ECPA Annual Review 2014

Annual Review 2014

Dear friends,

The last 12 months have been a time of real change for ECPA, and not just because it has been our first year in the positions of ECPA President and Director General. Yes, it has been a great experience for us personally and professionally – a new environment, new challenges, new people. But also as an organization ECPA has taken some bold and refreshing steps.

Working with our members and with stakeholders in Brussels and across Europe, we have been demonstrating more clearly than ever that the crop protection industry is committed to sustainable productive agriculture that helps meet global challenges while protecting the environment. People are not used to hearing “sustainable agriculture” and “pesticides” in one sentence. This is a perception that we need to change. This year we’ve seen some signs that we are making progress in that regard.

A clear visionFor much of the past year we have focused on promoting and advocating for our policy vision for Europe. At the end of 2013 we set out to define this vision in an industry manifesto – to lay our cards on the table and clearly define not only our mission and goals for the future, but also our solution-oriented contribution to the European political dialogue.

Introduction: A year of important change Contents

Introduction: A year of important change 01

Stewardship/H4C

Public affairs

The European Crop Protection Market in 2013

The ECPA network

06

10

12

18

02ECPA network vision and mission

03Guiding values and principles

04Regulatory affairs

03Hungry for Change: how we work

16The ECPA team

1

As Europe began a months-long political season, it was important to show where we stand by calling for EU policies that foster rather than discourage research and innovation and that place more emphasis on competitiveness and sustainable productivity for the benefit of European society.

Throughout 2014 we have shared that vision with the incoming EU political leaders and decision makers, as well as with stakeholders and the media. We will continue in 2015 and beyond to make the case for a European policy framework that values science and balances risks and benefits; implements smarter and better regulation; ensures consistency with international agreements; fosters innovation; and boosts agricultural competitiveness in a sustainable way, thereby securing jobs and strengthening the European economy.

New coalitionsOur own policy vision has helped us to reach out to other stakeholders who have similar goals and who also believe that new efforts are needed in policy-making if we are to achieve them. One initiative we are particularly proud to be a part of is the establishment of a broad Agri-Food Chain Coalition. ECPA is one of 11 European associations representing the whole agri-food sector, from farm to fork, with a shared vision in favor of policies that support agricultural innovation.

The coalition presented our “Food for Thought” declaration to EU agriculture ministers in May, and to new Members of the European Parliament in September. We plan a lot more coordinated work in the coming months, and will continue to build on the momentum we’ve started this year.

A commitment to sustainabilityWe have also been building on the projects in our industry’s Hungry for Change (H4C) initiative. Launched in 2011 as “Time to Change”, this year our stewardship initiatives have come to define our whole approach to advocacy and communications. This is not just about individual projects in the Food, Health, Water and Biodiversity streams – as impressive as those may be. It is about telling a more compelling story about how pesticides contribute to sustainable agriculture. It is about demonstrating how best-use practices increase sustainability for all and still improve profitability, and how we continuously drive the use of these best practices. And it is about better explaining the pest problems farmers face and the benefits pesticides bring to society.

We think we have taken some real steps forward in making our case. In 2014 we consolidated the success stories coming out of the industry-initiated stewardship projects into a single communications campaign and began talking to stakeholders, to journalists, and to the general public about the positive work we and our members are doing. This campaign will continue into 2015 as we work to change perceptions about our industry.

Challenges aheadOf course there were challenging times throughout the year. On a host of regulatory issues – pollinators, endocrine disruption, water, to name just a few examples – we faced a steady drumbeat of attacks on our industry.

But our network has shown admirable resilience in the face of fear-mongering and misinformation. We have stayed true to our values of openness, proactivity, cooperation and responsibility, and we must continue to do so. We have the facts on our side. But we also have to understand and address real concerns about our products from consumers.

As an industry, we are always working to provide innovative solutions for boosting agricultural productivity while protecting the environment – and helping to ensure that Europe’s farmers can meet the growing demand for healthy, high quality and affordable food.

In this fast paced, evolving environment we have to ensure that what has been built up in Europe is not lost, as well as put the foundations in place for generations to come, so that Europeans have a secure future within the global economy.

Thank you all for your cooperation and support in 2014. Let’s keep working together for real change.

Jean-Philippe Azoulay, PresidentJean-Charles Bocquet, Director General

Introduction: A year of important change

2

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). Working on behalf of 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 improving 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.

