cotton dust (DDT, BHC, and sulfur) were imported. However, no imports have been made since that time and large stocks still exist. Table 70. — Average Annual Consumption of Important Pesticides in Egypt Commodity Quantity (metric tons) BHC (13 percent gamma basis) Calcium arsenate Cotton dust (BHC-DDT-Sulfur) 20 190 500 (rough average) Copper oxy chloride Copper sulfate DDT (100 percent technical and 75 percent wet- table) . Lead arsenate Lindane 50 1,700 (200 for agriculture; 1,500 for "hygienic" use) 250 (50 for agriculture; 200 for "hygienic" use) 25-30 8 Paris green Sodium cyanide Spraying oils Sulfur, dust Sulfur, wettable Toxaphene Other pesticides 8-10 200 400-500 1,000 100-150 60-70 75 Source: Egyptian Ministry of Agriculture and trade sources. 200 Table 71. — Egyptian Foreign Trade in Pesticides, 1953 Commodity classification Quantity (pounds) Value (U. S . dollars) IMPORTS Insecticides, fungicides, disinfectants, sheep and cattle dips, and similar preparations 1, 821, 674 215, 645 53, 342 48, 174 EXPORTS Insecticides, fungicides, disinfectants, sheep and cattle dips, and similar preparations: Domestic materials __ _ _ 19, 074 Reexports __ __ __ 21, 140 Total. __ __ __. ___ _ -__ 268, 987 40, 214 Source: Egyptian official foreign trade statistics. Italy is the source of most of the sulfur; the United States, West Germany, France, and the United Kingdom are principal suppliers of other pesticides. Equipment A rudimentary type of hand sprayer is manufactured in Egypt, but most spraying and dusting equipment is imported, largely from the United States. Egypt experiences no difficulty in obtaining required equipment from abroad. Marketing and Distribution By far the largest importers and users of pecticides in Egypt are the Ministry of Agriculture and the Ministry of Public Health. Purchases by government departments are made by public tenders through local producers or firms which represent foreign manufac- turers. Usual terms of sale of European suppliers are direct purchase with credit terms ranging up to 3 months. United States manufacturers normally sell on irrevocable letter of credit. The Egyptian Ministry of Agriculture maintains a Plant Protection Section concerned with preventive and control measures against plant pests and diseases. The Entomological and Plant Diseases Section of that Ministry recommends control measures. The Min- istry of Public Health is in charge of preventive and control measures against pests which infest homes, hospitals, and public buildings. Advertising media, including large posters and newspaper advertise- ments, commonly used in other countries, are successful in Egypt. At least two Egyptian firms marketing fertilizers and pesticides issue a monthly magazine which discusses agricultural problems and also advertises their products. 379238—56 14 201 Government Decrees and Regulations Law No. 509, issued September 30, 1954 (copy is on file in the Chemical and Rubber Division), governs trading in insecticides. To supplement the provisions of this law, the Egyptian Ministry of Agri- culture is drafting (1954) regulations which will specify the compo- nents of each pesticide, its active ingredients, and respective propor- tions thereof. Prospective Developments and Trends Many Egyptian farmers are now aware of the advantages of using pesticides. As education along this line progresses and irrigated areas increase, consumption of pesticides will rise. One United States firm already is making available to an Egyptian distributor technical knowledge on preparation of formulations. There is an increasing tendency to produce formulations locally. Potential im- porters of pest-control products experience no difficulty in obtaining dollar exchange for United States pesticides, although in many cases they are required to pay premium rates (about 10 percent above the official rate in late 1954). The United States enjoys a high reputation in the field of pesticides and probably will continue to supply Egypt with toxic ingredients for these formulations, particularly those com- modities not available from European sources. However, lower freight rates and faster delivery time have caused Egypt to buy important quantities of pesticides from European sources, particularly Germany. To increase the Egyptian market, United States manufacturers, in cooperation with their local agents, should make on-the-spot experi- ments in conjunction with representatives of the Egyptian Govern- ment. Generous samples should be furnished local agents for dis- tribution to farmers. ETHIOPIA (Based on report by C. T. Breaux, U. S. Embassy, Addis