Un/ted Stares
Environmental Protects
Agency
                          Pesticides And
                          Toxic Substances
                          (H-7503C)
                          February 1990
xvEPA
Pesticides  Industry Sales
And Usage
1988  Market Estimates


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   PESTICIDE INDUSTRY SALES AND USAGE:

          1988 MARKET ESTIMATES
        ECONOMIC ANALYSIS BRANCH
BIODDGICAL AND ECONOMIC ANALYSIS DIVISION
      OFFICE OF PESTICIDE PROGRAMS
     ENVIRONMENTAL PROTECTION AGENCY
         WASHINGTON,  D.C.   20460
              DECEMBER 1989

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     This report provides an overview of the pesticide industry for 1988.
It contains a series of tables with estimates of U.S. and world pesticide
markets for 1988.  The following page presents a number of highlights of
this year's report.

     Economists with the Economic Analysis Branch (EAB) have prepared
similar studies in previous years.  With the exception of Tables 10 and 11,
the figures presented are only approximate values, since available data do
not support precise projections.  In addition to 1988 estimates, this
report includes two new tables which review the pesticide market from 1979
to 1988.  Drawn from previous EAB reports, Tables 12 and 13 offer a look at
the U.S. pesticide market, in terms of total annual pesticide volume and
user expenditures.  Two accompanying graphs complement these new tables.

                                  OVEKV1KW

     Overall pesticide industry sales have been relatively stable during
recent years.  The agricultural share of pesticide usage (see Table 8)
appears to have stabilized and may even decline in the coming years after
increasing steadily throughout the 1960's and 1970's.  A number of factors
contribute to this trend: lower application rates due to the introduction
of more potent pesticides, more efficient use of pesticides, and lower farm
commodity prices.  It is not unusual to see maxinum application rates for
new agricultural pesticides equal to one to two ounces per acre, whereas
application rates for older pesticides oft en reach several pounds per acre.
This trend is particularly pronounced in the insecticide market and to a
lesser degree in the market for herbicides.  Also, the efficiency of
pesticide use has improved as a result of more and better certification
programs, more widespread use of integrated pest management programs,  and
the pesticide producers' provision of better information to farmers.
Increased interest in Low Input Sustainable Agriculture (LISA) will
probably tend to further reduce the quantity of pesticides used in future.
Finally, low commodity prices over the past few years have lessened
farmers' willingness to apply pesticides.

     If you have questions regarding this report or need further
information, please contact this office.  Feel free to contact Jeff Doidge,
Economist, at (703) 557-0837 or Arnold Aspelin, Chief of the  Economic
Analysis Branch, at (703) 557-7600.

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                                       OF REPORT
                         (table no.  in parenthesis)

-  U.S. ^esticide sa,.'2s represent about one quarter of the world market
(1).

-  Annual U.S. pesticide; user expenditures totalled approximately  $7.4
billion in 1988  (2) .

-  Agriculture accounts :cor over two-thirds of pesticide user expenditures
and roughly three-fourti . .-$ of the quantity used annually (2 &  3) .

-  Herbicides are the leading type of pesticides, in terms of both user
expenditures and volumes used  (2 & 3) .

-  About 1.1 billion pen ris active ingredient of conventional pesticides
are used in the U.S. (4)

-  Total U.S. pesticide visage in 1988 approached 2.7 billion  pounds of
active ingredient.  (This figure includes wood preservatives,
disinfectants, and sulfu?.. )  (4)

-  Fanners' expenditures on pesticides represent slightly less  than 4%  of
total farm production e> oenditures  (5) .

-  Total pesticide R & D expenditures represent in the neighborhood of  10%
of pesticide expenditure -.3 by user community  (6) .

-  The two most widely v ied pesticides by volvuna axe alachlor ard.  atrazine
0).

-  There were-. il new active ingredients registered under FIFRA  in  calender
1988 (10).

-  There are about 1.2 irillion  certified pesticide applicators  in  the U.S.
(11).

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 TABLE 1:  U.S. and World Market Conventional Pesticide Sales at
           Basic Producer Level, 1988 Estimates.