3

Hungry for Change: how we work

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

TOGETHER! ECPA, MEMBER ASSOCIATIONS & COMPANIES

PUBLICAFFAIRS

REGULATORY AFFAIRS

STEWARDSHIP/H4C

Regulatory-related teams and projects

Stream-related projects

Communication & advocacy

ECPA’S EXPERT GROUPS

SUSTAINABLE AGRICULTURE

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Regulatory affairs

Here’s a look at key initiatives and achievements of ECPA’s Regulatory Affairs in 2014.

Future revision of the EU’s pesticide legislationIn March, ECPA published industry suggestions for the future revision of both Regulations 1107/2009 & Regulation 396/2005, requesting that a review of both pieces of legislation should take place in the near future. The start of such a review has been delayed but it is now expected that it will start in the second half of 2015. A single review for both pieces of legislation is seen as essential in order to improve coordination.

BeesDiscussions on the development and possible adoption of the bee guidance document have continued through 2014. ECPA has promoted the need to consider new science and ensure a realistic application period for the guidance document.

Endocrine disruptionThroughout 2014, ECPA has been an active partner in the discussions on endocrine disruptors. The aim of the industry is to ensure that the final criteria focus on substances of regulatory concern, and should not have a negative impact on Europe’s food production and food safety.ECPA provided its input into the Commission’s public consultation in October. This public consultation is a first step in assessing the possible impact of the ED criteria that are to be developed.

Guidance documentsIn 2014, ECPA have again highlighted the difficulties faced with the application of scientific guidance documents. While the aim of guidance documents is to provide greater clarity, many of these guidance documents are increasingly complex and have a negative impact on the risk assessment and decision making process. This will continue to be an area of focus for ECPA in 2015.

Candidates for substitutionThe European Commission had been expected to agree on and publish a list of candidate substances in 2014, but this process was delayed in order to better consider the impact of such a decision. In June, ECPA provided input to highlight the likely impact of adopting the list. ECPA is committed to providing additional support in the on-going discussions.

Regulatory outreachGiven the many regulatory challenges being faced by our industry, ECPA’s regulatory team have been active in outreach in the Member States, highlighting some of the problems being faced and promoting workable ways to make progress. This has focussed on European issues such as bees and endocrine disruption, but has also looked at the national challenges, especially linked to the zonal process. The national outreach will continue through 2014 and into 2015.

5

Dialogue with EFSAIn February, ECPA and 10 other industry associations highlighted concerns about the current functioning of EFSA, while at the same time making proposals for improvements. The improvement proposals include [1] allowing greater dialogue and transparency with applicants and [2] ensuring greater transparency in the mandates given to EFSA, in particular in the development of guidance documents.

In October, a formal meeting between EFSA, DG SANCO and the associations took place and this is expected to be an initial step forward in developing a more workable and transparent system.

Regulatory ConferenceIn March, ECPA cooperated with ECCA to organise a Regulatory Conference for the crop protection industry. The Conference brought together more than 300 experts from industry and regulators from the Commission, EFSA and Member States. This dialogue is considered essential to promote mutual understanding and greater transparency in the evolving regulatory system.

EFSA Workshop In June, ECPA cooperated with IBMA to organise a workshop in Parma, looking at some of the major challenges in pesticide risk assessment. The workshop in particular focussed on current issues that are currently being considered by EFSA’s PPR Panel – and which are expected to lead to the development of further scientific guidance documents to be put in place in the coming years.

Openness

Openness

Cooperation

Cooperation

Cooperation

Responsibility

Responsibility

Responsibility

Responsibility

Responsibility

Transparency

Transparency

TransparencyProactivity

Proactivity

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Agriculture faces many challenges. It has to produce more food, feed and other raw materials to satisfy the increasing and multiple demands of a growing population (we need to produce 70% more food for an additional 2.3 billion people by 2050). Agriculture must also contribute to economic prosperity and social well-being, while protecting natural resources such as soil, water and biodiversity.

The INSPIA project (European Index for Sustainable Productive Agriculture) seeks to demonstrate productive and resource efficient agriculture that delivers ecosystem services. A holistic approach is required for sustainable agricultural production – one that protects natural resources and provides more food, feed, fibre and more biodiversity and natural habitats, while also reducing greenhouse gas emissions.

INSPIA will demonstrate sustainable productive agriculture through the implementation of Best Management Practices (BMPs) and the measurement and monitoring of a set of indicators. INSPIA promotes sustainable practices

that protect and improve biodiversity, soils and water and contribute to deliver ecosystems services.

