Auriga Industries A/S
dot
dot

Articles from Auriga Magasinet No. 3, December 2006


Developing countries and Cheminova


Based on the shortage of food in the developing countries, Cheminova’s President and CEO Bjørn Albinus in this article focuses on the situation in Brazil and India. After 10 years in India, Cheminova has significant activities. In Denmark, it has been necessary to counter accusations made about the company in a critical TV documentary.

 

---------------------------------

 

The best way of solving the food problems faced by developing countries is to improve their agricultural production. Here, plant protection products have a clear role to play.

 

In the developing countries, where 800 million people do not have enough to eat because agriculture is unable to produce sufficient food, plant protection products and artificial fertilisers help to ensure that, despite everything, progress is being made and that most people have enough to eat.

 

India
India is a typical developing country where, prior to 1960, wheat yields were on a par with what was being produced in Denmark in the Middle Ages. However, the “green revolution” in the 1960s, which saw the introduction of high-quality seed corn, artificial fertilisers, plant protection products and new irrigation methods, meant that today India is self-sufficient. Plant protection products were a precondition for this revolution and as such have helped to save people’s lives.

 

Cheminova makes a positive difference in India. The Danish company helps to ensure

adequate food supplies, create jobs and maintain focus on safety and the environment.

 

Brazil
While India is a typical developing country, Brazil, one of the world’s other large agricultural countries, is very different and can hardly be considered a developing country any longer. In Brazil, agriculture is based on exports of key crops such as soya and maize, in particular to the fast-growing economies of South East Asia. Production takes place on large, highly mechanised farms where yields are on a par with those in Europe. Agricultural production is the biggest source of foreign currency for Brazil, and plant protection products make a significant contribution to the high levels of productivity and thereby the country’s economic development.

 

Increased agricultural production is the best form of development aid
As far as the situation in the developing countries is concerned, an improvement in their agriculture in the near future must be expected in line with the WTO negotiations. The production of sugar, cotton, tobacco and other agricultural products in the EU is expected to be phased out and moved to developing countries offering comparative advantages. This is the best form of development aid. Let us open our markets to the developing countries so they can participate in the international division of labour and create a worthwhile existence instead of having to survive on transfer income.

 

For developing countries to boost their agricultural yields, they need to use more artificial fertilisers, plant protection and biotechnology. This requires focus on the environment and training – especially training in the safe use of plant protection products.

 

Poisonous products to be replaced by less poisonous ones
Regardless of whether the products being used are very poisonous or less so, and regardless of whether they are being used in Denmark or a developing country, it is important that everything possible is done to ensure that the products are applied and handled in a responsible way. If very poisonous products can be replaced by less poisonous ones, this should happen. In the past 20 years, many products have been developed which are less poisonous than older ones, and these are gradually winning a larger share of the market worldwide.

 

Concurrently with this, Cheminova’s product programme has seen dramatic changes over the past 10 years, probably more so than in any other company in the sector. In 1995, sales of the most poisonous products – the so-called Class I products – accounted for more than 30 per cent of total company revenues, while in 2005 they accounted for less than 5 per cent. By the end of 2010, they will only be sold in the West i.e. in the EU, USA, Canada, Japan and Australia.

 

This is a positive development, but it must take place properly so that the agricultural sector has a chance to adapt and familiarise itself with the new products.

 

Brazil and Cheminova
In Brazil, Cheminova has in the course of just a few years built up significant business and today has an approx. 3 per cent share of the market for plant protection products. By far the most sales are of the relatively non-poisonous fungicides and herbicides. However, two highly poisonous insecticides are also sold, both of which are being phased out in 2009. The products are only used in soya, beans and cotton, and to avoid their application on smaller farms where hand-held sprayers are typically used, they are only sold in large containers intended for large farms.

 

India and Cheminova
Cheminova is today very active in India, a large developing country. Here, we are helping to lead the way with our research, development, production and sales. Since 1997 when we acquired Lupin Agrochemicals, we have focused a lot on the environment and safety, both at our factory and in connection with the distribution and use of the products. In fact, we have always been proud of what we have done and believe we are helping to make a positive difference.

 

Safety and environmental policies have been implemented at the factory, a safety organisation has been established with a daily safety manager, and a wide range of environment and safety factors are continually measured and reported. Together with other large chemical companies in the area, Cheminova has contributed to the establishment of a large joint biological wastewater treatment facility and a large chemical waste depot and incineration plant. Together, these help to ensure that the environment in the area where the factory is situated will be significantly improved in the coming years.

 

We are engaged in research and the development of new products, which are being introduced as we phase out the older, more poisonous ones.

 

TV criticism and response
Consequently, we were both surprised and astonished when, on June 19, 2006 on Danish TV, we found that we were being accused of not meeting our responsibilities as a professional company. The accusations were extensive, and it was not possible for us to let them go unchallenged. Since the TV broadcast, we have therefore carried out several investigations to get to the bottom of the claims, and we have reported the results of these investigations in press releases and on the company’s website.

 

Cheminova’s Indian subsidiary is important for Cheminova, but is also important for India as our presence and our investments create jobs and help raise environmental standards of production, products and the use of the plant protection products in the fields. Since the TV programme was broadcast, we have become aware that several of our stakeholders are interested in being given more general information concerning non-financial aspects of the company than what is covered in the company’s annual environmental accounts. We have therefore decided to account for these factors each year. We will also use the Auriga Magazine for this purpose, and this issue includes a number of articles about our activities in India.

 

 

Pesticides
Cheminova’s WHO Class I sales products distributed by country in 2005 as well as planned phase-out:

  • Mexico: Methyl parathion and methamidophos (to be phased out 2009).
  • Brazil: Methyl parathion (to be phased out 2010) and methamidophos (to be phased out 2009).
  • Taiwan: Methyl parathion (to be phased out 2007).
  • Colombia: Methyl parathion (to be phased out 2009).
  • Cuba: Methyl parathion (to be phased out 2009).
  • India: Monocrotophos (to be phased out 2009), DDVP (to be phased out 2010), phorate (to be phased out 2009).
  • Argentina: Methamidophos (to be phased out 2009).
  • USA: Methyl parathion (none).
  • Australia: Methyl parathion (none).

 


Other articles:


Focus and divestment in the Group

Developing countries and Cheminova

Articles from Auriga Magasinet No. 3, 2006


Homepage Shareholder Information Auriga Magasinet 2006, No. 3 Developing countries and Cheminova

dot Advanced search dot Siteindex dot Sitemap dot Printversion dot Help dot
dot
Auriga Industries A/S P.O. Box 9
DK-7620 Lemvig
Tel. +45 7010 7030
Fax +45 7010 7031
info@auriga.dk Disclaimer notice
Website info