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[BRARY FSECTI0H
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THY|:N " '' TAT£: UNIVERSITY ENNSYUVANIA
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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
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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.
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However, these figures do not give a complete picture of pesticide production. 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
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for malaria control, for use in any threatened epidemic such as typhus, and for rat-eradication programs.
Commercial exports of pesticides — an important segment of the United States market — are made by producers, manufacturers' agents, export companies, brokers, etc. Various Government agencies, includ- ing General Services Administration, and the State Department, and such organizations as the World Health Organization and the Pan American Sanitary Bureau purchase pesticides, on bid, for shipment abroad for public health purposes, locust control, agricultural dem- onstrations, and for general foreign aid to underprivileged countries.
Advertising of pesticides in the United States is conducted by the most modern methods. Media employed include full-page color adver- tisements in not only agricultural magazines but periodicals read by the general public; articles and news items on new products; movies; television; posters; billboards; and store displays. The United States pesticide industry is highly competitive and considerable sums are spent on advertising particular brands and trademarked commodities.
Government Decrees and Regulations
Interstate commerce in "economic poisons" — insecticides, fungicides, weedkillers, rodenticides, and related materials — is regulated by the Federal Insecticide, Fungicide, and Rodenticide Act of 1947. This regulation, enforced by the Secretary of Agriculture, requires that all pesticides entering interstate commerce be approved by and regis- tered with the Department of Agriculture. Such registration requires the name and address of the registrant; the name of the economic poison; a complete copy of the label to appear on packages; a state- ment of all claims made for the commodity; and directions for use. Also, if requested by the Secretary of Agriculture, a full description of tests made and results thereof upon which the claims are based must be submitted. (For interpretations of this act, see Service and Regulatory Announcement No. 167, issued by the Department of Agriculture, August 1948 (slightly revised March 1950), entitled "Interpretations of the Regulations for the Enforcement of the Federal Insecticide, Fungicide, and Rodenticide Act.")
In 1954, Public Law 518 (known as the Miller bill) amended the Federal Food, Drug, and Cosmetic Act with respect to residues of pesticide chemicals in or on raw agricultural commodities. The act contains the following regulations:
Any poisonous or deleterious pesticide chemical, or any pesticide chemical which is not generally recognized, among experts qualified by scientific training and experience to evaluate the safety of pesticide chemicals, as safe for use, added to a raw agricultural commodity, shall be deemed unsafe for the purpose, unless:
(1) A tolerance for such pesticide chemical in or on the raw agricultural com- modity has been prescribed by the Secretary of Health, Education, and Welfare
10
under this section and the quantity of such pesticide chemical in or on the raw- agricultural commodity is within the limits of the tolerance so prescribed; or
(2) With respect to use in or on such raw agricultural commodity, the pesticide chemical has been exempted from the requirement by the Secretary of Health, Education, and Welfare . . .
Any person who has registered, or who has submitted an application for the registration of, an economic poison under the Federal Insecticide, Fungicide, and Rodenticide Act may file with the Secretary of Health, Education, and Wel- fare, a petition proposing the issuance of a regulation establishing a tolerance for a pesticide chemical which constitutes, or is an ingredient of, such economic poison, or exempting the pesticide chemical from the requirement of a tolerance. The petition shall contain data showing: The name, chemical identity, and com- position of the pesticide chemical; the amount, frequency, and time of application of the pesticide chemical; the results of tests on the amount of residue remaining, including a description of the analytical methods used; practical methods for removing residue which exceeds any proposed tolerance; proposed tolerances for the pesticide chemical if tolerances are proposed; and reasonable grounds in support of the petition.
Samples of the pesticide chemical shall be furnished to the Secretary of Health, Education, and Welfare upon request.
The Department of Agriculture has two legal functions in enforcing the above law on tolerances. First, through the Plant Pest Control Branch of the Agricultural Research Service, the Department will determine for the Food and Drug Administration whether an insecti- cide or other economic poison is useful for the purpose for which a residue tolerance or exemption is sought. Second, the Department will give the Food and Drug Administration (which operates under the Department of Health, Education, and Welfare) its opinion concerning the residues likely to result from the proposed use of the pesticide. Requests for certification of usefulness should be made in writing to the Chief, Plant Pest Control Branch, Agricultural Research Service, United States Department of Agriculture, and should be made only on pesticides which have been registered, or sub- mitted to the Department of Agriculture for registration, as economic poisons under the Federal Insecticide, Fungicide, and Rodenticide Act. Requests must be supported by reports of all experimental work done to determine the effectiveness and usefulness of the pesti- cide.
In addition to these Federal regulations each State has individual laws governing sale and distribution of pesticides, and each year, as new products come into commercial use, added legislation is enacted.
Prospective Developments and Trends
Percentagewise, capacity for production of pesticide materials probably will not increase in volume at so great a rate in the next 10 years as it has in the past decade. Present facilities for manu- facture of such products as DDT, benzene hexachloride, calcium
11
and lead aresenates, copper sulfate, and some of the specialized com- modities produced by only 1 or 2 firms are greater than required to meet domestic consumption and export demand. However, new pesticide materials are constantly being discovered, tested, found effective for particular uses, and eventually produced in commercial quantities. The trend is definitely toward specialized products for specific purposes, and future expansion in production undoubtedly ^\ ill be along this line.
Overall consumption of pesticides in the United States has been rising for a number of years. With the decrease in farm acreage in many areas and the shortage of farm labor, there is need for much greater use in order to meet rising demands for agricultural products by the ever-increasing population. The degree of increase is largely dependent on education of farmers regarding the benefits to be derived, such as greater monetary returns per acre and lessened labor.
According to Mr. Lea S. Hitchner, executive secretary of the National Agricultural Chemicals Association, "We (the pesticide industry) have created a broad market for pesticides which is here to stay and which is becoming less and less seasonal in nature as the scope and use of our products are broadened . . . We are in the best position in our history to supply the most effective and widest choice of materials ever known in the entire history of agriculture . . . Not only does the situation in agriculture today present a real oppor- tunity for those who wish to sell chemical aids to agriculture, but no other industry is competing directly with the pesticide industry in this market ..."
In spite of increasing manufacture of pesticides in many indus- trialized countries of the world and keen competition in export markets, particularly from West Germany and other European countries, United States exports of pesticides have shown a steady increase for many years. Value of 1955 exports exceeded that of all former years. It appears that a particularly promising export market exists in miscellaneous agricultural insecticides and related materials, which includes specialized pesticides, many of which are not produced outside the United States. Value of exports in this category rose from $24,526,000 in 1954 to $32,026,000 in 1955, an increase of 30 percent.
CANADA
(Based on report by L. Schaffner, U. S. Embassy, Ottawa)
Production
The Dominion Bureau of Statistics in 1954 published an excellent study on Canadian consumption and imports of pest-control products,
12
but published figures on production and exports are not complete. This lack of data on output of pesticides is due chiefly to the fact that many commodities are manufactured by only one firm and production statistics on individual firms cannot be released. (See table 4 for data on Canadian production of pesticides.)
Table 4. — Production of Pesticides in Canada, 1951-52
[Soiling price at works in Canadian dollars]
Commodity
1951
1952
DDT
Agricultural dusts and sprays, not specified else- where
Moth repellant
Livestock spray and powder
Fly sprays
Rat and mouse poisons
Gopher poison
Other household insecticides
Weedkillers
$1, 224, 221
1, 668, 226 542, 858 386, 181 172, 424
82, 973
61, 742
288, 735
2, 160, 846
$1, 696, 626
1, 181, 356 663, 564 322, 394 149, 481 153, 804
37, 653 566, 964
2, 943, 189
Source: Chemicals and Allied Products, 1951, published Jan. 22, 1954, by The Dominion Bureau of Sta- tistics, Ottawa.
Production of raw materials for manufacture of pest-control prod- ucts is limited to some half-dozen materials, most of which are manufactured by Naugatuck Chemical Co. (a division of the Domin- ion Rubber Co.), Elmira, Ontario. Certain solvents are produced by Canadian refineries. Diluents, such as diatomaceous earth and talcs, are available in Canada. Some copper sulfate is produced at Trail. British Columbia, by the Consolidated Mining & Smelting Co. of Canada, Ltd., and by Canadian Copper Refiners, Montreal. A limited quantity of certain other products, such as lead arsenate and calcium arsenate, probably also is produced.
With the exception of Naugatuck Chemicals, Canadian "producers" of pesticides are formulators only. Around 50 formulators are registered, the majority being subsidiaries of United States firms.
Consumption
Table 5 gives detailed statistics on sales of pest-control products by Canadian registrants in 1952 and 1953. This annual survey, conducted by the Dominion Bureau of Statistics, indicates that since 1947 (when sales data were first compiled), there has been a steady advance in total sales value of more than a million dollars a year, with the 1954 total of $19.5 million representing an increase of 13 percent over the 1953 figure.
Although sales in 1954 may have been adversely affected by poor crop conditions in the Prairie Provinces, it seems reasonable to assume that sales will continue to advance steadily. An industry estimate
13
Table 5. — Sales of Pest- Control Products by Canadian Registrants,
1953-54
[Quantity in thousands of pounds, unless otherwise specified; value in thousands of Canadian dollars]
Commodity
1953
Quantity Value
1954
Quantity Value
Agricultural dusts and sprays :
Aldrin
Arsenicals :
2 % arsenical dust (without copper)
Calcium arsenate
Lead arsenate
Paris green
BHC (except lindane)'
Bordeaux mixture, dry
Chlordane dusts and powders
Copper compounds (fixed copper) ___
Copper compounds, other
Copper-lime dusts
Copper sulfate
DDT:
Dusts
50% wettable powder
25 % emulsifiable solutions
Dieldrin dusts and powders
Dinitro compounds
Dithiocarbamate fungicides
Fungicides, other than dithiocarba- mates and excluding seed treat- ments
Lime sulfur
Lindane (wettable powders)
Malathion dusts and powders
Methoxy chlor
Mineral oils
Nicotine preparations, other than
sulfate
Nicotine sulfate
Parathion wettable powders
Rotenone dusts (not more than 1%
rotenone)
Seed treatments
Soil fumigants
Sulfur dusts
TDE or DDD _
TEPP and HETP
Toxaphene emulsions
Zinc compounds
Other agricultural dusts and sprays _ _
;; Total, agricultural- dusts and sprays ____^___
Livestock treatments:
Animal insect powders (except war- ble powders and washes
Barn sprays for residual effect
Livestock sprays
Warble powders and washes
Wormers
Other livestock treatments
Total, livestock treatments.
n. a.
4,880
609
1, 114
48
89
86
314
2,755
84
195
2,718
2,333 1,200
i 58
4
37
2,043
1, 149
1427
62
n. a.
42
1 152
21
80
225
536
n. a.
24
2,600
n. a.
n. a.
n. a.
79
n. a.
226 » 56
i 131 187
n. a.
n. a.
n. a.
81
215 63
284 22 13 19 44
484 39 22
294
187 327 162 7 16 473
383
105
139
18
30
56
11
92 127
149
1,808
14
247
24
22
3
9
336
327
71 128 214
83 983 108
1, 587
865
1, 268
74
112
86
181
3,473
36
298
2,478
2,780
1,548
i 46
3
25
899
1,010
1 468
112
363
40
1 176
15
73
210
575
n. a.
53
2,918
n. a.
n. a.
n. a.
157
n; a.
311 i 62
i 145 201
n. a.
n. a.
n. a.
See footnotes at end of table.
14
Table 5. — Sales of Pest- Control Products by Canadian Registrants,
1953-54— Continued
[Quantity in thousands of pounds, unless otherwise specified; value in thousands of Canadian dollars]
|
Commodity |
1953 |
1954 |
||
|
Quantity |
Value |
Quantity |
Value |
|
|
Herbicides : Dinitros __ __ |
148 29 136 n. a. n. a. n. a. n. a. |
37 48 56 3,216 76 505 1,260 |
43 60 146 n. a. n. a. n. a. n, a. |
60 |
|
MCP |
106 |
|||
|
TCA |
83 |
|||
|
2,4— D formulations __ _ _ |
3,420 |
|||
|
2,4,5-T formulations _ _ |
93 |
|||
|
2,4-D-2,4,5-T mixtures _._ |
343 |
|||
|
Other herbicides __ _ _ |
616 |
|||
|
Total, herbicides __ _ __ |
n. a. |
5, 198 |
n. a. |
4,721 |
|
Household and industrial insecticides: Aerosols (number of units) _ |
1,193,078 1,062 2,254 n. a. 87, 173 n. a. n. a. i 150 197 n. a. |
848 135 1,060 164 209 246 172 395 438 129 |
1,269,708 1, 172 3,715 n. a. 72, 756 n. a. n. a. i 128 197 n. a. |
892 |
|
Fumigants (excluding soil fumigants) : Naphthalene __ |
110 |
|||
|
Paradichlorobenzene |
1,407 |
|||
|
Other Lindane vaporizers (number of units) _ Powders and dusts _ _ _ |
179 141 214 |
|||
|
Repellents (mosquito and fly) Sprays : With DDT |
318 367 |
|||
|
Without DDT _ ._ |
440 |
|||
|
Other household and industrial in- secticides _ |
165 |
|||
|
Total, household and industrial insecticides. _ __ _ _ |
n. a. |
3,795 |
n. a. |
4,234 |
|
Rodenticides: Warfarin and Pival type |
271 n. a. |
177 137 |
446 n. a. |
251 |
|
Other. _ __ __ __ _ |
96 |
|||
|
Total, rodenticides__ |
n. a. |
314 |
n. a. |
347 |
|
Grand total _ _ |
n. a. |
17, 220 |
n. a. |
19, 457 |
n. a. Not available.
1 Thousands of Imperial gallons.
Source: Dominion Bureau of Statistics, Ottawa.
places foreseeable annual Canadian demand for pest-control products of all types at $40 million by 1960.
A list of pesticides and toxic ingredients used in Canada is on file in the Chemical and Rubber Division, as well as a list of the principal Canadian, United States, and British firms which formulate pest- control products in Canada.
Foreign Trade
Statistics on Canadian imports of pesticides in 1954 (see table 6) show that about 90 percent of imported pesticides was from the United
15
States, followed in importance by the United Kingdom, Germany, other Western European countries, and Japan. Finished products were almost entirely from the United States.
Poundwise, Canada is the second largest world market for United States pesticides (exceeded only by Mexico in recent years) . Exports to Canada include all of the 14 categories under which United States export statistics are compiled on pesticides. Major exports usually consist of DDT, weedkillers, miscellaneous agricultural insecticides and related materials, household and industrial insecticides, and house- hold and industrial disinfectants.
Table 6. — Canadian Imports of Pesticides, 1954
|
Commodity classification and principal countries of origin |
Quantity (pounds) |
Value (Canadian dollars) |
|
Weedkilling preparations: Germany |
n. a. n. a. n. a. |
6, 024 |
|
United Kingdom |
85, 500 |
|
|
United States |
2 535, 576 |
|
|
Total |
n. a. |
2, 627, 100 |
|
Nicotine and salts: United States _ _ |
84, 538 8,552 |
83, 676 |
|
Other countries |
6,571 |
|
|
Total |
93, 090 n. a. |
90, 247 |
|
Chloropicrin insecticides, total |
115, 171 |
|
|
Sprays in packages not over 3 pounds: United Kingdom United States |
n. a. n. a. n. a. |
66, 418 305, 147 493 |
|
Other countries |
||
|
Total |
n. a. |
372, 058 |
|
Disinfectants, dips and sprays: Germany |
n. a. n. a. n. a. n. a. |
292, 108 |
|
United Kingdom |
680, 607 |
|
|
United States |
6, 054, 011 |
|
|
Other countries |
81, 596 |
|
|
Total |
n. a. 93, 300 |
7, 108, 322 |
|
Paris green (all from U. S.) , total |
19, 384 |
|
|
Copper sulfate: United Kingdom |
1, 976, 264 149, 048 |
180, 196 26, 294 |
|
Total Lead arsenate (all from U. S.), total |
2, 125, 312 98, 168 110,000 |
206, 490 16,447 |
|
Calcium arsenate (all from U. S.), total |
6,050 |
|
|
Grand total |
n. a. |
10, 561, 269 |
n. a. Not available.
Source: Canadian official trade statistics.
16
According to official trade statistics, Canadian exports of pest- control products are of little significance and are restricted largely to agricultural dusts and sprays and herbicides. In 1954, the only exports reported were "dips, sprays and insecticides," with $148,000 to Brazil, $22,231 to the United States, and $13,626 to all other countries. Canada is a minor producer of toxic ingredients for pest- control products, but immediate export potentialities do not seem significant in view of heavy competition in world markets.
Equipment
Adequate spraying and dusting equipment is available in Canada. Value of Canadian production (sales) of such equipment in 1951 was $1,276,792, in 1952 dropped to $1,106,086, but in 1953 rose to $1,901,608. In those same years imports of spraying and dusting equipment were valued at $1,618,772, $1,520,152, and $2,178,072. respectively. (See table 7 for a breakdown as to types of spraying and dusting equipment sold in Canada in 1953.)
Marketing and Distribution
United States pest-control products are competitive in price and quality with those of Canadian and overseas manufacture. In fact, the availability of United States pesticides at low prices has forced down Canadian prices, especially for DDT and 2,4-D. Lindane and paradichlorobenzene are quoted at slightly lower prices by European producers. Nevertheless, in general, United States products are
Table 7. — Canadian Sales of Spraying and Dusting Equipment.
1953
Typo
Number of
units
Value (Canadian dollars)
Sprayers :
Hand, pack, sack, barrel and wheelbarrow- Weed (low-volume, low-pressure) :
Tractor-mounted
Tractor-drawn
Orchard, high-pressure:
Under 1 5 gallons
15 gallons and over
Concentrate sprayers and attachments- _
Other sprayers
Dusters:
Hand
Weed
Other
Total value
54, 7 1 1
3, 222 1,252
192
475
242
1, 519
1, 465 343
144
159, 573
569, 092 150, 376
96, 217 302, 027 321, 588 143, 186
10, 500 89, 020 42, 089
1. 901, 608
Source: Dominion Bureau of Statistics, Ottawa.
17
preferred for quality, flexibility of supply, low price, lower freight and handling charges, and standardization in method of formulation.
Terms of sale are similar to those in the United States — net 30 days or 1 to 2 percent for payment within 10 days, with letters of credit, sight drafts, and other credit instruments in common use. There are few shipments on consignment basis.
Channels of distribution are those familiar to the United States. Toxic ingredients may be sold to Canadian formula tors ; exclusive agents may be appointed to sell on a national or regional basis; or a Canadian branch company may be established to act as formulator and/or distributor.
As advertising media, Canadian traders recommend rural maga- zines and newspapers; farm, trade, and technical journals of either United States or Canadian publication; direct mail; radio; and tele- vision. The Canadian industry relies considerably on direct sales contacts, especially in the case of toxic ingredients used by formu- lators. Advertising costs in some instances are shared by the producer and his sales agent. Some manufacturers offer special discounts to their agents and representatives to assist in absorbing the cost of advertising and promotion.
Government Decrees and Regulations
The Canadian Pest Control Products Act and pest control products regulations dated December 2, 1954, govern pesticide registration, labeling, and packaging, and provide for government inspection of quality. (A copy of this act and regulations is on file in the Chem- ical and Rubber Division.)
Prospective Developments and Trends
The growing Canadian market for pesticides, and the apparent reluctance of domestic capital to underwrite research, manufacture, and marketing of new products, opens the field for United States capital and technical knowledge. Not only is there opportunity for increased use of pesticides, but also for improvement in their effectiveness. United States capital could probably be best employed in the establishment of Canadian branch plants for formulating pest- control products, using United States facilities for production of toxic ingredients.
To maintain or improve the present competitive position of United States pesticides in the Canadian market, it is suggested that exporters pay increased attention to promotion and marketing, give greater care to selection of agents and distributors, concentrate on specialized prod- ucts for specific purposes, and, finally, devote more research and testing
18
to the development of pesticides especially adapted to Canadian requirements.
COSTA RICA
(Based on report by F. Pena, U. S. Embassy, San Jose)
Production
Pesticide materials are not produced in Costa Rica, but there is local compounding and packaging of imported toxic ingredients. The United States press reported in August 1955 that Quimicas Agricolas Centro-Americanas, Ltda (Quimagra), had opened a new formulating plant at San Antonio De Belen. The unit will produce 70 to 150 formulations from imported toxic ingredients and hopes to sell them throughout Central America. United States engineers assisted in setting up the facilities. No government subsidies are offered formu- lators, but the industry is protected by import duties from competition of imported finished products.
