Contents

Message from the Director General

Message from the President

2008: Year in review

Upholding the benefits of pest management Legislation and regulation • TherevisionofDirective91/414/EEC • SustainableUseFrameworkDirective • Reviewofactivesubstances • MaximumResidueLevelsRegulation • EUWaterFrameworkDirective(WFD)andPrioritySubstances(PS)

Leading health and safety, respecting the environment Education and awareness • Preventingwaterpollution • Protectingusersandworkers • Combatingthethreatofillegally-tradedpesticides

Conveying the reality of agriculture Communicating the benefits • Mediarelations • Events • Theweb Working in an open environment • Thenetwork

Market overview

Staff and members • ECPAsecretariat • ECPAmembers(2008)

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Message from the Director General Message from the President

DearReader,

ItismydutyandprivilegetopresenttheAnnualReviewfor2008.Thetitleofthisyear’sreview–Safely securing Europe’s food supply –isverymuchtothepoint.ItexplainsconciselywhatroleourcropprotectionproductsplayinunderpinningEurope’squalityoflife.

ECPA continues to work intensively on a wide range of issues affecting the cropprotectionindustryinEurope.

Scientific research remains the backbone of ourwork.Our technical expert groupscontinue to research test guidelines that will facilitate policy-making in Europe,assisting theEuropeanCommission and theEuropeanFoodSafetyAuthority to findpragmaticlegislativesolutions.

OuradvocacyworkatboththeEUandMemberStatelevelshelpscreatearegulatoryenvironment in which crops flourish safely and ultimately enables ourmembers tooffer products that help farmers deliver nutritious food to families across Europe,usingpracticesthataresafeforpeopleandtheenvironment.Throughourregulatoryactivities,wenavigatethelabyrinthofEuropeaninstitutionalprocessestopursuesoundpoliciesanddefendtheinterestsoftheindustry.

In2008,topamongourpolicychallengeswastostepforwardandprovideinformationandreasonedargumentstoEuropeandecisionmakersinvolvedinthedebateoverthereformofCommissionDirective91/414/EEC,whichregulatestheapprovalofpesticidesonthemarket.WehavealsobeenheavilyengagedintheCommission’sproposalforaFrameworkDirectiveontheSustainableUseofPesticidesinEurope.Theexchangeandthechallengewillcontinueintotheforeseeablefuture.Asweenterintothenewyear,wewillmaintainourfocusontheseDirectives.

Complementing and adding important substance to our legislative work, ECPAmaintainsavarietyof training programmes and services which clearly demonstrate industry’s leadership in ensuring the sustainable safe use of our products, and demonstrates our commitment to protecting human health and the environment.Throughtheseprogrammesfarmerslearnaboutthelatestadvancesinsafe,effectivepest management, industry environmental initiatives and general crop protectionproductnews.

Asworldmarketsre-stabilise,wearedirectlyandtangentiallyhelpingtosolvepressingsocietalconcerns–foodsupply,risingfoodandenergyprices,environmentaldegradation,nutrition, obesity and other health issues. Thanks to scientific advancements andhigh-volumeproductionmethods,Europehasanabundanceofsafe,nutritiousfruitsand vegetables. Our crop protection products are used in all 27 Member Statesto secure yields, reduce crop losses and help provide a sufficient and sustainablesupplyofwholesome,deliciousfoodwhichisthekeyelementinmaintainingEurope’squalityoflife.

Promoting agricultural technology is part of our officialmission. Helping to ensuresocietyhasaccesstoasafeandaffordablefoodsupplyisthedirectoutcome.

Sincerely,FriEDhELM SChMiDErECPADirectorGeneral

DearReader,

Withmy term as president approaching completion, the introduction to this AnnualReviewrepresentsanopportunity toglancebackovermy time inoffice.Thisperiodhas been filled with substantial challenges and achievements for the industry andassociation,setwithinashiftingpolitical,regulatory,andsociallandscape.

In2005,myfirst year inofficeasECPApresident,wehostedourannualconferencewith the themeof ‘InnovationandStewardship forSustainableAgriculture.’ In2006,the following year, we held the successful Cyprus workshop that brought togethercompanies,nationalassociations,regulatoryauthoritiesandgovernmentofficialsfromthe southernMember States to discuss the latest developments in EU regulations,implementingtheMRLregulation,andthereviewandre-registrationprocess.Overafrankandproductivetwodays,wediscussednotonlytheproblemsbutalsodebatedpotentialsolutions,honestlyandopenly.

Commissioner Kyprianou, one of the keynote speakers in Cyprus, asked the cropprotectionindustrytoembracechangeandforgeaheadtoshapethefuture.Themanydifferentstakeholderspresentcamesomewaytowardsacommonunderstandingoftheneedforamoreworkable,predictableandsustainableregulatoryframework.

TheopinionsofstakeholdersexpressedduringtheCyprusworkshop,andthelaunchinJuly2006ofthedecision-makingprocessaroundthepesticidespackage,highlightedtheneed forour industry todevelopastrongerpoliticalvoice.Wesawthenecessityforachangeinhowwearticulatedourarguments,nolongerrelyingsolelyonscience– for which we have rightly secured a high reputation – but addressing the widerpublic’sperceptions,needsandconcerns,inalanguageMEPsandconsumerscouldunderstand.

TheregulatorylandscapeinwhichECPAoperateshasshiftedovermytimeofoffice.Thedominantpolitical focusaffectingour industrywasonceagriculture,but isnowtheenvironment.ThisshiftcanbedemonstratednotjustbytheEuropeanParliament’sENVIcommitteetakingtheleadonthepesticidedossier,butalsoontheconclusionsoftheCAPhealthcheck.AllfourdevelopingchallengestheCommissionhasidentifiedinthishealthcheckareenvironmentalinnature.