INSPIA is a project delivered in partnership with the European Conservation Agriculture Federation (ECAF) and l’Institute de l’Agriculture Durable (IAD).

With more than 50 project farms in France, Spain, Belgium and Denmark, the main objectives of INSPIA are to:

• Provide an index of farm sustainability based on a set of verifiable indicators

• Create a farm network for monitoring and validation of BMPs

• Demonstrate that BMPs contribute to achieve sustainability in European agriculture

• Promote sustainable agricultural practices• Raise awareness among EU stakeholders

Key Achievements 2014

1. Finalisation of a working list of indicators and Best Management Practices.

2. Completion of the first full season of data collection.

3. Launch of the project website for communication to an external audience.

4. www.inspia-europe.eu

5. Launch of the data entry and sustainability indexing tool in three language versions.

6. www.inspia-index.eu (EN) www.inspia-index.fr (FR) and www.inspia-index.es (ES)

7. Presentation of the project at several European conferences and events, including a ‘farm day’ hosted on an INSPIA project farm in Spain that welcomed more than 1,500 farmers.

Biodiversity

Stewardship/H4C

Pesticides help today’s farmers ensure the supply of healthy, high-quality and affordable food that we often take for granted. 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 – Food, Water, Health and Biodiversity – that bring those solutions to the ground and encourage the safe and sustainable use of pesticides in countries across Europe.

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Food

Year after year the results of the Annual Report on Pesticide Residues carried out by the European Food Safety Authority (EFSA) confirm the high level of 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.

So far the training has been done for trainers from one pilot country, Turkey, for peppers and tomatoes. The next step is to share lessons learned in Spain with farmers in Antalya in Turkey, by advisors trained in Almeria. Turkey remains of one of the main exporters of fresh produce to the EU. Advisors trained in Almeria will train around 100 trainers that will be sharing the knowledge with farmers across Antalya.


1. Training materials have been developed for the greenhouse farming in Antalya, Turkey – Turkish materials are “ready to go”.

2. The residues management project has presented its initiative at the European Vegetable Strategies conference in Brussels.

3. Brochure “Pesticide use and food safety” was published and translated into Spanish and Turkish to support the residues management project. We are now working on 6 additional language versions.

7

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. Under the water stream we have developed a long standing project called TOPPS (Train Operators to Promote best Practice and Sustainability). The project has developed an extensive collection of best management practices that help avoid contamination of water in a wide variety of situations and settings. Through intensive training and dissemination activities these

best management practices were shared and the TOPPS prowadis project focusing on BMPS in the farmland reached out to 7,000 farmers and advisors, land managers and pesticide operators in 7 European countries (Spain, Italy, France, Belgium, Germany, Denmark, Poland).

TOPPS and TOPPS prowadis1 are multi-stakeholder2 projects that aim at finding solutions to protect Europe’s surface water from pesticide pollution.

These projects are the only EU-wide platform to develop and disseminate best management practices on how to avoid water pollution from pesticide pollution from the farm and from the field on a pan-European level.


1. BMPs are now established in 24 countries with current pilots in the Baltic states.

2. BMPs to reduce spray drift and runoff developed in 7 countries

3. Diagnostic tools and training materials offered to advisers for broad dissemination

4. More than 7,000 advisers/farmers trained on how to reduce PPP losses to water

Water

1. TOPPS (Train Operators and Promote best Practices and Sustainability) and TOPPS-prowadis (Train the Operator to Promote best Practices and Sustainability - Protect Water from Diffuse Sources)

2. http://www.topps-life.org/node/13#TOPPS_partners

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A core responsibility of the crop protection industry is to help make agriculture as sustainable as possible by safeguarding the health and safety of farmers. 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 organizations and governments to help farmers and growers benefit from pesticides use in a manner that is safe for them and sustainable for the environment.

The Safe and Sustainable Use Initiative provides farmers and operators with an easy-to-use toolbox that helps them benefit from the combined knowledge of the industry, local authorities and fellow technicians and farmers. In practical terms it means advice on what to wear when the product is applied, where it can be stored, and how to apply it.

The focus of SUI is to enhance the safe and responsible use of pesticides for a sustain-able agriculture in Europe. Professional practices are key to effective management of risks when pesticides are used.

SUI is now operational in 16 countries and plans to expand to 18 by 2016. The 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.

