ECPA Annual Review 2015

Annual Review 2015

As is often the case, the last twelve months have gone by at a rapid pace and there are many developments to report.

Focus: to leverage our engagement on bringing solutions to feeding EuropeECPA reorganised itself at the beginning of this year, so that our internal structure fully reflects the three work areas we are focusing on: Public Affairs, Stewardship and Regulatory Affairs - with a clear reporting structure. We have put additional emphasis on our public affairs and outreach work, to better address the business environment within which we are operating. We have therefore been allocating more resources on partnering and developing common approaches with stakeholders, to find solutions to the mutual challenges we are facing – whether it be in the legislative files, upholding innovation and the competitiveness of the EU agriculture, or in the promotion of agricultural best practices. More and more we see that joint-initiatives and efforts are the way forward, and some of these are detailed in this report.

Introduction: A new focus on partnerships and outreach

Introduction: A year of important change 02

Stewardship 08

Public affairs 06

The European Crop Protection Market in 2014 14

The ECPA network 18

ECPA network vision and mission 04

Guiding values and principles 05

Regulatory affairs 12

Hungry for Change: how we work 05

16The ECPA team

Contents

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Introduction: A new focus on partnerships and outreach

Clarifying: to better explain our contribution to farming and Integrated Pest Management (IPM) The changes in the EU institutions in the latter part of 2014 have given us the renewed opportunity in 2015 to introduce our sector and explain our role as contributors to, and promoters of, sustainable agriculture - including showing what this really means on farm as not everyone comes from a farming background. We have a lot of exciting Hungry for Change (H4C) stewardship projects ongoing that demonstrate what can be achieved in terms of protecting health, the environment and water, as well as enhancing biodiversity - whilst still enabling farmers to secure the delivery of healthy food and feed at affordable prices.

With the Sustainable Use Directive needing to be implemented across the EU, we are working hard to contribute to its success by delivering practical on-farm measures to help farmers reach the protection targets. One of the main objectives of the Sustainable Use Directive is the implementation of Integrated Pest Management (IPM), which is

a holistic approach to sustainable agriculture through a combination of cultural, physical, biological and chemical methods that are cost effective, environmentally sound and socially acceptable. Implementing those projects across Europe and organising training sessions for farmers and advisors remains a key activity for ECPA.

Partnering: to work together and uphold the tools needed for sustainable and productive agricultureThe regulatory arena brings constant challenges to the business and a lot of work is being done to ensure that our members will still have the means to operate in future. Implementation of the regulation 1107/2009/CE (placing the products on the market) still poses major problems in its application and we are working with our stakeholders to find workable solutions to it.

We are also engaged to find solutions on Bee health, MRL (maximum residue limit) setting and endocrine disruptor criteria finalisation. With the desire to move towards ever higher human

and environmental safety as a framework for EU legislation in general, industry is working hard to deliver - though we reiterate the need to ensure the necessity and viability of any measures being proposed, through risk assessments, also looking at the social-economic impacts, to make informed, reasoned choices.

Engaging: to deliver a Common GoalWe all want to move towards the highest sustainable systems, nevertheless not all tools are available to do this all today and a step-wise process is needed if we are to ensure that European agriculture remains a viable and competitive sector.We are convinced that continuing with joint-initiatives and efforts is needed and we look forward to work with stakeholders, and even our detractors, to deliver concrete solutions in the field, as we all have a lot of expertise and knowledge to share.

Martin Dawkins, President

Jean-Charles Bocquet, Director General

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ECPA network vision and mission

Vision“The ECPA network upholds high standards for human safety and environmental care in European agriculture, based on sustainable, productive, value-added, innovative and scientific farming methods.”

MissionWe are the European Crop Protection Association (ECPA). Representing the crop protection industry in Europe we are committed to dialogue with all those who care about the environment and human safety in European agriculture.

ECPA network members uphold high standards for human safety and environmental care in European agriculture, based on sustainable, productive, value-added, innovative and scientific farming methods.

As a key stakeholder in sustainable productive agriculture we focus on the contribution the crop protection industry makes to water resources, food supply, biodiversity and natural habitats, and the health and safety of farmers and the public.

Building relationships with stakeholders is a top priority; this includes members of the agricultural supply chain including growers and farmers, as well as EU authorities, NGOs, academics, manufacturers, retailers and consumers.

Over the coming years we will continue to work with stakeholders on projects covering the four thematic streams of water, health, food and biodiversity. We will measure the success of projects with key performance indicators and strive for a measurable impact on important issues of public concern. We want to be a trusted partner in society, demonstrating the delivery of essential benefits, and addressing public and scientific concerns.