Consumption
Data on consumption of pesticides are not available, but trade and government sources estimate consumption at around 11,700 metric tons a year. Approximately 94 percent of total use consists of copper sulfate, needed for the manufacture of bordeaux mixture, which is consumed principally by fruit companies in control of sigatoka disease on banana plantations. Lime for the bordeaux mixture also is imported. Chlordane and DDT are the other principal pesticides consumed. Toxaphene, methoxychlor, pyrethrum, BHC, lindane, nicotine, and rotenone are used in minor quantities.
Excluding artificial limitations such as exchange and tariffs, and taking into consideration the planned intensification and development of agriculture (principally cacao and coffee) , trade and official sources predict that annual consumption by 1960 may reach 19,000 or 20,000 metric tons.
Foreign Trade
According to official trade statistics, 1953 imports of copper sulfate into Costa Rica totaled 24,185,370 pounds, valued at $2,845,992, and insecticides, fungicides, and disinfectants amounted to 1,785,845 pounds, with a value of $412,542.
Before 1950 the United States was the only supplier of copper sulfate to Costa Rica, but in more recent years United States partici- pation has declined and in 1953 accounted for only 26 percent of total volume. Principal competing countries are the United Kingdom
19
and Belgium. Other pesticide imports originate largely in the United States.
Equipment
Supplies of spraying and dusting equipment are adequate. Manual sprayers and dusters are chiefly in demand and motor-driven equip- ment is not customarily stocked in important quantities. The United States supplies most of this equipment.
Marketing and Distribution
Despite increased European competition, a marked preference for United States pesticides prevails in trade and consumer circles. European firms, particularly German, have made some gains in the market by sending technical experts (including entomologists) to Costa Rica to give free advice to farmers.
Current terms of sale by both United States and European exporters are 30-day sight drafts to importers of good commercial standing. Customary channels of distribution are local exclusive distributors and selling agents, those believed to be most effective.
According to trade sources, the most effective advertising medium is short radio talks frequently repeated during the day. Advertising in two local monthly agricultural reviews is also believed effective. Periodic visits of special representatives to assist and counsel local distributors is a method practiced by European exporters.
Government Deerees and Regulations
Law No. 11 of August 24, 1954, published in La Gaceta of September 14, 1954, effective November 14, 1954, is the only regulation affecting importation and manufacture of pesticides in Costa Rica. This law requires importers and manufacturers of pesticides to apply for registration of their products to the Direccion General de Agriculture y Ganaderia, a dependency of the Ministry of Agriculture and In- dustries, which issues necessary permits for importation and sale of pest-control products. The application for registration must be made according to a questionnaire form which appears in the text of the law (copy of this law is on file in the Chemical and Rubber Division).
The law prohibits importation of pesticides in used bags.
Foreign exchange for importation of pest-control products and spraying and dusting equipment is granted by law at the official rate of 5.67 colones per United States dollar, compared to the current free rate of 6.65 colones. Local commercial banks comprising the national banking system grant credit facilities to farmers for importa- tion of pest-control products and equipment.
20
Prospective Developments and Trends
Considering the relatively small domestic consumption, local manu- facture of pest-control products (aside from compounding and packag- ing) does not seem justified, as it could not compete with similar imported products, even assuming tariff protection.
Future prospects for United States pesticides to increase their share of this market may be rated as good (except possibly with regard to copper sulfate), as there is a marked preference for these products.
Intensification of advertising, particularly by radio and in local agricultural magazines; frequent visits of Spanish-speaking traveling representatives with experience in Latin American markets; and assignment of technical experts for free advice and consultation are recommended.
CUBA
(Based on report by F. D. Leatherman, U. S. Embassy, Habana)
Production
Basic pesticides are not manufactured in Cuba. There are about 30 importers and wholesale distributors of pesticides for agricultural purposes, 4 of which are compounders and/or packagers. Toxic ingredients are imported. Compounding and packaging of household insecticides is done by an unknown number of small houses employ- ing no more than 1 or 2 persons, but these operations are not signifi- cant in the Cuban industry. A recent survey of Habana homes indi- cated that 32 brands of household insecticides were being used.
Limited consumption, lack of raw materials, adequate facilities for importing, and easy access to the vast United States market are the principal factors affecting growth of the Cuban pesticide industry.
Consumption
See table 8 for estimates (by Cuban distributors) of 1955 consump- tion of pesticides in Cuba. Although it is believed that pesticides consumed are 99 percent of United States origin, it is not possible to correlate these statistics on consumption with United States export statistics of pesticides shipped to Cuba.
Both official and trade sources agree that Cuba's consumption of pesticides for agriculture has been increasing at a rate of about 5 percent a year since 1950, and may be expected to continue this trend. Application of weedkillers and the newer insecticides on sugar plantations has shown significant increases in recent years. Improve- ment in economic conditions of the island and intensification of far- mer education would raise this rate of increase.
21
Table 8. — Estimated Consumption of Pesticides in Cuba, 1955
[In pounds of toxic ingredient of United States manufacture, unless otherwise noted]
|
Commodity |
Quantity |
Commodity |
Quantity |
|
Aldrin |
7,000 13, 200 150, 000 27, 500 30, 000 36, 000 350, 000 20, 000 28, 000 35, 000 150, 000 7,200 |
Gammexane 1 |
36, 000 |
|
BHC - - - |
Lead arsenate |
135, 000 |
|
|
Calcium arsenate |
Lindane |
11,200 |
|
|
Captan |
Nabam (liquid) |
80, 000 |
|
|
Carbonates |
Nicotine sulfate _ |
20, 000 |
|
|
Chlordane |
Parathion |
33, 000 |
|
|
Copper sulfate Cuprous oxide * DDT: |
Sulfur___ |
475, 000 |
|
|
Toxaphene |
80, 000 |
||
|
Weedkillers |
700, 000 |
||
|
25 percent emulsion, _ 50 percent dust 50 percent wettable Dilan 1 |
Zinc sulfate |
14, 400 |
|
|
Zineb Ziram |
97, 500 7, 600 |
||
|
Other |
12, 900 |
||
i From the United Kingdom. Source: Cuban trade estimates.
Consumption of pesticicides by public health agencies and house- holders has decreased slightly in the past 3 years owing to the eco- nomic recession caused by the world surplus of Cuba's major crop, sugar. Estimated present value of consumption of products for these purposes is $800,000 a year.
Many new products are proving popular in Cuba; for instance, use of copper sulfate is declining in favor of organic fungicides.
Foreign Trade
Table 9 shows 1953 statistics on Cuban imports of pesticides, practically all of which were supplied by the United States. Agri- cultural pesticides of excellent quality have been offered by the United Kingdom, Germany, Belgium, and France at terms and prices more favorable than those of the United States. In the past, these products have not always been adaptable to Cuban spraying and dusting equipment, which is all of United States manufacture. However, they are now ground to a degree that permits their use in
|
Table 9. — Imports |
of |
Pesticides |
into Cuba, 1953 |
|
|
Commodity classification and principal countries of origin |
Quantity (pounds) |
(U |
Value S. dollars) |
|
|
Insecticides for agriculture: Canada United Kingdom United States |
32, 097 114,763 3, 808, 629 25, 264 |
3,827 31, 000 791, 467 |
||
|
All other countries |
4, 125 |
|||
|
Total |
3, 980, 753 |
830, 419 |
||
Source: Cuban official trade statistics.
22
available equipment, and it is reported that Cuban mixers are con- sidering purchase of some requirements from European countries.
There appears to be no likelihood of European products displacing United States household insecticides in the Cuban market; United States products are too competitive and trade names are too well established.
Export market potentials are considered nonexistent in Cuba be- cause the possibility of manufacturing pesticides or importing for reexport are extremely remote.
Equipment
Adequate spraying and dusting equipment is available or easily obtainable from the United States. Use of the finest and most modern United States equipment is limited only by the ability of potential users to buy, a factor considered inconsequential in view of the technical assistance offered farmers by the Cuban Ministry of Agriculture, the financial assistance given by the government's Agricultural and Industrial Development Bank, and the long-term credit terms of sellers of United States equipment.
Marketing and Distribution
United States pesticides are extremely popular, but in the past year price differentials between United States and European products have been noticeable. Distances and time required for European products to reach Cuba, and the fact that those products have not until now been ground for dispensing by equipment used in Cuba, so far have prevented noticeable competition. However, present indications are that substantial Cuban orders may be placed in the United Kingdom and Germany.
Terms of sale for United States pesticides are usually letter of credit or payment against sight draft. Some United States firms allow 90 days' credit. European companies almost without exception offer 90 to 100 days or better.
Channels for distribution of pesticides are subsidiaries of United States manufacturers, local agents or representatives of United States companies, and importer- wholesalers. Local government agencies usually do not import direct, and neither the World Health Organiza- tion nor the International Cooperation Administration (formerly Foreign Operations Administration) distributes pesticides in Cuba.
All trade sources consulted agreed that United States advertising is deficient in that it is not printed in Spanish. Often United States manufacturers send technical representatives to Cuba who are unable to speak Spanish and can neither explain nor demonstrate their products efficiently in the field without the aid of interpreters.
23
Germany, in particular, is making big efforts to take advantage of this shortcoming.
The majority of household insecticides are packaged in the United States but are all labeled in Spanish, and advertising media used for these products appear to be efficient. The reputation of a product in the United States is not an effective aid to its sale in Cuba, where each product sells in direct proportion to the time, effort, and money spent in promotion.
Government Decrees and Regulations
No Cuban legislation specifically governs pest-control products. Pesticides for agricultural use are admitted duty-free by law. A resolution on labeling requirements for insecticides and fungicides has been drafted but has not yet become law.
Prospective Developments and Trends
Cuba's limited market and its proximity to the United States, together with its lack of raw materials, would seem to eliminate all opportunity for investment of United States capital and technical knowledge in the manufacture of pest-control products in the island.
Indications are that United States products will continue to supply most of the market. However, advertising exclusively in Spanish and extension of more liberal credit terms probably would increase sales, and also would provide greater protection against the possibility of losing a portion of the Cuban market to European products.
DOMINICAN REPUBLIC
(Based on report by W. W. Woodbury, U. S. Embassy, Ciudad
Trujillo)
Production and Consumption
Pesticides are not produced in the Dominican Republic. Reported estimated consumption is 8 to 10 tons per year. (See "Foreign Trade.")
foreign Tiade
Data on imports of pesticides into the Dominican Republic are not available. United States exports of these products to that country rose from 820,000 pounds ($115,000) in 1953 to 3,381,000 pounds ($380,000) in 1955. Principal categories of 1955 exports were: DDT
24
25 percent and over; sulfur formulations 20 percent, and over; mis- cellaneous agricultural insecticides and related materials; household and industrial insecticides; and household and industrial disinfectants. Germany and Belgium are reported to be the principal competitors of the United States in the pesticide field.
Equipment
Lack of adequate spraying and dusting equipment is a major limiting factor in usage of pesticides. Point IV technicians are urging stores in the interior to carry larger stocks of hand sprayers and dusters.
Marketing and Distribution
Terms of sale are direct purchase. In the past, local agents of United States firms have accepted only orders for future delivery. The International Cooperation Administration mission is encouraging United States manufacturers to obtain distributors who will keep an adequate supply of pesticides on hand for farmers whose interest is aroused by demonstrations.
Daily newspapers, which are widely circulated, appear to be the only medium for advertising of pesticides. United States pesticides are well known but generally are higher in price than those of European countries.
Government Decrees and Regulations
There is no special legislation or regulations affecting production and distribution of pest-control products. Pesticides are exempt from normal tariff duties, but other fees levied on an ad valorem basis amount to 23 percent.
Prospective Developments and Trends
There appears to be little opportunity for investment of United States capital and technical knowledge in the local manufacture of pest-control products.
The United States has an advantageous position in the market be- cause of its proximity, a preference for its products, and the fact that most of the knowledge in use of pesticides has been obtained from Point IV technicians who are naturally more familiar with United States products and sources of supply. This situation should continue unless there are substantial price differentials between United States and European and Japanese products.
379238—56 3 25
GUATEMALA
(Based on report of C. B. McKnight, U. S. Embassy, Guatemala)
Production and Consumption
No pest-control products are manufactured in Guatemala; all re- quirements are met by imports. Consumption of pesticides is approx- imately equal to imports (see "Foreign Trade")- Practically all use is agricultural, only negligible amounts being consumed by public health services and in households. The use of pest-control products is virtually unknown by most of the large Indian population.
Foreign Trade
Pest-control products are imported under basket classifications, as given in table 10. There are no exports of pesticides from Guatemala.
Equipment
Spraying and dusting equipment is in adequate supply. Some power sprayers are used and considerable dusting is done from planes, particularly on cotton plantations.
Table 10. — Imports of Pesticides into Guatemala, 1952-53
[Quantity in pounds; value in U. S. dollars]
|
Commodity classification |
1952 |
1953 |
||
|
Quantity |
Value |
Quantity |
Value |
|
|
Sulfates and copper carbonates; prepared mixtures of mercury, etc., destined for agricultural use Calcium arsenate, paris green, lead arsenate, sodium arsenate, white arsenic, calcium cya- nide, sodium fluosilicate, etc_ Insecticides for domestic use and poisons for destructive animals. Other, and not specified |
15, 538, 800 2, 740, 900 1, 524, 800 319, 000 |
$1, 700, 370 374, 365 184, 264 91,411 |
16, 382, 500 3, 250, 000 585, 250 304, 200 |
$1, 551, 132 337, 701 99, 709 91, 631 |
|
Total |
20, 141, 500 |
2, 350, 410 |
20, 521, 950 |
2, 080, 173 |
Source: Guatemalan official trade statistics.
Marketing and Distribution
The United States is close to Guatemala physically and tradewise and United States pesticides have had no serious competition. How- ever, suppliers should be on the alert for a growth in European com- petition.
26
Pesticides are sold through local agents of foreign manufacturers, usually by outright purchase. Distribution is through regular commercial channels. Government distribution is by the Produc- tion Development Institute, the Ministry of Agriculture, and the Ministry of Health in cooperation with the Pan American Sanitary Bureau.
Foreign manufacturers usually advertise in United States publica- tions which are distributed in Latin America. Importers do a small amount of advertising in local newspapers, and occasionally conduct direct-mail campaigns as well as publish informative bulletins. All advertising should be in Spanish. Guatemalan importers are anxious to obtain informative and descriptive literature for distribution to potential consumers.
Government Decrees and Regulations
There are no special decrees or regulations governing importation, sale, and use of pest-control products.
Prospective Developments and Trends
There is no indication that pest-control products will be manu- factured in Guatemala. The United States at present has a large portion of the Guatemalan pesticide market, but sales are not likely to expand greatly until a larger percentage of the Indian population becomes aware of the need for pesticides through educational and advertising campaigns.
HAITI
(Based on report by K. C. Heater, U. S. Embassy, Port-au-Prince)
Production and Consumption
No pesticides are manufactured in Haiti. It is estimated that 600 gallons of toxic ingredients are consumed annually — 360 gallons of DDT, and 240 gallons of chlorodane, pyrethrum, etc. Based on normal conditions, usage by 1960 should be 1,000 gallons a year.
Foreign Trade
Official statistics on imports of pesticides are not available. It is estimated that imports in 1954 were about 15 percent above those in 1952. However, United States exports of pesticides to Haiti dropped from 335,000 pounds ($116,000) in 1953 to 81,000 pounds ($17,000) in 1955.
27
Equipment
Most pesticides are for household use. Aerosol bombs and stand- ard fly spray guns employed for this purpose are freely available in the Haitian market.
Marketing and Distribution
United States brands furnish about 75 percent of the market, and large oil companies are the principal suppliers. All sales are on a sight-draft basis. German firms competing for the Haitian market can be expected to give credit terms. Local agents are the best channels of distribution. Sales volume is too small to warrant an elaborate distribution system.
Newspapers are the best advertising medium.
Government Decrees and Regulations
There is no government legislation which affects production or distribution of pesticides.
Prospective Developments and Trends
United States products already have the major portion of the market, which is on the decline. Most farms are small, 3-5 acres being common, and annual income seldom averages over $60 to $70. Hence the farmer is a very limited market for pesticides or applica- tion equipment. Furthermore, the traditional attitude of the Haitian grower has been to discontinue a crop when it becomes pest ridden and substitute another. For instance, the boll weevil has been on the increase since 1938 and each year more and more farmers switch from cotton to other crops. The concept of fighting agricultural pests has not become established.
The average city dweller earns about $1 a day and thus also offers limited market possibilities for household insecticides. The market for pesticides, therefore, appears to be limited to Haitians in the upper-income group and foreigners, a total of probably 50,000 persons.
HONDURAS
(Based on report by N. K. Warner, U. S. Embassy, Tegucigalpa)
Production and Consumption
Pesticides are not produced in Honduras. Large quantities of bordeaux mixture (copper sulfate and lime) are used annually by the banana-growing companies on the north coast. Practically no
28
herbicides are used, but insecticide imports have been constantly increasing in the past 4 years and it is possible that consumption in the next 5 years may increase by as much as 200 to 300 percent over present levels.
Foreign Trade
See table 1 1 for imports of pesticides into Honduras in recent years. The United States is the principal supplier, and there is no indication that this position will be challenged in the foreseeable future, although the United Kingdom and Belgium supplied important quantities of copper sulfate in 1952 and 1953.
Equipment
Small farmers use hand-operated spraying and dusting equipment which may be purchased from regular farm equipment outlets, from the National Development Bank's equipment and imple- ment stores, or from extension agencies operated by Inter- American Cooperative Agriculture Service. Some ground equipment is used for applying insecticides to cotton; airplane dusting is not practiced. Specially designed equipment is employed by the banana-growing companies for applying bordeaux mixture.
Marketing and Distribution
Trade sources estimate that from 60 to 70 percent of insecticides used in Honduras are sold by the National Development Bank and by the Inter- American Cooperative Agriculture Service (STICA). Govern- ment purchases for sale through STICA or for use in grasshopper- control campaigns are made on basis of bids from local sales agents or directly from manufacturers. Sight-draft payment is usually required by United States exporters.
Little advertising of agricultural pesticides is conducted, most such publicity being directed to the household user of "bugkillers."
Government Decrees and Regulations
So far as can be ascertained there are no laws or regulations affecting production, importation, or distribution of pesticides in Honduras. Such commodities are admitted free of duty, although they are subject to the 8-percent consular fee charged on all imports.
Prospective Trends and Developments
Increasing cotton acreage, resulting in greater use of insecticides, is expected to continue. In 1955, an estimated 335 tons of dust and
29
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20,000 gallons of liquid was used on cotton alone. About 150 tons of insecticides have been used annually in the government-sponsored grasshopper-control campaigns, which are expected to continue.
The National Development Bank is undertaking a program of grain storage under which a network of warehouses will be built in the next 2 or 3 years. Bank plans to fumigate grain placed in storage should result in an important increase in demand for fumigants. At present, methyl bromide is used for this purpose.
In addition to expansion in cotton planting, the grain storage pro- gram, and the antigrasshopper campaigns, an increasingly important factor in the future trend of pesticide consumption is the effort of the 16 agriculture extension agencies to teach farmers how to use pesticides to improve crop production.
MEXICO
(Based on report by R. G. Glover, U. S. Embassy, Mexico City)
Production
Mexico, rapidly becoming conscious of the need to combat pests of all kinds, has developed in recent years a sizable formulating industry. Official statistics show that in 1950, 30 manufacturers (compounding and packaging), with a total investment of approximately $6 million, produced finished pesticides worth $4,825,000. Substantial growth has since taken place in the industry but later statistics are not available. The Camera Nacional de La Industria de Transformacion, to which all pesticides formulators and distributors belong, states that there are 33 firms currently engaged in the formulating and distribution of pest-control products. About 25 concerns formulate only products for control of agricultural pests, and 3 firms manu- facture and distribute household insecticides on a national basis. The remaining firms are small and confine their activities largely to distribution in local communities.
According to a report received from the U. S. Embassy, Mexico City, dated July 15, 1955, the greatly stepped-up use of insecticides is illustrated by the following developments in the second quarter of 1955: "A United States firm announced plans to produce in Mexico small aircraft suitable for spraying; the Ministry of Communications advertised for experienced pilots to fly crop-dusting planes in the cotton-growing areas; a United States company formed a new in- secticide firm in northern Mexico; the Nacional Financiera let it be known that it was studying the establishment of a multi-million dollar insecticide plant in the northern agricultural zone."
