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
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