Ababa) Production With the exception of sulfur, a small amount of which is produced, all pesticides consumed in Ethiopia are imported. Consumption Principal pesticides in use are: Copper sulfate for spraying vine- yards; BHC for control of locusts and for treating cattle hides prior to export; naphthalene for preserving hides; aldrin for combating 202 locusts; DDT and pyrethrum in household sprays; and rat poisons. With the exception of naphthalene, pesticides are not listed sepa- rately in trade statistics and distributors are unable even to estimate the amounts consumed. However, it is generally conceded that consumption has been rising and this increase is expected to continue at an accelerated pace in the next few years. The U. S. Operations Mission has demonstrated the advantages of seed treatment and ground fumigations. Two recently established agricultural concessions have been experimenting in malaria control on a large scale, and a joint WHO-USOM-Ministry of Health opera- tion is expected to be carried out against the malarial mosquito in the Gondar (northern Lake Tana) region. One of the two agricultural concessions also has been experimenting with weedkillers and termite- control products in its sugar fields. The prevalence of termites should create a large future demand for wood preservatives. Al- though the use of cattle dips against ticks is almost unknown, a large market will be created when Ethiopia improves the quality of its hides in order to meet competition in world markets. Protection of grain in storage also offers a large potential market. Consciousness of the financial cost of pests will eventually result from the efforts of USOM and the Pest Control Unit, established with USOM assist- ance in the Ministry of Agriculture, and demand for all pesticides should rise. Foreign Trade Less than $10,000 worth of pesticides were shipped to Ethiopia from the United States in each of recent years. Distribution and Marketing Poison for control of locusts is purchased by the desert locust control organization in London and distributed in Ethiopia through its Nairobi office. Other pesticides are distributed by local agents of foreign firms. Exchange control is no problem and the choice of pesticides for import depends on their effectiveness against various pests and diseases, as shown by public demonstrations. Several firms, aware of this trend, are supplying samples of their products to the USOM entomologist, the Ministry of Agriculture, and the large agricultural concessions. The best advertising media are distribution of samples for controlled experiments and bulletins on the application of specific products and the result of experiments. Government Decrees and Regulations No Ethiopian legislation or regulations affect production or distri- bution of domestic and imported pesticides. 203 Prospective Developments and Trends United States capital and technical knowledge might be used in the manufacture of pesticides with a powder base since inert ingredients are locally available. Since Ethiopia neither produces nor refines petroleum, it is doubtful that oil-base pesticides could be profitably produced. Widespread use of pesticides will come gradually, as farmers and livestock owners realize the financial advantages to be derived from their use. United States products are popular and, as the market increases, participation by United States firms should rise. FRENCH MOROCCO (Based on report by W. C. Camp, U. S. Consulate General, Casablanca) Production The only pesticide produced in French Morocco is copper sulfate, manufactured by Compagnie des Produits Chimiques et Metallur- giques du Maroc and Metaux et Produits Chimiques, both in Casa- blanca. Copper sulfate production in 1952 was 1,200 metric tons, but in 1953 fell to 770 tons. Imports in 1952 totaled 439 tons and in 1953 were 101 tons, all from France. In 1952, French Morocco exported 466 tons of copper sulfate to France and Algeria; no exports were made in 1953. All other pest-control products are imported, either in the form of packaged merchandise ready for use or as basic ingredients which are mixed and packaged by importers. Consumption Estimates of current consumption are not available and the only indication of demand (excluding copper sulfate) is derived from im- port statistics (see table 72). Imports should closely coincide with consumption since pesticides are not stocked in appreciable amounts. The Protectorate's Agricultural Services utilize between 100 and 200 tons of BHC solution each year in its battle against locusts. Other functions of the Agricultural