So,wheredowegofromhere?Withenvironmentalandhealthconcernstheorderoftheday,theterm‘sustainability’representsthebestwayforward.Pressureonland,agrowingworldpopulation,changingconsumptionpatterns,nottomentiontheinstabilityoftheglobaleconomythatwillintensifyconcernaboutincreasedfoodprices,meansthata trulysustainablesolutionwillbeonethat facilitatestheproductionofenoughhigh-qualityandsafefoodinanaffordableway.

Weallneedtoworktogethertoensurethataregulatorybalanceisreachedtoprotecttheenvironment,consumers,theindustryandthefutureofEuropeanagriculture–and,indoingso,enableasustainablesolution.Ourindustrymustcontinuetoraiseawarenesssothatthereisawiderappreciationandrecognitionthatinnovationisstillcritical,withtheLisbonagendarepresentingthekeytothefuturehealthoftheEuropeaneconomy.

IwouldliketothankallofmycolleaguesatECPAandwithinournetworkofcompaniesandassociations foryoureffortsover thepast fouryears,especially inwidening theoverallawarenessoftheissuesandforthesuccessfulcollaborationsthathavebeendevelopedaroundEurope.Ialsowanttosharemyappreciationandthankstothemanystakeholderswhohaveworkedwithustodevelopthebestsolutionsforourindustry,agricultureandtheEuropeanpopulationatlarge.

Sincerely,roGEr DoiGECPAPresident

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ECPAactsastheambassadorofthecropprotectionindustryinEuropeandrepresentstheindustry’sEuropeanregionalnetwork.Wepromoteagriculturaltechnologyinthecontextofsustainabledevelopmentand,indoingso,seektobuildunderstandingofourrole,recognitionofourcontribution,andinformeddialogueaboutourviews,valuesandbeliefs.• We represent our industry in themedia, relevant European foraandamongmajorstakeholders.• We lead and co-ordinate a European network of member companies and national associations, who act as our localrepresentatives.• Weendeavourtolistenandlearnfromourstakeholdersand seektounderstandtheirinterests,viewsandperspectives.

ECPAadvocatesEUpoliciesandlegislationthatupholdascienceandrisk-basedapproach,fosterinnovation,operateinapredictableandproportionateway,enabletheindustrytoperformefficiently,protectintellectualpropertyandrewardtheintroductionofnewtechnologiesandpractices.

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2008: Year in review

January 2008: • Launchof industry-sponsoredNomismastudy: ‘European agriculture of the future, the role of plant protection products – economic impacts.’ The Italian research institute concludes that cutting access to agrochemicals willleadtodramaticreductionofyields.

March 2008: • ReleaseoftheEuropeanCommission’samendedproposal forthenewregulationreplacingDirective91/414/EEC.The EuropeanCommissionrejectedalloftheadditional‘cut-off’ criteria put forward in the European Parliament’s first reading.• LaunchofPesticideInformationwebsite.

April 2008: • Workshop: ‘Planthealth inEurope: Impactof thecurrent proposalsoncropprotectionsolutionsinEurope.’Morethan 100expertsparticipateinanindustryworkshopinBrussels. Farmers, crop protection and seed associations come together for the first time to analyse the impact of the proposedpesticidelegislation.

May 2008: • Humboldt study published, ‘Global agricultural market trends and their impacts on EuropeanUnion agriculture’ by Professor Harald von Witzke, Humboldt Institute. The studyhighlightsthattheEUneedstoincreaseagricultural productivitytorespondtorisingfoodprices.• EuropeanParliamentresolutiononrisingfoodpricesinthe EU.TheEPrecognisesthatadequatepesticidesareneeded ifwearetomaintaincropproductivity.• Council of Ministers adopts a Common Position on the proposal for a Sustainable Use Framework Directive (19May2008).

June 2008: • IndependentconsultancyADASevaluatestheconsequences of the new ‘cut-off’ criteria plus the candidates for substitution of the Commission and the Parliament proposals. One worst-case scenario predicts that, as a resultoftheproposednewcriteria,theUKwouldhaveto undergoacompleteoverhaulofitsagriculturalproduction.• AgriculturalministersreachaPoliticalAgreementon the amended proposal for the new regulation replacing Directive91/414/EEC(23June2008).

AsummaryofkeyECPAactivitiesanddevelopmentsaffectingtheindustryin2008.

• WorkshopontheSafeUseofPesticides.Participantsshare experiencesfromthedifferentprojectsrunbyECPAunder theSafeUseInitiative.• The Council and the European Parliament reach a compromiseontheWaterFrameworkDirective‘daughter’ legislationonEnvironmentalQualityStandardsandlisting of Priority Substances. No additional substances are included,butanewlistofsubstancesispresentedforthe EuropeanCommissiontoconsiderinitsnextprioritization round.• Visit to a TOPPS demonstration farm by the yser River in Belgium. Water industry, farmers and the European Commissionhavetheopportunitytoseefirsthandtheefforts requiredtominimizewaterpollutionfrompointsources.

July 2008: • Press visit to Driffield in East yorkshire (UK) where journalistscanseefirsthandtheeffectoftheproposedEU pesticideregulationonpotatofarmers.