31
In the absence of official data, it is estimated by the trade that pesticides were formulated in the following amounts in 1953:
Metric Type of use tons
Agriculture, total 73, 450
Cotton 67, 000
Vegetables, cantaloupes, watermelons, corn, grasses, flowers,
etc 5, 600
Fungicides and weedkillers 850
Household 3, 100
Public health 800
All other 250
Total 1 _ _ 77, 600
Domestic availability of raw materials in sufficient quantity to meet requirements for manufacture of pesticides is limited to sulfur, calcium arsenate, lead, and kerosene. All other ingredients are im- ported, principally from the United States. Insofar as is known, all inert materials also are imported from the United States. Since the devaluation of the peso, formulators have redoubled their efforts to locate satisfactory domestic fillers, but have met with little success. In cotton dusting the inert ingredient is very important and, until such time as a satisfactory filler is found domestically, the United States probably will continue to supply Mexico's total requirements.
Co ns u mp t ion
Data on consumption of individual pesticides are not available and can be approximated only by adding local production and imports. The result indicates that total consumption in 1953 was around 95,376 metric tons. Protection of agricultural crops consumed by far the greater proportion of this amount, but a breakdown among agriculture, public health, and household use is not possible.
It is reasonable to suppose that, with the urgent necessity of Mexico to increase its food supply, consumption of pesticides for agricultural purposes will double within the next 6 to 8 years. The Mexican Government and individual farmers are well aware of the practical results derived from use of pesticides and no doubt their application on crops other than cotton will show a steady and rapid increase. The government also is beginning to treat stored grain to prevent losses. The use of weedkillers is small but is gaining in popularity. The public health program probably will be expanded and may eventually account for a sizable consumption of insecticides.
Foreign Trade
See table 12 for 1953 statistics on imports of pesticides into Mexico. The pattern of imports is fast changing and there are definite
32
Table 12. — Mexican Imports of Pesticides, 1953
|
Commodity classification and principal countries of origin |
Quantity (pounds) |
Value (U.S. dollars) |
|
Copper sulfate: United States |
1, 801, 258 564 |
188, 292 |
|
Other countries |
214 |
|
|
Total _ |
1, 801, 822 |
188, 506 |
|
of insecti- |
||
|
Coppar arsenate and arsenite for production cides: United Kingdom United States Other countries |
26, 905 40, 547 75 |
3, 875 5, 295 5 |
|
Total. _ . _ _ _ |
67, 527 |
9, 175 |
|
(probably |
||
|
Strychnine for preparation of insecticides rodenticides) : United States. |
84, 538 166 |
13, 689 |
|
Other countries |
1, 768 |
|
|
Total |
84, 704 |
15, 457 |
|
Nicotine sulfate: Netherlands |
3, 175 39, 030 |
1,492 |
|
United States |
20, 882 |
|
|
Total _ _ _ _ _ |
42, 205 |
22, 374 |
|
Insecticides with less than 40% DDT: United States _ _ |
293, 942 136 |
33, 350 |
|
Other countries |
60 |
|
|
Total |
294, 078 |
33, 410 |
|
Insecticides with 40-70% DDT: United States, total |
2, 523, 784 |
429, 084 |
|
Insecticides with over 70% DDT: Germany |
730 3, 152, 203 |
161 |
|
United States |
799, 437 |
|
|
Total _ _ _ _ _ |
3, 152, 9 3 |
799, 598 |
|
Agricultural insecticides, n. e. -s.: Canada |
179,040 758, 272 68, 100 26, 545, 746 50, 787 |
11. 210 |
|
Germany |
311, 149 |
|
|
Netherlands United States Other countries |
22, 585 3, 211, 741 16, 843 |
|
|
Total __ _ |
27, 601, 945 |
3, 573, 528 |
|
Chlorobenzfne for fumigants: United States |
2, 388, 558 9,350 |
523, 435 |
|
Other countries _ |
9, 994 |
|
|
Total. _ |
2, 397, 908 |
533, 429 |
|
Other insecticidal preparations, total |
550, 000 |
n. a. |
|
Grand total |
36, 516, 906 |
n. a. |
Source: Mexican official trade statistics.
33
indications that imports of prepared pesticides will steadily diminish. Since May 1953, when the government issued a decree placing pesti- cides under import control, the Ministry of Economy has denied licenses to finished pesticides which can be domestically formulated (from imported toxic ingredients) . According to the trade, it seems likely no more imports of copper sulfate will be authorized. This decree, plus devaluation of the peso, augurs for a rapid growth in the domestic formulating industry. All requirements for technical DDT and BHC have been imported, but the government laboratory is beginning to produce BHC on a modest scale, and a prominent United States company recently surveyed the market possibilities for establishing a DDT plant. One difficulty to be overcome is the present lack of domestic chlorine. A United States firm recently entered into partnership with a Mexican concern which operates a small chlorine plant and it is anticipated that output will increase appreciably in the near future. Certain pesticides for which demand is too small to justify local production will continue to be imported. To date, Mexico has not attempted to develop foreign markets for formulated pesticides, but with the rapid growth of the formulating industry, exports are probable. Mexico has recently started produc- tion of sulfur on a basis which should not only make the country self- sufficient, but provide a substantial quantity for export.
Equipment
There is no lack of adequate spraying and dusting equipment. Most cotton dusting is done by airplanes on a contract basis. Modern methods for application of agricultural insecticides are in general use. For crops where airplane dusting is not especially adaptable, other methods, such as jeeps equipped with tanks and sprayers, are used. As the importance of secondary agricultural crops grows, use of modern spraying equipment should increase.
Marketing and Distribution
Marketing and distribution of pesticides for agricultural purposes are by two distinct methods :
The independent and so-called large farmers, especially in cotton- growing areas, buy insecticides direct from formulators who as a rule extend credit until the crop is harvested. Banks and some cotton- buying firms which finance farmers write into the contract a clause covering the cost of dusting and specify the number of applications and the type and quantity of insecticides to be used.
The other system governs the purchase and use of pesticides by the small communal farmers, sales being financed almost exclusively by the Banco Ejidal (a government bank). Farmers applying to the
34
Banco for a loan to purchase pesticides receive an order on a certain manufacturer or formulator for a specified amount, which is usually applied by hand methods. Payment is made when the crop is har- vested.
It is reported that French and Belgian producers of BHC have been quoting prices under those offered by United States firms, at the same time extending credit up to 30 months. While this is formidable competition, United States insecticides have a splendid reputation and are preferred if prices are in line with those of other foreign sources. European competition is confined principally to BHC and lindane but probably will dominate the market for these items, unless United States concerns are able to meet prices and credit terms.
Principal channels of distribution for imported products, including finished pesticides, are the Mexican formulators. These firms are well informed on market conditions and have their own systems of distribution. The Ministry of Public Health, as a rule, buys direct from foreign manufacturers, but its purchases are small compared with the quantity consumed by the agricultural industry.
Since finished pesticides cannot be imported in substantial quan- tities, extensive advertising of brand names is not justified unless the United States concern has a branch plant in Mexico. The best advertising media are prominent daily newspapers and trade journals. Some United States-owned companies in Mexico have had considerable success in experiments in the principal agricultural sections to prove effectiveness of their particular products.
Government Decrees and Regulations
Before a pesticide can be offered for sale in Mexico, it must be ap- proved by the Department of Agriculture. The government main- tains control over retail prices of pesticides, but manufacturers have registered no serious complaints over the minimum prices fixed.
Prospective Developments and Trends
Many of the principal manufacturers of pesticides in Mexico are branches of United States firms whose products are uniform and well received. As the market grows, the opportunity for other United States companies to establish plants in Mexico should increase ac- cordingly. Since importation of ready-mixed pesticides is limited, the principal means for United States firms to increase their markets in Mexico is by opening branch plants. The Mexican pesticide industry, now in its infancy, should grow rapidly within the next 5 years. It would appear that United States firms should now establish their trade brands so as to increase their markets as the industry develops.
3S
NICARAGUA
(Based on report by J. M. Siero, U. S. Embassy, Managua) Production
Nicaragua lacks a chemical industry and consequently no pesticide materials are manufactured. Until recent years, all pesticides were imported as finished products; however, a mixing plant has been established and now formulates finished pesticides from imported toxic ingredients, imported diluents, and locally produced kaolinite, which is plentiful and of excellent quality. According to well-in- formed sources, there is also a possibility of obtaining domestic sulfur in commercial quantities.
It was estimated that the local mixing plant would formulate 3 million pounds of finished pesticides in 1954. A modern mixing plant ordered from the United States in 1954 is expected to increase capacity of the installation to 18 million pounds a year, or about 50 percent of consumption of finished pesticides.
Consumption
Estimated 1954 consumption of toxic ingredients used for prepara- tion of agricultural pesticides is as follows (in pounds) :
BHC (14% gamma) 404, 500
DDT (100%) 340,000
Toxaphene 160, 000
Aldrin (60 %) 8, 000
Dieldrin (100%) 5, 300
Parathion (25 %) 2, 500
Diluent 420,000
Sulfur 120, 000
2,4-D (gallons). 1, 800
The Ministry of Public Health in 1954 imported 250,000 pounds of 75 percent wettable DDT for use in its sanitation campaign.
It is estimated that 90 to 95 percent of pesticides consumed is in agriculture, principally for protection of cotton and coffee crops. Most of the remainder is used in public health work.
As an illustration of the tremendous development in agriculture taking place in Nicaragua, in 1953 (April to June), the National Bank of Nicaragua made loans of approximately $7,800,000 for planting 123,500 acres (including 50,700 of cotton), and in the cor- responding period of 1954 loaned $16,825,000 for planting 204,400 acres (126,750 of cotton).
Consumption of pesticides recently has doubled every 2 or 3 years. If the upward trend in development of new arable land and cotton planting continues (cotton is the greatest consumer of pesticides),
36
well-informed sources believe that use of pesticides will quadruple by 1960.
Foreign Trade
See table 13 for statistics on imports of pesticides into Nicaragua in 1954.
The United States supplies from 90 to 95 percent of these imports, but European sources are striving' to capture a portion of the market by offering lower prices and up to 180 days credit.
Table 13. — Nicaraguan Imports of Pesticides, 1954
Commodity classification and principal countries of origin
Quantity (pounds)
Value (U. S. dollars)
Insecticides, fungicides, disinfectants, and similar materials :
Belgium
Germany (Western)
Netherlands
United Kingdom
United States
Other countries
Total
Copper sulfate, United States, total
Source: Nicaraguan official trade statistics.
12,
751, 363 23, 878
72, 414
82, 388
525, 429
8, 761
13, 464, 233
29, 835
56, 640 5, 721
13, 274
8,000
205, 914
12, 534
1, 302, 083
3, 596
Equipment
Dusting and spraying equipment is in plentiful supply and adequate to perform application in a rapid and effective manner. Most cotton pesticides are applied by aircraft.
Marketing and Distribution
United States pesticides are equal, if not better, in quality than those from European sources, and recently United States suppliers have met the lower prices quoted by European suppliers. However, credit terms from those countries are better than those quoted by United States exporters. One United States firm has arranged to supply a local firm with all necessary toxic ingredients for pesticides for local compounding, and has authorized its agent to meet, upon submission and approval of samples, all foreign offers for equal-quality material.
A serious complaint by Nicaraguan importers and distributors of United States pesticides is the lack of interest shown in advertising. Only a few firms print advertising material in Spanish, and English literature is of little use. Direct mail to prospective clients is most effective.
37
Government Decrees and Regulations
The present system of imports, established in November 1950, catalogs all merchandise into three groups: Essentials, semiessentials, and nonessentials or luxury items, for which exchange is available at the rates of 7, 8, and 10 cordobas to the dollar, respectively. Pesticides are considered essentials and exchange is available at the rate of 7 cordobas to the dollar.
Executive Decree No. 4, dated January 16, 1954, permits importa- tion in bond of pesticides, provided payment for the merchandise has been agreed upon with the exporter on credit terms of not less than 180 days from date of embarkation. This ruling has greatly facilitated importation of pesticides. It is understood that some United States exporters of pesticides refuse to grant such credit terms.
Prospective Developments and Trends
Opportunities for United States capital investment in the pesticide industry of Nicaragua are limited by the relatively small consumption of these products for crops other than cotton. If prices of cotton should drop, acreage would be reduced and consumption of pesticides would decrease. United States technical knowledge is being used to good advantage by the local formulating plant. United States tech- nicians spend 2 months each year helping the plant's local staff solve any problems which may arise.
PANAMA
Material on file in the Chemical and Rubber Division indicates that Panama has only a small chemical industry and that pesticide requirements are met by imports.
Copper sulfate for control of sigatoka disease on banana plantations is the principal pest-control product used, but in recent years sizable amounts of the new organic pesticides have been consumed. In 1953, the Chiriqui Land Co., the largest agricultural entity, initiated aerial dusting on its banana plantations. However, most bordeaux mixture is still applied by special spray equipment. The Point IV program is active in Panama and should increase demand for insecticides for cattle and crops, particularly cotton.
Import data are not broken down as to commodities or countries of origin. In 1953, imports of insecticides totaled 23,742,229 pounds ($1,342,163), and of disinfectants, 324,801 pounds ($49,104).
38
EL SALVADOR
(Based on report from R. C. Desmond, U. S. Embassy, San
Salvador)
Production
Basic pesticides are not manufactured in El Salvador. However, a mixing plant owned by the Salvadoran Cotton Cooperative formulates cotton dust from imported toxic ingredients. Its output was 1 ,400,000 pounds in 1952-53, less than capacity. A new company, Agricultural Chemical del Salvador, S. A., San Salvador, began production in the last half of 1955 on a 24-hour, 7-days-a-week basis. Both liquid and powdered insecticides are made from imported toxic ingredients which will cost an estimated $400,000 for the first year's operations. The United States supplies the toxic substance, and a high-quality inert material is available from domestic sources. Small deposits of sulfur exist but have not been exploited.
Consumption
Estimated consumption of important pest-control products in 1953, with percentage used on cotton, are shown in table 14. Consumption for public health purposes and household use is negligible. Almost 90 percent of pesticides consumed are used on cotton acreage, with a small quantity of aldrin, 3-percent BHC, and 5-percent DDT being applied on coffee plantations. The amount used for protection of the coffee crop increases materially when serious outbreaks of the coffee cricket occur. Similarly, consumption of insecticides by the Ministry of Agriculture for control of the migratory locust increases greatly when this pest becomes a serious threat. The only other crops on which significant, although small, quantities of insecticides are used include sugarcane, corn, and possibly rice.
Table 14. — Estimated Consumption of Principal Pesticides in
El Salvador, 1953
|
Product |
Total consumption (pounds of toxic ingredient) |
Percent used in agriculture |
Percent used on cotton |
|
BHC |
111,000 319, 000 118,000 37, 000 250, 000 14, 400 1,000 |
100 90 100 100 100 100 100 |
50 |
|
DDT |
85 |
||
|
Aldrin _ _ _ |
95 |
||
|
Parathion _ _ |
97 |
||
|
Toxaphene _ _ |
90 |
||
|
Chlordane_ _ _ |
35 |
||
|
Dieldrin |
10 |
Source: Based on data of sales and consumption by the Salvadoran Cotton Cooperative and official agencies, and estimates of consumption by farmers buying directly from dealers.
39
Salvadoran farmers usually are quick to try new insecticides on an experimental basis and, if they prove satisfactory, expand their use. Aside from this tendency, it appears that consumption of pesticides will not increase substantially in the near future. While use of pesticides for crops other than cotton may increase, experiments by the entomological department of the Centro Nacional de Agronomia (an agency for agricultural investigation which received technical assistance from the United States) have shown that equally good control of cotton insects can be obtained by fewer applications. Hence, cotton growers in all probability will gradually adopt more economical practices. Furthermore, prospects are that the area planted in cotton will not expand substantially, although it may fluctuate from year to year, depending on price and other factors.
Foreign Trade
Since 1952 there has been a significant increase in imports of pesti- cides from European countries, particularly Germany. In 1954, German prices for parathion and combinations of BHC and DDT were lower than those for United States products.
Import statistics do not give a breakdown of commodities imported nor of countries of origin.
Equipment
The availability of equipment is not a limiting factor in the Salva- doran demand for pesticides. Few small farmers have spraying and dusting equipment, but such equipment is readily obtainable by those who can afford it.
Marketing and Distribution
Distribution of pesticides is almost entirety through local agents. By far the largest single purchaser is the Cotton Cooperative, which accounts for well over half of total sales. The Cooperative, after taking advantage of its large orders to obtain a low price, resells at cost to its members. The Ministry of Agriculture also sells insecticides at cost to small farmers.
United States pesticides are comparable in quality to those offered by European firms, although it is reported that some cotton growers are claiming better results with German products than with United States pesticides. The reason is probably that German products were used for the first time in the 1953-54 season, when weather conditions were particularly favorable and excellent insect control was obtained. European manufacturers usually pack insecticides in 100-pound jute
40
ba^s with impermeable paper liners, a practice which has considerable appeal to cotton growers, who later use the bags for their cotton.
European suppliers commonly sell through agents on a consignment basis, as do United States exporters. Most United States exporters require sight drafts while European suppliers offer more liberal terms of payment.
The most effective form of advertising for pesticides probably is the educational approach, such as distribution of leaflets or pamphlets describing the life cycle of insects and effective means of control. Such materials should be in Spanish and adapted to conditions existing in El Salvador.
Since cotton growers are, and probably will continue to be, by far the most important Salvadoran customers, advertising material might effectively emphasize the fact that the United States is the world's largest producer of cotton and therefore United States firms are most experienced in cotton insect control.
Government Decrees and Regulations
El Salvador has no exchange restrictions. A government decree of March 23, 1954, which imposes control on the importation, distri- bution, and use of all pesticides, provides that such products cannot be imported and sold without approval of the Ministry of Agriculture. The decree also requires that labels carry in Spanish the name of the manufacturer, the formula, instructions for use, and necessary pre- cautions and antidotes if the product is poisonous. The primary purpose of this decree was to limit the use of phosphatic insecticides which have caused a number of fatalities in recent years. Future imports of such products will probably be permitted only for those purposes for which other insecticides are not effective.
Prospective Developments and Trends
The only opportunities for investment of United States capital in the Salvadoran pesticide industry appear to be in establishment of a plant for processing deposits of diatomaceous earth for use as inert material, or by building a formulating plant.
The Cotton Cooperative purchases almost exclusively United States pesticides, and probably would be reluctant to change since its mem- bers know and have confidence in these products. However, a num- ber of farmers have turned to German suppliers in recent years, because many of the most common pesticides are offered at prices below those in the United States.
In order to improve the market position of their products, United States manufacturers should consult with their local agents as to the advisability of intensifying advertising, and also as to the desirability
379238—56 4 41
of modifying packaging along European lines. However, price will be the determining factor.
TRINIDAD AND TOBAGO
(Based on report by K. P. Steins, U. S. Consulate General, Port-of-Spain)
Production
Pesticides are not manufactured in Trinidad but are compounded and packaged locally. Production data are not available. One company imports ingredients in concentrated form and formulates pesticides by addition of domestic powdered limestone or kerosene. A local oil company produces several pesticides, including weed- killers, in liquid form with an oil base consisting of domestic kerosene or gas oil. This company also manufactures a fungicide consisting mainly of imported copper oxychloride mixed with water. A number of local pharmacies compound and sell insecticides composed prin- cipally of imported DDT and pyrethrum in a base of methylated spirits and/or kerosene. A few hardware stores and the Department of Agriculture import concentrated chlordane to dilute with water for domestic sale. Perhaps the most common toxic ingredient imported for formulation of pesticides is copper sulfate for bordeaux mixture which is used on the Colony's sugar estates.
Consu mption
Consumption statistics are not compiled. Pesticides commonly used in agriculture are BHC, DDT, chlordane, aldrin, dieldrin, calcium cyanide, 2,4-D, and pentachlorophenol. Those consumed in public health work are DDT, aldrin, dieldrin, chlordane, warfarin, and larvacidal oils (for malaria control). Usage of DDT in public health work probably will increase in the next few years. Use of 2,4-D is understood to be standard practice on most sugar estates, but it is not applied elsewhere. Fungicides are little used. Plant diseases which might involve considerable future consumption of fungicides are banana leaf spot and diseases affecting cocoa pods. The Imperial College of Tropical Agriculture is experimenting with the use of copper fungicides for control of cocoa-pod diseases.
