Showing posts with label Ban of Chlorpyrifosm EU new regulations. Show all posts
Showing posts with label Ban of Chlorpyrifosm EU new regulations. Show all posts

Tuesday, June 16, 2020

IPC REPORTS - EXPORT OF PEPPER BY UNITED KINGDOM




JUNE 15, 2020
The United Kingdom of Great Britain, commonly known as the United Kingdom (UK) is a sovereign country located off the north-western coast of the European mainland. United Kingdom actively imports pepper from various pepper producing countries for domestic consumption or for re-export.
In 2018, United Kingdom was reported to have imported a total of 12,185 Mt which 34% of it comprised of whole pepper. In the following year, United Kingdom's import of pepper increased by 8%, totaling at 13,121 Mt. The ratio of United Kingdom's import and export during 2018-January 2020 are 14:1, 13:1 and 8:1 respectively. In January 2020, United Kingdom was reported to have imported a total of 1,152 Mt of which 140 Mt went for re-export purposes. The top five countries of origins of United Kingdom pepper both for whole and ground as of January 2020 were reported to be Viet Nam with 563 Mt, Netherlands with 180 Mt, India with 124 Mt, France with 84 Mt and China with 82 Mt.
In 2018, United Kingdom was reported to have exported a total of 847 Mt of pepper which 40% or 338 Mt of it comprised of whole pepper and 60% or 509 Mt of it ground pepper. United Kingdom on average exported a total of 71 Mt per month in 2018 which peaked in August with 118 Mt. The total revenue of United Kingdom's export of pepper in 2018 was reported to be as high as USD 8.9 Million. Thus, recording the average price of the total pepper exported by United Kingdom at USD 10,750 per Mt for whole pepper and USD 10,407 per Mt for ground pepper.
Year 2019 saw an increase in term of quantity of pepper exported by United Kingdom. United Kingdom was reported to have exported a total of 981 Mt of which 47% or 458 Mt of it comprised of whole pepper and 53% or 523 Mt of it ground pepper, recording an increase of 16% when compared with 2018. The average export of pepper by United Kingdom in 2019 was reported to be at 82 Mt per month which peaked in July with 110 Mt. Although increasing in terms of quantity, United Kingdom's revenue from pepper export was reported with a decrease by 11% as compared to the previous year to a total of USD 7.9 Million. Thus, recording an average price of the total pepper exported by United Kingdom at USD 7,247 per Mt for whole pepper and USD 8,924 per Mt for ground pepper or a decrease by 33% and 14% respectively as compared to 2018.
As of January 2020, United Kingdom was reported to have exported a total of 140 Mt which 73% or 102 Mt of it comprised of whole pepper and 27% or 38 Mt of it ground pepper. Thus, recording an increase of 53% when compared to the same period in 2019. As of January 2020, the total revenue of pepper export by United Kingdom was reported to have reached USD 732,000, recording an increase of 8% as compared to the same period in 2019. The average price of the total pepper exported by United Kingdom as of January 2020 was reported at USD 3,803 per Mt for whole pepper and USD 9,052 per Mt for ground pepper.
Pepper from United Kingdom is mostly traded in European countries. As of January 2020, United Kingdom's top 5 Country of destinations for its pepper were reported to be Netherlands with 80 Mt (an increase of 53 Mt as compared to the same period in 2019), Ireland with 14 Mt (a decrease of 35%), Germany with 11 Mt (a decrease of 45%), United States of America with 7 Mt (an increase of 5 Mt) and France with 5 Mt (an increase of 45%). The decrease of export to Germany was the result of Germany directly imported pepper from producing country such as India (an increase of 22% or 16 Mt as compared to the same period in 2019). 










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Wednesday, February 19, 2020

What's Next for #Chlorpyrifos and #Chlorpyrifos-methyl in Europe



With Commission Implementation Regulation EU 2020/17 and EU 2020/18 which came into force on 16 January 2020, European countries were required to withdraw authorisations for pesticide containing chlorpyrifos and chlorpyrifos-methyl by 16 February 2020 with grace period permitted until 16 April 2020.

In addition the Standing Committee on Plants, Animals, Food and Feed section Phytopharmaceutical - Residues is scheduled to convene on a meeting during 17 - 18 February 2020 in which one of the agenda of discussion is exchange of views and possible opinion of the Committee on a draft Commission Regulation EU amending Annexes II and V to Regulation (EC) No. 396/2005 of the European Parliament and of the Council as regards maximum residue levels for chlorpyrifos and chlorpyrifos-methyl in and on certain products. Upon the adoption of the aforementioned draft Commission Regulation, the maximum residue levels of all product for active substance chlorpyrifos and chlorpyrifos-methyl will be lowered to 0.01 mg/kg and would come into force in October 2020.


With the new MRLs coming into force in October 2020, the downstream stakeholders of agricultural industry including the spice industry would take a significant blow. As for spice the cycle of farming, harvesting, exporting and trading would at least take a total of three years, farmers would not only lose a significant tool in managing destructive pests which could diminish their ability in obtaining sufficient yield, they would also be unable to export product containing residues to the EU which in worst case scenario would last for the next 2-3 years taking into account the cycle of industry. Furthermore, in regards of pepper, the new MRLs would give another blow to the ongoing downtrend of pepper price as farmer have to start finding other biological pesticide to replace chlorpyrifos at probably much higher cost in order to keep yielding the same amount.