Services include rat extermination in rural areas and fumigation of imported plants and vegetables. Un- doubtedly, consumption will increase, but it is impossible to indicate at what rate. Foreign Trade See table 72 for French Moroccan imports of pesticides in 1953. It is estimated that 60 percent of imports originate in France, with the 204 United States, United Kingdom, and West Germany providing the remainder. Table 72. — French Moroccan Imports of Pesticides, 1953 Commodity Quantity (in metric tons) Commodity- Quantity (in metric tons) BHC 13 11 25 101 20 11 32 1,206 Phenol derivatives 68 Calcium arsenate Sodium chlorate __ 168 Carbon tetrachloride. Sulfur, refined __ 1, 668 Copper sulfate DDT _ _ __ _ Other (phosphatics, pyreth- rum, cresol, etc.) Total _ 7 Naphthalene (refined) Pesticide derivatives (pack- aged) __ __ 3,330 Source: French Moroccan official trade statistics. Equipment There is no. shortage of spraying and dusting equipment and the most modern apparatus is available on the local market. Marketing and Distribution In general, the large French chemical industries (Kuhlman, Pech- iney-Pragil, Rhone-Poulenc, and Auby) are firmly established in the Moroccan market since their representatives have country-wide dis- tribution organizations. Pesticides are usually handled by companies dealing primarily in fertilizers and industrial chemicals. Importa- tion of pesticides can be effected by the use of official exchange made available by the Government's Exchange Office specifically for such imports. A recent list of imports from dollar countries which can be so financed included $200,000 for agricultural insecticides. Large-scale advertising is not employed by distributors, and occa- sional small advertisements in daily newspapers represent the practical limits of this sales technique. On the other hand, advertising litera- ture mailed to chambers of agriculture, farm cooperatives, and gov- ernmental agencies constitutes a useful supplement to more direct methods of promoting sales. Government Decrees and Regulations Government regulations concerning pesticides are contained in a number of decrees, the most important being the Decree of December 2, 1922, regulating the importation, distribution, and use of poisonous substances. Pesticides produced and packaged in the United States, as well as those originating in most European countries, meet the standards required by these regulations. 205 Prospective Developments and Trends Increased consumption of pest-control products is dependent on governmental programs, such as experimental and agricultural development projects, to educate the farmer regarding benefits to be derived from use of these commodities. There is no indication that production of pesticides will develop in French Morocco and increased United States participation in this market rests largely on meeting French competition and on the availability of dollar exchange for purchase of these commodities. KENYA (BRITISH EAST AFRICA) (Based on report by C. K. Bevilacqua, U. S. Consulate General, Nairobi) Production Pesticides are not manufactured in Kenya. Imported toxic ingredients are formulated into finished pesticides by African Ex- plosives and Chemicals (East Africa), Ltd., and Plant Protection, Ltd. (both subsidiaries of Imperial Chemical Industries), and by Shell Chemical Company. Data on output are not available. Kenya is one of the two major world producers of pyrethrum flowers. Production in 1954 was 2,549 long tons of dried flowers; the goal for 1956-57 is 3,500 tons. In 1954 the East African Extract Corporation converted 1,300 tons of dried pyrethrum flowers into extract (pyrethrin content not given). Consumption No information is available on consumption of pesticides in Kenya. However, import statistics should give an approximation of use (see Foreign Trade). Foreign Trade Kenya's foreign trade in pesticides in 1954 is shown in table 73. Other Commodity and Economic Data Information is not available on "Equipment," "Marketing and Distribution," "Decrees and Regulations," and "Prospective Develop- ments and Trends." 206 Table 73. — Kenya Foreign Trade in Pesticide Materials, January- November 1954 Commodity classification Quantity (pounds) Value (U. S. dollars) IMPORTS Disinfectants, insecticides, cattle dips and sprays, and similar preparations, total EXPORTS Pyrethrum flowers and powder Pyrethrum extract 3, 798, 400 2, 371, 100 144, 600 808, 085 853, 474 Source: Kenya official trade statistics. LIBERIA (Based on report by F. S. Wile, U. S. Embassy, Monrovia) Production No pesticides are produced in Liberia, nor is there any likelihood that such products will be manufactured in the near future. Consumption Data on consumption of pesticides are unavailable. However, statistics furnished by the U. S. Operations Mission and Firestone Plantations indicate the following amounts were used by these two organizations in the year ended September 30, 1954: BHC: 6.5 percent gamma dispersible powder pounds__ 600 20 percent gamma emulsion gallons-. 