CMS works in 25 countries and just saw the launch of 9 new pilot projects.


SUI

1. Training materials developed in all countries running the project: New material to help trainers, operators, distributors and advisors – developed in partnership with local experts and authorities – is helping improve knowledge and is an excellent example of commitment, collaboration and leadership of industry for a safe and sustainable use of pesticides.

2. The annual workshop held in Belgrade: Around 50 representatives of national associations and authorities gathered in Belgrade to share experience and knowledge about risk assessment and risk mitigation practices handling pesticides, particularly in application phase of these products and importance of these subjects in pesticides registration process.

3. Regular networking: Since 2014 the project has been fostering knowledge exchange between each of the countries running the SUI projects – thus creating synergies and sharing materials to increase efficiency and innovation.

CMS

1. In 2013 16,000 metric tonnes of pesticide containers were collected through 10 well-established European CM programs and 72% of the collected containers were recycled into other useful end products. This is the highest amount since the monitoring started in 2008. This amount of plastic packaging would have filled up 54 Olympic-size swimming pools and helped save energy use equivalent to 30 million liters of petrol.

2. 9 new pilots have been set up, with successful roll-out of programs launched in 2013 in Greece, Bulgaria, Serbia and Russia and programs ready to start in Cyprus, Slovakia, Lithuania.

Health

10

Public Affairs

Objectives and achievementsIn 2014 ECPA prepared an integrated advocacy and communications strategy and, throughout the year, solidified this effective coordination by building on several platforms with messages targeted at key stakeholders and at the general public. We worked to better show our industry as a trusted, valued partner and solution-provider in Europe, focusing communication and advocacy around four key areas:

• The industry’s Hungry 4 Change commitment to sustainable, productive agriculture;

• The ECPA Policy Vision, and the importance of EU policies that foster innovation and promote sustainable, competitive, productive agriculture;

• The Agri-Food-Chain Coalition, highlighting our partnership with key stakeholders;

• Issue management, including development of key communications tools on endocrine disruption.

H4C CommunicationsThe industry’s Hungry for Change initiative took on increased importance in 2014, forming not just an impressive array of success stories on stewardship and good agricultural practices but also the basis for more general communications. As part of our strategy to increase awareness of the contribution our industry makes to sustainable agriculture, ECPA developed a “narrative” that ties together all of the H4C projects into a meaningful context. Additionally we developed a detailed strategy and timeline for deliverables driven by H4C project communications. This involved coordinating with H4C stream leaders on developing key messages for each of six H4C “flagship” projects, and crafting a communications toolkit for each one. In the latter half of 2014 we began an intensive outreach campaign to spread these positive stories to journalists in Brussels and across Europe.

To help get this message out to a larger audience, we produced a new brochure on the H4C initiative, spelling out in clear, direct language our industry commitment to sustainable agriculture: We also launched an update of the www.hungry4change.eu website, with improved messaging on streams and projects.

New publications • Pesticides and Food Safety brochure• Postcards on Minor Uses• Triple-rinsing video• Re-launch of anti-counterfeit mini-

website www.illegalpesticides.eu• SUI flyer • Biodiversity brochures • Increased social media engagement, with

presence on various channels (ie. Twitter – over 4K followers, Facebook over 17K followers, YouTube, issuu, flickr)

• Pesticides and Sustainable Agriculture brochure

Protecting more than just crops

CROPPROTECTION

S A F E

US

E

INIT

IAT

IVE

What influences residue levels?Properties of the active ingredient and formulationAll crop protection products degrade with time. Different active ingredients and formulations lead to different degradation rates.

Regional cultivation and site conditionsFactors like hours of sunlight, temperature and rainfall influence degradation and thus residue levels.

Period of timeMore time between the application of a crop protection product and the harvest usually means more time for degradation resulting in reduced residue levels.

Type of cropThe type of crop is also an important factor. For example, the roots of potatoes and carrots are protected from direct spraying as they are below the surface of the soil.

Pest infestationPest infestation influences the timing and rate of applications.

Plant healthHigher residues are likely to occur if the crop does not develop properly (e.g. due to drought).

Pesticide use and food safety

For more information, please contact:ECPA aisbl

6 Avenue E. Van Nieuwenhuyse1160 Brussels - BelgiumTel: +32 2 663 15 50Fax: +32 2 663 15 60E-mail: [email protected]

www.ecpa.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.

