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PANUPS: World Pesticide Sales Up

                         P A N U P S
                   Pesticide Action Network 
                        North America
                       Updates Service
                   EMAIL: panna@panna.org

August 29, 1997

World Pesticide Market Expands

The world pesticide market grew for the third year in a row, 
according to three independent industry estimates. The 
British Agrochemical Association (BAA) reports that sales 
around the world rose 3.6% in 1996 to approximately US$31.25 
billion. Another estimate by the German industrial 
association (IVA) shows total world sales rising 4.4%. A 
third estimate by Allan Woodburn Associates, a UK consulting 
firm, reports a 2.2% increase in the 1996 world market.

Estimates show North America accounting for the highest level 
of pesticide sales. Approximately 30.6% of sales were in 
North America compared to 26% in Western Europe and 22.5% in 
East Asia, according to BAA. South America accounted for 
11.9% of sales and the rest of the world accounted for the 
remaining 9%.

An increase in land used for coarse grains and wheat 
accounted for a significant portion of the growth. Soybeans 
were also planted on more land in 1996, but plantings of 
other major pesticide-using crops, including cotton, rice and 
oilseeds, declined. The German industry report stated that 
cereals, cotton, maize, rice and soybeans accounted for more 
than half of the world pesticide market.

The South American market, particularly Argentina and Brazil, 
recorded the highest growth, with pesticide sales increasing 
13.2%. Higher prices for commodities encouraged greater 
plantings of soybeans, oilseeds, maize and wheat. The German 
industry report said that Latin America's share of the world 
market is 13%, up from 11% in 1995.

Increasing sales in Canada and the U.S. were attributed to 
greater plantings of maize, soybeans and wheat, as well as to 
an increase in conservation tillage practices in the U.S. -- 
which typically use greater amounts of herbicides. IVA 
estimated that North America's share of the world market grew 
3% in 1996. North American sales of transgenic crops also 
rose, with sales of more than US$200 million.

Markets in East Asia fell, due largely to shrinking acreage 
of paddy rice in Japan. Japan's pesticide market declined 12% 
in dollar sales, leading to a 5.4% decline for overall sales 
in East Asia, despite growth in China, India, Indonesia and 
the Philippines. Africa's share of the world market shrank 
from 3% to 2% in U.S. dollar sales, but remained level in 
local currency terms.

Herbicides accounted for the greatest portion of pesticide 
sales, with 48% of the world market. Insecticides accounted 
for 28% of the market and fungicides approximately 19%. 
Insecticide sales declined somewhat due to reduced cotton 
plantings in Brazil, China and the U.S. 

The global pesticide industry is optimistic about continuing 
sales growth, according to the British Agrochemicals 
Association, which foresees growth of 2-3% in real terms for 
1997. Markets in Brazil, India, China, Mexico, Argentina, 
Western Europe and the U.S. are all expected to grow, ranging 
from 1% in Western Europe to 5% in China. The BAA predicts 
that pesticide sales in the U.S. will be boosted by wider use 
of genetically engineered herbicide-tolerant crops, and by 
the Freedom to Farm Act, which will lead to greater plantings 
of cereals.

Source: Agrow: World Crop Protection News, July 11, 1997.
Contact: PANNA.

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