Future consumption of agricultural pesticides is difficult to predict. The use of chlorinated hydrocarbon insecticides against sugarcane froghopper will depend on continued efficacy and they may be replaced by other compounds, for instance, phosphatic insecticides. Banana
42
production is being expanded and serious outbreaks of banana borer weevils might prompt increased use of aldrin. If endrin, now used experimentally, proves efficient in control of rice borers, consumption may be expected to rise rapidly.
Foreign Trade
See table 15 for statistics on 1953 imports of pesticides into Trinidad and Tobago. Imports of DDT, BHC, chlordane, aldrin, and dieldrin are on the increase.
Equipment
On well-organized farms and large estates, equipment is generally adequate, but the lack of cheap, simple, and efficient spraying equip- ment probably is a limiting factor in the widespread use of pesticides by the peasant farmer. Procurement of such equipment from the United States is limited by currency restrictions. Aerial application of pesticides is not practiced.
Marketing and Distribution
United States pesticides compare well in quality with products from other sources, but in some cases they are more expensive and, of course, involve expenditure of hard currency.
|
Table 15. — Imports of Pesticides into Trinidad and Tobago, 1953 |
||
|
Commodity classification and principal countries of origin |
Quantity (pounds) |
Value (U. S. dollars) |
|
Insecticides, fungicides, disinfectants, etc.: Hong Kong _ |
54, 700 1, 179, 600 45, 600 15, 700 |
25, 275 |
|
United Kingdom United States _ |
235, 775 21, 775 |
|
|
Other countries _ _ |
7,815 |
|
|
Total |
1, 295, 600 |
492, 610 |
Source: Official statistics on imports into Trinidad and Tobago.
Pesticides from sources other than the United States are normally obtained by direct purchase. Large companies, such as the sugar estates, usually import pesticides direct from suppliers abroad. Small consumers sometimes import through local agents. The government often obtains public health pesticides through the Crown Agents (government purchasing agents) or from international organizations such as WHO (World Health Organization) or UNICEF (United Nations International Childrens' Emergency Fund).
43
Government Decrees and Regulations
The Public Health (Yellow Fever) Regulation of 1954 regulates pesticides used for public health purposes.
Prospective Developments and Trends
Because of lack of dollar exchange, Trinidad and Tobago undoubt- edly will continue to import a large portion of pesticide requirements from soft-currency countries. However, the Colony is dependent on the United States for many of the newer organic pesticides which evidently are being used in increasing quantities.
44
South America
Argentina, Brazil, Chile, and Peru manufacture pesticides, including some of the chlorinated hydrocarbons, and considerable formulating of imported toxic ingredients is carried on in several of the republics. Nevertheless, South America remains the second largest market for United States pesticides.
ARGENTINA
(Based on report by V. P. Vaky, U. S. Embassy, Buenos Aires)
Production
BHC is the principal insecticide manufactured in Argentina. Three producers (Electroclor, Cia. Quimica, and Indupa), with a combined annual capacity of about 5,000 metric tons of technical BHC (12-13 percent gamma isomer content), formulate various dusts and con- centrates, some of which are sold to the government for locust and grasshopper control. The major portion of lindane produced (Cia. Quimica and Atanor) is consumed for household purposes. Although DDT is not now (1954) produced in Argentina, Atanor has a plant under construction with an estimated capacity of 1,200 metric tons a year, sufficient to meet Argentine requirements.
Cia. Quimica is the sole producer of lead arsenate, and output of 1,500 tons meets domestic needs. Cia. Quimica and Bayer produce nicotine sulfate, consumption of which (mostly for aphid control) is small. Paris green is produced from imported arsenic and copper sulfate by Cia. Quimica and Luis Grassi, with a combined annual capacity of 500 tons. Carbon bisulfide, manufactured by three companies (Duperial, Luis Grassi, and Partenopea), is employed principally as a rodenticide, for ant control, and as a grain fumigant. Copper sulfate production was initiated by Partenopea in 1953, and Electroquimica planned to begin production in 1954; this additional facility will bring output in line with domestic requirements. Methyl bromide, manufactured by Rhodia, is used almost exclusively for fumigation of grain.
In 1953 Argentina produced about a third of its requirements of crude sulfur for all purposes. Several firms manufacture lime sulfur,
45
dusting sulfur, and sulfur paste for agricultural purposes. Only wet- table sulfur is imported for agricultural purposes.
Three petroleum companies which produce spray oils from domestic and imported petroleum also produce petroleum weedkillers for use in carrot weedings and as a general contact herbicide.
In addition to production of pesticides (see table 16), there is wide- spread compounding and packaging of these commodities from im- ported ingredients. Several companies compound and package imported 2,4-D and 2,4,5-T acid and esters. Other commodities imported for subsequent packaging and compounding include organic miticides, aldrin, dieldrin, chlordane, and toxaphene. Organic mercuric fungicides also are imported and compounded, principally for use as seed disinfectants. Dithiocarbamate fungicides and copper compounds (other than copper sulfate) are imported and compounded for specialized purposes such as seed disinfectants and for protection of tomatoes, tobacco, and vegetables. Small amounts of imported parathion have been used for spraying fruit and olive trees.
The total amount of compounding and packaging is dependent on availability of exchange for importation of the necessary ingredients. It is estimated that about 5,000 metric tons of these finished products and formulations were marketed in 1953.
Benzene, chloiine, acetic acid, ethyl alcohol, sulfuric acid, and other basic chemicals are domestically available for the manufacture of pesticides. Various diluents, such as clay, talc, kieselgur earth, gypsum, and calcium carbonate are also obtained from local sources, and solvents, such as aliphatic fractions of petroleum and toluol, are locally produced. Containers of all kinds are in adequate supply.
The principal governmental assistance to the pesticide industry is protection from competing imports. For example, to protect the market for locally made BHC, toxaphene imports are permitted only for cattle dips and not for control of cotton insects. Similarly, the government has announced that it will not permit imports of DDT
Table 16. — Argentine 1953 Production of Principal Pesticides
[In metric tons, toxic ingredients]
|
Commodity |
Quantity |
|
|
BHC (12-13 percent gamma isomer) _ __ _ |
3, 500 |
|
|
Carbon bisulfide _ __ _ _ |
1, 500 |
|
|
Copper sulfate. _ |
300 |
|
|
Lead arsenate _ ______ _ . |
1, 500 |
|
|
Lime sulfur _ __ _ _ __ _ _ |
2,500 |
|
|
Lindane, ____ |
18 |
|
|
Methvl bromide _ |
20 |
|
|
Nicotine sulfate _ __ |
50 |
|
|
Paris green_ _ _ _ _ |
400 |
|
|
Wettable sulfur and sulfur dusts |
1,300 |
|
|
Petroleum distillates |
_ _ liters |
4, 000, 000 |
|
Spray oils |
_ ■ do |
5, 000, 000 |
46
once domestic production can supply requirements. Aid is sometimes granted for individual projects by exemption from customs duties and deferred exchange payment for machinery imports.
Consumption
Table 17 shows estimated 1953 consumption of major pest-control products in Argentina, estimated percentages used for agriculture, and projection of consumption to 1960.
Future consumption of pesticides will depend largely on the develop- ment of manufacture and availability of foreign exchange for necessary imports. The largest outlet is in agriculture, and progress in this field will depend upon increased technical studies of Argentine conditions and efforts of the government and private organizations toward scientific agricultural practices.
BHC (used largely on cotton) and lead arsenate (for control of coddling moth and basketworm in orchards) probably will continue to be the principal insecticides used for some time, since they are domestically produced, largely from local raw materials. Spray oils, domestically produced on a large scale and comparatively cheap, also probably will continue to hold the market for pest control on citrus, olive, and deciduous fruit trees. Consumption trend for lime sulfur is downward; its use as a sheep dip has practically disappeared in favor of BHC, and as a miticide it is being replaced by more effective organic formulations.
For household and public health use, DDT and lindane undoubtedly will continue to be the principal insecticides consumed. With the initiation of DDT production and consequent greater stability in supply and probable lower prices, the market should increase propor- tionately. Because of its high price, DDT has not been used on cotton, Aldrin and dieldrin have been intensively tested under local conditions and are to be marketed in commercial quantities in 1955. Provided adequate imports are permitted, these products eventually will be popular for grasshopper and ant control. Tests are being conducted on the use of isodrin and endrin under local conditions. Small amounts of parathion have been imported and found to be very effec- tive in controlling scale on olives and mites on deciduous fruit trees. Systemic insecticides are being tried on cotton. BHC is gradually replacing nicotine sulfate for aphid control.
Copper sulfate is the most widely used fungicide. Organomercuric fungicides hold practically the entire market for seed disinfectants. Consumption of these commodities should increase as the practice of disinfecting seeds spreads.
Consumption of hormone-type herbicides, principally 2,4-D, is expected to increase greatly in the nex t 5 years, chiefly for weed control in grain fields and pastures. Trade sources estimate that at present
47
only about 2 percent of treatable acreage is controlled with this type of herbicide. There are at least three projects for domestic manu- facture of 2,4-D and production is expected to begin in 1955. When domestic supplies are available, consumption of 2,4-D should increase considerably. The use of 2,4,5-T as a brush killer also is expected to grow.
Use of heavy petroleum distillates by railroads for killing weeds has been increasing each year, and this consumption trend is expected to continue upward.
Table 17. — Argentine Consumption of Major Pesticides
I In metric tons unless otherwise stated]
Commodity
Aldrin
Allethrin
Calcium cyanamide and cyanogas
Carbon bisulfide
Chlordane
Copper fungicides (other than copper
sulfate)
Copper sulfate
DDT (100 percent)
Dieldrin
Dithiocarbamate fungicides
Lead arsenate
Lime sulfur
Lindane
Methyl bromide
Nicotine sulfate
Organic miticides
Organo-mercuric fungicides
Paris green
Parathion
Petroleum distillates
Pyrethrum flowers
2,* 4-D (40 percent acid)
2, 4, 5-T
Toxaphene
Wettable sulfur and sulfur dust
Spray oils liters.
1953 consumption
Experimental
50
50
1 , 500
150
150 2,000 1, 100 Experimental 50 1 2
Percentage
used for agriculture
95
500
500
18
20
70
20
70
400
Experimental
4, 400
700
400
20
200
1,400
5, 000, 000
45 98 10
100 100
45
95 100 100 100 2 100
95 100 100
98 100 100
100 100 100 100 100
Estimated con- sumption 1960 '
300 250 150 3,000 200
300
4,500
3,500
200
200
4,000
2,000
30
100
100
1,000
300
500
300
13,000
900
8,000
500
800
2,500
26, 000, 000
i This assumption assumes current income levels and excludes artificial limitations such as exchange, tariffs, etc. It also is based, as far as agricultural use is concerned, on 1953 acreage, and is computed on amounts which would be used if applied to all treatable acreage in the doses and rates dictated by sound technical control measures. These figures must therefore be considered as highly theoretical.
Recent investigations on the use of soil sterilants indicate a poten- tially excellent market provided sufficient imports are permitted. These commodities will be especially useful for rights-of-way, fields, canals, and ditches.
Coal-tar oils, fluorine compounds, and soil fumigants are not in general use. Pyrethrum has been used in substantial quantities for household insecticides, as well as smaller amounts of allethrin. Consumption of these two products should hold steady during the next few years and possibly rise if larger imports are permitted.
48
Foreign Tiade
See table 18 for Argentine imports of pesticides in 1953. United States products enjoy considerable prestige in the Argentine market, and in recent years have accounted for about half of total imports. United States prices have been competitive with those of other sup- pliers, although in 1954 for the first time some European quotations, on DDT and copper sulfate, for example, were slightly lower than United States prices.
The principal deterrent to purchases of United States pesticides has been shortage of dollars, and the Central Bank has given import permits, wherever feasible, to suppliers in soft-currency countries. Thus the more common pesticides, such as copper sulfate, have been imported from these countries, the highly technical and newer products from the United States.
The desire to conserve foreign exchange also has been responsible for the growing trend toward granting preference in exchange alloca- tions for importation of raw materials or active ingredients rather than finished products. This trend is expected to continue as the government encourages domestic compounding and formulation of pesticides.
In general, purchases of pesticides and raw materials from suppliers other than the United States have been made as direct purchases from the overall barter arrangements established in Argentina's various bilateral trade agreements. Germany, the United Kingdom, France, and the Netherlands are the principal competitors of the
Table 18. — Argentine Imports of Pesticides, 1953
Commodity classification and principal countries of origin
Quantity
(pounds)
Value (U. S. dollars)
Insecticides, liquid: United Kingdom. United States
Total
Insecticides, in powder form and general:
Germany (probably Western)
United Kingdom
Total.
Other insecticides and parasiticides in extract, liquid, paste, etc.:
Germany
Italy__;
United Kingdom _
United States
Total
Grand total.
Source: Argentine official trade statistics.
287, 1 60 552,411
839, 902
1 0, 648 15,071
132,873
118,951 505, 303 961, 717 344, 912
1, 941, 642
2, 914, 41'
119, 683 171, 235
291,353
85, 532 27, 261
115,924
61, 539 234, 723 350. 933
90. 645
"44, 45;
1. 151. 734
49
United States in the Argentine pesticide market. All pesticides and ingredients are imported at the basic rate of 7.50 pesos to the dollar. Customs duties average 6 percent of the c. i. f. value.
Equipment
The availability of spraying and dusting equipment is not a serious deterrent to pesticide consumption. An estimated 20 firms manu- facture such equipment and the supply is increasing. As pesticides become more widely used, manufacture of this machinery is expected to rise proportionately. Estimates of equipment now in use are as follows (units):
Power spray machines 4,500
Hand-operated sprayers on wheels 5,500
Knapsack sprayers 46,000
Dusters No data
Motor units are used principally for fruit and olive trees and weed control; knapsack sprayers for vineyards, vegetable crops, and tobacco; and dusters for such purposes as control of locusts. There is some movement toward aerial application which has been limited to government control of major pest infestations.
Fumigation of grain is done almost entirely by six contractors, who also do about 15 percent of weed-killing application. While contract spraying is decreasing, due to greater availability of spraying equip- ment at relatively low prices and liberal credit offered farmers for pur- chases of such machinery, it probably will continue to be the principal method for applying such products as phosphatic and systemic in- secticides, which are extremely toxic to humans.
Marketing and Distribution
An estimated 70 percent of trade in pesticides is by sales from sup- plier to dealer or retailer to consumer, and about 30 percent by sales direct from the supplier to consumer. Distribution through retail outlets is increasing as the number of specialties marketed by each supplier increases, and direct sales are being limited more and more to purchases by government organizations. Household and garden pesticides are sold through retail stores.
Each manufacturer or seller of pesticides is required by law to staff at least 1 qualified agronomist, and in the case of livestock products, at least 1 qualified veterinarian.
Credit is usually extended for agricultural pesticides, terms varying with the product and the season. Most products are paid for by the consumer at the end of the season. The time varies from about 120 days for BHC dust for cotton to 6 to 8 months for dormant spray oils for use on fruit trees.
50
There is practically no distribution of pesticides by government agencies. Both the federal and provincial public health departments utilize pesticides for insect and rodent control.
The Ministry of Agriculture undertakes certain pest-control oper- ations. For instance, the Bureau of Acridology is responsible for large-scale locust- and grasshopper-control campaigns, often in co- operation with neighboring countries. This control is usually per- formed by aerial and land dusting. The Ministry of Agriculture also operates official dips for cattle moving between tick-infested and "clean" areas, and sprays fences and windbreaks along roadsides for basketworm control. Other government entities, such as the rail- roads, are also important purchasers of pesticides.
Publicity for agricultural specialities usually is in the form of folders, pamphlets, circulars, and manuals describing a product and containing instructions on its use. Advertising is also common in agricultural and livestock magazines, of which there are about 20, as well as in newspapers published in farm areas. This type of publicity usually coincides with the appropriate season for the product in question. In addition, some companies use billboards and posters in rural areas. Household insecticides are advertised principally through newspapers and posters.
As a rule, new products are introduced, promoted, and established by the technical and sales efforts of private suppliers. Scientific research by official organizations is limited by lack of trained personnel and insufficient funds, and consequently the burden of technological research devolves on private concerns. The larger firms run tests for formulations of finished pesticides and their adaptation to local condi- tions before the product is released for sale. Many of these firms are subsidiaries of foreign companies and are able to utilize basic research already undertaken by their principals.
Government Decrees and Regulations
Imports of pesticides are carefully controlled by the government. The Central Bank periodically announces that it will receive applica- tions for importation of specified products. On the basis of applica- tions received, the Bank allocates exchange among the various appli- cants, according to exchange availability, the amount of the request, and previous import history. Each application must be accompanied by a certificate from the Ministry of Agriculture or the Ministry of Public Health to the effect that the product is not available locally and is essential to the country's economy or well-being. The Minis- tries usually require data on the product, its uses, toxicity, etc., before granting this certificate.
All pesticides must be approved by the government before sale in Argentina, those for agricultural use by the Ministry of Agriculture,
51
and those for household or public health purposes by the Ministry of Public Health. Insecticides used in both agriculture and households require approval from both Ministries. To obtain such approval, detailed information regarding the chemical formula, uses, and previ- ous experiments must be submitted. The usual practice is to issue a temporary permit valid for 2 years following a preliminary examination and laboratory tests. During these 2 years field tests are completed, then a permanent permit is issued. Approvals are granted for the chemical product only and not for brand names.
Sales of pesticides in other than bulk containers, such as drums or barrels, require approval of containers and labels by the Ministry of Commerce, which is usually automatically granted in a few days. Labels must carry a general description of the formula with percentage content and name of the active ingredients.
There is no control of prices or production. From time to time, the Ministry of Commerce requires that manufacturers and importers report output, stocks, and sales of specified products. Such regula- tions are now in effect for lead arsenate and DDT. This ruling serves to keep a check on items which may be in short supply.
Prospective Developments and Trends
As a result of development of new pesticides not elsewhere available and widespread information on their effectiveness, United States commodities enjoy considerable prestige in Argentina. However, until dollar availability is greater, products manufactured in areas outside the United States probably will continue to be imported from soft- currency areas.
Argentina is desirous of promoting domestic manufacture, com- pounding, and formulating of pesticides to conserve foreign exchange and to develop local industry. To promote industrial development through foreign capital investment, the government recently passed a foreign investment law providing for profit remittances and capital repatriation. These factors, combined with the high regard for United States technical know-how, offer opportunities for investment of United States capital and technology in manufacture of pesticides in Argentina. Interest in Argentine manufacture of pesticides has recently been shown by British and German firms.
To improve the competitive position of their products, United States firms should take advantage of current advanced technology and research by wide dissemination of technical literature on various products, particularly the newer pesticides. Agriculture offers the largest immediate opportunity for market expansion. Argentine re- search in adaptation of pesticides to local conditions is limited, hence actual field tests by United States firms and active investigation of local pest-control problems appear advisable. Close cooperation on
52
technical problems with Argentine Government agencies operating in this field should be established. Sales promotion should also empha- size the improvement in agricultural yields which would result, since this point is of particular interest to the Argentine Government, especially with regard to export crops.
BOLIVIA
(Based on report by M. S. Leggett, U. S. Embassy, La Paz)
Production
Manufacture of pest-control products in Bolivia consists of formu- lating finished products from imported toxic ingredients. Output during 1953, as reported by the two formulators, was as follows:
"Perplex" — containing DDT and pyrethrnni, 5,400 liters. "Lucifer" — containing 3 to 20 percent DDT. 5,000 pounds. "Hormitox" — containing chlordane and
DDT. "Sarnifuge" — with base of Lexone and DDT "Garrapatacida" — with a base of Gammex-
ane. "Vermifugo" — with a base of phenothiazine
and carbon tetrachloride.
Production data not available; an- nual output believed to be less than 5,000 pounds.
Domestic raw materials available for manufacture of pesticides include sulfuric acid, ethyl alcohol, sulfur, and copper sulfate, but output of both sulfuric acid and ethyl alcohol is too low to meet re- quirements. The Servicio Agricola Interamericano (SAI), a part of the U. 8. Operations Mission to Bolivia, is studying the possibility of using volcanic ash, which is present in large quantities, as diluent for pesticides.
Consumption
Official consumption data are not available. Imports of pesticides are estimated at from $60,000 to $80,000 a year, of which about 50 percent are products containing DDT; 20 percent, BHC products; 20 percent, 2,4-D and other weedkillers; and 10 percent, other types.