October 2014Pesticide use and food safety 9

FSC logo here

Residues Brochure UK October 2014.indd 3-5 07/10/14 16:07

Pesticides and biodiversityAgricultural productivity and biodiversity conservation

7584 Biodiversity ELO brochure_FINB.indd 1 02/04/13 15:59

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Sharing the ECPA Policy Vision with new EU political leaders 2014 was a year of political change in Europe, with elections for new Members of the European Parliament and the selection of a new European Commission. Working with our members, ECPA coordinated a strategy for getting our industry messages across to the new policymakers. In November 2013 – a year before the new EU institutions would be in place – we launched the ECPA Policy Vision. This vision – presenting “Five steps to promote innovation, competitiveness and sustainable productivity” – formed the core of much of our advocacy and communications throughout the year. In addition to the vision laying out our policy recommendations, we produced a dedicated mini-website and a video to promote the key messages. The video, a humorous look at the importance of innovation, was viewed more than 100,000 times in its first two weeks on YouTube. The messages also were a key part of our 31 March event in Brussels to highlight policy challenges and industry solutions for sustainable agriculture. Media outreach continued throughout the year, including on social media, and was to culminate in our Hungry for Change conference in December.

Agri-Food Chain CoalitionOur own policy vision helped us to reach out to other stakeholders who have similar goals and who also believe that new efforts are needed in policy-making if we are to achieve them. ECPA was instrumental in helping to build a new coalition of agri-food chain stakeholders, a group of 11 associations from farm to fork with a shared vision in favor of policies that support agricultural innovation. The coalition presented our “Food for Thought” declaration to EU agriculture ministers in May, and to new Members of the European Parliament in September. We will keep the momentum going in 2015, with more joint events and messages aimed a policymakers.

Endocrine Disruption communicationsDuring 2014, ECPA outlined industry messages aimed at engaging in a “reasonable debate” with stakeholders on the important issue of how the EU should regulate so-called “endocrine disrupting” substances. It has been important to address public concerns about this issue, and to make sure our industry position is clear in the media, but also to make sure that the crop protection industry is not isolated in the larger policy discussion. Our communications strategy involved: developing a scientific bibliography of existing studies on endocrine proving that this is a scientific debate that has already a number of comprehensive studies conducted; creating a set of presentation slides for use by the ECPA network on endocrine basics; producing a video “infographic” on basics of endocrine system; creating a mini-website, www.reasonabledebate.eu outlining industry positions.

PESTICIDESAND SUSTAINABLE AGRICULTURE

Hungry4change Zcard_Cover_FIN.indd 1 13/08/14 16:41

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The European Crop Protection Market in 2013By Phillips McDougall

In 2013, the market for crop protection products in Europe (EU 28 and EFTA nations) increased by 5.2% to reach €8,861 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 2013 were sustained high crop prices; further economic improvement, particularly in Central and East European markets; a late spring, but better summer growing conditions, although still wet in the north. In general terms in the EU-15 the farm economy remained strong due to high crop prices. Volume growth was driven by Central European markets, whilst

southern EU-15 markets performed well but a prolonged winter and wet summer depressed more northern markets.

Generally crop production in the EU in 2012 was held back by adverse weather conditions such that crop prices were sustained in 2013. However, the planting of oilseeds increased but the grain crop area was essentially flat in comparison with 2012, whilst the sugarbeet and potato areas declined.

Change in EU 28 Cultivated Areas 2013 / 2012

Crop Cereals Maize Rapeseed Sunflower Sugarbeet Potato

Area Change (%) 0.6 0.2 6.6 5.1 -1.5 -2.5

EU-28 and EFTA Crop Protection Market by Crop 2013

0

5

10

15

20

25

30

35

40

Other crops

Other F&V

Pome fruit

VinePotatoSugarbeetSunflowerRapeMaizeCereals

7,0%

12.9%

4.8%

9.7%

4,7%3,3%

2.2%

10,3%11.0%

34.1%

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The shift in planted areas had a direct impact on the agrochemical market, although higher levels of inputs are used on cereals than on oilseeds. Generally the start to the season was poor, however the summer season was wet in the north but much better in the south. 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 2013 in comparison with 2012, particularly in central European markets.

Due to higher crop prices, improved economic conditions in central European markets and acreage changes, all major crop sectors in the EU and EFTA crop protection market registered value increases in 2013, although the rice sector declined. In line with the shift in acreages, the greatest growth in agrochemical sales was recorded by oilseeds, and by fruit & vegetable crops due to better weather in the south.