10 DDT: 100 percent pounds. _ 300 30 percent emulsion gallons. _ 1, 590 Dieldrin: 50 percent wettable powder pounds. _ 2, 400 20 percent emulsified concentrate gallons _ _ 1 85 Dieldrex 15 gallons. _ 55 Chlordane: 50 percent water dispersible powder pounds __ 150 100 percent gallons. _ 30 Aerosol bombs units. _ 2, 500 It is anticipated that the malarial program will be doubled by 1960 and, as a result, additional quantities of pesticides will be needed. With the change from a shifting agriculture to a family-type farm, insect and disease problems will increase and agricultural use of 207 pesticides should rise accordingly. However, it is not possible to give an estimate of future consumption. Foreign Trade Imports of pest-control products are grouped under "Insecticides, fungicides, etc." and only dollar value is given. Total imports were valued at $39,440 in 1953, with the United States as country of origin for $34,323, or approximately 87 percent. Pesticides are not exported from Liberia. Equipment The USOM indicates that lack of adequate spraying equipment is a serious handicap to malarial control work, nor is equipment available to make the best use of pesticides by the Liberian farmer. Marketing and Distribution A large percentage of pesticides used in Liberia is purchased either by large plantations or by such governmental organizations as the USOM. In order to sell to private consumers, United States manu- facturers should have a representative or agent in Liberia to conduct demonstrations, followed by distribution of samples to farmers with instructions as to use. Government Decrees and Regulations No legislation exists which affects distribution of imported pest- control products. Prospective Developments and Trends Inasmuch as the United States commands the bulk of the present Liberian pesticide market, future prospects are largely dependent on increased consumption. Active competition from European pro- ducers could reduce existing United States participation in this market. MOZAMBIQUE (Based on report by Ralph W. Richardson, U. S. Consulate General, Lourenco Marques) Production Pest-control products are not manufactured in Mozambique. The economy of the Province is primarily agricultural, but the technical 208 level of agriculture is still quite primitive, and use of pesticides is limited; all supplies are imported. With no domestic chemical industry, the only known raw materials available for production of pesticides are inert ingredients such as kaolin and kisselghur. One firm is establishing a mixing plant for fertilizers and pesticides and, beginning in 1956, will formulate 2,000 metric tons of insecticides a year. Consumption Official statistics on consumption are not available. From dis- cussions with the two largest pesticide dealers in Lourenco Marques, it appears that of total consumption, about 60 percent comprises BHC-type insecticides, and 30 percent are DDT. According to the Department of Agriculture, the most widely used pesticides are BHC, DDT, bordeaux mixture, toxaphene, and petroleum oils. Estimates of distribution by principal uses are: Agriculture, 45 percent; veter- inary services, 30 percent; public health, 21 percent; and household, 4 percent. Assuming that present consumption is running approximately 400 metric tons a year (see "Foreign Trade"), it is believed that by 1960 at least 800 tons will be used annually. The Cotton Research Center has recently been conducting experiments on use of pesticides by native farmers who raise an annual cottonseed crop of approxi- mately 100,000 tons. If these experiments result in higher yields per acre, there should be a relatively large increase in pesticide con- sumption. Foreign Trade See table 74 for statistics on 1953 imports of pesticides into Mozam- bique. Major suppliers of pesticides in 1949-53 were the Union of South Africa and the United Kingdom, with the United States and Switzer- land in third and fourth places. Equipment It appears that lack of training and knowledge on the part of both white and native agriculturists, plus low purchasing power, are the major limiting factors in the utilization of pesticides rather than lack of