September 2008: • MaximumResidueLevels(MRLs)harmonisationcomesinto effect, enhancing increased trade transparency in agriculturalproductsandallowingfreermovementofgoods withintheEUandfromtherestoftheworld.• MembersoftheEuropeanParliamentvisitBelgianfarmsto understandhowpesticidesareanessentialpartofIntegrated Pest Management techniques in everyday agricultural practices.• The European Council adopts a Common Position on Directive91/414/EEC(15September2008).• Farmers, scientists, journalists and plant protection specialistsvisitastateownedfarminPoznan (Poland) to discuss how the reduction of pesticides will affect the country’sagriculture.• ECPA supports the European Initiative for Sustainable DevelopmentinAgriculture–EISAFarmersExchange2008.

october 2008: • Launch of the EuroCARE study, ‘Additional constraints forplantprotection:PriceimpactsonEuropeanagricultural markets,’ at a media event hosted by MEP Mairead McGuiness. Findings show that if ‘cut-off’ restrictions come intoeffect,prices forcerealsandvegetableswould risesubstantially.• Workshop in the European Parliament to discuss the findingsoftheHumboldtstudy;chairedbyMEPKlass.• Debate to discuss the role for pesticides in sustainable agriculture takes place in Brussels. Participants at European Voice-hosted event include the European Commission, members of the European Parliament, farmers, non-governmental organisations and industry representatives.• TOPPS’ closing event in Brussels showcases project achievements. The event also serves as a launching pad fortheBridgeprojectwhichwilltakewaterprotectionone step further by promoting the adoption of measures to preventpollution.• MEPMediterraneanconferenceattheEuropeanParliament in Strasbourg offers discussion platform on the possible impact of the new EU regulation on the requirements of Mediterraneanagriculture.• Press visit to Andalusia citrus farm featuring roll of pesticidesinIntegratedPestManagement(IPM).

November 2008:• Industry-sponsoredAnti-counterfeitConferenceinWarsaw addressestheissueatthelegislativeandfieldlevels.• Environment Committee votes on pesticide regulatory package(5November2008).• ECPAAnnualConference.

Upholding the benefits of pest managementLegislationandregulation

ECPA monitors and responds to European Union legislation affecting pesticidesonadailybasis,and fullyunderstands the impacts thatdecisionsmade inBrusselscan have on the European farmers’ ability to produce food, the future of Europeanagriculture and ultimately Europe’smuch treasured quality of life. Our organisationactsasthereferencepointforstakeholdersinthepesticidedebateandasaleadingsourceofscientificinformationontheissuesthroughthemediaandtheweb.Asatradeassociation,ECPA’smissionistoassistmembercompaniesandnationalassociationsintheirregulatoryconcernsatboththeEUandnational levels,andtorepresenttheinterestsofourmemberswiththeEUinstitutionsandthemedia.

For these regulatory proposals to be truly beneficial, they must place on the balance what agriculture requires to efficiently sustain the European food supply.

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ThE rEviSioN oF DirECTivE 91-414Also referred to as the ‘first half of the legislative PesticidePackage,’therevisionofEUDirective91/414/EECsetsoutnewapproval criteria required for active substances to enter themarket.Itsbroad,ostensibleaimwastoincorporatethemostup-to-datescienceandknowledgefortheprotectionofhumanhealthandenvironment.

The amendments to 91/414/EEC have been the subject ofextensivedebatethroughout2008andthefocusofconsiderableECPA attention. European farmers are reacting strongly asthe European Commission and Members of the EuropeanParliamentmove toward further restriction of the chemicalsrequiredtoproducesafe,high-qualityandaffordablefood.Thisisexacerbatedbythefactthatmorethanhalfofthechemicalscurrently used will already have been removed under theexistingreviewprocessforactivesubstances.

Oneof ourmainpoints in thedebate is that increasingfieldproductivitytokeepupwiththedemandofagrowingpopulationwillbecomemuchmoredifficultandcostlyinthenearfutureduetothislegislationwhichthreatenstoradicallydiminishtheeffectivenessofpestmanagement inEuropebyeliminatingahostofeffectiveoptions.Looking back to the first reading of the revision of the new

legislativeproposalinOctober2007,theEuropeanParliament(EP) proposed criteria that would make authorised activesubstancesmore limitedandeffectivelyban theuseofmanycommon,safeandeffectivepesticides.

To facilitate the decision-making process, the EuropeanCommission revised their initial proposal (11 March 2008).ThoughnumerousEPamendmentswereadoptedtheadditional‘cut-off’criteriaasproposedbyParliamentwerenotaccepted.

Three months later, the Agricultural Ministers reached aPoliticalAgreement (23June2008)at thefirstreading in theCouncil. Since it differed from the Parliament proposal, theagreementwasadoptedasaCommonPositionandtransferredtotheEuropeanParliamentforasecondreading.

Atthetimeoftheprintingofthisreport,thesecondreadingisunderwayinParliament.

Themostsignificantoperative factor in this legislation is theshifttoasimplisticuseofhazardcriteriaasthesoleprincipleof rejection for a plant protection product. ECPA, however,supports the continued use of an evaluation system that isbasedonaproperlyscientificallyconductedrisk assessment that isbasedon ‘actual’ rather than ‘perceived’or ‘potential’risk.Industrycontendsthatthehazard-based‘cut-off’criteria

shouldbelimitedtointernationallyagreedguidelinessuchastheStockholm(POPs)Convention.

Though theCouncilproposesa5-yearderogationof ‘cut-off’criteria, allowingpesticides to bemaintainedwhen it canbeproven that theyarerequireddue to ‘seriousdanger toplanthealth’, ECPA asserts that the legislative measures mustultimatelyensureaneffectiverangeofsafe,high-qualitycropprotectionproductsthatsecureeffectivepestmanagement,iffarmersaretosustainEurope’sfoodsupplyandprotecthumanhealth and the environment. We continue to work towardthisgoal.

SUSTAiNAbLE USE FrAMEWork DirECTivE

TheFrameworkDirectiveontheSustainableUseofPesticides,the‘secondhalfofthePesticidePackage’,isthekeyproposalforregulatingtheapplicationphaseofcropprotectionproducts,and this too entered second reading in ‘08 in the co-decisionprocess.

ThegoaloftheFrameworkDirectiveontheSustainableUseofPesticidesistointroducealegally-bindingsetofcommoncropprotectionusepracticesacrosstheEuropeanUnion,whichwillfurther enhance human health and environment safety, andprovideclearguidancetotheMemberStatesastowhattheyshouldbeincludingintheirnationalactionplans.