At the product level increases were recorded across all sectors of the market; the most positive being the ‘others’ sector, led by plant growth regulator use on cereals and oilseed rape. Insecticides sales were assisted by strong

performances in the sunflower, maize and oilseed rape markets. In the fungicide sector, growth was led by oilseeds and fruit & vegetables benefitting from better 2013 summer weather, whilst in herbicides oilseeds and fruit & vegetables recorded the strongest growth.

The division of the European Crop Protection market by region in 2013 is shown below.

In 2013, the total European crop protection market grew by 10.0% in US dollar terms to account for 25.2% of the global crop protection market, behind

The European Crop Protection Market in 2013By Phillips McDougall

European Market (EU-28 + EFTA) by Product Sector 2013

2012 €m

2013 €m

Growth 2013/2012%

Herbicides 3674 3835 4.4

Insecticides 1176 1232 4.7

Fungicides 3249 3447 6.1

Others 321 346 7.8

Total 8420 8861 5.2

European Crop Protection Market 2013

0

2500

5000

7500

10000

RestRussiaEFTAEU-28

8728

€ million

133

678 728

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Asia which accounted for 26.6% and Latin America (25.9%), but ahead of NAFTA (18.5%). The performance of the European market was enhanced in dollar terms due to currency translation; in constant dollar terms the market grew by 7.3%. Over the last five years, the European crop protection market has grown on average by 1.2% p.a. in dollar terms, behind the growth recorded by Latin America (9.7%), Asia (4.2%) and NAFTA (3.8%). 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. Whilst all the southern EU-15 (the original member states) markets registered growth in 2013 in € terms, only Spain exceeded 10% in comparison with 2012, however the most positive market in the EU was again Romania, which grew by 20% in local currency terms, followed by Bulgaria (+15%). Outside the EU, market growth in Russia and Ukraine was again held back due to a harsh winter but benefitted from a better summer. Despite this, the Russian market grew by 18% and the Ukrainian market by 22% in 2013.

European Crop Protection Market Outlook

In comparison with 2013, market conditions in 2014 have been far better, although wet weather again affected Northern Europe in the autumn 2013 planting season. Generally crop prices remained high at the start of the year due to the depressed 2013 global cereal harvest. The EU-28 wheat area has improved again in 2014, however the area of other cereal crops has declined and oilseed improved marginally.

Generally the year got off to a good start, following a mild winter the spring started early, resulting in high early season disease pressure. However, some central European regions have been held back by a wet cool summer. Despite this the outlook for the 2014 harvest is for a significant increase in both grain and oilseed production. This, coupled with the expectations of good harvests in the Americas, has led to a significant softening in crop prices which will have a knock on impact on farm profitability. This is likely to result in shifts in planted areas in 2015 and a more competitive crop protection market.

In Russia and Ukraine, a mild winter followed by good summer conditions has also resulted in the expectation for a significant increase in crop production.

On a global basis, after a good year for volume growth in agrochemical usage in 2013 and a strong farm economy due to high crop prices, the perception at the start of 2014 was for a slowdown in crop protection market growth, as maize and soybean prices weakened following an excellent 2013 harvest in the USA and also in Latin America in the 2013/14 season.

Despite another prolonged winter in North America, good summer weather has given rise to expectations of another record harvest in 2014. As a result maize and soybean prices have declined further and the agrochemical market has been weak. This is likely to have a negative impact on Latin American planting for the 2014/15 season. South and West USA suffered dry weather in 2013, which continued into early 2014, although rainfall came at the key time for spring crop establishment. Lower maize prices have boosted the usage of the crop in the USA for ethanol production in 2014.

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In 2013 the Asian market was affected by a very strong monsoon season in much of Southern Asia, causing flooding in some areas and holding back agrochemical market growth. De-stocking of rice by Thailand has had a negative impact on rice prices, however some recovery has been seen since mid-2014. Australia suffered a severe drought in 2013, with parts of the east of the country similarly affected in 2014.

The 2014 monsoon season has reportedly been delayed in India, which may hold back agrochemical market performance, however further growth is still expected.

The agrochemical sector has enjoyed a period of sustained high growth driven by high crop prices. The outlook for prices in 2014 and 2015 is for price declines for the major row crops affecting farm profitability and putting pressure on agrochemical usage. Much of this can be put down to two years of strong harvests in North America and improved output in Europe in 2014 due to better weather, however with variable weather patterns this can soon change.