Pest-control products imported into Bolivia by SAI from January 1953 through June 1954 were as follows:
Commodity:
BHC 10 percent gamma isomer pounds. _ 27, 600
DDT 50 percent wettable powder do 11, 500
Methoxychlor 50 percent wettable powder do 2, 500
Toxaphene 40 percent wettable powder do 2, 500
Dieldrin 15 percent wettable powder . .do 1, 000
Chlordane 40 percent wettable powder do ... . 9, 000
53
Commodity — Continued
Sulfur pounds- _ 4, 500
Aldrin 25 percent do 4, 000
Aresan, Semesan, Fermate, Dithane do 1, 500
Rodent bait, spreader-stickers, etc do 500
Other insecticides and fungicides do 3, 000
Weedkillers gallons. _ 350
Oil emulsions do 750
Major users of pesticides are the Ministry of Agriculture and Banco Agricola, both government agencies, which are endeavoring to dis- seminate knowledge of pest-control products and methods of use. SAI and Servicio Cooperative Interamericano de Salud Publica (SCISP) also have similar programs. It is estimated that agriculture accounts for 80 percent of consumption; public health, 15 percent; and household use, about 5 percent.
If satisfactory progress is made in the government's plans for eco- nomic diversification, which include a considerable expansion in agri- culture in order to cut down Bolivia's current $25 million annual bill for imported foodstuffs, and if the program now being conducted by SAI and other agencies succeeds, consumption of pest-control products might well be multiplied several times by 1960.
Foreign Trade
Only meager import statistics on pesticides are available. It is believed that approximately 70 percent of imports arrive from the United States, 20 percent from Argentina, 8 percent from the United Kingdom, and the remaining 2 percent from other countries.
Campaigns by the Ministry of Agriculture against common vege- table insects (potato and tomato bugs particularly) are believed to have been effective in encouraging greater imports and consumption of insecticides. Imports of locust-control products valued at $15,000 to $20,000 have been made from Argentina, in accordance with a tri- partite agreement between Bolivia, Argentina, and Paraguay.
Equipment
There is a serious lack of equipment such as sprayers and dusters. To some extent this situation is being remedied by the importation of these items under the reimbursable-facilities project of the Interna- tional Cooperation Administration. The Ministry of Agriculture has on hand some 2,000 hand-pump sprayers, a few motor sprayers, and some other equipment, but estimates that it needs an additional 10,000 hand-pump sprayers and about 200 motor sprayers. The tripartite agreement provided for the use of aircraft to combat locusts.
54
Marketing and Distribution
United States pest-control products are considered the most costly but are the most widely known and are of excellent quality. Terms of sale for pesticides are understood to be direct purchase for cash.
Radio and the press are effective advertising media, and circulars for distribution to potential consumers also should prove useful. The field demonstrations made by SAI, however, are considered to be the most effective promotional activity.
Government Decrees and Regulations
There are no decrees or regulations affecting manufacture and dis- tribution of domestic and imported pest-control products. However, according to standing regulations (Supreme Decree of August 26, 1954), pesticides (paragraph No. 350 of the Bolivian Customs Tariff) are subject to the following duties and fees:
Customs duty of 130 bolivianos (1 boliviano equals ($0,052) per 100 kilograms;
Subsidiary custom duty of 20 percent on the previous duty; plus
One boliviano per gross kilogram; plus
Consular fee of 6 percent ad valorem, calculated on the c. i. f. value of the merchandise; plus
Custom services fee of 1 percent ad valorem, calculated on the c. i. f. value of the merchandise; plus
Gross sales tax of 10 percent ad valorem calculated on the c. i. f. value of the merchandise, plus all other fees and taxes except the additional c. i. f. ad valorem.
All imports are subject to import license issued by the Central Bank of Bolivia. Foreign exchange at the rate of 190 bolivianos to the United States dollar is granted for importation of pest-control products.
Prospective Developments and Trends
The size of the market limits opportunities for investment of United States capital and technical knowledge in Bolivia's pesticide industry.
Only about 2 percent of land is under cultivation and the population of the country is only 4 million, hence Bolivia's imports of pesticides will necessarily be limited. However, demand by farmers for com- paratively simple pest-control products which require no special prep- aration or equipment to apply is greater than the supply, and the Ministry of Agriculture has been obliged to distribute these prep- arations on a quota basis. ,
The best means for United States firms to promote sale of then- products in Bolivia is to send qualified representatives to make on-the- spot investigations of local conditions. At least 1 United States firm and 1 German firm have already undertaken such a project. The United States enjoys a major share of the market and its relative share
55
in the future probably will be determined largely by price. If prices can be kept to a minimum and quality np to standard, the United States should continue to enjoy a dominant position in the Bolivian market for pesticides.
BRAZIL
(Based on report by A. M. Hartman, U. S. Embassy, Rio de Janeiro)
Production
Production of pest-control products is comparatively recent in Brazil. Benzene hexachloride (12 percent dry) is produced by Indus- trias Reunidas F. Martarazzo of Sao Paulo, and Eletro Chloro S. A., and Eletro Quimica Fluminense S. A., both of Rio de Janeiro, with a combined output estimated at 7,500 metric tons a year. Copper sulfate is produced by 8 companies whose total annual output is about 1,500 tons, against total requirements of 4,000 tons. Companhia Quimica Rhodia Brazileira, Sao Paulo, manufactures parathion; capacity is about 100 tons a year (100 percent basis), which evidently meets present demand.
Rotenone (timbo root) and pyrethrum flowers, both used as insec- ticides, grow in Brazil. Production of pyrethrum is reported at around 1,000 tons a year. It is understood that a large United States company is building a pyrethrum extraction plant in Brazil. Nico- tine is produced in small quantities from domestic tobacco. White arsenic is obtained as a byproduct from 2 gold-mining companies, with annual production estimated at approximately 1,500 tons, about half of requirements. The remainder is normally imported from Sweden.
According to local trade sources, there are 15 or more large chemical importing companies which mix pest-control products from imported raw materials.
Chemicals available for the manufacture of pesticides include sul- furic acid (produced at 17 plants); sulfur, with an output of about 2,500 tons a year, which is only a small portion of requirements; ethyl alcohol (produced from sugarcane), output in 1953-54 totaling 67.9 million liters; acetic acid, produced in quantities sufficient to meet demand.
Consumption
Local trade estimates that agriculture absorbs 85 percent of con- sumption, the remaining 15 percent being used for public health and household purposes.
56
The Syndicate of the Formicide and Insecticide Industry estimates Brazil's 1954 consumption of pest-control products as follows:
_ , , Metric
Product: tons
Sulfur, powdered 8, 240
Benzene hexachloride (12 percent gamma isomer basis) 7, 600
Copper compounds (sulfate, oxides, etc.) 4, 000
DDT (50 percent basis) 3, 000
Toxaphene (40 percent basis) 2, 660
Toxaphene (100 percent basis) 1, 000
Methyl bromide 2, 300
Miscible oils 500
Dithiocarbamate fungicides 400
Soil f umigants 220
Herbicides 200
Sodium cyanide 150
Thiophosphates (100 percent basis) 100
Lindane (100 percent basis) 15
Systemic insecticides 10
Total 30,395
According to the syndicate, Brazil's 1954-55 import requirements for basic ingredients for formulation of pesticides are as follows :
-, , , Metric
Product: tons
DDT (100 percent basis) 5, 000
Diluents for insecticides 2, 550
Toxaphene ^50
Paranitriphenyl 50
Emulsifiers, humidifiers, and dispersing agents 90
Red phosphorous 20
1 A large inventory already on hand.
Other basic ingredients which, according to the syndicate, will eventually be imported in smaller quantities for production of certain rpes of pesticides are :
types of pesticides are :
Potassium cyanide Chlordane
Calcium cyanide Metaldehyde
Piperonyl butoxide Methylchlorophenoxyacetic acid and salts
Dieldrin Trichlorophenoxyacetic acid and salts
Aldrin Sodium chlorate
Dichlorobenzene compounds Dinitro-ortho-butyl-phenol
Trichlorobenzene Sulfur
Pentachlorophenol Arsenic
Foreign Trade
See table 19 for 1953-54 imports of pesticides into Brazil. Official trade statistics give no indication that pest-control products are exported from Brazil.
The bulk of Brazil's imports of pesticides are by mixing and distrib- uting companies which sell, under advertised brand names, formula-
379238—56 5 57
Table 19. — Brazilian Imports of Pesticides, 1953 and Jan.-June
1954
[Quantity in pounds; value in U. S. dollars]
Commodity classification and principal countries of origin
1953
Quantity
Value
1954 (Jan.-June)
Quantity
Value
Copper sulfate:
Belgium and Luxembourg.
France
Germany
Japan
Netherlands
United Kingdom
United States
Yugoslavia
Other countries
1, 515, 551
5, 638, 904
663, 152
160, 494
808, 805
95, 053
310, 331 817, 907
777, 609 1, 981, 338
47, 717 109, 828
98, 130 290, 530
979, 663
1, 127, 255
330, 690
325, 399
596, 767
89, 906
103, 616
Total.
11, 704,792
1, 610, 557
3, 553, 296
DDT:
France
Italy
Netherlands
United States- _ Other countries.
Total
143, 299 110,230
52, 966 28, 052
4, 451, 885 2, 205
1, 298, 909 1,093
110,230
1, 263, 606
71, 650
4, 707, 619
1, 381, 020
1, 445, 486
Benzene hexachloride:
Denmark
France
Germany
Italy
Japan
Netherlands
United States
4, 409 265, 059 882, 795 132, 496 418, 874
20, 441
54, 860
261, 607
32, 023
74, 108
2, 032, 813
377, 666
220, 460 593, 606 232, 916 242, 506 179, 840 165, 464
Total.
3, 736, 446
820, 705
1, 634, 792
Insecticides and fungicides, for "tillage and hus- bandry":
France
Germany
Italy
Japan
Netherlands
United States
Other countries
608, 251 409, 394 132, 276 132, 276
285, 975
182, 827
20, 324
22, 482
65, 422
835, 237
32, 077
2, 707, 546 231
1, 031, 945 111
137, 181
1, 864, 556
36, 239
Total.
3, 989, 974
1, 543, 664
2, 970, 712
Insecticides and fungicides, not elsewhere classified:
United States
Other countries
104, 194 37, 919
77, 593 27, 568
17, 762
Total
Grand total.
142, 113 105, 161
17, 762
24, 280, 944 5, 461, 107
9, 622, 048
149, 479
199, 187
48, 885
64, 219
82, 453 14, 401 19, 510
578, 134
35, 059
387, 436
25, 183
447, 678
48, 273 288, 699 35, 210 40, 927 37, 282 53, 724
504, 115
57, 763
392, 650
7,548
48, 616
1, 647, 746
27, 941
2, 182, 264
12, 380
12, 380
3, 724, 571
Source: Brazilian official trade statistics.
58
tions particularly designed for protection of the principal agricultural crops. Pest-control products are used chiefly on cotton, coffee, and, to a lesser extent, food crops. Brazilian farmers appear to prefer United States pesticides and, despite higher prices for some commod- ities, the United States probably will continue to be the principal supplier.
Equipment
Various types of portable sprayers and dusters are manufactured domestically, with output estimated at 10,000 units a year. Motor- ized spraying and dusting equipment is imported. Brazil's estimated annual requirements for various types of equipment are :
„ . . , Number of
Types of equipment : units
Portable dusters 10, 000
Portable sprayers 8, 000
Motorized sprayers and dusters (including self-propelled and tractor
types) 1,000
Other types 500
Total. 19,500
Marketing and Distribution
Imports of pesticides are made largely by formulators, government agencies, and agricultural and trade associations. Government agencies and the associations are able to import at greatly reduced prices since foreign exchange is available to them at low rates. Barter arrangements, special credit terms, consignment imports, and other devices used by European and Far Eastern suppliers to combat United States dominance in the Brazilian market in other commodi- ties do not appear to be important or effective in the pesticide field.
Consumers prefer to purchase from established companies who offer more liberal credit terms, supply products of consistent quality, and are a steady source for needed materials. Usual credit terms are 60 days, but 6 months to a year may be extended to a known and reputable planter. Often pesticides are not paid for until after the crop is harvested and sold. Almost no distribution is made through wholesalers or distributors since this would necessarily raise the price to the ultimate consumer.
Direct-contact advertising is considered most effective. Suppliers' agents, company representatives, and county agents communicate directly with planters and advise them on the most effective products for specific pest-control problems. Company trucks carrying ad- vertisements, pamphlets, handbills, and inexpensive gifts bearing the name or trademark are all used for advertising. Articles describing up-to-date farming methods and mentioning names of products used for pest control are often published in newspapers or periodicals having wide distribution in agricultural circles.
59
Government Decrees and Regulations
Both imported and domestically manufactured or formulated pesticides must be approved and registered by the Federal Depart- ment of Agriculture before sale. Application for registration must be accompanied by a packaged sample, a certified chemical analysis of the product, instructions for its use, the name and address of the distributor, and the brand name or other identification. The Depart- ment, upon the basis of the chemical analysis, determines whether the product is properly packaged, effective and safe to use, and cor- rectly labeled. The label must bear the brand or trade name, a statement of the active ingredients (with percentage of each), the weight or liquid content of the package (in metric units), the dosage recommended, and instructions for use. (Decree No. 24,114 of April 12, 1934, Apitulo VI, published in the Diario Oficial of May 4, 1934. A copy of this decree is on file in the Chemical and Rubber Division.)
Prospective Developments and Trends
It is suggested that United States investors and manufacturers of pesticides consider the possibility of producing basic toxic ingredi- ents in Brazil. The present exchange system favors imports of these products, and domestically produced pesticides must compete with relatively cheap imports. Nevertheless, this situation has not prevented domestic manufacture of BHC, nor has it deterred United States companies from entering the pesticide field. Brazil probably will be short of dollar exchange for some time. Domestically manu- factured pesticides which eliminate or reduce the necessity for imports are welcomed by the Brazilian Government and probably would prove profitable to the manufacturer.
The farsighted policies of Brazilian subsidiaries of United States companies appear to guarantee the favorable position of United States pesticides in this market. However, since the United States is the principal supplier, it is doubtful that its share of imports can be increased to any great extent.
CHILE
(Based on report by R. Guzman, U. S. Embassy, Santiago)
Production
Approximately 10 companies (8 in Santiago, 1 in Valparaiso, and 1 in Concepcion) manufacture or formulate pesticides in Chile. Trade sources estimate current annual production at 3.6 million pounds of
60
lime sulfur and 1.9 million liters of miscellaneous pesticides, including bordeaux mixture, lead arsenate, DDT solution, formulations of chlordane, lethane, thanite, etc. Data on the amount of toxic ingredients used in this manufacture are not available. Annual copper sulfate production is approximately 450,000 pounds. Output of sheep dip containing the gamma isomer of BHC is about 550,000 pounds a year.
Raw materials manufactured in Chile for use in production of pesticides and annual capacity in pounds are:
Acetic acid 132, 000
Sulfuric acid 25, 000, 000
Creosote and "condensed oil" 8, 800, 000
Chlorine (liquid) 321,500
Benzene hexachloride 40, 000
Phenol, cresol, cresylic acid, naphthalene, pyridine, and pyrethrum also are produced but data on output are not available.
Imports of raw materials for preparing pesticides, particularly emulsifiers, adhesives, and new toxic materials, are below domestic requirements because of the shortage of dollar exchange.
Consumption
The Chilean Ministry of Agriculture estimates 1954 consumption of pesticides as follows (in pounds) :
Lead arsenate, 555, 000
Sheep dip 555, 000
Agricultural sulfur 220, 000
DDT (100 percent basis) 88,000
Fungicides 90,000
Nicotine sulfate 46, 500
Chlordane insecticides 22, 000
Other pesticides 65, 000
Oils ____liters__ 1, 000, 000
Weedkillers do 60, 000
The Public Health Ministry estimates 1954 uses as follows (in metric tons): DDT, 40; rodenticides, 20; other pesticides, 30. Prob- able use in 1960 will increase 50 percent over that in 1954.
Foreign Trade
See table 20 for Chilean imports of pesticides in 1953. Chile's imports of prepared pesticides are relatively small, but imports of toxic ingredients for formulation in Chile are increasing. The United States and the United Kingdom are the principal suppliers.
The Chilean Ministry of Agriculture requested US$1 million in 1955 for importation from the United States of finished pesticides and toxic ingredients for their manufacture. The foreign exchange
61
budget allocated only US$272,000 for this purpose but allowed the equivalent of $600,000 in other currencies for importation of weed- killers and $130,000 to purchase winter oils.
Chilean exports consist only of sheep dip and some raw materials from the steel plant at Huachipato. Destinations are neighboring countries, cheifly Argentina. Once domestic demand is met, Peru and Bolivia also are potential markets.
Equipment
There are approximately 5,000 spraying and dusting units in Chile. The Ministry of Agriculture estimated 1955 requirements of imported equipment at $1.7 million, sufficient to purchase approximately 2,200 additional units. Ministry of Agriculture requirements for 1955, by specific types needed, were as follows:
Units Spraying equipment of 600 to 800 pounds pressure and capacity of 1,500
liters 250
Spraying equipment of 500 to 600 pounds pressure and capacity of 700
liters, with spraying bar for herbicides 400
Spraying equipment of 300 to 500 pounds pressure and capacity of 200
liters with spraying bar for herbicides and adjustable gauge 1, 500
Other spraying equipment 500
Total 2,200
Lack of spraying units limits application of herbicides and materials for protection of fruit trees. Four local plants manufacture small spraying and dusting equipment.
Marketing and Distribution
Imported pesticides are generally obtained by direct purchase from the foreign supplier and distributed through local agents. Chilean manufacturers of prepared pesticides seldom sell through distributors, preferring to sell directly to retailers or to consumers.
Usual advertising media are newspapers, magazines, and radio programs. Little advertising by importers or agents for pesticides originates in countries other than the United States.
Government Decrees and Regulations
Before sale in Chile, a pesticide must be registered in the Trade Mark Department of the Ministry of Economy and approved by the Ministry of either Agriculture or Public Health.
Applications for imported raw materials or prepared compounds must be approved in advance by technicians of the Ministry of either Agriculture or Public Health and then by the National Foreign Trade Council.
62
|
Table 20.- |
—Chilean Imports |
of Pesticides, 1953 |
|
|
Commodity classification and principal countries of origin |
Quantity (pounds; |
Value (U. S. dollars) |
|
|
Preparations for control of poultry insects: United States _ _ |
14, 892 14, 462 |
8,000 |
|
|
Other countries __ |
2,987 |
||
|
Total |
29, 354 |
10, 987 |
|
|
Insecticides: United Kingdom |
143, 623 294, 111 3,924 |
44, 734 |
|
|
United States __ _ |
131, 570 |
||
|
Other countries |
5, 835 |
||
|
Total |
441, 658 |
182, 139 |
|
|
Fungicides: United Kingdom _ |
28, 968 359, 223 103 |
9, 992 |
|
|
United States __ _ _ _ |
152, 444 |
||
|
Other countries |
57 |
||
|
Total |
388, 294 |
162, 493 |
|
|
Rodenticides, total |
3, 146 |
2, 283 |
|
|
Cattle dips and sprays: United Kingdom |
105, 431 7, 125 |
69, 966 |
|
|
United States _ |
4, 925 |
||
|
Total _ _ _ |
112,556 |
74, 891 |
|
|
Other (not identified): Belgium |
13, 210 84, 747 13, 882 |
48, 392 |
|
|
United States |
49, 832 |
||
|
Other countries |
5, 130 |
||
|
Total |
111,839 |
103, 354 |
|
|
Grand total |
1, 086, 847 |
536, 147 |
|
Source: Chilean official trade statistics.
Prospective Developments and Trends
Recent industrial developments in Chile, such as the steel plant at Hauchipato, new rayon industries, and the paper industry, can fur- nish some byproduct raw materials for production of pesticides. Because of the high cost of importing finished pesticides and the dollar shortage, technicians of the Ministry of Agriculture are asking that the government permit importation of toxic ingredients only from which local formulators can prepare finished products, using domestic diluents. These technicians also have requested importation of mixing and packaging machinery.
The exchange shortage prevents imports of a wide selection of trademarked products, hence local consumers are familiar only with available commodities and do not have an opportunity for compar- ing the quality of various pesticides for particular purposes. There
63
is a demand for more United States pesticides than are now used but import permits for these commodities are not readily granted.