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Simply because a substance has hazardous properties does not mean it cannot be used safely, a fact that is proven daily in every sector, including agriculture, medicine and transport. If accepted, the legislative proposals could slash crop yields, reduce variety, eliminate certain crops, downgrade quality, increase health risks and drive up prices, while not significantly increasing safety.

TheDossierwentthroughEuropeanParliament’sfirstreadinginDecember2007andtheCounciladopteditsCommonPositionontheSustainableUseFrameworkDirectiveon19May2008.IndustrysupportstheCouncilpositionastheagreedtextfocusesonriskreductionratherthanarbitraryusereductionmeasuresthat do not take local needs or conditions into account. ThecommonpositionforeseesthattheEuropeanlegalframeworkallowsforthenecessaryflexibilityatthenationalleveltoadaptmeasurestothespecificcountry’ssituation,allowingdifferentnationalscenariostobetakenintoaccount.

Riskreductionmeasures,includingbestpracticedevelopmentandtraining,aretheonlyviablemeansofensuringbothsafetyandproductivitywhilerecognisinglocalneedsandconditions.

Duringthesecondreading,ECPAwillcontinuetoworktowardsa Directive which enhances common, safe and sustainablebest-usepracticesthatareworkableandstillgivefarmersthenecessarytoolstofightpestanddiseaseoutbreaks.

OntheGardenandAmenityfront,ECPAcontinuestopromotethesafe,sustainableuseofpesticidesinthehome,gardenandpublic areas. The Garden and Amenity stakeholder networkwasinformedaboutthelegislativepackageandthey, inturn,helped tosuccessfully raiseawarenessof therelated issues.Theseeffortswillcontinue.

The setting of arbitrary use reduction targets for pesticides has already proven ineffective in a variety of jurisdictions. Pesticide use responds to real, local pest challenges which are set by nature. Hence, the way forward is through improving practices. We are leading the way to ensure the safe, professional application of pesticides, establishing practices which secure the supply of fresh, wholesome, nutritious food and protect the environment.

rEviEW oF ACTivE SUbSTANCES

The review programme for active substances already onthemarket has been ongoing, with the aim of re-evaluatingall substances and establishing whether they may still bepermitted for use. The Commission’s goal was to completethereviewby theendof2008andRegulation1095/2007wasintroduced in September 2007 to fast track the procedure.Whilethismeasurewasputinplacetomeetthe2008deadline,a12-monthextensionwasagreedinJulyinordertoallowtheCommission andMember States adequate time tomake alldecisionsandensuretheirimplementation.

Agoalfor2009willbetoensurethatthelaid-downprocessforre-submittedsubstancesunderRegulation33/2008ofJanuary2008deliverspromptevaluationanddecisionmaking.ECPAisworkingwiththeauthoritiestofacilitatethiseffort.

Fromthemorethan1,000substancesinitiallyonthemarket,itisexpectedthatapproximately400willremainafterthisreviewprocess is complete. This includes the 140 new substancesthat were in the approval pipeline. Thus, even before thenew legislation replacing Directive 91/414 is implemented,farmerswillalreadysufferasignificantweakeningoftheircropprotectioncapability.

These factors form the key elements in our ongoingdiscussions.

MAxiMUM rESiDUE LEvELS rEGULATioN

TheEURegulation396/2005onMaximumResidueLevels(MRLs)ofpesticidesformallyenteredintoforceon1September2008.ECPAapplaudsthispublicationasitwillenhancetransparencyand harmonisation, and significantly contribute to improvingtheSingleMarketofGoods.By improving the functionof themarket,thislegislationwillhelpensureaplentifulandvariedsupplyoffruitandvegetables.

Under the new Regulation, the European Food SafetyAuthority (EFSA) plays a key role in ensuring that all MRLs

continue to be set well within acceptable safety limits, andthat the Commission takes account of EFSA’s advice in theestablishmentoflegalMRLs.

EU MRL harmonisation will also enable a higher level oftransparencywithintheEUandoutsidetheEU.Inpractice,itmeansthatoneMRLwillbesetforeachcropandpesticideinallEUcountries.Thiswillsignificantlycontributetoremovingexistingbarrierstointra-EUtradeandwill improveaccesstotheEuropeanmarketforthirdcountries’products.

Amajorchallengeremainscommunicatingtheresultsoftheannualresiduesreporttoconsumers,asthetradingstandardsareoftenmisinterpretedaspublicsafetywarnings.

EU WATEr FrAMEWork DirECTivE (WFD) AND PrioriTY SUbSTANCES (PS)

In 2008 theEuropeanParliament and theCouncil reached acompromise agreement on the proposed Water FrameworkDirective,whosegoalitistoimprovetheecologyofEuropeanwatersystems,toachievesetstandardsby2020.

In this process, no additional crop protection products wereincludedintheEU’sprioritylistofsubstancespresentingthehighest concern for European inland, transitional, coastaland territorialwaters andwhichwill be subject to cessationor phasing out of discharges. Within the next two years, afurther13substances–includingsixcropprotectionproducts–willbesubjecttoreviewforidentificationaspossiblePriorityHazardousSubstances.

TheDirectivewasadoptedattheendofOctoberandMemberStateswillhave18monthstoimplementatnationallevel.

ECPA has turned its focus to the Commission’s next roundof Priority Substances and Priority Hazardous Substancesselection. ECPA is fully engaged in the process aswork hasalreadybegunintheCommission’sWorkingGroupandintheJointResearchCentre.

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Thepesticideindustryiscommittedtoimprovinghealth,safetyandtheenvironment.