PrioritiesWe are committed to:• protecting and conserving water

resources by introducing innovative crop protection solutions and promoting sustainable agricultural practices.

• contributing significantly to a healthy, high quality, affordable food supply for all by maintaining plant health, increasing plant productivity and collaborating on farm practices.

• enhancing biodiversity and natural habitats within farming landscapes, by using our expertise in plant protection and agricultural practices to promote local harmony between nature and agriculture.

• safeguarding the health of farmers and the public by introducing innovative technologies and promoting best safe-use practices.

• earning public trust in our industry and in the regulatory process, by increasing transparency and setting industry standards that align to current scientific norms to address societal concerns.

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Guiding Values & PrinciplesOpenness We promote and value dialogue with all stakeholders

Proactivity We take the initiative on issues of concern to society

CooperationWe work with stakeholders as partners

Responsibility We take responsibility for the safe and sustainable use of our industry’s products through farmer education and training

Transparency We are open and transparent about our aims and policies

Hungry for Change: how we work

TOGETHER! ECPA, MEMBER ASSOCIATIONS & COMPANIES

STEWARDSHIP/H4C

Stream-related projects

ECPA’S EXPERT GROUPS

PUBLICAFFAIRS

Communication & advocacy

REGULATORY AFFAIRS

Regulatory-related teams and projects

SUSTAINABLE AGRICULTURE

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Public Affairs2015 was an important year for Public Affairs within the organisation. A new structure, under our new Public Affairs, has been embedded, which places significant emphasis on the importance of Public Affairs – the combined disciplines of advocacy and communications – in achieving our organisational objectives. Ultimately our work in Public Affairs is about creating the right environment for the most effective policy making on crop protection issues, and also to present a positive picture of the important contribution our members make to ensure a safe and affordable food supply for Europe’s 500 million consumers.

AdvocacyThe EU institutionsThe European Commission - 2015 saw the first full year of the Juncker Commission. On entering office at the end of 2014 it did so with an ambitious agenda – with a renewed focus on jobs, growth, competitiveness, better regulation and innovation. In principle this is a promising agenda for our industry: we hope to start to see concrete benefits of this soon. At a political level, the Juncker Commission has been big on the big things and small on the small things and has had major existential problems to deal with, so crop protection issues have not been at the top of the agenda. Nevertheless, based on the agenda that has been set out for 2016 we are hopeful that

the Commission will look into the many layers of legislation affecting the crop protection substances and find new ways of making best use of resources to secure the future of European agriculture. 2015 also saw the appointment of a new Director-General in SANTE, Xavier Prats-Monne with whom we will look to find common ground as we work to maintain a productive agriculture that upholds human and environmental health.

The European Parliament - 18-months in to its term, the Parliament is becoming increasingly engaged and vocal on crop protection issues. Views have become more polarised – on the left & right, and also less predictable. We have seen an increase in the interest on the impact of pesticides on human health rather than just the environment so issues like Endocrine Disruptors are receiving greater attention, not just the issue of bees. And very much like the Commission we are hearing a lot of debate around the importance of innovation in Agriculture, but a marked contrast in policy positions. As the only directly elected institution, influenced by the very consumers who have concerns about our products, it is

vitally important that we continue our efforts to explain the role of the crop protection industry, and the valuable role our products have in addressing a number of the food-related challenges of tomorrow – keeping in mind that this is the foundation of society’s well-being.

Working in PartnershipBuilding on the momentum established in 2014 we continue to work with other organisations who have similar goals and objectives, particularly when it comes to agricultural productivity and innovation. The Agri-Food Chain Coalition, a group of 11 associations right across the food chain from farm-to-fork, of which we are a member, organised an event at the Milan Expo on Innovation as part of the FoodDrinkEurope Congress in June where Commissioner Hogan gave a keynote speech highlighting the importance of innovation in the agri-food chain. We will continue to work with this, and other organisations such as Knowledge4Innovation, Agri food chain Roundtable on crop protection products, to amplify our messages and demonstrate the real impact of policy decisions or directions on the whole food chain,

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particularly as they relate to some of the Commission’s major priorities such as Better Regulation and competitiveness, that can have a significant impact on our industry.

Seemingly small policy changes can have a broad impact from paper to our daily lives, and therefore a deep understanding of the cascade effect they can have is needed by all stakeholders - to weigh which decisions are the best for society in their fullest context: addressing the societal, environmental and economic impacts as a whole and not in silos.