COLOMBIA
(Based on report by J. B. Richards, U. S. Embassy, Bogota)
Production
Pest-control products are not manufactured in Colombia. Do- mestic lime is mixed with copper sulfate to form bordeaux mixture. Sulfur is mined in fairly substantial quantities, but is inadequately re- fined for agricultural purposes. The only compounders and packagers of pesticides for retail sale are Shell Oil Company (aldrin dust) in Barranquilla, and Cia. Probst (toxaphene) in Medellin, both using imported toxic ingredients.
The Caja de Credito Agrario (Agricultural Credit Bank) has studied the possibility of compounding pest-control products, using imported active ingredients, but the plan has been discarded for the time being because of the expense. However, this project may be revived and would involve refining domestic sulfur, making dust formulations with Colombian diluents, mixing wettable powders from imported ingre- dients, and preparing emulsions from domestic petroleum and imported toxic materials. At present no tariff protection is given pesticide formulators. Should the industry develop, such protection probably would be extended and subsidies granted to protect farmers against price increases.
Consumption
Since there is little production of pesticides, consumption approxi- mately equals imports. The Caja de Credito Agrario, a large con- sumer, ordinarily imports the following amount of pesticides, mainly for protection of cotton, potatoes, and bananas (in metric tons) :
Aldrin 15-20
Calcium arsenate 90
Chlordane 200
Copper sulfate 910
DD (in 1955) 200
Dieldrin 15
Dithane 25
Toxaphene 50
Petroleum oils gal__ 300, 000
2,4-D do__ 50,000
In addition, considerable amounts are imported by private firms. The Public Health Service (Servicio Cooperativo Interamericano de Salud Publica) in 1953 imported 300,000 pounds of 75 percent DDT
64
and 20,000 pounds of dieldrin for use in the malaria-control program. A large chain of drug stores annually imports and sells about 22,000 pounds of various household insecticides, probably about 20 percent of retail distribution of such products.
Use of pest-control products (particularly 2,4-D) is steadily increas- ing and it is estimated that by 1960 consumption will be nearly twice that in 1954.
Foreign Trade
See table 21 for information on Colombian imports of pesticides in 1953. The United States was the principal supplier, followed by the United Kingdom and Germany.
There is no indication that Colombia exports pesticides.
Equipment
Adequate spraying equipment is available. Major banana growers use heavy equipment, usually consisting of tanks up to 500 gallons pulled by tractors (all from the United States). Cotton farmers are relying more and more on spraying and dusting by air; an estimated 50 percent of all major cotton plantations are thus sprayed. For potatoes and other crops, knapsack sprayers are used, which are im- ported and distributed by the Caja de Credito Agrario, as well as by agricultural supply companies. The Caja, which sells almost at cost, imported (almost entirely from Switzerland and Germany) and sold about 40,000 knapsack sprayers in 1954.
Switzerland and Germany supply sprayers with brass or copper tanks at a considerably lower price than those from the United States, although the United States offers galvanized steel tanks on a com- petitive basis. However, farmers will not accept the galvanized tanks, even though the Caja has recommended their use.
Marketing and Distribution
Most imports, including all those from the United States, are under- stood to be on a letter-of-credit basis. Some imports by private companies from European countries have been on 90-day terms. There seems to be no immediate danger that the United States will suffer severe losses of business because of more liberal terms offered by European suppliers despite the acute shortage of dollar exchange.
Considerable distribution of agricultural pesticides is through branches and agents of the Caja, with private firms distributing the remainder. Commodities for public health use are disseminated through the Public Health Service. Distribution of packaged goods for agricultural use is through hardware and agricultural supply
65
|
Table 21.- |
—Colombian Imports of |
Pesticides |
,1953 |
|
|
Commodity classification and principal countries of origin |
Quantity (pounds) |
Value (U.S. dollars) |
||
|
Copper sulfate : Belgium and Luxembon re- |
1, 247, 3, 275, 4, 514, 218, 103, |
495 317 060 255 733 |
133, 364, 505, 33, 11, |
410 |
|
United Kingdom _ |
7?,3 |
|||
|
United States |
356 |
|||
|
Yugoslavia __ _ _ |
000 |
|||
|
Other countries |
480 |
|||
|
Total--. _ |
9, 358, |
860 |
1, 047, |
969 |
|
ted States, total |
total. _ _ _ _ _ |
|||
|
Nicotine sulfate — Unii |
3, 72, |
360 500 |
3, 21, |
220 |
|
DDT— United States, |
681 |
|||
|
Calcium arsenate : United States |
929, 134, |
725 100 |
54, 9, |
356 |
|
Other countries. |
868 |
|||
|
Total |
1, 063, |
825 |
64, |
224 |
|
Refined sulfur: Germany |
69, 1, 365, 4, |
175 750 875 |
5, 71, |
367 |
|
United States _ _ _ ___ |
274 |
|||
|
Other countries _ |
830 |
|||
|
Total _ |
1, 439, |
800 |
77, |
471 |
|
Antif ungus materials : United Kingdom __ |
39, 72, 26, |
268 873 082 |
8, 21, 4, |
946 |
|
United States . |
788 |
|||
|
Other countries |
167 |
|||
|
Total |
138, |
223 |
34, |
901 |
|
sticides: |
||||
|
Disinfectants and inse Canada |
109, 507, 71, 1, 759, 4, 050, 26, |
241 876 094 169 044 949 |
23, 237, 8, 462, 1, 197, 9, |
961 |
|
Germany _ |
903 |
|||
|
Netherlands _ |
531 |
|||
|
United Kingdom ____ _ |
499 |
|||
|
United States _. _____ __ |
975 |
|||
|
Other countries. _ |
997 |
|||
|
Total. _ _ _ |
6, 524, |
373 |
1, 940, |
865 |
|
Grand total |
18, 600, |
941 |
3, 190, |
331 |
Source: Colombian official trade statistics.
houses, while household insecticides are sold mainly through drug stores, some of which operate large chains and import direct.
Principal advertising media used by importers of pesticides are newspapers and agricultural trade journals. Radio is not much used. The Caja de Credito Agrario conducts promotional work among farmers, urging increased use of pesticides.
Government Decrees and Regulations
There are no government regulations affecting production or dis- tribution of pesticides. A regulatory decree is reported to be under con-
66
sideration but has not yet reached concrete form. Most pesticides are imported free of duty but are subject to the exchange tax of 10 percent, payable when the import permit is granted. In addition, a deposit of 24 percent is required but is refunded when the product is actually imported.
Prospective Developments and Trends
It does not appear that good opportunities presently exist in Colom- bia for investment of United States capital or technical knowledge in the manufacture of pesticides. It is probable that fly sprays could be compounded locally from domestic oil and imported active in- gredients and that copper sulfate, for which there is a fairly good mar- ket, could be made economically.
United States products already hold a major share of the Colombian pesticide market. Competition from European countries, particular- ly West Germany, may increase, but United States products are favored and should maintain their present share of the market unless there is a substantial change in relative prices.
ECUADOR
(Based on report by W. F. Gray, U. S. Embassy, Quito)
Production
Pesticides are not actually manufactured in Ecuador. Sulfur is mined in at least two locations, but is not ground in any quantity. Lime is available but usually contains considerable magnesium oxide which makes it unsuitable for formulating lime sulfur. An insecti- cidal oil is produced by a British-owned oil refinery. There is a limit- ed amount of "one-room" formulation of insecticides.
Pyrethrum flowers are grown and a small amount of grinding is done by one firm. Two United States firms cultivate this crop at elevations of 11,000 feet on land which had long been idle because it was considered -economically unproductive. Some pyrethrum is pur- chased by an Ecuadoran firm, but most is exported to the United States. Exports in 1953 were approximately 15 short tons, but in 1954 rose to 70 tons. One of the United States firms estimates pro- duction at 200 tons in 1955 and a possible 500 tons in 1956.
Consumption
No information is available on consumption. However, with little production of pesticides in Ecuador, consumption probably approxi- mates imports. Ecuador has two distinct agricultural zones — the
67
highlands and the lowlands. In the highlands most agricultural crops are consumed locally. Principal crops requiring pesticides are po- tatoes, corn, peas, and fruit trees. For blight control on potatoes, bordeaux mixture, new organic fungicides, and insoluble copper com- pounds are used. DDT controls most insects on potatoes, but other organics are also used. Stored corn is treated with pyrenone and lindane. Pea crops need sulfur to protect them from powdery mildew. Most fruit trees need copper compounds for control of lichens, moss, and other parasitic growths. Apples are badly infested with scab and powdery mildew which can be controlled with sulfur and some organic fungicides. Citrus trees must be sprayed with oil or be killed by scale insects.
In the lowlands, crops are grown for export and include bananas, cacao, coffee, rice, cotton, citrus, and sugarcane. Insecticides used are chiefly DDT, BHC, and toxaphene on cotton; oil on citrus; and toxaphene on cattle. Some DDT and toxaphene are used against army worms on rice. Work is starting on the use of fungicides against sigatoka disease on bananas. Other crops generally are not treated, although the sugarcane borer heavily infests sugarcane, coconuts cannot be grown because of borers, and cacao diseases are serious.
Foreign Trade
See table 22 for information on 1953 imports of pesticides into Ecua- dor. Imports are on the increase. Many United States producers of pest-control products have agencies in Guayaquil and Quito, and some have field men to demonstrate their products to increase sales. British, German, and Swiss pesticides are also available in Guayaquil and Quito, and German products are coming into the country in in- creasing amounts.
|
Table 22. — Ecuadoran Imports of Pesticides, 1953 |
|||
|
Commodity classifications and principal countries of origin |
Quantity (pounds) |
(U. |
Value S. dollars) |
|
Disinfectants and insecticides: United Kingdom _ _ _ |
140, 650 1, 230, 203 147, 345 |
1, 085 |
|
|
United States _ |
23, 807 |
||
|
Other countries |
2,351 |
||
|
Total. _____ _ _ _ _ |
1, 518, 198 |
27, 243 |
|
|
Copper sulfate: Chile |
7,646 69, 625 |
50 |
|
|
United States _ |
509 |
||
|
Total. _ _ _ __ _ |
77, 271 |
559 |
|
Source: Ecuadoran official trade statistics.
68
Equipment
In the highlands very little power equipment is used because of lack of capital, dearth of skilled workers, backward farming methods, and cheap Indian labor. For potatoes and most other crops knapsack sprayers are used. Very few dusting machines are in use because of the high cost of importing bulky dust materials.
In the lowlands, fixed-nozzle boom sprayers are used by a few large haciendas, but the maximum size is 3 to 4 rows. Larger units are not generally needed. There is definitely a need for 2-row, traction- powered, man- or animal-pulled sprayers and dusters. Small engine- powered, man-carried units could also be used.
Marketing and Distribution
United States products are equal in quality to those imported from other countries but are often more expensive. United States pesti- cides are in more general use, but the percentage of cheaper priced European products is likely to increase. Methods of payment and credit terms were not reported, but it was indicated that no barter transactions take place.
Government Decrees and Regulations
There are no special regulations affecting production and distribu- tion of domestic and imported pest-control products. Pesticides generally are subject to very low import duties and, for the most part, are included in list I of the Foreign Exchange Law which permits importation at a more favorable official rate of exchange.
Prospective Developments and Trends
In the near future there undoubtedly will be an increase in the formulation of pesticides in Ecuador. Freight costs are high and inert domestic materials are available. Dust formulations are preferable generally because of the shortage of water and ease of application. It has been estimated that only 5.5 percent of arable land is under cultivation, but the government is building roads and opening more of the country for settlement. Hence, an increasing amount of agricultural activity can be expected and a consequent rise in requirements for pesticides.
The International Cooperation Administration conducts a technical aid program in agriculture with a specialist in entomology who is instructing national agronomists and farmers in the use of insecticides and fungicides. The Technical Aid Program has recently established an extension service in four provinces and effective work already is
69
being done. Other specialists in horticulture, plant breeding, soils, cattle, etc., are improving agricultural practices in Ecuador.
An effective means of promoting sales of pesticides is by sending qualified United States technicians to Ecuador to advise in the use of products and equipment and to train agronomists. Ihis method of promotion is presently more used by European firms than by those in the United States. Farmers usually will buy products which they are convinced will pay for themselves in results. Rapid service is also fundamental in improving the competitive position of United States pesticides. Complaints are heard that orders from Europe are delivered in Guayaquil in 30 days, while those from the United States require 6 months.
PARAGUAY
(Based on report by S. P. Miller, U. S. Embassy, Asuncion)
Production
Manufacture of pesticides in Paraguay is limited to the com- pounding of an insect spray (composed of imported 5 percent DDT and kerosene) and espirales (slow-burning punks made from pyre- thrum, sulfur, and cow dung), said to be effective as mosquito repel- lants. The insect spray is not packaged but is simply drawn from barrels into customers' bottles. Although espirales are not adver- tised, they are well packaged, widely known locally, and enjoy a small export market to northern Argentina.
Raw materials locally available for manufacture of pesticides are tobacco, sulfur, pyrethrum, and lime.
Consumption
Customs records indicate that 241 metric tons of pesticides — 223 metric tons of ant killers and 18 tons of general insecticides — entered Paraguay in 1953. Argentina was the source of 62 percent of these imports; 22 percent originated in Germany, 15 percent in the United States, and 1 percent in Brazil.
Some imports by government agencies are not recorded by the customs office, and other sources indicate that actually about 400 metric tons of pesticides were imported in 1953, including 196 tons by the Bank of Paraguay, 129 tons by the Supervised Farm Credit Agency, and 8 tons by the Point IV Agricultural Division. The Bank of Paraguay imported 296 tons of pesticides in the first 8 months of 1954, and Supervised Farm Credit Agency imports also are increasing.
Should agricultural acreage remain static, it is estimated that the demand for pesticides will increase to 1,000 tons a year. This increase
70
would be due largely to continuing education of small landholders by Point IV personnel and to a rise in consumption of insecticides, grain protectants, and fungicides by large agricultural ventures.
However, the Paraguayan Government is encouraging the stepping up of cultivation by every conceivable means. Paraguay is funda- mentally an agricultural country, but only 1 percent of its land area is under cultivation and the country is not self-sufficient in food crops. Increased production is sought by colonization, teaching of modern farming methods, and other means. Since the main emphasis is on an increase in subsistence farming on small farms, a rise in land use will not necessarily mean a proportionate increase in consumption of pesticides. Nevertheless, should land use double by 1960, as the government desires, pesticide consumption might reach 1,500 tons a year.
Foreign Trade
Official trade statistics on imports of pesticides into Paraguay are not available. (See import data under "Consumption.")
Traditionally, the bulk of Paraguay's trade, both export and import, is with Argentina. This pattern was recently strengthened by the conclusion of a series of economic conventions with that country. However, Germany, Italy, and France are again becoming important suppliers of chemicals and consumer goods, largely because of more liberal prices and credit policies than are offered by United States and United Kingdom firms.
Equipment
The average Paraguayan farmer, with less than 5 acres under culti- vation, has still to learn the use and value of pesticides and pesticide equipment. He needs simple hand dusters and sprayers and instruc- tions on how to use the equipment efficiently. Work is being done in this field by Point IV extension agents, both in training of farmers and in combating specific plagues such as cutter ants, and by the Super- vised Farm Credit agency in general work with insecticides and fungicides. Both agencies are hampered by lack of equipment.
Specific needs are for cheap, simple spraying and dusting equipment for individual farmers, gas applicators (for such commodities as methyl bromide), and antilocust equipment for government use.
Marketing and Distribution
Most official purchases of insecticides are made by irrevocable letter of credit or by bank draft payable cash against documents. These methods prevail because most recent official purchases have been made
71
from International Bank loan funds. Theoretically, commercial purchases are made cash against documents. In actual practice, however, this becomes paying in cash against receipt from customs. Consequently, many European firms are now giving short-term credits. This practice is especially prevalent in the case of pesticide imports from trade- and payments-agreement countries, such as Argentina, Germany, and France. European firms also accept pay- ment in currencies other than their own.
The bulk of official imports is distributed to farmers through branch offices of the Bank of Paraguay and district offices of the Supervised Farm Credit Agency, although the latter agency also has consigned supplies to the Ministry of Agriculture for stockpiling and eventual delivery to the Permanent Anti-Locust Committee. Point IV pesti- cide imports are distributed through agricultural extension offices. In these offices emphasis is on teaching and demonstration, directed mainly at implanting the habit of using pesticides for particular pur- poses rather than at promoting large-scale commercial operations.
Most Paraguayan farmers speak an Indian dialect rather than Spanish, hence newspaper advertising is of little importance. To date the most effective method of advertising has been word-of-mouth recommendations — from fellow farmers, storekeepers, bank and credit agents, and the village chiefs. However, benefits from use of pesticides became known very slowly until Point IV extension agents began practical demonstrations. It is believed that the most produc- tive advertising United States firms could use would be practical field demonstrations. Considering the extreme difficulty of such a project, sound movies and simple, instructive printed materials would be the best media. All advertising should be instructional in nature; the most active channel of distribution would be through the local ICA agricultural mission.
Government Decrees and Regulations
With the exception of official agencies, organizations engaged in trade in chemicals must be headed by a licensed pharmacist or chemist. Import licenses are not required, but all foreign-exchange transactions are subject to approval by the Central Bank of Paraguay. Exchange- rates on imports are set at various levels, according to essentiality of the products. Pesticides in bulk enter at a preferential exchange rate as essential goods. Once in the country, imports are subject to price fixing, distribution controls, and rationing.
Prospective Developments and Trends
Within the foreseeable future, the Paraguayan pesticide industry will probably be limited to compounding and packaging of imported
72
products. The Paraguayan Government is interested in new indus- tries which will save an expenditure of foreign exchange, or those with an export potential. However, high freight rates and shortage of labor, power, and water militate against foreign investment in Para- guayan industry at the present time. Technical chemical knowledge is no problem; currently, there is an excess of licensed chemists in Asuncion.
United States firms might gain an immediate advantage in the pesticide market in Paraguay by advancing short-term credits and accepting payment in soft currencies. Paraguay is a new and expand- ing, although small, market for pesticides, and buying habits are now being formed. United States companies could assure their position in the market through technical aid and practical demonstrations, distribution of simple low-cost equipment, and instructional literature.
PERU
(Based on report by C. Camilloni, U. S. Embassy, Lima)
Production
The 1953 output of the major pesticide manufactured in Peru, calcium arsenate, totaled 2,970,000 pounds, against 2,331,000 pounds in 1952. Copper sulfate production was 2,476,000 pounds in 1953, but only 150,000 pounds were used as a fungicide.
In recent years four insecticide compounding plants have gone into operation, processing imported technical products by using largely domestic inert materials. The principal imported concentrates pro- cessed by these plants are DDT 50 percent, BHC 12 percent, aldrin 25 and 40 percent, and toxaphene 40 percent. Although there is no information on volume of formulations produced, it is estimated by the trade that local plants supply about 60 percent of consumption in the case of BHC, 40 percent for toxaphene, and 30 percent of both DDT and aldrin.
Peru's 1953 sulfur production was 10 million pounds, but not more than 100,000 pounds were used for pesticides because of poor dusting quality. In 1954 a small plant was installed for producing agricul- tural sulfur. The owner claims to have produced and sold in the first 8 months of 1954 about 600,000 pounds of dusting sulfur of 325 mesh, and reports that additional locally made equipment will enable him to increase production to 4.4 million to 5.5 million pounds annually.
Production of "Babbini," a domestic agricultural insecticide pre- pared from Chile pepper, cebadila (an Indian caustic barley), arsenic, and quicklime, was about 535,000 pounds in 1953. This product has enjoyed a fairly good demand in previous years for control of certain
379238—56 6 73
cotton pests, but is losing ground due to local preference for imported preparations.
There is only one important producer (Cerro de Pasco Corporation) of calcium arsenate and copper sulfate, and five compounding plants (Du Pont Peru S. A., Agricultural Chemicals del Peru, Peru Mercantil, S. A., La Fabril, S. A., and Planta Piloto of the Ministerio de Agricul- ture). All raw materials for production of calcium arsenate, copper sulfate, dusting sulfur, and "Babbini" are obtainable in Peru. The formulating plants depend entirely on foreign suppliers for require- ments of toxic ingredients but use domestic talcum as the inert material for 75 percent of production. The remaining 25 percent consists of certain imported clays for producing wettable powders.