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Leading health and safety, respecting the environmentEducationandawareness

PrEvENTiNG WATEr PoLLUTioN

TOPPS(‘TraintheOperatorstoPreventPollutionfromPointSources’)isathree-year,ECPA-initiatedprogramme,whichstartedinNovember2005andwasfundedinequalmeasuresby theEuropeanCommission’sLIFEprogrammeandECPA.2008markedthesuccessfulconclusionof thisdemonstrationand trainingproject focusingonsixcriticalprocesses:storageandtransport;thephasebefore,duringandafterspraying;and residue disposalmanagement. Through a well-organised European network ofpartners,thenationallevelprogrammehasidentifiedanddisseminatedbest-practicetrainingandinformationtoeliminateproductspillsintogroundandsurfacewater.

A key achievement was the definition of Common Best Management Practices(BMP)whichwasdevelopedwithexperts from15EUMemberStates.Availablenowin12 languages, theBMPmaterialsarebeingusedas referenceand training tools.Additionaltrainingmaterialsinclude:adownloadableframeworkmodule;imagesandphotographs,including‘good’and‘bad’examplesofpesticideuse;avideoillustratingbestuseofcropprotectionproducts inrealworkingsituations;andaseriesofprintsupporting materials. The materials focus on demonstration of best pesticide use,securewaysofcleaningsprayers,andabio-purificationofferingsolutionsfortreatmentofresiduesinthesprayer.

ECPA’supcomingBridgeprogrammewillextendtheTOPPSachievementfurtherintothefarmingcommunitytoensuretheadoptionoftechniquesandtechnologydesignedtoavoidpointsourcepollution.ECPAwillalsobemovingontoasimilarprogrammeaimedateliminatingthediffusesourcesassociatedwithpesticideapplication.

ProTECTiNG USErS AND WorkErS

Before cropprotectionproducts reach themarket, theypassa series of rigorous and complex authorisation proceduresto ensure their safety. In addition to themeasures taken tomakeourproductssafefortheconsumer,flora,fauna,watersystemsand theenvironment, the initialsteps in thechain–occupational protection and proper label compliance – arecritical. ECPA’sSafe Use initiative project is aworker safetyprogramme carried out in collaboration with stakeholders.The programme focuses on Regions with intensive use ofcrop protection products because they present, potentially,higherrisk forworkersafety.These include:Portugal,Spain,France, Italy,GreeceandPoland.Theprogrammeaddresseslabelcompliance,applicationtechniques,properhandlingandpublicawareness.NationalauthoritiesarealsosupportingtheSustainableUseInitiativelocally,throughthedisseminationofbestpracticeknow-howinformationandtrainingprogrammesto ensure farmers and distributors alike take home the keysafetysteps.

CoMbATiNG ThE ThrEAT oF iLLEGALLY-TrADED PESTiCiDES

ThisyeartheissueofcounterfeitandillegalpesticidesemergedsignificantlybothinBrusselsandatnationallevel.ProtectionofIntellectualPropertyRightshasbecomeoneoftheEuropeanCommission’skeyobjectivesin2008andmanyofitsserviceshave initiatedactivity in thisarea.ECPA’sAnti-counterfeiting Projecthasbeenactivelyengagedwithallthemainplayersinthisprocess.TransitandimportofillegalpesticidesintotheEUiscomplexandlinkingtheexportingmanufacturertotheimportcanbeverydifficult.WorkinginconjunctionwithCropLifeInternationalandCropLifeChina,aprocessofidentifyingthevariousconnectionpoints and then developing a coherent traceable customsprocedure isprogressingwell.Therecentseizures inPolandand Russia have demonstrated to customs how illegal andunsafeproductsarecomingintothemarketandwillprovideafocusforthedevelopmentoffuturepolicyinitiatives.

Atthenationallevel,ourmainfocushasbeenraisingawarenessandtrainingnationalenforcementstaff.PolandandItalyhaverunseveralsuccessfultrainingsessionswiththeirrespectivepolice agencies and in Spain work is progressing well onestablishingaworkingagreementwithSeprona, thenationalenvironmentalpolice.The‘HappyPepper’awarenesscampaignwaslaunchedinSpainshowinghowusinglegitimatepesticidesmakesthepeppersbothwholesomeandexportable,awinningcombination. In Greece, a broadcast on prime time TV hasalertedviewers to therisksassociatedwith illegalpesticidesandpromoteda toll freenumber forreporting illegalactivity.Toll freenumbersarealso inuseorcoming intouse in Italy,SpainandUkraine.In 2008 ECPA dedicated its efforts alerting policymakers tothe threat of counterfeit pesticides. Awareness is buildingandasignificantmilestonewas theNovemberconference inWarsaw,whichbroughttogetherEUenforcementofficialsandthe industry in a cross-border sharing of intelligence, bestpracticeandsupport.

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CooPErATiNG iN ThE SEArCh For ANiMAL TESTiNG ALTErNATivES

Animal welfare and testing is an issue of concern to manyEuropeancitizensandlegislators.Inabidtohelptheindustrycome up with solutions for the refinement, reduction andreplacement of animal testing, ECPA continues to work onthe European Partnership for Alternative Approaches to Animal Testing (EPAA), a joint initiative by the EuropeanCommission, corporations and trade federations. Startedin 2006, the EPAA partnership is stimulating cooperation infundamental research, the formulation of new policy, thesharingofbestpractice,andtheacceptanceandpromotionofalternativeapproachestoanimaltesting.

Industry is leading the way in the development and refinement of pest management practices which are safe, effective and environmentally sound. The TOPPS partnership is a fine example in the vital area of protecting water systems.

www.topps-life.org

Conveying the reality of agricultureCommunicatingthebenefits

In 2008 communications activity focussed on creating awareness of the role ofpesticides in theprovisionofEurope’shigh-quality foodsupplyand thehigh levelofsafety and respect for theenvironmentexercised in theiruse. This communicationsactivityfeaturedECPA’shealth,safetyandenvironmentalinitiativesdemonstratingtheindustry’scommitmenttothewell-beingofconsumersandtoEurope’squalityoflife.Innovativeapproaches,suchas farmdemonstrationeventsandadvanced interactivewebtechnology,allowparticipantstoappreciatefirsthandthescopeofagricultureandthenatureoftheissuesathand.