CommunicationsOver the last year we have continued to work hard to address many of the concerns, criticisms and misconceptions about crop protection products through our communication efforts – proactively and reactively.One of the most valuable lessons we have learned this year is the importance of engaging on social media to balance and influence the debates that are taking place there between important influencers on our issues. With the fast pace of media, fear-inducing titles are still what make the news: this makes the task

of communicating positive stories about the positive contribution our industry makes very difficult. Our fantastic tools have been able to help farming secure our food and feed at affordable prices, making our contribution instrumental in the delicate society stability we currently have – great care is needed to preserve this achievement.

With this in mind, we will continue to build our capacity in the communication area and develop a coherent approach where we can work, with the support of our companies, to build our presence and voice across different channels.In line with this, and our commitment to digital engagement, we are also currently rebuilding our website so that it becomes one of the key vehicles to deliver our messages. The new website will be more focused on the areas where we bring real benefits – focusing on the solutions we bring - and will be more streamlined and user-friendly, making it easier for everyone to access information about ECPA, our positions, and the work we do on behalf of our members.

We continue to communicate the important work we are doing on stewardship. The stewardship

initiatives themselves are outlined in the ‘stewardship’ section of the report, however two particular examples: a Farm day which took place in Spain to present amongst other things, our TOPPS and Inspia projects to an MEP, 1500 farmers, and regional & local politicians; and a press trip that we organised to show good farming practices in Almeria – highlight the great story the industry and farmers have to tell on our common commitment to protecting consumers health, farmers health and the environment, and how valuable these projects are for our communication.

Debates and conversations will continue to take place on crop protection issues both with and without us. We will continue to be a strong and credible voice for the industry in these conversations.

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BIODIVERSITY Agriculture must contribute to economic prosperity and social well-being, while protecting natural resources such as soil, water and biodiversity. Agriculture also has a vital role in addressing major societal challenges such as the need to produce 70% more food for an additional 2.3 billion people by 2050. Conscious of the positive role that we can play, ECPA is working with partners to demonstrate and promote best management practices that benefit harvests and biodiversity.

The INSPIA project (European Index for Sustainable Productive Agriculture) seeks to demonstrate productive and resource efficient agriculture that delivers ecosystem services.

INSPIA will demonstrate sustainable productive agriculture through the implementation of Best Management Practices (BMPs) and the measurement and monitoring of a set of indicators. Delivered in partnership with the European Conservation Agriculture Federation (ECAF) and l’Institute de l’Agriculture Durable (IAD), INSPIA cooperates with farmers across more than 50 project farms in France, Spain, Belgium and Denmark.

Bee HealthOur overall aim is to build trust and understanding on bee health among all relevant stakeholders (scientists, beekeepers, industry, farmers, authorities), and collaborating to find solutions to bee health as well as demonstrating the compatibility of modern farming and bee health.

With the bee health initiative we contribute to a platform aimed at improving honey bee health, building evidence-based understanding and addressing the influencing factors in the context of sustainable beekeeping, farming and ecosystem services. These objectives will be pursued with a multi-stakeholder approach and should be communicated to the general public, policy-makers and relevant stakeholders, led by all-parties and not only industry.

Key Achievements 2015

• Active participation in several stakeholder meetings in order to tackle the proble ms on Bee Health.

• At the beginning of 2015 ECPA hosted a stakeholder meeting on bee health.

• The INSPIA Indicator tool is online and operational• First growing season data collection by INSPIA

completed

StewardshipPesticides are important tools in modern sustainable agriculture helping farmers to ensure the supply of healthy, high-quality and affordable food. But the important and valuable solutions our industry brings also come with a commitment from the industry to protect consumers’ and farmers’ health, and the environment.

ECPA’s Hungry for Change initiative includes projects in four thematic areas – Biodiversity , Water, Health and Food – that bring those solutions to the ground and encourage the safe and sustainable use of pesticides in countries across Europe.

Here you can find a showcase of some of our work - the results of collaboration with partners and stakeholders to deliver sustainable solutions to contemporary agricultural challenges.

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WATER Protecting water is high on the list of public concerns about the environment; indeed, water is a basic requirement for all life on Earth. ECPA sees the protection of water as a key pillar of its work, and is aware of the need to work continuously to support the correct use of pesticides, as part of sustainable and productive agriculture. The TOPPS Water Protection project is a multi-stakeholder project that aims at finding solutions to protect Europe’s surface water from pesticide contamination. The project aims to increase the implementation in practice of best management practices to avoid pesticide contamination of water in and near farmland. The focus of activity is put on ensuring training and dissemination activities.

