Showing posts with label
Ban of Chlorpyrifosm EU new regulations.
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Showing posts with label
Ban of Chlorpyrifosm EU new regulations.
Show all posts
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).
WHATSAPP +5511988027709
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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.
WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade
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