MEDiA rELATioNS

Oureffortsdevelopedrelationswithall formsofmediaoutlets, frommainstreamtoindustrynews,inprintandbroadcast.Weheldnewsconferences,arrangedinterviewswithjournalistsandbriefedthemintensivelyatkeypolicymilestones.

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Our aim is to support a constructive public dialogue about the reality of European agriculture in the field and its achievement at the table; and to relate the highly tangible benefit it delivers: delicious, healthy, affordable food, the mainstay of our quality of life.

EvENTS

Events were used as means of engaging and stimulatingstakeholders, policy-makers and journalists in the on-goingdebate.InApril,ECPAjoinedCOPA-COGECA(theunitedvoiceof farmersand theirco-operatives)andESA (EuropeanSeedAgency) to hold aworkshop on the impact of the regulatoryproposalsoncropprotectioncapabilityinEurope.

ECPAalsoorganisedFarmVisitsintheUK,Belgium,SpainandPolandgivingMEPsandjournalistsachancetoseethehighlybeneficial reality of European agriculture firsthand. Severalevents took place in the fourth quarter of 2008, including alarge-scalepublicdebateorganisedinBrusselsinpartnershipwiththeEuropeanVoice.

Research was conducted and presented to provide essentialfacts, figures and analysis. In May, ECPA hosted the launchoftheHumboldtStudyonGlobalmarkettrendsandtheimpacton European Agriculture. The Bonn University/EuroCareStudy event placed a challenging brief on food prices intothe public realm that attracted considerable interest. Theprospect of a regulatory end product of reduced yields andescalating foodpriceswithina recessionaryclimate receivedextensivecoverage.

ThE WEb

Topromoteamorebalancedandtransparentdebate,inMarchECPA launched its multilingual public information website:www.pesticideinformation.eu. The site aims to present thelatestprogressonthepesticidediscussionsinEurope,withaparticularfocusonthedevelopmentsinBrussels.About13,000unique visitors have visited the site already, an indication ofhow closely pesticide issues are being followed and servedby ECPA online. A youtube.com channel was also developedfeaturinginterviewswithkeystakeholdersandfeedingthewww.pesticideinformation.eu site. ECPA is active in ensuring that‘pesticides’andpestmanagementareaccuratelyrepresentedandinterpretedontheweb.

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Workinginanopenenvironment

ThE NETWork

ECPA positioned the industry in the scientific, regulatoryandtechnicaldomains.Theassociationtookallpracticablesteps to achieve its representation objectives, working insuccessfulcollaborationwith,andrelyingon,thededicationofourmembernetwork.

ECPA continued to work closely with its company andnationalassociationmembersonadailybasis,addressingallpriorityissues,drivingtowardacommonunderstandingandposition,andtherebyensuringthatthecropprotectionindustryspeakswithonevoice.

Rapid, mutual exchange is the lifeblood of a strong,successfulnetwork,andwewillcontinuetofacilitatesuchanexchangeanddemonstratethatweareaknowledgeablepartner,respectedandtrustedbystakeholders,thepublicandauthoritiesalike.

Through our member network we ensure that the regulatory and legislative decisions and guidelines issued by the European authorities are disseminated and correctly interpreted. Our network is also an important channel for the transmission of timely information to the European public.

Market overview TheEuropeancropprotectionmarketin2007

In2007,themarketforcropprotectionproductsinEurope(EU-27andEFTAnations)increased by 5.2% to reach17,080million at the exmanufacturer level. This figurerelatestothevalueofproductactuallyusedonfarmduringtheagriculturalyear.Aftertheeliminationofcurrencyandinflationaryfactorsthiswasequivalenttoarealincreaseof2.8%.Aftertwoconsecutiveyearsofprolongedwinters,2006/7wasfarmorebenignbenefitting both the autumn and early spring spray seasons. In Northwest Europethiswasfollowedbyawetsummer,howevertheSoutheastwashotanddry,neitherconducivetocropproduction.Overall grain production declined contributing to the rise in crop commodity pricesduring thesecondhalfof theyear.Thecropprotectionmarket inNorthwestEuropewasnotoverlyaffectedbytheweather;howeverthemarketinSouthEasterncountries,particularly the Ukraine and parts of Russia was negatively affected by the lackofrainfall.

Thedeclineincropproduction,exacerbatedbylowergrainproductioninNorthAmericaandamajordroughtinAustralia,resultedindecliningstocksofthemajorcommoditycropsandrisingcropprices.TheEUrespondedtothisbyabolishingset-aside,suchthatalllandmaybebroughtbackintoproductionin2008.Thepositiveaspectofhighercroppriceswasimprovedfarmincomesandgreaterpurchasingpowerforcropinputs.

26 27ECPA ANNUAL REVIEW 2008 |MARKETOVERVIEW ECPA ANNUAL REVIEW 2008 |MARKETOVERVIEW

ChangeinEU27cultivatedareas2007/2006 Europeanmarket(EU-27+EFTA)byproductsector2007

Europeancropprotectionmarket2007

Crop Area change (%)

Cereals 0.2

Maize -6.7

Rapeseed 20.8

Sunflower -14.4

Sugarbeet -3.0

Potato -2.2

In terms of individual crops, the only major crop sector toregisteranincreaseincultivatedareawasoilseeds,particularlyoilseed rape, driven by the demand for biodiesel production.Whilstthecerealareawasessentiallystable,maize,sunflower,potatoandsugarbeetalldeclined,thelatteradverselyaffectedbytherevisionofthesupportforsugarintheEU.