Key Achievements 2015

• Distribution of new training materials in countries running the project

• Training workshop for partners of the project on TOPPS Best Management Practices

• Another TOPPs project kicked off in the Netherlands

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HEALTH As part of this commitment the pesticide industry has set up two dedicated projects – Safe and Sustainable Use Initiative (SUI) and Container Management Systems (CMS) – that work in partnership with local organisations and governments to help farmers and growers benefit from pesticide use in a manner that is safe for them and sustainable for the environment. Furthermore we are looking into the wider promotion and update of Closed Transfer Systems as an important tool to constantly improve the technical solutions available, ensuring farmer and sprayer operator safety, and reduce point source exposure and contamination during mixing and loading.

The focus of Sustainable Use Initiative (SUI) is to enhance the responsible use of pesticides for sustainable agriculture in Europe. Professional practices are key to effective management of risks when pesticides are used. The Safe and Sustainable Use Initiative supports the development of technology, enhances knowledge of best agricultural practices and promotes the use of personal safety protective equipment to reduce the potential operator exposure to pesticides. This initiative is a Pan-European coordinated effort with a strong local approach taking into account local conditions, circumstances and national laws and requirements. Today in each of the 17 countries the project is coordinated in partnership.

The Container Management Systems (CMS) project advises farmers and users on how to handle pesticide product packaging and protects the farmer from unnecessary exposure. It trains the farmer to make the best use of the entire product by promoting the triple rinsing method, and it enables farmers to dispose of used packaging safely.

Key achievements 2015 - SUI

• The SUI Annual Workshop held in Croatia gathered more than 50 representatives of industry and authorities to discuss safe and sustainable use practices in pesticide use

• 17th country joined the SUI project - Czech Republic New baseline surveys were held in Slovenia, Croatia, Serbia, Bulgaria and a progress survey held in Romania in order to measure impact of the SUI initiative

• A compilation of all SUI material is now available on USB sticks for sharing with national key stakeholders, official training entities and national authorities.

• A new interactive training tool - “training quiz” has been developed

• The web application- “tutorial” for personal protective wear selection when handling pesticides- is running

Key achievements 2015 - CMS

• Establishment and further roll-out of CM Systems in Greece, Bulgaria, Serbia

• Launch of two new CMS projects in Cyprus and Slovakia

• Workshop for CM pilots to foster exchange and ensure exploitations of synergies

• In 2014 more than 16,000 metric tonnes of pesticide containers were collected through 10 well-established European CM programs. The collection rate further increased

• More than 65% of the collected containers were recycled into other useful end products. This amount of plastic packaging would have filled up 54 Olympic-size swimming pools and helped save energy use equivalent to 30 million litres of petrol.

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FOODYear after year the results of the Annual Report on Pesticide Residues carried out by the European Food Safety Authority (EFSA) confirm the high level in safety of food grown in Europe. Nevertheless many consumers remain concerned about pesticide residues.

The crop protection industry takes consumers’ concerns about residues in food seriously and has set up a dedicated project to address them. The Residues Management Project is a joint initiative of the crop protection industry and the Cajamar Caja rural research station “Las Palmerillas” in Almería. The project supports farmers in the reduction of residues through training and promotion of IPM principles and good agricultural practices.

The objective is to share lessons learned and transfer best practices through a cross-country collaboration with other regions. This project has developed a ‘train-the trainer’ program with a manual of best practices on how to improve the management of residues particularly for greenhouse grown peppers and tomatoes. The first transfer of best practice is between Almeria, Spain and Antalya, Turkey.

Key achievements 2015

Residues Management project:• Production of the brochure “Pesticide use and food

safety” explaining pesticide residues and how they are regulated. Now available also in Portuguese, Greek, German, French and planned for Polish and Italian.

• Trainings in Antalya, Turkey, train-the-trainer concept implemented in a series of workshops with local advisors agro engineers and exporters

• Project presented at a Fruitlogistica event to 40 over Turkish growers, distributors, supermarket representatives

• In summary: – 7 Master advisors trained in Spain – 135 additional advisors trained by those 7 master

advisors – approx. 4 000 farmers reached in Antalya region

in Turkey

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Endocrine disruption In January ECPA submitted their response to the European Commission’s public consultation on the criteria for endocrine disruption. ECPA continues to actively present its views such as during the Commission’s stakeholder conference in June, and the technical meeting on the screening assessment in November. Our position – which we made clear in our response to the public consultation – is that the EU’s criteria should evaluate substances based on risk assessment, considering both hazard and exposure, and that the

final criteria should clearly distinguish those substances that are of high regulatory concern from those that are not. This might seem like an obvious request, however the other options put forward would in fact lead to unnecessarily identifying substances of no concern given their intended use.

