Subject: PANUPS: World Pesticide Mrkt Decl

From: Pesticide Action Network North America Reg Ctr <[email-masked]>
Date: 21 Apr 93 13:21 PDT

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   PESTICIDE ACTION NETWORK NORTH AMERICA UPDATES SERVICE
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WORLD AGROCHEMICAL SALES FALL

April 21, 1993

	For the second year in a row, the world agrochemical 
market has shown a decline in real terms (with the effects of 
inflation and currency exchange removed).  According to a new 
report from Allan Woodburn Associates (as reported in Agrow 
on March 5), sales fell 1.2% in 1992 after a fall of 1.1% the 
previous year.  Sales in the United States, however, grew as 
a result of increased maize plantings, and Japanese sales 
were higher than expected due partly to changes in the 
governmentUs acreage reduction policy.  The report indicated 
that Asia showed the greatest overall growth due to 
agricultural support programs. The decline in the Western 
European market was attributed to EC Common Agricultural 
Policy reforms, unfavorable weather conditions, and financial 
pressure on farmers.  
	Before 1991, the world agrochemical market had been 
growing for decades, but at a decreasing rate.  According to 
one industry study, real growth in the world market was 11% 
for the period 1960-69, 7.6% from 1970-79, and 2.3% from 
1980-91.  In 1992, of the top 10 country markets, only the 
United States and Japan recorded sales growth in dollar 
terms.
	The three largest German agrochemical companies, 
Hoechst, Bayer, and BASF, all had falling sales in their 
agricultural divisions during 1992 according to Agrow. This 
was due largely to reduced revenues from agrochemical sales.  
Bayer's agricultural division saw consolidated pre-tax 
profits fall by 21.3% in 1992.  Hoechst's worldwide 
agrochemical sales in 1992 were 6% lower than 1991.  BASF's 
worldwide crop protection sales were down 9% in 1992.  
Although a large percentage of their agrochemical sales are 
to foreign markets, an 18.8% drop in the German domestic 
market had a major effect on the revenues of these companies.  
	In many industrialized countries, total pesticide usage 
and/or sales have stagnated or declined in recent years.  
Other examples recently reported include: 

-  Sweden cut agricultural pesticide use 50% between 1986 and 
1990; and aims for another 50% reduction by 1997.

-  In the Netherlands, sales of agrochemical active 
ingredients were 7% lower in 1992 than in 1991.

-  In Switzerland, the market has been gradually contracting 
following a stabilization of sales in 1988; sales have 
declined by 13.5% during this time.

-  Danish pesticide use dropped by 18% in 1991, the largest 
annual reduction in usage since the national crop 
protection plan started in 1986.  The plan aims to halve 
pesticide usage by 1997.  To date, sales have dropped 35% 
compared with the reference period.  

SOURCES:  Agrow, April 2, 1993, March 5, 1993, and January 8, 
1993; other  industry reports.
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The Pesticide Action Network North America Updates Service 
(PANUPS) is a pesticide-related news service from the 
Pesticide Action Network (PAN) North American Regional 
Center.  PANUPS is posted weekly on EcoNet, the APC computer 
network, RTK NET, GeoNet/GEO2, the ECONET echo on FidoNet, 
the Sustainable Agriculture Network (SANET) on BitNet, and on 
PENpages. It is available free by electronic distribution.  
Hard-copy compliations are also available. For info: PAN NA 
RC, 965 Mission Street #514, San Francisco, CA 94103. Tel: 
(415) 541-9140. Fax: (415) 541-9253. Telex: 156283472 PANNA. 
E-mail address on EcoNet: [email-masked]
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