Annual output of household insecticides — 120,000 pounds — indi- cates the small size of the industry. There is little local manufacture of animal sprays and dips. For production of household insecticides about 10 tons of pyrethrum (equal to domestic output) and 5 tons of technical DDT of foreign origin are used. Kerosene is in ample supply. Peru is a major world producer of cube (a rotenone-bearing root), but very little is used for the manufacture of pesticides. Do- mestically produced chemicals which could be used in the manufacture of pesticides include ethyl alcohol, sulfuric acid, and chlorine.
Consumption
Based partly on information published by the Peruvian Ministry of Agriculture, but mostly on data from leading members of the trade, annual current consumption of major pesticides in Peru is estimated as shown in table 23.
It is estimated that agriculture accounts for over 95 percent of pesticide consumption. Cotton, sugar, potatoes, rice, corn, wheat,
Table 23. — Estimated Current Annual Consumption of Major
Pesticides in Peru
[Pounds of toxic ingredients]
Commodity
Agricultural use
Total
Dusting sulfur (325 mesh)
Calcium arsenate
DDT (100 percent basis)
BHC (technical basis)
Toxaphene (100 percent basis)
Aldrin, dieldrin, etc. (25 percent basis)
Copper sulfate
Phosphatic insecticides
Parzate, dithane, etc
Nicotine sulfate (40 percent basis)
Oil emulsions gallons
Weedkillers gallons
5, 500, 000
3, 500, 000
280, 000
250, 000
250, 000
150, 000
200, 000
150, 000
100, 000
50, 000
125, 000
20, 000
5, 500, 000
3, 500, 000
550, 000
265, 000
250, 000
170, 000
200, 000
150, 000
100, 000
50, 000
125, 000
20, 000
Source: Peruvian Ministry of Agriculture and trade sources.
74
vegetables, and fruits are the principal products requiring protection, but cotton is the major pesticide-consuming crop. Reliable trade sources estimate that not less than 85 percent of agricultural pesticides consumed is used on cotton fields, particularly for combating the leaf- worm, bollworm, Peruvian boll weevil, aphids, red stainer, oidium, and a fungus called "chupadera."
Current consumption of household insecticides is estimated at ap- proximately 50,000 gallons a year, of which about 40 percent is sup- plied by domestic manufacture. Demand is increasing very slowly.
A 5-year program initiated by the Peruvian Health Department in 1953 calls for annual consumption of about 260,000 pounds 100 percent DDT and 15,000 to 20,000 pounds of BHC (25 percent) or its equiva- lent in aldrin, together with small quantities of warfarin and calcium cyanide, mainly for combating malaria, Chagas' disease, typhus, fleas, and rats.
Consumption of animal dips and sprays, estimated at 250,000 pounds yearly, should expand in the next few years because of greater interest in improving sanitary and health conditions on cattle and sheep farms.
It is generally believed that normal consumption of major pesticides should increase steadily at about 10 percent a year, although some commodities presently used may be displaced by newer or more effective products. Additional areas will be opened for cultivation through ambitious irrigation programs, and Peruvian agriculturists are becoming increasingly aware of the importance of pesticide use.
Foreign Trade
Increased requirements are indicated by a considerable rise in imports. Imports of all pesticides into Peru in 1948 totaled around 7 million pounds, and by 1953 had attained 16 million pounds. Be- tween these years imports of dusting sulfur increased from 606,000 to 6,190,000 pounds; DDT from 218,000 to 523,000 pounds; and the group comprising general agricultural insecticides, fungicides, etc., from 5,232,000 to 8,100,000 pounds.
The United States is the principal supplier of pest-control products to Peru (see table 24) ; West Germany is the strongest competitor.
Formulating of pesticides is a rather new industry and output is intended for domestic consumption. Production of calcium arsenate is not sufficient to warrant sales abroad. The bulk of copper sulfate output is consumed by the domestic mining industry. Therefore, sizable exports are not likely in the near future.
Equipment
Sprayers and dusters are in adequate supply. Hand-operated types are the most popular, but use of power models is expanding as a result
75
of increased pesticide application on large farms. Small insecticide mixers also are gaining popularity among large farmers and pro- gressive agriculturists who desire to formulate their own insecticide mixtures. This reduces cost and enables the most needed mixtures to be prepared at the right time.
|
Table 24. — Imports of Pesticides into Peru. |
Fiscal Year 1951-52 |
|
|
Commodity classification and principal countries of origin |
Quantity (pounds) |
Value (U.S. dollars) |
|
Copper sulfate: Chile |
41, 535 883, 444 7,842 |
4, 829 |
|
United States. _ _ __ |
118, 296 |
|
|
Other countries __ |
1, 093 |
|
|
TotaL |
932, 821 |
124, 218 |
|
Paradichlorobenzene, total |
21,714 |
3,923 |
|
Disinfectants, insecticides, fungicides and related products: United Kingdom United States _ _ ______ |
117,428 76, 632 23, 278 |
9,483 15, 905 |
|
Other countries _ ___ |
3, 651 |
|
|
Total _ __ _ ___ |
217, 338 |
29, 039 |
|
DDT: United Kingdom _ |
264 595, 586 |
257 |
|
United States _ ___ |
282, 605 |
|
|
Total _____ _ _ __ ._ |
595, 850 |
282, 862 |
|
Insecticides and fungicides for agricultural use: Germany _ __ ____ |
1, 480, 287 185, 733 7, 175, 204 63, 894 |
142, 479 |
|
United Kingdom _ _ |
48, 873 |
|
|
United States. |
1, 501, 360 |
|
|
Other countries _ ____ _ |
23, 851 |
|
|
Total |
8,905, 118 |
1, 716, 563 |
|
Insecticides and fungicides for household use: United States ___ _ _ |
74, 186 2,004 |
64, 904 |
|
Other countries ___ __ __ ___ |
2, 753 |
|
|
TotaL _ _ _ ________ |
76, 190 |
67, 657 |
|
Grand total _ _ _ |
10, 749, 031 |
2, 024, 262 |
Source: Peruvian official trade statistics.
Airplane dusting and spraying for insect, disease, and weed control is relatively new but has been employed on cotton and sugar farms with remarkable success. There are at present four local airplane companies operating a total of 54 dusting planes, and a gradual in- crease in the fleet is anticipated. In July 1954, a helicopter was brought to Peru for public demonstrations in agricultural dusting. Several local concerns have expressed interest in using helicopters in agricultural spraying and dusting operations.
76
Marketing and Distribution
Although United States pesticides are usually somewhat higher in price than other imported products, they enjoy the greatest demand in Peru because of high quality. Principal channels for distribution of imported pesticides are local agents and direct representatives of foreign producers or exporters. European suppliers customarily sell on 90-day sight drafts, either for purchases made by importers or for orders placed for direct shipment to consumers. Trade sources indi- cate that United States suppliers are now granting similar payment facilities and earnestly recommend that this practice be continued as it has proved to be an important aid in offsetting European competi- tion. Price considerations are especially strong in the Peruvian market. No barter or other special agreements are employed.
Pest-control products are advertised chiefly through newspapers, agricultural publications, and direct mail. Some use is also made of radio advertising and billboards. Sound films are shown occasionally at conventions and meetings of farmers, with reported success.
Government Decrees and Regulations
Importation, manufacture, and trade of agricultural pesticides are governed by provisions of Supreme ^Resolution No. 427 of December 29, 1950. Pursuant to these regulations, sales of pesticides are subject to prior approval by the Ministry of Agriculture. Manufacturers, importers, and dealers are required to submit samples of products for analysis and biological tests to the Division of Agricultural Defense, and results of these tests are reported to the Ministry of Agriculture for approval or rejection. Upon approval, pesticides must be regis- tered with the Division of Agricultural Defense, such registration, valid for 3 years, being subject to a fee of 100 soles (about $5) for each product. Date of approval and registration number must appear on containers, together with clear indication in Spanish of the chemical formula or composition, date of manufacture (if the product is subject to obsolescense), and instructions as to use. Labels for poisonous products must show clearly the word "VENENO" (poison) in red, as well as precautions to be taken and suitable antidotes. Labels must also identify products of an explosive or inflammatory nature. Ad- vertising or distribution of products not previously approved for sale is strictly prohibited. Manufacturers, importers, and dealers are required to submit to the Ministry of Agriculture quarterly reports indicating the kind and quantity of each product manufactured, imported, or sold. Products sold without compliance with these regulations are subject to confiscation and fines varying from $25 to $500 are imposed on the sellers.
Domestic manufacture, importation, and sale of pesticides for hu- man, household, and veterinary use are subject to the provisions of
77
a Supreme Decree of May 26, 1944, as amended by Supreme Decree of November 4, 1952. In general, these regulations are similar to those pertaining to agricultural pesticides, but the registration fee for each product is 250 soles ($12.50), and registration is valid for 5 years. No import restrictions or quotas are applicable to pest-control products. On the contrary, the Peruvian tariff accords duty-free entry to agricultural pesticides, DDT, certain disinfectants, rodenti- cides, seed and grain fumigants, and animal dips and sprays, as a means of promoting their increased use.
Prospective Developments and Trends
At present, 2 United States concerns operate pesticide-formulating plants, and 1 leading manufacturer of household insecticides has a factory in Peru. The size of the market does not seem to justify investment of additional United States capital or technical knowledge.
Prospects are good for a continuing large or increased participation of United States pesticides in the Peruvian market. ^Requirements are steadily growing and local preference is for United States products. It appears reasonable to expect a decline in imports of calcium arsenate and formulations because of domestic production, but it is anticipated that the United States will supply most of Peru's increasing needs for sulfur, new organic pesticides, weedkillers, and oil emulsions.
United States products are sold in Peru largely because of high quality and it is most important that this well-earned prestige be maintained. It has been reported that occasionally United States exporters or brokers ship to Peru surplus stocks which do not conform in quality to those received from well-known manufacturers, thus causing an unfavorable reaction among consumers.
An important element in the increased consumption of pesticides in general is the work done by SCIPA (Servicio Cooperativo Inter- Americano de Produccion de Alimentos), a joint Peruvian-United States technical agricultural service. SCIPA prepares periodic re- ports on pest-control problems and promotes the use of these products through widely distributed magazines and technical bulletins. It also distributes at cost pesticides to small agriculturists.
URUGUAY
(Based on report by E. N. Isola and A. J. Barcelo, U. S. Embassy,
Montevideo)
Production
There is no actual production of pest-control products in Uruguay, but approximately 12 firms engage in the processing and/or mixing of
78
imported raw toxic materials or semimanufactured concentrates. Raw materials for the manufacture of pesticides are not available, with the exception of copper for copper sulfate. Even kerosene is imported.
High import duties and classification of pesticides under Category III (nonessential items) by the Export and Import Control Office protect these manufacturers against importation of finished pesticides.
Consumption
Principal pesticides (toxic ingredient) consumed in Uruguay are as follows (in pounds unless otherwise stated):
Copper sulfate pounds__ 1, 100, 000
Other copper compounds do 110, 000
Sulfur do 300,000
Lead arsenate do 275, 000
Bordeaux mixture do 90, 000
Lindane » do 88, 000
Seed treatment materials do 5, 280
Emulsive oils gallons. _ 71, 335
DDT do 16,000
Weedkillers do 11, 100
Chlordane do 1,000
1 This is the usual consumption of lindane concentrate. Consumption for locust control, when plagues are imminent, might go as high as 1,500 metric tons.
Treatment of grapevines and fruit trees takes the major portion, with the remainder being used to protect other agricultural crops. Household use is small, probably totaling around 3,000 gallons (DDT base) a year.
Although farmers and cattlemen are using more pesticides, because of larger crops and the intensive advertising campaigns by pesticide producers, consumption is expected to increase slowly.
Foreign Trade
The only import statistics available cover "products for combatting pests," which in 1953 totaled 511,606 pounds valued at $131,957. No breakdown on countries of origin is available.
Until 1952 the United States was the principal supplier of toxic ingredients and concentrates for Uruguayan formulation of pesticides. However, due to the shortage of dollar exchange, importers have had to turn to European countries such as the United Kingdom, Germany, and France.
Equipment
Spraying and dusting equipment is in adequate supply. Stocks are controlled by the principal pesticide distributors who also are equipment dealers.
79
Marketing and Distribution
Principal channels of distribution are agents or representatives of foreign firms. Terms of sale for United States products are evidently comparable with those for imports from other countries.
The best advertising media are instructions to the public as to damage done by insects, mites, and rodents. Recommendations from public health organizations and ICA personnel also carry considerable weight.
Government Decrees and Regulations
The Export and Import Control Office classifies imports of pesticides into two groups: Totally manufactured, which are included in Category III (nonessential), imports of which are limited; raw materials and "concentrates" to be formulated in Uruguay, which are included in Category I (essential) and receive preferential treatment with regard to import permits. The rate of exchange for Category III items is 2.45 pesos per United States dollar, and for Category I, 1.90 pesos to the dollar.
The Ministry of Public Health regulates the use of poisonous products.
Prospective Developments and Trends
Prospects for investment of United States capital in the pesticide industry of Uruguay are not favorable. Formulating procedures are so simple that there is no need for United States technical knowledge, but there is a possibility that know-how would be of use in the manu- facture of copper sulfate since plans are under way to produce this pesticide from native copper.
An increase in the United States share of the Uruguayan pesticide market depends on greater dollar-exchange availability, or on manu- facture by United States firms of their products in Uruguay under license.
VENEZUELA
(Based on report by F. Maresch, U. S. Embassy, Caracas)
Production
Two formulating plants in Venezuela (Pennsalt-Comanil, C. A., and Insecticidas y Abonos, with capital investment from Compania Shell de Venezuela, Ltd.) mix imported raw materials to produce finished insecticides and fertilizers. The formulation of fungicides has not yet been undertaken. No domestic materials, other than petroleum, are locally available for formulation of pesticides. An
80
estimated 75 percent of the raw materials, including inerts, used by these enterprises is imported from the United States, 20 percent from the United Kingdom, and 5 percent from Germany.
Present annual output of these two plants is estimated at 1,400 metric tons of insecticides. Of this output, the largest selling insec- ticide for agricultural use — toxaphene — represents approximately 60 percent; DDT powder (10 to 20 percent content), 20 percent; and chlordane, aldrin, BHC, parathion, etc., 20 percent. The Pennsalt- Comanil plant is presently attempting to produce emulsions. Al- though sulfur has been used for dusting, application is now largely confined to mixture with BHC for control of onion thrips. Sulfur is not used in cotton insecticides in Venezuela and present consumption is estimated at only 20 metric tons a year.
The above plants package their dusting products in locally made paper bags. Small quantities of liquid insecticides are mixed and marketed in unlined oil drums.
Consumption
Present insecticide consumption (probably as finished products) is estimated as follows:
Agriculture : Metric tons
Toxaphene 1, 200
DDT (10-20 percent) 400
Endrin 100
BHC 150
Chlordane 60
Aldrin 60
Parathion, etc 30
Lead arsenate 20
Calcium arsenate
Total 2,020
Public health:
DDT (1-10 percent content) 500
Chlordane, aldrin, dieldrin, etc 100
Total 600
Household and industrial:
DDT (1-5 percent solutions) 1, 200
Pyrethrum preparations, chlordane, etc 300
Total 1,500
Grand total.. 4, 120
Of the 2,020 metric tons of insecticides used in agriculture, 1,400 tons are locally formulated and the remainder imported as finished products.
81
Copper sulfate is used as a fungicide and consumption is estimated at 20 metric tons a year. Consumption of all types of weedkillers is estimated at 450 tons; 150 tons are imported products and 300 tons are domestically produced material manufactured by Compania Shell de Venezuela, Ltd.
If the prosperous conditions which have characterized the Vene- zuelan economy over the past 10 years continue, consumption of pesticides may be expected to increase. However, in view of the rapidly changing conditions and improvements in the formulation of pesticides, it is impossible to predict the pattern of usage.
Foreign Trade
The only available statistics on imports of pesticides into Venezuela are shown in table 25. The United States has continued to maintain its dominant position and supplies approximately 75 percent of requirements.
Equipment
Dusting is still dominant, but owing to abundant rains during the growing season, sprays are preferable for many uses. There is an inadequate supply of low-pressure-low-volume group sprayers. Al- though three airplane crop-dusting and -spraying companies operate in Venezuela, their services have not been widely used.
Marketing and Distribution
Pesticides are distributed through local agents, who sell to consumers and to the government. Occasionally government purchases are made direct from a foreign supplier and are distributed to farmers by
Table 25. — Imports of Pesticide Materials into Venezuela, 1954
Commodity classification and principal countries of origin
Quantity (pounds)
Value (U.S. dollars)
Salts and oxides of arsenic Germany
United States
Total
Salts and oxides of copper Belgium
United States
Other countries
Total
|
117 2,480 |
8 230 |
|
2,597 |
238 |
|
132, 275 128, 793 51, 835 |
14, 178 24, 681 6,467 |
312, 903
45, 326
Source: Venezuelan official trade statistics.
82
either the Venezuelan Development Corporation or the Ministry of Agriculture.
United States pesticides are not widely advertised in Venezuela. Since they are marketed by agents and are used by local formulating plants, only a small amount of advertising has been considered necessary.
Government Decrees and Regulations
Decree No. 433, published in Gaceta Oficial No. 23,898 of August 2, 1952, strictly regulates importation, mixing, and distribution of agricultural pesticides and also gives the Minister of Agriculture authority to dictate the substances to be used, or to prohibit the use of certain materials, for the control of any pest. The Food and Drugs Section of the Ministry of Health and Welfare controls licensing for sale of household and industrial insecticides.
All imported prepared pesticides are granted duty-free entry in the Venezuelan customs tariff law.
Prospective Developments and Trends
Since petroleum is the only raw material available in Venezuela for production of pesticides, there is little opportunity for use of United States capital in developing the pesticide industry. While oppor- tunities may exist for establishment of formulating plants, it is im- portant to note that locally processed pesticides receive no customs protection and must compete with duty-free imported products.
The United States already enjoys 75 percent of the Venezuelan market for pesticides, hence opportunities for further participation depend on obtaining a share of the 25 percent now going to other suppliers or on increased consumption. New and better pesticides are always welcome in Venezuela. Hence, should some country other than the United States develop a highly effective pesticide with low toxicity to warm-blooded animals, the market would likely veer in that direction.
United States suppliers would gain an advantage through financing agents to enable them to carry adequate stocks of pesticides. At present, only small amounts of pest-control products are stocked because local importers are unwilling to take the risk of carrying large supplies of materials for fear new and more effective products will enter the market.
83
Europe
The United Kingdom has always been a competitor of the United States in world pesticide markets. However, in recent years, even keener competition has arisen from Central European countries, par- ticularly West Germany. Since World War II, numerous countries in this area have gone into production of the newer pesticides, such as DDT, BHC, lindane, and phosphatic insecticides. Reports indi- cate that credit terms given by these countries are more lenient than those offered by United States firms and that in some cases quoted prices are lower. Undoubtedly, increasing competition from this area will occur.
Despite greater production, Europe still remains a sizable market for United States pesticides. Exports to that continent were 56 per- cent higher in value in 1954 than in 1953, but in 1955 were only 19 percent above those in 1954.
AUSTRIA
(Based on report by M. V. Ockey, U. S. Embassy, Vienna)
Production
No official data on production of pesticides in Austria are available. Pesticides are produced largely by chemical manufacturers, many of whom are small firms which manufacture these products when demand warrants and discontinue output as requirements slacken. Domestic production practically meets demand.
According to estimates from private sources, the following pesticides are produced by 23 manufacturers in Austria:
Annual output (metric tons)
Carbolineum (a mixture of coal-tar derivatives) 800
Lindane 3-5
Refined naphthalene 640
Copper sulfate 1, 500
Nicotine extracts 5-20
Sodium chlorate 50
Finished pesticides (insecticides based on DDT, lindane, and other toxic
ingredients), weedkillers, rodenticides, etc 2, 400
84
Cons u mp tion
Consumption statistics are unavailable. According to Fachwerband der Chemischen Industrie, value of annual sales of pesticides, excluding copper sulfate, was approximately $8.5 million in the years 1951-53. In addition to this figure, an annual average of $4 million was spent to buy 2,000 metric tons of copper sulfate to be used in combatting peronospara disease on vineyards. Probably from 90 to 95 percent of pesticides are consumed in agriculture.
It seems logical to expect some increase in agricultural use of pesticides in Austria, but under the most favorable conditions con- sumption probably will not rise more than 10 to 15 percent in the next 5 years.