EU-27andEFTAcropprotectionmarketbycrop2007

CErEALS|32,3%

MAiZE|9,5%

rAPE|8,0%

SUNFLoWEr|1,7%

SUGArbEET|4,7%

PoTATo|5,8%

viNE |9,5%

PoME FrUiT |4,5%

oThEr F & v |13,3%

oThEr CroPS|10,7%

Total market = 47,080 million

Despite the acreage changes and the variable weather, anumber of cropmarkets recorded significant growth in Euroterms in 2007 in comparison with 2006. Of the major cropsectors,thestrongestperformancewasrecordedbypotatoesandmaize followedbysugarbeetandrape,withcerealsalsoregisteringgrowthoverall. Theonlymajorsector to recordareductionin2007wassunflower.

In2007,thetotalEuropeanmarket increasedby14.7%inUSdollartermstoaccountfor31.7%oftheglobalcropprotectionmarket,aheadofboththeAsianandNAFTAregionsthateachaccountedfor23.4%and22.5%respectively.Overthelastfiveyears,theEuropeancropprotectionmarket issecondonlytoLatinAmericaintermsofaveragedollargrowth,recording9.5%perannum,althoughsomeofthishasbeenbecauseofcurrencytranslation. Amajor influence in this performance has beengrowthofCentralandEasternEuropeancountries,notonlythenewMemberStatesoftheEuropeanUnionthankstoincreased

At the product level again growth was recorded across allproductsectors, themostpositivebeingfungicidesthankstothemore benign winter and wet summer in the Northwest,withincreasedsalesbeingseeninallcropsectors,particularlycereals.Growth of theherbicidesmarketwas led by cerealsandmaize,whilst sugarbeet,maize and rapewere themostpositivesectorsoftheinsecticidemarket.The‘Others’sectorismadeupofplantgrowthregulatorsandfumigants;growthofthissectorisledbyfruitandvegetablesandcereals.

investmentinagriculture,aswellasrecoveryinRussiaandtheUkraine,althoughthiswasheldbackbyweatherconditionsin2007.Akey factorhasbeena lowercostofgrainproductionthan in theEU-15,resulting inprofitbeingsustainedevenatlowgrainprices.However,withgrainstocksatlowlevelsandpricesnowimproved,thecompetitionininternalgrainmarketshaseased.In2007,bothRomaniaandBulgariajoinedtheEU,with the cropprotectionmarkets in bothmarkets increasinginvalue.

2006 4m 2007 4m Growth 2007/06%

Herbicides 2958 3037 2.7

Insecticides 958 982 2.5

Fungicides 2516 2738 8.8

Others 297 323 8.8

Total 6729 7080 5.2

EFTA |921million

rUSSiA |2711million

oThErS |3741millionEU-27|69881million

28 29ECPA ANNUAL REVIEW 2008 |MARKETOVERVIEW ECPA ANNUAL REVIEW 2008 |MARKETOVERVIEW

EUroPEAN CroP ProTECTioN MArkET oUTLook

Market conditions in2008havealteredsignificantly,with theabolitionofset-aside,highcommoditypricesandasignificantreduction in global grain stocks. The prospect of increasedacreages and improved farm incomes that provide a positivemarketenvironmentarereportedlyleadingtoagreaterintensityinagrochemicalusage.However,recentlyset-asidelandthatcouldbeusedfortheproductionofoilseedrapeforbiodieselproduction,maynow, in2008,beused foranycrop,with theresultthatinsomecasesanincreaseingrainacreshasbeenattheexpenseofoilseedrape.It is anticipated that global cereal stocks will be partiallyreplenished in 2008, leading to the possibility of softer grainprices. Against a background of high fertiliser prices andpotentiallyrestrictedaccesstocreditforfarmers,thismaylimitfurthermarketdevelopment.Ifgrainpricesweaken,thenthecostofproductionagainbecomesagreaterissue,probablytothebenefitofCentralandEasternEuropeanproducers.Reform of crop support in the EU continues with the sugar

pricesupportmechanismalteredandmostcropareasbeingbrought under the single farm payment system, in whichsupport isdecoupled fromproduction.Most recently supportforvines,cotton,andfruitandvegetableshasbeenamended.Essentiallysupportforthesecropshasbeenbroughtintothesingle farmpaymentsystem,althoughsome interimsupportmeasuresremaininplace.Production of crops for biofuel production remains anopportunity,howevermuchwilldependoncentralsupportfor,andtheeconomicviabilityofbiofuelproductioninthefaceofhighandvolatileoilprices.AtpresenttherehasnotasyetbeenanywidespreadadoptionofgeneticallymanipulatedcropsintheEuropeanregion,howeverthe technology remains a potentialmethod to assist in cropproduction ina timeofneed. It remains thedecisionofeachmemberstateastowhethertoallowcultivationofGMcropsintheircountry.Re-registrationofexistingcropprotectionproductsisalimitingfactor in theEU,with the procedure for the first two lists ofproductsnowcomplete.Butanumberofproductsonthethird

list is awaiting a decision with the deadline for completionapproaching. Some products on list 3 have been withdrawnfrom the system for re-application to providemore time forassessmentstotakeplace.Theoverallimpacthasbeentolimitfarmerchoiceforproductsforpest,weedanddiseasecontrol,especiallyinsmallercropsectors.Overall the general expectation for crop protection marketperformanceinEuropein2008remainsverypositive,becauseofhighercommoditypricesandfarmincomes.Intheintermediatetermsomesofteningofgrainprices,higherenergyandfertilisercostsandsomerestrictionofaccesstocreditmaylimitfurtherdevelopment,howevermoreconsistentexpansionisanticipatedinCentralandEasternEuropeanmarkets.Forthelongerterm,continuingexpansionoftheEuropeancropprotectionmarketisanticipated,althoughmarketconditionsby2012maynotbeaspositiveintheEU-15countriesasin2007and2008.However,muchwilldependonglobalgrainsuppliesandtheeffectthattheyhaveonfarmincomes.