The long term underlying demand for crops has not altered, driven by increasing demand in developing markets, particularly China, Egypt, Algeria and Indonesia. In the immediate term supply is exceeding demand, such that prices are declining, however if 2015 harvests are again affected by adverse weather then a more positive market environment is likely to result.

The decoupling of subsidy from production in the EU has resulted in planting decisions being more driven by the potential profitability of crops. In the recent past high demand for cereals and oilseeds has sustained production in the EU-15. However, with lower crop prices, the outlook for the crop protection market in the EU-15 in 2015 is far less positive. It is anticipated that Central and East European markets will account for a larger share of the internal EU grain market, due to a lower cost of crop production and processing in many of these countries. The implication of this is a slowdown in the crop protection markets in the EU-15, but further growth in Central and East European markets.

Overall the general expectation for crop protection market performance in Europe in 2014 remains one of growth, but not at the level enjoyed in recent years.

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Jean-Charles Bocquet Director General

Anna Seretny Communications Coordinator

Claudia Michel Director Sustainability and Stakeholder Relations

Agata Pietrasiuk Management Assistant

Craig Winneker Director of Communications

Łukasz Woźniacki Food and Legal Affairs Manager

Sarah Giles Director Corporate Operations

The ECPA team

17

Gavin Whitmore Biodiversity and E-Communication Manager

Aurélie Dhaussy Regulatory Affairs Manager

Pascaline Ritrovato Administrative Assistant

Rivka Benatar Management Assistant

Peter Day Science and Technical Affairs Senior Manager

Euros Jones Director Regulatory Affairs

Laurent Oger Environment and Non-Agricultural Affairs Manager

Stuart Rutherford Director Environmental Affairs

Jess O’Flynn Government Affairs Manager

18

Our network

BASF

DuPont de Nemours

Arysta LifeScience

AustriaFCIO – Fachverband

der Chemischen Industrie Oesterreichs

GermanyIVA – Industrieverband

Agrar eV

NetherlandsNefyto – Dutch Crop Protection Association

Gowan Company

Sumitomo Chemical

Bayer CropScience

Adama

Certis Europe

BelgiumPhytofar – Belgische Vereniging voor de

Industrie van phytosanitaire producten Association Belge de l’Industrie des Produits Phytosanitaires

GreeceHCPA – Hellenic Crop Protection Association

Spainaepla – Asociación Empresarial para la

Protección de las Plantas

ISK Biosciences Europe

Taminco

Dow AgroSciences

Monsanto Europe

Cheminova

DenmarkDCPA – Danish Crop

Protection Association

IrelandAPHA – Animal and Plant

Health Association

United KingdomCPA – Crop Protection

Association

Janssen Pharmaceutica

UPL Europe Ltd

Syngenta

Chemtura Europe

FranceUIPP – Union des Industries de la Protection des Plantes

ItalyAgrofarma – Associazione

nazionale imprese agrofarmaci

FMC

Nufarm SIPCAM

Associate & SME Member Companies

Full Member Associations

Corporate Member Companies

3

FinlandKASTE

Kasvinsuojeluteollisuus ry

Spain aepla

Asociación Empresarial para la Protección de las Plantas

NorwayNPF – Norsk Plantevern

Forening

Belgium Phytofar – Belgische Vereniging voor de

Industrie van Phytosanitaire Producten Association

Belge de l’Industrie des Produits Phytosanitaire

SwedenSvenskt Växtskydd

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 Ro´slin

PortugalANIPLA – Associação

National da Indústria para a Proteçção das Plantas

RomaniaAIPROM – Romanian Crop


RussiaAEB – Russian Federation

SerbiaSECPA – Serbian Crop Protection Association

Slovak RepublicSCPA – Slovak Crop


SloveniaSLOCPA – Slovenian Crop


Switzerlandscienceindustries

Business Association Chemistry Pharma Biotech

TurkeyZIMID – Zirai Mücadele

Ilaclari Üreticileri Dernegi

UkraineEBA – European Business

Assoc. Agrochemical Committee

KazakhstanThe Kazakhstan Plant Protection Association

BASF Dow AgroSciences

Monsanto Europe

Bayer Environmental Science Everris

Neudorff Scotts France

COMPO

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)

National Associations as Associate Members

Group of Nordic Country Associations, Constituting One Member Only

GAPEG Member Companies (non-agriculture)

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.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 2014

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Documents

ECPA Annual Review 2014