BeesBack in 2013 a group of neonicotinoids were suspended for use for a period of two years. ECPA coordinated our member responses to the EFSA data call-in regarding the review of those neonicotinoid uses. We are confident that based

on the data submitted the public can rest assured that these products do not cause unacceptable risks. While the European Commission work on an internal roadmap for the bee guidance document is on-going, ECPA continue to advocate for a practical guidance document and workable implementation process. Given the challenges linked to data for bee risk assessment, ECPA organised a workshop in November with national authorities, European Commission and EFSA, looking at data requirement and risk assessment challenges. The crop protection industry is open to collaborate with EU and national authorities to address all perceived data gaps as

Regulatory AffairsPesticides, like pharmaceuticals, are the most thoroughly tested chemicals in the world, and only those that pass strict government testing are authorised for use. The authorisation process is regulated under 1107/2009, the application of which, has been causing major problems since the outset. We are, nevertheless, working with stakeholders to find workable solutions. With the desire to move towards ever higher human and environmental safety industry is working hard to deliver - though we reiterate the need to ensure the necessity and viability of any measures being proposed, through risk assessments, also looking at the social-economic impacts, to make informed, reasoned choices.

And here is a look at key developments and achievements of our regulatory affairs efforts in 2015.

ECPA’s Anti-Counterfeit Project InitiativesCounterfeit and Illegal pesticidesThe global trade in counterfeit and illegal pesticides is increasing year by year, presenting real risk for human health, the environment and the economy. Pesticides, like all high value and branded products, are targeted by counterfeiters and this has become a lucrative business. It is currently estimated to cost the industry approximately €1 billion in lost revenues annually (within Europe) and €4.4 billion globally. But this may just be the tip of the iceberg.

ECPA’s fight against counterfeit and illegal pesticidesFor the past ten years we have worked with members to work to raise awareness about the issues of counterfeit and illegal pesticides in the EU. We have developed a range of awareness raising material starting with engagement of farmers all the way through to the distribution channels. These include: • Training workshops• Knowledge hubs to share best practices• A dedicated website (www.illegalpesticides.eu) with

translated videos and brochures

• On-going support from relevant authorities and• Advocacy at the national and European level.

Through the expertise of our Anti-Counterfeit Expert Group (ACEG) we pool resources and draw on industry-specific best practices.

We are also part of collaborative initiatives designed to engage with enforcement agencies such as Customs, Police and other Law Enforcement officials at EU entry points throughout various Members States.

We regularly cooperate with the European Commission’s European Anti-Fraud Office (OLAF), World Customs Organisation (WCO), Europol and Member States’ plant health authorities to implement effective strategies to tackle the issues at both national and pan-European levels and a number of significant criminal investigations have occurred in 2015.

We remain fully committed to promoting responsible use of crop protection products and the fight against counterfeit and illegal pesticides remains one of our top priorities.

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well as to continue our investment in stewardship measures to protect pollinators.

Active substance evaluationSince May, ECPA have been highlighting to the Commission the increasing difficulties faced during active substance evaluations. The delays in the new active substances review and MRL setting constitutes a growing concern to the industry. An ECPA economic assessment estimated that an additional one year delay in market entry of new substances due to a blockage in MRL setting, would have a commercial impact of €40-50 million. This in turn can have a direct negative impact on jobs and investment into R&D, so is no small issue.

The use of EFSA suggested classification for final decision-making is also a new development which introduces a major new hurdle should this be confirmed as the new process. The EFSA procedure for hazard assessment was discussed with EFSA in August and work is on-going to promote clearer procedures for the hazard evaluation which also involves ECHA.

During 2015, substantial delays have been seen in the process for renewal of existing substance approvals. This led to a decision in September for the extension of expiry dates for the substances belonging to the second wave of renewals. Though this is

a practical solution which industry appreciates, we still need to find ways of meeting the target dates set out in the legislative process.

Zonal authorisationsECPA produced a reviewed Q&A on candidates for substitution, the first list of which was published in March. This list sets the scope for the application of the guidance document on comparative assessment which started in August. ECPA will follow up the implementation of these provisions.

Efforts to improve the workings of the zonal system were discussed in June and July in meetings between ECPA, ECCA and IBMA and the Zonal Steering Committees, as well as in a workshop organised by the European Commission. The review of products authorisations under Article 43 of Regulation 1107/2009 is raising a number of challenges for which a revised guidance adopted in July is providing some solutions. ECPA is providing continuous industry input on its implementation.

