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Corporations and Pesticides
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Multinational Corporations have Control 1960s and 1970s the pesticide market was a highly profitable business venture, increasing in sales by 10% each year But this success soon reached a plateau By 2002 the market fell from its peak of $30 billion to $27.8 billion This was due to high research costs and regulations on the pesticides themselves, limiting the production of certain dangerous pesticides This pressure to increase profits after decrease in economic growth forced companies into consolidation
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Consolidation limits Control of the Agrochemical Market There is now only six companies in control of this market, they control 75-80% of the world’s agrochemical market The six biggest companies are Syngenta, Bayer, Monsanto, BASF, Dow and DuPont In 2001 the agrochemical industry changed its name to CropLife International and started producing both pesticides and biotechnology In 2000s sales from seeds and the genetic modification sector grew and agrochemical sales fell or stayed the same
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How to Increase these Sales Their main focus began to include how to promote new products and how to continue to sell old products Developing countries become the producers and exporters of pesticides India and China are the largest producers of generic products, followed by Argentina In India companies make many hazardous products, that are banned elsewhere in the world and by the WHO (World Health Organization) Right behind India is China the second largest agrochemical producer
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Cost of Research 10% of a companies sales goes to research development Long-term costly research is needed to fund biotechnological research so advancements can be made and profits can increase Without this research the big six could not maintain their hold on the market Development costs of products increased by 21% between 1995-2000 But cost of registering a new chemical was reduced by 15%
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Advertising is Key You must persuade farmers to buy your product 1940s-1960s stressed science 1970s-1980s emphasis on the domination of nature 1990s people began to realize the ecological and social costs and emphasized harmony and working with nature ‘Best against grass. Best for the Land’ Developing countries
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Growing Markets in Developing Countries Pesticide sales decline in rich countries Developing countries become the target The most toxic insecticides are used of fruit, vegetables, cereals, rice, maize, cotton, and soybeans- 85% of sales Grown by smallholders in developing countries To protect human health and the environment led to the adoption of the International Code of Conduct on the Distribution and Use of Pesticides But there are not enough human and financial resources to in force these codes
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Problems in Developing Countries Farmers want cheaper products Still use highly toxic products banned by the WHO are still being used This market growth in developing countries could be stopped if proper training and information was available to farmers
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Pesticides are Easily Accessible Often sold in small kiosks, markets, shops selling food and other goods Pesticide dealers are not informed Farmers are unable to read labels and learn from neighbors how to use Almost all governments have pesticide laws but enforcement is a problem
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Legal Action is Hard to Take In the U.S. victims are able to use the media to help them with their plea against pesticide companies, but this is not easy for developing countries In Peru, lawsuit against Bayer-24 children died after exposure to methylparathion Case was not upheld
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Training In places like Guatemala where large numbers of people have been poisoned by pesticides, companies introduced training programs At first successful but behavioral changes were often temporary Problems arose from irrational behavior, but for small farmers and agricultural workers this behavior is perfectly rational Melon workers
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More problems Cheap herbicides that are fatal are still used One tsp of paraquat is fatal and there is no antidote Use to resemble coca cola, coffee or tea and home storage led to many accidental consumptions Hazardous pesticides, and others with chronic health concerns, are used freely in developing countries
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Authors Resolutions Governments, public research institutes and development agencies need to promote pest management strategies They must address the needs of poor farmers Also new strategies are needed in farming systems where workers work with hazardous products without protection
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