Foreign Trade
Since 1952, Austrian imports of ready-to-use pesticides have been relatively unimportant. In 1951, 140 metric tons were imported; in 1952, 47 tons; in 1953, 41 tons; and in the first 6 months of 1954, 17 tons. Available information points to a decreasing trend in imports of finished pesticides and an increase in imports of toxic pesticide ingredients not produced in Austria. Imports of pesticides and toxic ingredients from the dollar area still require import licenses.
Equipment
There are three large and a number of small Austrian manufacturers of spraying and dusting equipment which supply not only the domestic
Table 26. — Austrian Foreign Trade in Pesticides, 1953
|
Commodity and country of origin |
Quantity (pounds) |
Value (U. S. dollars) |
|
IMPORTS Insecticides, fungicides and the like: West Germany. _ __ |
127, 600 88, 400 22, 000 3,900 |
51, 760 |
|
Switzerland United States _ __ |
25, 000 16, 000 |
|
|
Other__ _____ _ _ __ __ |
1,320 |
|
|
Total _ __ ___ |
240, 900 |
94, 080 |
|
EXPORTS Copper sulfate, Italy, total ___ |
739, 200 |
72, 000 |
|
Insecticides, fungicides and the like: Argentina _ __ |
10, 800 22, 000 2,400 |
9,480 |
|
Italy |
1,000 |
|
|
Other_ _ ___ _ |
6,520 |
|
|
Total__ ___ _ _ _____ |
35, 200 |
17, 000 |
Source: Austrian official trade statistics.
85
market but also produce for export. Apparently this equipment is satisfactory.
On May 20, 1953, the Austrian Central Statistics Bureau conducted a countrywide machinery census. Published statistics indicate that on that date there were 7,190 horse-drawn and 1,703 power-operated dusting and spraying units in Austria. The number probably has increased since that time.
Marketing and Distribution
Kecently, a number of large Austrian pesticide manufacturers have entered into licensing agreements with West German or Swiss firms for production of specific pesticides. For example, F. Joh. Kwizda, ChemischeFabrik, produces DDT under a licensing arrangement with J. R. Geigy, A. G., Basel, Switzerland, and the Austrian Nitrogen Works and Chemia Chemikalien Handelsgesellschaft have close working arrangements with Farbenfabriken-Bayer, A. G., Leverkusen, Germany. A few German, Swiss, and one Netherlands firm market their products in Austria under private brand names.
Government Decrees and Regulations
Production and distribution of pest-control products are governed by the Plant Protection Law, Federal Law Gazette No. 29, July 12, 1948, and an ordinance of May 25, 1949, issued by the Federal Minis- try of Agriculture and Forestry. The legislation stipulates that only those pesticides which have been entered in the official register of pest-control products on the strength of a license granted by the Federal Ministry of Agriculture and Forestry, may be manufactured on a commercial scale, used, sold, offered for sale, or otherwise mar- keted in Austria. Such licenses will be granted only if the pest- control product has been tested by the Federal Institute for Plant Protection and found to meet requirements.
The intent of the Plant Protection law is to bar from the domestic market pesticides which are found to be unfit for use under Austrian conditions. A list of all pesticides presently registered, together with names of companies selling pesticides in Austria and firms producing spraying, dusting, and other pesticide equipment, are given in the publication Der Pjlanzenarzt. (Loan copies of this publication are on file in the Chemical and Rubber Division.)
Prospective Developments and Trends
The Austrian chemical industry, which includes production of pesti- cides, is fairly well developed, appears to be meeting present pesticide requirements and to have enough flexibility in production capacity
86
to meet foreseeable increases in demand. Nevertheless, opportunity continually exists for development of new and more effective products. Under present conditions, prospects for increased United States participation in the Austrian pesticide market do not appear promising. While it is possible that Austrian pesticide manufacturers might desire to produce pesticides under licensing arrangements with United States firms, the present tendency apparently is to develop such contacts primarily with West German and Swiss firms.
BELGIUM
(Based on report by C. E. Lilien, U. S. Embassy, Brussels)
Production
The Belgian chemical-pharmaceutical industry is engaged both in production of pest-control products and in compounding and packag- ing of domestic and imported basic ingredients. Production data are unavailable. There are at least seven firms engaged in manufacturing, compounding, or packaging of these products, about 10 or 15 percent of which are for household use.
Domestically available toxic ingredients for pesticide manufacture (some of which also are imported) are: Salts of dinitro ortho cresol, copper oxychloride, tetramethythiuram disulfide, wettable sulfur, organic-mercury salts, calcium arsenate, and lead arsenate.
Basic ingredients imported for production of finished pesticides, with countries of origin, are as follows :
Commodity Countries of origin
Benzene hexachloride France, Netherlands, United Kingdom,
Denmark
Copper oxychloride Germany, Switzerland, United Kingdom
DDT Italy, Switzerland, United States
Lindane France, Germany, Netherlands
MCPA (methyl chlorophenoxyacetic Denmark, France, Netherlands, United
acid) Kingdom
Organic mercury salts France, Germany, Netherlands, Sweden,
United Kingdom
Parathion Denmark, Germany, United States
Sodium chlorate Czechoslovakia, France, Germany
TCA (Trichloroacetic acid — a weed- France, Germany, United States killer)
Tetramethylthiuram disulfide Germany, Netherlands
Wettable sulfur Germany, Switzerland, United Kingdom
2, 4-D Denmark, France, Germany, Netherlands,
United Kingdom, United States 2, 4, 5-T Germany, United States
87
Consumption
Although figures are not available, it is believed that both household and agricultural consumption of pesticides is expanding.
Foreign Trade
Exports of pesticides in 1954 declined noticeably from those in the previous year, but imports were slightly above the 1953 figure. Since the Belgian industry imports many basic ingredients for compounding and packaging, this increase in imports may indicate that domestic sales in 1953 were high compared to previous years.
The Netherlands is the principal export market for Belgian pesti- cides, accounting for 30 to 40 percent in the past 2 years. Germany is the main source for imports, supplying between 30 and 40 percent. West German participation has increased in recent years and imports from the United States have decreased. This trend is believed to be
Table 27. — Belgian Foreign Trade in Pesticides, 1953
|
Commodity classification and country of origin or destination |
Quantity (pounds) |
Value (U. S. dollars) |
|
IMPORTS Copper sulfate, total |
36, 700 40, 500 18, 900 |
14, 600 |
|
Disinfectants, fungicides, and insecticides and similar medicines, n. e. s., as well as all products serving this use (for retail sale) : Tablet form: Containing DDT: Netherlands _ __ |
18, 260 |
|
|
Other_ |
10, 860 |
|
|
Total |
59, 400 |
29, 120 |
|
Not containing DDT: Netherlands |
77, 000 51, 900 151, 800 |
51, 900 |
|
United States. _ _ |
36, 640 |
|
|
Other |
141, 000 |
|
|
Total |
280, 700 |
229, 540 |
|
Other forms: Containing DDT: Netherlands . |
60, 300 146, 500 |
11, 080 |
|
Other |
28, 440 |
|
|
Total |
206, 800 |
39, 520 |
|
Not containing DDT: Germany, West |
1, 867, 100 925, 300 495, 400 604, 100 152, 900 584, 700 |
442, 280 |
|
Netherlands __ „_ |
183, 080 |
|
|
Switzerland. __ _ |
113, 240 |
|
|
United Kingdom _ _ |
118, 320 |
|
|
United States _ __ |
61, 200 |
|
|
Other |
129, 900 |
|
|
Total |
4, 629, 500 |
1, 048, 020 |
88
Table 27. — Belgian Foreign Trade in Pesticides, 1953 — Continued
Commodity classification and country of origin or destination
Quantity (pounds)
Value (U. S. dollars)
EXPORTS
Copper sulfate:
Brazil
Colombia
Egypt
France
Germany, West
Greece
H ungary
Jamaica ^ _
Netherlands
Spain
Spanish Guinea
U. S. S. R
Total
Disinfectants, insecticides, fungicides, etc. (in small packages) :
Containing DDT
Other:
Neth erlands
Portugal
Belgian Congo
Other countries
Total „
Other disinfectants, insecticides, fungicides, etc.: Containing DDT:
Belgian Congo
Other countries
Total
Other:
Austria
Belgian Congo
Algeria
Lebanon
Netherlands
Other
Total
415, 300 684, 600
3, 101, 500 539, 000
9, 186, 700 2, 018, 900 6, 560, 000
1, 320, 000
2, 397, 500
4, 387, 200 2, 187, 900 4, 363, 000
40, 766 62, 400 315, 400 49, 320 795, 000 183, 620 579, 180 109, 020 223, 660 404, 660 201, 360 396, 000
37, 161, 600
3, 350, 386
2,600
14, 700 4,400
35, 000 5,700
2,200
4,580
1,000
17, 620
6,040
59, 800
29, 240
7,900 2,900
2,880 560
10, 800
3,440
65, 500
1, 068, 300
106, 300
26, 800
1, 128, 000
601, 900
13, 460 178, 340
29, 080
8,460
240, 000
113,760
2, 996, 800
583, 100
Source: Belgian official statistics.
due to lower German prices, more liberal credit terms, and the in- creasing availability of items previously obtainable principally from the United States. However, the United States supplied 50 percent of all DDT-base products imported in 1954.
Equipment
Availability of equipment is not a limiting factor in the use of pesti- cides in Belgium.
379238— 5(
89
Marketing and Distribution
Local manufacturers sell both to wholesalers and retailers. Imports are generally handled through agents.
Government Decrees and Regulations
Sale of pesticides is governed by the law of January 28, 1946, which requires that products for sale must be approved by the government testing station at Gambloux.
Prospective Developments and Trends
With little statistical information available regarding the Belgian pesticide industry, it is impossible to project future consumption and trends. The recent growth in use of these products and increased imports from Germany indicate that sales of Unites States pesticides, particularly of specialized commodities, might be expanded if compet- itive conditions were met.
DENMARK
(Based on report by J. B. McGrath, U. S. Embassy, Copenhagen)
Production
Local manufacture of pesticides is limited. For most requirements Denmark imports pest-control products and/or toxic ingredients and formulates or compounds the finished product. Compounding is the more important aspect of the industry, which is very competitive and is dominated by 7 or 8 large firms.
The most important pesticides manufactured in Denmark and the number of manufacturers are:
Parathion. — One firm, with annual output of 300 metric tons (100 percent). This output considerably exceeds local requirements and there is a lively export trade.
2,4~D. — One firm, with annual output of 50 to 100 tons (100 percent) .
2,4,5-T. — The same firm which produces 2,4-D. Danish demand is small and annual output is only about 10 tons (100 percent).
MCP (methyl chlorophenoxyacetic acid). — Three firms. Total annual output varies from 600 to 900 metric tons (100 percent).
BHC. — Limited production.
Denmark lacks raw materials for manufacture of pesticides and, except for chlorine, caustic soda, and some orthocresol, depends almost entirely upon imported chemicals.
90
The trade estimates that domestic manufacture accounts for 15 to 20 percent of the volume of pesticides used. The greater percentage of imports consists of toxic ingredients, although some finished prepara- tions are imported and packaged.
Consu mption
An official publication of the Ministry of Agriculture estimated 1949 consumption of pesticides at 7,500 metric tons. Later official sta- tistics are not available. Trade sources have furnished the following annual estimates of consumption (in metric tons) :
Copper sulfate 2, 000
DDT (100%) 50-75
Dinitro orthocresol 15
Lindane 15-20
Nicotine (95%) 10
Parathion (100%) 30-50
Methyl-parathion preparations (imported from Germany) 500-600
Petroleum oils 300-400
Pyrethrum (25% extract) 10-15
Sulfur 250-300
Sodium chlorate 600-1, 000
Methyl chlorophenoxyacetic acid (MCP) 600
It is not possible to make reliable estimates of percentage use of pesticides by agriculture, public health, and household. Denmark is primarily an agricultural country and undoubtedly agriculture is the most important consumer of pesticides. Also, common household and public health pests are less numerous than in many other areas.
Agricultural consumption of pesticides is already at a very high level, reportedly higher than in most other European countries. Assuming current income level, trade sources anticipate only a small increase in consumption by 1960.
Foreign Trade
Import and export licenses are required but, except for the dollar area, are issued freely.
The United Kingdom has been the principal source of imports of pesticides, but in the last 2 or 3 years there has been a shift to West Germany, which is expected to soon be Denmark's principal supplier. The Netherlands and Switzerland also supply significant quantities. Direct imports from the United States are restricted by the import licensing program, but some imports from European countries may represent manufacture based on United States materials or under license to a United States firm.
Trade sources indicate that exports consist chiefly of parathion, 2,4-D, 2,4, 5-T, and MCP. Parathion exports, estimated at 200 tons annually, are reportedly made to South America as well as the
91
Table 28. — Danish Foreign Trade in Pesticides, 1953
[Quantity in pounds; value in U. S. dollars]
|
Classification and principal countries of origin and destination |
Imports |
Exports |
||
|
Quantity |
Value |
Quantity |
Value |
|
|
Fungicides: West Germany |
15, 610 23, 770 |
7,395 4,645 |
||
|
All other countries |
440 |
725 |
||
|
Total |
39, 380 11, 360 7,900 |
12, 040 1,300 1,455 |
440 35, 400 |
725 |
|
Tree sprays, total. |
1,885 |
|||
|
Nicotine, total |
||||
|
Sprays for agriculture and horticul- ture: Belgium and Luxembourg __ |
66, 400 484, 400 97, 020 2,640 1, 094, 200 170, 300 |
9,570 155, 005 39, 730 1,710 175, 740 88, 190 |
404, 140 |
98, 745 |
|
Germany (both East and West) |
||||
|
Netherlands |
199, 100 277, 860 964, 700 508, 400 |
96, 425 |
||
|
Sweden |
38, 765 |
|||
|
United Kingdom _ |
204, 885 |
|||
|
All other countries . |
147, 270 |
|||
|
Total __ |
1, 915, 100 |
469, 945 |
2, 354, 200 |
586, 090 |
|
Other insecticides and disinfectants: Germany, West. |
36, 960 7,260 118,580 103, 180 48, 400 |
42, 920 5,945 103, 110 40, 165 27, 680 |
1,760 114, 840 151, 140 220 169, 400 |
9, 005 |
|
Sweden |
86, 130 |
|||
|
United Kingdom _ __ |
44, 660 |
|||
|
United States |
145 |
|||
|
All other countries |
84, 230 |
|||
|
Total . |
314, 380 |
219, 820 |
437, 360 |
224, 170 |
Source: Danish official statistics.
Middle East. Exports of 2,4-D vary greatly, but in recent years are believed to be about 50 to 75 tons (100% basis); 2,4,5-T exports probably do not amount to more than 10 tons a year; 200 to 300 tons (100% basis) of MCP are exported annually. These three products (all weedkillers) are exported to Western European, particularly Scandinavian, countries.
Equipment
In early postwar years a shortage of spraying and dusting equipment led to considerable use of stations where farmers could rent machinery. Over 200 stations of this kind still exist, but trade sources state that consumption of pest-control products is no longer limited by a shortage of equipment. Three airplanes also are available for spraying and dusting in Denmark.
Marketing and Distribution
Most pesticides are imported on an agency and/or licensing basis. The 6 or 7 large Danish distributing firms have arrangements
92
with important United States, German, British, Dutch, and Swiss manufacturers. Some pesticides are imported in finished form and others are formulated in Denmark under an arrangement with the manufacturer. The terms of sale vary considerably but, in general, are on direct purchase against documents, although 30 to 60 days credit is not unusual. United States sellers offer the least flexible terms of sale.
Distribution of agricultural and household pesticides is made by importer-formulators, who also act as wholesalers. These firms, in conjunction with their foreign suppliers, prepare and distribute vol- uminous leaflets and pamphlets to retailers and consumers and also advertise in trade journals.
There is no distribution of pesticides by international or local gov- ernment agencies, although the latter are alert to the need to assist consumers and to encourage and control the use of pesticides.
Government Decrees and Regulations
A law of November 1, 1954, designed to restrict use of pesticides harmful to humans and animals, requires that every pest-control product be submitted for testing. On the basis of the test, each is classified according to potential danger. Products classified as "X" (most harmful) can be sold by a retailer only on the basis of a permit issued to the consumer by the Ministry of Agriculture; products classified "A" and "B" can be sold on the basis of a permit issued to the consumer by local police authorities.
Governmental agencies under the general direction of the Ministry of Agriculture interest themselves in pesticides. The Kemikaliakon- trollen periodically tests samples of prepared products to ensure that they contain the kinds and amounts of chemicals specified. The cost of this service is met by imposing a tax of 1.25 percent on wholesale sales of each product. The Statens Fore0gsvirksomhed i Plantskultur tests the efficiency of commodities submitted to it for approval. Sub- mission to this agency is not obligatory but, as a practical matter, most products are submitted. This organization publishes annually two lists of approved products and consumers are usually reluctant to purchase commodities not appearing on these lists. (Copies of the 1954 lists, " Approved Preparations for Use Against Plant Diseases and Pests" and " Approved Weed Killing Preparations," are on file in the Chemical and Rubber Division.)
Prospective Development and Trends
Trade sources indicate there is little opportunity for investment of United States capital or technical knowledge in the Danish pesticide industry. Danish firms, alert to manufacturing opportunities, in
93
recent years have produced limited quantities of DDT, lindane, and ferbam with little success. The consensus of the trade is that it is more economical for Denmark to rely on imports of toxic materials and more or less limit activity to formulating. Although the one producer of parathion appears to be basing production largely on the export market, the trade considers this an unusual case.
Most large Danish firms are affiliated in some way with European producers and European products dominate the market. However, several new United States products are having success and, if the dollar position further eases, imports may increase. The field of new product offers the greatest opportunity for increased participation of United States firms in the Danish market.
EIRE (IRELAND)
(Based on report by T. J. Bannon, U. S. Embassy, Dublin)
Production
Pesticide production in Eire is on a limited scale, the industry being chiefly concerned with compounding and packaging imported raw ma- terials. There are approximately 10 companies engaged in this field. Almost no raw materials used in the manufacture of pest-control prod- ucts are available. Official estimates of output are not available; however, according to the Irish Trade Journal and Statistical Bulletin, March 1954, value of production in 1951 and 1952 was as follows:
1951 1952
Sheep and cattle dips $48, 500 $58, 675
Insecticides 129, 250 151, 250
Weedkillers 23, 450 34, 910
Consumption
Official statistics on consumption are not available; use probably equals production plus imports.
It is assumed that by 1960 the demand for cattle and sheep dips, selective weedkillers, and seed dressings will have increased consider- ably, due to a growing awareness on the part of farmers of benefits to be derived from their use. A recent newspaper article estimated annual loss to the cattle industry through damages to carcasses and hides by the warble fly as around $8.5 million. Only about 10 percent of seeds are treated and the use of weedkillers is in its infancy. These facts indicate the potential need for various pest-control products.
94
Foreign Trade
Imports have been on an upward trend in recent years which is likely to continue for some time. The United Kingdom is the principal source of supply, but it is understood that Germany and the Nether- lands are now entering the Irish market.
Small shipments of fungicides are exported from Eire, but no great development in this trade is anticipated.
Equipment
Dusting equipment is not available, but this lack is not a limiting factor in use of pesticides. Spraying equipment, both low- and high- volume power sprayers operated by contracting firms as well as by individual owners, is adequate to meet requirements. Use of equip- ment undoubtedly will expand as consumption of pesticides increases.
Marketing and Distribution
Distribution of pesticides is effected through company representa- tives or traveling salesmen who sell to wholesale merchants and retail dealers. Government agencies are not concerned with the marketing of these products.
Local purchases are on a credit basis; those from the United King- dom are paid for 30 days after receipt of invoice. European sales are usually against documents, and irrevocable letters of credit are ordinarily required for purchases from the United States.
Principal advertising media are newspapers and farm journals. Showcards for counter- and window-display purposes also are used. Although Eire has an unusually large movie-going population, advertising through this medium has not been used.
Government Decrees and Regulations
As a protective measure, in November 1954 the Irish Government imposed a tariff of 50 percent ad valorem (full and 33% percent preferential) on imports of disinfectants, insecticides, fungicides, and weedkillers. As a result, it is understood that 2 or 3 large British companies who now compound and package imported materials in Ireland may establish plants for manufacture of the basic materials from which pesticides are compounded.
Prospective Developments and Trends
The Irish Government is very much interested in attracting United States capital for investment in new industries. However, it must be
95
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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.
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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
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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
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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-
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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
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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
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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.
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PENN STATE UNIVERSITY LIBRARIES