The revised evaluation templates adopted in March provide further support to populate application dossiers however ECPA continues to work on clarifications needed. ECPA alerted the Commission of the increasing number of arbitrary restrictions being set up on non-agricultural uses in several

Member States, despite legitimate authorisations.

With the Minor Uses Coordination body starting its work in September, ECPA is looking at ways to provide solutions to maintain the crop protection tool box.

Review of Plant Protection Products RegulationsAll the issues previously mentioned are incorporated in the work of ECPA to support a process improvement, notably on the occasion of conferences which took place in the autumn. The Commission review on the functioning of Regulation 1107/2009 is expected to start with a public consultation on a roadmap by the end of the year. ECPA produced a revised proposal in June asking for a joint review with Regulation 396/2005 provisions and to rationalise the different authorisation steps.

Regulatory conferenceIn March ECPA organised the second regulatory conference in cooperation with ECCA, bringing together over 300 industry, Member States, EFSA and Commission representatives to discuss about the implementation of European and national evaluation systems.

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In 2014, the market for crop protection products in Europe (EU 28 and EFTA nations) increased by 6.2% to reach €9,412 m. at the ex-manufacturer level. This figure relates to the value of product actually used on farm during the agricultural year.

After the elimination of currency and inflationary factors this was equivalent to a real increase of 5.2%. The key factors affecting market performance in 2014 were high crop prices at the start of the year, but weakening as the year progressed; a mild winter followed by an early spring, but a wet summer in Central Europe; however growing conditions in the north were far better than in 2013. In general terms in the EU-15 the farm economy was strong due to high crop prices in 2013 and at the start of 2014. Volume growth was driven by developing markets, whilst southern EU-15 markets performed well and northern markets benefited from good growing conditions, although parts of Central Europe were depressed by a wet summer.

Generally crop production in the EU in 2013 was held back by adverse weather conditions such that crop prices were strong at the start of 2014. However, the planting of oilseeds decreased but the grain and sugar beet crop areas improved, whilst the potato area declined.

The shift in planted areas had a direct impact on the agrochemical market, with higher levels of inputs used on cereals than on oilseeds. Generally the start to the season was good, however the summer season was wet and cool in Central Europe, but much better in the north. Relatively high disease pressure resulted in an improved fungicide market. Overall, strong crop prices were conducive to the usage of crop protection products. As a result the intensity of

product usage improved in 2014 in comparison with 2013, particularly in north and central European markets.

Due to higher crop prices, and good growing conditions in north and south Europe, all major crop sectors in the EU and EFTA crop protection market except maize registered value increases in 2014. The greatest growth in agrochemical sales was recorded by the minor soybean and rice sectors, of the major crops cereals and potatoes recorded the strongest performances. At the product level increases were recorded across all sectors of the market; the most positive being the fungicides sector, benefitting from an early spring. Insecticides sales were driven by strong sales on fruit & vegetables in southern Europe, whilst in herbicides cereals and fruit & vegetables recorded the strongest growth.

In 2014, the total European crop protection market grew by 1.8% in US dollar terms to account for

24.5% of the global crop protection market, behind Latin America which accounted for 28.5% and Asia (25.9%), but ahead of NAFTA (17.3%). The performance of the European market was depressed in dollar terms due to currency translation; in constant dollar terms the market grew by 4.8%. Over the last five years, the European crop protection market has grown on average by 3.9% p.a. in dollar terms, behind the growth recorded by Latin America (15.4%), Asia (4.9%) and NAFTA (4.3%). A major positive influence in this has been growth of Central and Eastern European countries, not only the new member states of the European Union due to increased investment in agriculture, but also more recently in Russia and Ukraine, although the Ukrainian crop protection market suffered a significant decline in 2014. Whilst all EU-28 markets registered growth in 2014 in local currency terms, of the major EU-15 markets only the UK and Spain exceeded 10% in comparison with 2013, with Hungary, Romania and Bulgaria also registering double

Change in EU 28 Cultivated Areas 2014 / 2013

Crop Cereals Maize Rapeseed Sunflower Sugarbeet Potato

Area Change (%) 0.4 -2.6 0.2 -5.3 3.4 -5.7

The European Crop Protection Market in 2014By Phillips McDougall

0

5

10

15

20

25

30

35

40

Other cropsOther F&VPome fruitVinePotatoSugarbeetSunflowerRapeMaizeCereals

7,6%

13.6%

4.7%

9.2%

4.8%3.3%

2.2%

10.1%9.9%

34.6%

EU-28 and EFTA Crop Protection Market by Crop 2014

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digit growth. Outside the EU, market growth in Russia benefitted from a much better growing season; however the market in Ukraine declined significantly due to the political and economic situation in the country.