equipment. Marketing and Distribution Dealer-agents, usually in Lourenco Marques, the capital, or Beira, the second largest city, import and supply their branch offices in 209 smaller communities, or simply wholesale to various merchants through the Province. In all probability, more than 50 percent of pesticides are bought by various governmental organizations, so that bidding on government supply contracts is an important source of business. The government, in turn, supplies native and white farmers with pesticides through its system of agricultural extension agents. Table 74. — Imports of Pesticides into Mozambique, 1953 Commodity classification and principal countries of origin Quantity (pounds) Value (U. S. dollars) Arsenicals for sprays and dips: Union of South Africa 62, 106 63, 561 12, 659 Other countries. 4, 848 Total 125, 667 17, 507 iltural products: Fumigants for trees and agrici, United Kingdom Other_ _ 12, 103 43, 964 6,212 5, 880 Total 56, 067 12, 092 Other pesticides, not specified: Germany 12, 683 32, 218 394, 286 153, 319 56, 372 25, 980 7, 227 Switzerland 13, 006 Union of South Africa 71, 799 United Kingdom United States _ 20, 785 11, 350 Other countries 4,084 Total ___ 674, 858 128, 251 Grand total 856, 592 157, 850 Source: Mozambique official trade statistics. Only two advertising media exist in Mozambique — the press and radio. Several provincial daily and weekly newspapers frequently contaixi advertisements of agricultural pesticides and equipment. The monthly Gazeta do Agricultor (Farmers' Gazette), published in Lourenco Marques by the Department of Agriculture in cooperation with the Bureau of Veterinary Services, also is an excellent medium for advertising pesticides. A local agent for a Swiss firm has received considerable publicity by arranging for various demonstrations of its line of products and equipment at several of the government's agri- cultural experiment stations, to which prominent local officials and farm leaders as well as press representatives are invited. Government Decrees and Regulations At present, there are no laws or regulations controlling importation or use of pesticides in Mozambique. However, the Department of Agriculture and Bureau of Veterinary Services, the principal con- 210 sumers, are considering establishment of regulations on production and distribution of pest-control products. Prospective Developments and Trends Under present conditions, no opportunity exists for investment of United States capital or technical knowledge in production of pest- control materials in Mozambique. Future prospects for increasing United States participation in the market are contingent on the dollar- exchange situation, although many importers prefer United States products. Dollar imports, in general, are authorized only if goods needed are not obtainable elsewhere and are important to the economy of the Province. Also, local importers are generally reluctant to purchase on letter of credit, a requirement of many United States suppliers. Since no fundamental change is foreseen in dollar-exchange supplies, the United States pesticide market probably will not increase, except for specialized products not obtainable from soft-currency countries. UNION OF SOUTH AFRICA (Based on report by M. A. McMaster, U. S. Consulate General, Johannesburg) Production Of the newer insecticides, only DDT and BHC are manufactured in the Union of South Africa and by only one firm — Klipfontein Organic Products, a government-controlled corporation having a $2,800,000 plant near Johannesburg. Erected during World War II to manu- facture chemical warfare agents, at the close of the war, the plant shifted to production of DDT, later included BHC, and is now experi- menting with manufacture of lindane. Current annual capacity is 600 long tons of DDT and 4,200 tons of BHC (probably technical basis) . There is also domestic production of bordeaux mixture, calcium arsenate, copper sulfate, copper oxychloride, and nicotine- and arsenic- base insecticides. The balance of requirements is supplied by local firms who formulate pesticides based on imported toxic materials and finished products. There are about 20 formulators, with 5 (2 are branches of United States firms) ranking as the most important. Consumption No official breakdown of consumption by commodities is available, but table 75 gives estimates obtained from the trade. In addition to commodities listed in table 75, other products are 211 used in lesser amounts; for instance: ANTU, chlordane (use against termites and ants is increasing), DDD, dieldrin, lindane (demand is expanding), pyre thrum (supplied from Kenya), sodium arsenite (use decreasing), TEPP, and 2,4,5-T (widely used in small amounts). Table 75. — Estimated Annual Consumption of Principal Pesticides in the Union of South Africa Commodity Quantity (Long tons^ Commodity Quantity (Long tons) Aldrin 40 i 4, 200 2 250 50 600 100 100 Parathion (technical) Pentachlorophenol 100 BHC 750 Bordeaux mixture Calcium arsenate Petroleum oils _ _ Gals. 500, 000 250 DDT Sodium chlorate _ _ Dithiocarbamate fungicides__ Nicotine and nicotine sul- Toxaphene_ __ 50 2,4-Dacid__ 200-250 fate _ _ _ _ 1 Capacity of Klipfontein; however, some amounts are exported. 