The stream of commerce would take a massive hit, as the significantly short transitional period for such widely used pesticide would mean that all of already manufactured products as well as currently on store shelves were rendered out of compliance with the new MRL requirement and needed to be destroyed. Thus, resulting to a serious financial drawback of the pepper commerce industry.


Furthermore, with the implementation of the new MRLs in October 2020, it would mean a significant disruption of spices supply to the European Countries in particular pepper as most pepper producing countries like Indonesia, Viet Nam and Brazil which supply most of European Countries pepper need, are currently still regulated chlorpyrifos and chlorpyrifos-methyl for agricultural use. With the prospect of consignment being turned down to enter EU due to residue of chlorpyrifos, scarcity of pepper stock in the European Countries is imminent.



Source:
- Brazil, Unofficial source (Coreimex, CSG Trade)
- India: AISEF, NCDEX, Indian Chamber of Commerce & Industry, Spices Board India
- Indonesia: Unofficial source
- Malaysia: Malaysian Pepper Board
- Sri Lanka: Department of Export Agriculture
- Viet Nam : Viet Nam Pepper Association, HCMC
- China: Hainan Pepper Association, China Spice Association
- Office of Agricultural Economics of Thailand
- A.A. SAYIA & Company
- International Trade Centre (ITC) - Geneva




Note: Some of the data in this publication are from the IPC database. The data are obtained from official reports and correspondence between the IPC and Sri Lanka and have been processed based on statistical norms that can be accounted for









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Tuesday, February 18, 2020

EU Countries Voted to Ban Chlorpyrifos and Chlorpyrifos-methyl

IMPORTANT

In response to the statement released by European Food Safety Authority which elaborated that pesticide chlorpyrifos does not meet the approval criteria applicable to human health following some concerns on the epidemiological evidence related to developmental neurological outcomes in children as well as the absence of toxicological reference values, the EU countries had voted to ban pesticide containing active substance chlorpyrifos entirely from European Markets. This historical move took place in a meeting of the standing committee on plants, animals, food and feed (SCOPAFF) on 6 December 2019.

Soon after the meeting of the standing committee on plants, animals, food and feed (SCOPAFF) on 6 December 2019, European Union Commission sent out notification documents to the World Trade Organization (WTO) on 12 December 2019 which then recorded as WTO Notification No. G/SPS/N/EU/360.
The WTO Notification contained the draft Commission Regulation (EU) amending Annexes II and V to Regulation (EC) No. 396/2005 of the European Parliament and of the Council as regards maximum residue levels (MRLs) for chlorpyrifos and chlorpyrifos-methyl in or on certain product.
The proposed draft of the Commission Regulation (EU) which regulated that the MRLs for chlorpyrifos and chlorpyrifos-methyl on all product be lowered.


Furthermore, following the voting to ban chlorpyrifos and the sending of notification to WTO, European Union Commission through its official journal of the European Union dated 13 January 2020 published Commission Implementing Regulation EU 2020/17 and EU 2020/18 stipulating the non-renewal of the approval of the active substance chlorpyrifos and chlorpyrifos-methyl respectively.
What's Next for Chlorpyrifos and Chlorpyrifos-methyl in Europe
With Commission Implementation Regulation EU 2020/17 and EU 2020/18 which came into force on 16 January 2020, European countries were required to withdraw authorisations for pesticide containing chlorpyrifos and chlorpyrifos-methyl by 16 February 2020 with grace period permitted until 16 April 2020.
In addition the Standing Committee on Plants, Animals, Food and Feed section Phytopharmaceutical - Residues is scheduled to convene on a meeting during 17 - 18 February 2020 in which one of the agenda of discussion is exchange of views and possible opinion of the Committee on a draft Commission Regulation EU amending Annexes II and V to Regulation (EC) No. 396/2005 of the European Parliament and of the Council as regards maximum residue levels for chlorpyrifos and chlorpyrifos-methyl in and on certain products.
Upon the adoption of the aforementioned draft Commission Regulation, the maximum residue levels of all product for active substance chlorpyrifos and chlorpyrifos-methyl will be lowered to 0.01 mg/kg and would come into force in October 2020.

With the new MRLs coming into force in October 2020, the downstream stakeholders of agricultural industry including the spice industry would take a significant blow. As for spice the cycle of farming, harvesting, exporting and trading would at least take a total of three years, farmers would not only lose a significant tool in managing destructive pests which could diminish their ability in obtaining sufficient yield, they would also be unable to export product containing residues to the EU which in worst case scenario would last for the next 2-3 years taking into account the cycle of industry. Furthermore, in regards of pepper, the new MRLs would give another blow to the ongoing downtrend of pepper price as farmer have to start finding other biological pesticide to replace chlorpyrifos at probably much higher cost in order to keep yielding the same amount.

The stream of commerce would take a massive hit, as the significantly short transitional period for such widely used pesticide would mean that all of already manufactured products as well as currently on store shelves were rendered out of compliance with the new MRL requirement and needed to be destroyed. Thus, resulting to a serious financial drawback of the pepper commerce industry.


Furthermore, with the implementation of the new MRLs in October 2020, it would mean a significant disruption of spices supply to the European Countries in particular pepper as most pepper producing countries like Indonesia, Viet Nam and Brazil which supply most of European Countries pepper need, are currently still regulated chlorpyrifos and chlorpyrifos-methyl for agricultural use. With the prospect of consignment being turned down to enter EU due to residue of chlorpyrifos, scarcity of pepper stock in the European Countries is imminent.





THIS INFORMATION PROVIDED BY IPC MARKET REVIEW JANUARY 2020