European Crop Protection Market OutlookIn comparison with 2014, market conditions in 2015 have been far less favourable. Generally crop prices weakened during 2014 as the size of the 2014 harvest became evident. Despite depressed prices, the EU-28 cereal area has improved marginally in 2015; however the area of maize and oilseed has declined.

Generally 2015 got off to a good start, following a mild winter the spring started early, resulting in high early season disease pressure. However, much of northern Europe suffered a cool dry summer, affecting crop production and weed and disease development. The outlook for the 2015 harvest is reduced production of both grains and oilseeds in comparison with 2014.

2015 has also seen a further revision of the Common Agricultural Policy, although the timing of its adoption suggests that the full impact of the reforms will not be felt until 2016. The reforms have seen a balancing of subsidies between EU-15 and Central European member states; removal of land from production to create Ecological Focus Areas, which should be of benefit to pollinators; whilst also enforcing greater crop diversification. Much of the impact of this is likely to depress the crop protection market.

The year also saw the publication of a list of agrochemicals deemed to be candidates for substitution on re-registration in the EU due to contravention of two of the three registration criteria; bioaccumulation, persistence and toxicity. This may further limit the number of products available to farmers.

Following a very difficult year in 2014, the Ukraine market has seen some recovery in 2015, however

economic and weather conditions are expected to have depressed agrochemical usage in Russia. Both countries have suffered a dry autumn, which is delaying the planting of winter crops for the 2015/16 season.In 2014, growth of the global crop protection market in volume terms slowed after very strong results in 2011, 2012 and 2013, when crop prices were high. Market conditions in 2015 have not been positive, due to low crop prices, adverse weather in many developed markets, high levels of product in distribution channels and El Nino weather patterns disrupting many developing markets in Asia. The potential for any volume expansion in the global market in 2015 is very limited.

In the Americas, low maize prices generally resulted in a shift toward soybean cultivation in the 2014/15 season, and whilst harvests in Latin America were again good, the outlook in the USA and Canada is not so positive, with wet weather in the mid-west resulting in a reduction in output. In Canada, a cool dry summer in 2015 has depressed grain production, whilst drought continues to afflict California.

Crop planting for the 2015/16 season in Latin America suggests further move to soybean, however the planting of soybean in the second (Safrinha) season in Brazil has been banned in some states in a move to restrict the environment for Asian soybean rust. Maize cultivation may increase in this second season. Wet weather consistent with the El Nino weather pattern, affected the 2014/15 wheat harvest in Argentina and delayed planting for the 2015/16 season in both Argentina and Brazil.

In 2015 the Asian market has again been held back by a weak monsoon season, notably in Indonesia and India. Rice prices are now recovering following the de-stocking of rice by Thailand, which is now complete. Australia has seen limited recovery from the drought conditions that have afflicted the country in recent years.

The long term underlying demand for crops has not altered, driven by increasing demand in developing markets, particularly China, Egypt, Algeria and Indonesia. In addition, usage of maize for ethanol production has been at record levels in 2014 and 2015, hence the demand side for crop commodities is as strong as ever. Strong maize and soybean harvest in 2012, 2013 and 2014 and an excellent wheat harvest in northern Europe in 2014, have resulted in abundance in supply, resulting in low prices and a weak farm economy. Although 2014/15 crop production in Latin America was good, the outlook for the US maize harvest is not as strong due to wet weather, whilst wheat production in many areas has been depressed by adverse weather, flooding affecting the Argentina harvest, a cool dry summer in Canada and in parts of Northern Europe and dryness in Australia. This provides the potential for some improvement in maize and wheat prices in 2016.

Overall there is little expectation of any significant growth in the crop protection market in Europe in 2015; however there is some limited optimism for an improvement in 2016.