2 Not including that mixed on farms by the actual user. The Union of South Africa is a relatively advanced market for modern pesticides. The acceptance and usage of recently developed products has been encouraged through local production, supple- mented by importation of pesticides not produced in the Union. Consumption seems likely to show a sustained gradual increase during the next 5 years. Usage of certain agricultural pesticides is expected to rise sharply with increasing availability of spraying and dusting equipment. Foreign Trade See table 76 for information on 1953 imports of pesticides into the Union of South Africa. The Union is a substantial importer of tech- nical ingredients such as aldrin, dieldrin, endrin, and parathion, as well as pyrethrum and sulfur. United States pesticides command a very favorable reputation and that country, with the United Kingdom, has been a leading supplier of technical materials. West Germany and Italy have recently entered the pesticide field in the Union of South Africa and competition from a price standpoint is intense. Current requirements for aldrin, dieldrin, and endrin are supplied from the United States, but it is understood that, beginning in mid-1955, a new Shell Oil plant in the Netherlands will furnish these materials. South African chemical production is generally gauged to include adjacent markets in the Rhodesias, Portuguese Africa, and British East Africa. Klipfontein Organic Products, however, has a marketing agreement (expiring at the end of 1955) with the Geigy Company to 212 furnish DDT to only domestic and Rhodesian markets. At present this company is negotiating for exportation of BHC to the Far East. Two large formulators are important suppliers of pesticides to the Central African Federation, Mozambique, and British East Africa. Marketing and Distribution The invoice required on all merchandise shipped to the Union of South Africa must show the true market value, cost of packing, in- surance, and freight to the port of entry. Payment is generally effected by sight draft, but there is evidence that German and other European suppliers have been offering more favorable credit terms. This factor, in addition to price cutting, evidently explains the recent advance of German products in the South African market. Leading United States insecticide manufacturers are represented in the Union by local agents. South African manufacturers and formulators either maintain Union-wide sales organizations or appoint national or regional representatives. Government Decrees and Regulations Imports into the Union of South Africa are controlled under the Import-Exchange Control Program. Individual importers are re- stricted to a percentage of their import volume in 1948. With the recent improvement in the Union's balance of payments, import con- trol is gradually being lifted. However, it is expected that items in the consumer-goods category will be the last to be freed of control. Table 76. — Imports of Pesticides into Union of South Africa, 1953 Value (U. S. dollars) Disinfectants, germicides, antiseptics, and deodorants Substances for prevention of pests 445, 000 1, 196, 500 TotaL_ ___ ______ ___ _ 1, 641, 500 Source: South African official statistics. There is stringent governmental control on the registration and sale of pesticides. Such products must be submitted to the Department of Entomology for approval and registration of both the commodity itself and the label appearing on the container. Prospective Developments and Trends The trend in South Africa is in the direction of expanded local manufacture of pesticides and at present there is a concerted effort, supported by the government, to expand the Union's production of industrial and commercial chemicals. Relaxation of import restric- tions should permit increased United States participation in this market, particularly for products not now manufactured in the Union of South Africa. O 213 PENN STATE UNIVERSITY LIBRARIES