Source: Phillips McDougall

30 31ECPA ANNUAL REVIEW 2008 |MARKETOVERVIEW ECPA ANNUAL REVIEW 2008 |MARKETOVERVIEW

ECPA staff and members ECPAsecretariat

FriEDhELM SChMiDErDirectorGeneral

friedhelm.schmider@ecpa.eu+3226631555

SArAh GiLESCorporateAffairsManager

sarah.giles@ecpa.eu+3226631567

LAUrENT oGErAssistantManager

laurent.oger@ecpa.eu+3226631561

rivkA bENATArManagementAssistant

rivka.benatar@ecpa.eu+3226631562

kALiLA hAJJArFoodAffairsAdviser

kalila.hajjar@ecpa.eu+3226631568

PASCALiNE riTrovAToAdministrativeAssistant

pascaline.ritrovato@ecpa.eu+3226631551

PETEr DAYScience&TechnicalAffairsManager

peter.day@ecpa.eu+3226637601

EUroS JoNESDirector,RegulatoryAffairs

euros.jones@ecpa.eu+3226631553

STUArT rUThErForDSeniorManager,Environment&FoodPolicystuart.n.rutherford@ecpa.eu+3226631565

AUréLiE DhAUSSYRegulatoryAffairsAdviser

aurelie.dhaussy@ecpa.eu+3226631556

CLAUDiA MiChELSeniorManager,Agriculture,Environment&FoodPolicyclaudia.michel@ecpa.eu+3226631558

STEPhAN SChrAFFGovernmentalAffairsManager

stephan.schraff@ecpa.eu+3226631564

hELEN DUNNETTeCommunicationsManager

helen.dunnett@ecpa.eu+3226631563

PhiL NEWToNSeniorManager,Communications

phil.newton@ecpa.eu+3226631552

AGATA ZAGorSkACEEAffairsManager

agata.zagorska@ecpa.eu+3226637600

32 33ECPA ANNUAL REVIEW 2008 |ECPASTAFFANDMEMBERS ECPA ANNUAL REVIEW 2008 |ECPASTAFFANDMEMBERS

ECPAmembers(2008)

ASSoCiATioNS (FULL MEMbEr)

Austria(FCIO)FachverbandderChemischenIndustrieOesterreichsbelgium (PHyTOFAR)AssociationBelgedel’IndustriedesProduitsPhytosanitaires,BelgischeVerenigingvoordeIndustrievanPhytosanitaireProducten

Denmark(DCPA)DanishCropProtectionAssociation

France(UIPP)UniondesIndustriesdelaProtectiondesPlantes

Germany(IVA)IndustrieverbandAgrareV

Greece (HCPA)HellenicCropProtectionAssociation

ireland (APHA)AnimalandPlantHealthAssociation

italy(AGROFARMA)AssociazioneNazionaleImpreseAgrofarmaci

Scandinavia*

Spain (AEPLA)AsociaciónEmpresarialparalaProteccióndelasPlantas

The Netherlands(NEFyTO)NederlandseStichtingvoorFytofarmacie

Uk(CPA)CropProtectionAssociation

ASSoCiATioNS (ASSoCiATE MEMbEr)

bulgaria(BgCPA)BulgarianCropProtectionIndustryAssociation

Croatia (CROCPA)CroatianCropProtectionAssociation

CyprusCyprusCropProtectionAssociation

Czech republic (CCPA)CzechCropProtectionAssociation

hungary (HuCPA)HungarianCropProtectionAssociation

Lithuania (LCPA)LituanianCropProtectionAssociation

Poland (PSOR)PolskieStowarzyszenieOchronyRoslin

Portugal (ANIPLA)AssociaçãoNationaldaIndústriaparaaProteççãodasPlantas

romania (AIPROM)RomanianCropProtectionAssociation

Slovak republic (SCPA)SlovakCropProtectionAssociation

Slovenia (SLOCPA)SlovenianCropProtectionAssociation

Switzerland (SGCIChemiePharmaSchweiz)SwissSocietyofChemicalIndustries

Turkey (ZIMID)ZiraiMücadeleIlaclariÜreticileriDernegi

Ukraine (EBAAgrochemicalCommittee)EuropeanBusinessAssociation

* Scandinavian membership is made up of three associations:

Finland (KASTE)Kasvinsuojeluteollisuusry

Norway (NPF)NorskPlantevernForening

Sweden (IVT)IndustrinförVäxt-ochTräskyddsmedel

CorPorATE MEMbEr CoMPANiES (FULL MEMbEr)

BASFBayerCropScienceDowAgroSciencesDuPontdeNemoursMonsantoEuropeSyngenta

ASSoCiATE & SME MEMbEr CoMPANiES (ASSoCiATE MEMbEr)

ArystaLifeScienceCheminovaChemturaEuropeFMCGowanCompanyISKBiosciencesJanssenPharmaceuticaMakhteshimAganNufarmSIPCAMStählerInternationalSumitomoChemical

GAPEG MEMbEr CoMPANiES (NoN-AGriCULTUrE)

BASFBayerEnvironmentalScienceCOMPODOWAgroSciencesMonsantoEuropeNeudorffNufarmScottsFranceSyngentaGAPEGMemberAssociation(non-agriculture)UPJ(France)-Uniondesentreprisespourlaprotectiondesjardinsetespacesverts

34 35ECPA ANNUAL REVIEW 2008 |ECPASTAFFANDMEMBERS ECPA ANNUAL REVIEW 2008 |ECPASTAFFANDMEMBERS

´

ECPA, European Crop Protection Association, aisbl6, Avenue E. Van NieuwenhuyseB-1160 BrusselsBelgium

tel: +32 2 663 15 50fax: +32 2 663 15 60VAT: BE 447 618 871www.ecpa.eu

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