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Counterfeit and Illegal Crop Protection Products Health and Safety Risks Counterfeit Products Pose to Consumers Rocky Rowe – ECPA Anti-counterfeit Project Manager 4 th Global Congress Combating Counterfeiting and Piracy Dubai February 1 st to 3 rd 2008 .

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Counterfeit and Illegal Crop Protection Products

Health and Safety Risks Counterfeit Products

Pose to Consumers

Rocky Rowe – ECPA Anti-counterfeit Project Manager

4th Global Congress Combating Counterfeiting and Piracy

Dubai February 1st to 3rd 2008

counterfeit and illegal crop protection products
Counterfeit and Illegal Crop Protection Products
  • Who are we ?
  • Crop Protection Market Data
  • What types of Products are we dealing with ?
  • Where do these products come from?
  • Why are we so concerned?
  • What is the Industry Doing ?
  • Conclusions
croplife network of associations across 90 countries

31 national associations

18 national associations

CropLife Network of Associations across 90 Countries

26 national associations

13 national associations

counterfeit and illegal crop protection products5
Counterfeit and Illegal Crop Protection Products

The Global Crop Protection Market

  • The global market for CPPs is approximately $ 35.5 billion (crop and non-crop chemicals, excluding biotech)
  • Relatively small in monetary terms compared to many other commercial business, but critical for world agriculture.
  • It is a highly regulated business, like pharmaceuticals, where companies have to demonstrate human safety (users and consumers), environmental safety (birds, fish, mammals and biodiversity) and efficacy (crops) before a product can be brought to the market.
  • It costs up to $200 MM to bring a new product to the market.
counterfeit and illegal crop protection products7
Counterfeit and Illegal Crop Protection Products
  • The Crop Protection Industry has seen a growth in the manufacture distribution and use of counterfeit and illegal products over several years.
  • Current best estimates are between 5% to 7% of the global market.
  • Hot spots in certain countries can be from 10% to 30% of products used.
  • Established areas include:-
    • Latin America
    • Europe
    • Asia
    • Middle East
counterfeit and illegal crop protection products8
Counterfeit and Illegal Crop Protection Products

What types of Products are we dealing with ?

  • Sophisticated generic illegal copies of branded proprietary products, packaged and labelled to look exactly alike.
  • Generic illegal copies that have not been approved for sale, usually packed but with rudimentary labels giving the active substance name and concentration only.
  • Fakes and copies containing anything from talc, water or solvents, outdated/obsolete stocks often based on banned or severely restricted products , recycled packaging with diluted original materials.
counterfeit and illegal crop protection products9
Counterfeit and Illegal Crop Protection Products

Generic or other materials sold as legitimate branded products in sophisticated counterfeit containers and packaging.

Titus 100 g Italy – Seal and Cap

counterfeit and illegal pesticides cpps
Counterfeit and Illegal Pesticides & CPPs

Legal with safety symbols

Counterfeit without symbols

counterfeit and illegal crop protection products12
Counterfeit and Illegal Crop Protection Products

Where are these Product Coming From ?

China

counterfeit and illegal crop protection products13
Counterfeit and Illegal Crop Protection Products

Companies manufacturing in China

  • There are approximately over 2,700 pesticide companies in China, including the private sector .
  • Around 450 manufacture active substances
  • The others are all formulation companies.
  • Export sales to the rest of world approximately $1.31 Billion in 2005 or approx 3.7% of total global pesticide market .
  • Export Markets are estimated as
  • Asia ranked 1st
  • Europe ranked 2nd
  • S. America ranked 3rd

Source: CCPIA

counterfeit and illegal pesticides cpps14
Counterfeit and Illegal Pesticides & CPPs

Trends of pesticide imports into EU25 between 2000 - 2005)

Note: figures include only Insecticides + Fungicides + Herbicides, Source: European Commission, DG Trade

counterfeit and illegal pesticides cpps15
Counterfeit and Illegal Pesticides & CPPs

The China Effect

Origin of counterfeit good seized across the EU through 2006

counterfeit and illegal crop protection products18
Counterfeit and Illegal Crop Protection Products

BCPC

Conference

Glasgow

2007

Two

Chinese

companies

ejected for

IPR

violations

counterfeit and illegal crop protection products19
Counterfeit and Illegal Crop Protection Products

Why are we so concerned ?

Counterfeit and illegal CPPs pose a significant threat to human health and the environment

  • Counterfeit products are untested and unregulated
  • Can contain toxic manufacturing by-products
  • Can contain toxic analogues and impurities of the active substance copied.
  • Contain solvents and surfactants that are not permitted or are banned from use.
counterfeit and illegal crop protection products20
Counterfeit and Illegal Crop Protection Products

Why are we so concerned ?

  • Counterfeits pose severe health risks to farmers who are applying them.
  • Can potentially damage/destroy the crop treated and thus ruin the farmers livelihood.
  • Leave unknown toxic residues in food crops that place consumers at risk.
  • Create environmental risks to wildlife, water and soil.
  • Pose environmental waste problems in terms of disposal.
  • Devalues IPR and brand integrity
crop damage from counterfeit ppps
Crop Damage from Counterfeit PPPs

Farmers crops completely destroyed when counterfeits are used and

leave potentially toxic residues in the soil effecting the subsequent crop.

counterfeit and illegal crop protection products22
Counterfeit and Illegal Crop Protection Products

Isofenphos-methyl on peppers caused severe disruption to the food chain and embarrassed regulators in Spain

counterfeit and illegal crop protection products23
Counterfeit and Illegal Crop Protection Products

What is the Industry Doing ?

  • Running major campaigns in Europe and Latin America to raise awareness, promoting better use of existing legislation, working with enforcement agencies.
  • In Europe countries include: Poland, Spain, Italy Greece, Ukraine and Russia
  • In Latin America : SINDAG - Brazil, Paraguay, Uruguay, Peru, Nicaragua and Guatemala
  • Building alliances and intelligence in China
  • Building awareness in Africa
  • Utilising best practises from other industries
  • Working with USTR.
counterfeit and illegal crop protection products25
Counterfeit and Illegal Crop Protection Products

Conclusions

  • Counterfeit and illegal crop protection products are increasing, becoming more sophisticated and funded by criminal organisations in most regions around the world.
  • Their use poses a distinct threat to farmers, consumers and the environment and undermine the integrity of the whole regulatory process and the food chain.
  • The major source of counterfeit CPP products is China
  • Industry is working hard to combat the threat and calls on government to work with us to raise enforcement initiatives, prosecutions and penalties.