European Market (EU-28 + EFTA) by Product Sector 2014

2014 €m

2013 €m

Growth 2014/2014%

Herbicides 3974 3835 3.6

Insecticides 1312 1232 6.5

Fungicides 3763 3447 9.2

Others 361 346 4.3

Total 9412 8861 6.2

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Anna Seretny Communications Manager

Rivka Benatar Office Administrator

Joan Scott Trade and Anti-Counterfeit Manager

Claudia Michel Director Stewardship and Sustainability

Peter Day Director Health and Scientific Affairs

Jess O’Flynn Government Affairs Manager

The ECPA team

Jean-Charles Bocquet Director General

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Gavin Whitmore Senior Manager Biodiversity & Communication

Aurélie Dhaussy Regulatory Affairs Manager

Pascaline Ritrovato Administrative Assistant

Agata Pietrasiuk Management Assistant

Euros Jones Director Regulatory Affairs

Laurent Oger Environment & Technical Affairs Manager

Michal KicinskiGovernment and Agricultural Affairs Manager

Stuart Rutherford Director Water & Environmental Affairs

Graeme Taylor Director Public Affairs

Łukasz Woźniacki Food & Legal Affairs Manager

Sarah Giles Director Corporate Operations

Our network 2016

BASF

DuPont de Nemours

Arysta LifeScience

Gowan Company

Sumitomo Chemical

Bayer CropScience

Adama

ISK Biosciences Europe

Taminco

Dow AgroSciences

Monsanto Europe

Janssen Pharmaceutica

UPL Europe Ltd

Belchim

Syngenta

Certis Europe De Sangosse FMC

Nufarm SIPCAM

Spain aepla

Asociación Empresarial para la Protección de las

Plantas

Belgium Phytofar – Belgische Vereniging voor de

Industrie van Phytosanitaire Producten Association

Belge de l’Industrie des Produits Phytosanitaire

BASF Bayer Environmental Science Monsanto EuropeEverris Neudorff

Scotts France Nufarm Syngenta

Italy Agrofarma

Associazione nazionale imprese agrofarmaci

France UPJ – Union des

entreprises pour la Protection des Jardins et

Espaces Verts

GAPEG Member Associations (non-agriculture)

GAPEG Member Companies (non-agriculture)

SME Member Companies

Corporate Member Companies

NorwayNPF – Norsk Plantevern

Forening

RussiaAEB – Russian Federation

SerbiaSECPA – Serbian Crop Protection Association

Switzerlandscienceindustries

Business Association Chemistry Pharma Biotech

TurkeyZIMID – Zirai Mücadele

Ilaclari Üreticileri Dernegi

UkraineEBA – European Business

Assoc. Agrochemical Committee

KazakhstanThe Kazakhstan Plant Protection Association

Associate Member Associations

Belgium Phytofar – Belgische Vereniging voor de

Industrie van Phytosanitaire Producten Association

Belge de l’Industrie des Produits Phytosanitaire

FinlandKASTE

Kasvinsuojeluteollisuus ry

SwedenSvenskt Växtskydd

AustriaFCIO – Fachverband

der Chemischen Industrie Oesterreichs

GermanyIVA – Industrieverband

Agrar eV

NetherlandsNefyto – Dutch Crop Protection Association

GreeceHCPA – Hellenic Crop Protection Association

Spainaepla – Asociación Empresarial para la

Protección de las Plantas

DenmarkDCPA – Danish Crop

Protection Association

IrelandAPHA – Animal and Plant

Health Association

United KingdomCPA – Crop Protection

Association

FranceUIPP – Union des Industries de la Protection des Plantes

ItalyAgrofarma – Associazione

nazionale imprese agrofarmaci

Full Member Associations

BulgariaBgCPA – Bulgarian Crop

Protection Association NA

LatviaLAARUTA – Latvian Crop


CroatiaCROCPA – Croatian Crop


Czech RepublicCCPA – Czech Crop


LithuaniaLCPA – Lithuanian Crop Protection Association

CyprusCCPA – Cyprus Crop


HungaryHuCPA – Hungarian Crop


PolandPSOR – Polskie

Stowarzyszenie Ochrony Roslin

PortugalANIPLA – Associação

National da Indústria para a Proteçção das Plantas

RomaniaAIPROM – Romanian

Crop Protection Association

Slovak RepublicSCPA – Slovak Crop


SloveniaSLOCPA – Slovenian Crop


For more information, please contact:ECPA aisbl6 Avenue E. Van Nieuwenhuyse1160 Brussels - BelgiumTel: +32 2 663 15 50Fax: +32 2 663 15 60E-mail: [email protected]

www.ecpa.eu www.hungry4change.eu www.twitter.com/cropprotectionwww.facebook.com/cropprotection

The European Crop Protection Association (ECPA) represents the crop protection industry at the European level. Its members include all major crop protection companies and national associations across Europe. ECPA promotes modern agricultural technology in the context of sustainable development; to protect the health of humans and the environment, and to contribute towards an affordable healthy diet, competitive agriculture and a high quality of life. ECPA members support fair, science-based regulation as a guarantee to the consumer, and the crop protection user, of high standards and safe products.

November 2015

Documents

ECPA Annual Review 2015