Herbicides
Insecticides
Fungicides
Other
Total
U.S. Market
($ Million)
2,770
1,200
580
420
4,970
World Market
(%)
56%
24%
12%
8%
100%
($ Million)
7,700
6,100
3,500
1,200
18,500
(%)
42%
33%
19%
6%
100%
U.S. % of
World Mkt
36%
20%
17%
35%
27%
 Note:  U.S. market is sales for domestic use only, net of imports
and exports.

 Source:  EPA estimates based on NACA annual surveys and other sources.

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TABLE 2:  User Expenditures for Conventional Pesticides in the U.S. by Class and Sector.
                                    1988 Estimates
Herbicides ( 1 )

Agriculture
Ind/Coni/Govt
Home & Garden
Total
(mil $)
3,080
500
350
3,930
(%)
78%
13%
9%
100%
Insecticides (2)
(mil $) (%)
1,110
440
560
2,110
53%
21%
26%
100%
Fungicides (3)
(mil $) (%)
550
200
110
860
64%
23%
13%
100%
OtherU)
(mil $)
370
50
60
480
(%)
77%
10%
13%
100%
Total
(mil $)
5,110
1,190
1,080
7,380

(%)
69%
16%
15%
100%
Source: EPA staff estimates based on NACA annual surveys and other sources.


(1) Includes plant growth regulators.

(2) Includes miticides and contact nematicides.

(3) Does not include wood preservatives.

(4) Includes rodenticides, fumigants, and molluscicides, but does not include wood preservatives, disinfectants,
    and sulfur.

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     TABLE 3:  Volume of Conventional Pesticide Active Ingredient Used in U.S. by Class and Sector, 1988 Estimates.
Herbicides(l)

Agriculture
Ind/Com/Govt
Home & Garden
Total
(mil Ibs)
510
120
30
660
Insecticides (2)
(%) (mil Its)
77%
18%
5%
100%
185
45
38
268
Funqicides(3)
(%) (mil Ibs)
64%
17%
14%
10C"0
80
40
12
132
OtherU)
(%) (mil Ibs) (%)
61%
30%
9%
100%
70
0
0
70
100%
0%
0%
100%
Total
(mil Ubs)
845
205
80
1,130

(%)
75%
18%
7%
100%
     Source: EPA staff estimates based on NACA annual surveys ana other sources.

Ul
      (1) Includes plant growth regulators.

      (2) Includes miticides and contact nematicides.

      (3) Does not include wood preservatives.

      (4) Includes rodenticides, fumigants, and molluscicides, but does not include wood preservatives, disinfectants,
         and sulfur.

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                  Volume of Pesticide  Active  Ingredient
                   Used in U.S., by Class and  Sector, 1988.
   Million Lbs. A.I.
800
700 -
600 -
500 -
400 -
300 -
200
100 -
        Agriculture
Ind/Com/Govt
                                          30 38
Home 4 Garden
                                                           660
Total
                 Herbicides   HJI Insecticides  [   I Fungicides  lUi Other


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TABLE 4:  Extended U.S. Annual Pesticide Consumption, 1988 Estimates.





Type                                    Billion Pounds A.I.



Conventional Pesticides                          1.1



Wood Preservatives                               1.0



Disinfectants                                    0.4



Sulfur                                           0.2



   Total                                         2.7





Source:  EPA staff estimates.

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TABLE 5:  Importance of Conventional Pesticide Expenditures to U.S.  Fanners,
                            1988 Estimates.

                                          ($ bil)             (%)

Farm Pesticide Expenditures(1)               5.1             3.9

Total Farm Production Expenditures(2)      132.0           100.0


(1) Excludes wood preservatives, disinfectants, and sulfur.
(2) USDA, 1989.

Source:  USDA and EPA staff estimates.

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TABLE 6:  Comparison of the Cost of EPA Data Requirements Relative to
           Conventional Pesticide User Expenditures in U.S.
                            1987 Estimates(1)

Pesticide User Expenditures
Total Pesticide R&J Expenditures
EPA Registration-Related R&D
Expenditures
$ Million
6,850
682
173
Percent
100.0
10.0
2.5
Source:  EPA staff estimates, based on Agricultural Statistics, 1986
         (USDA), the NACA survey  (1987), and other sources.

(1) Re-estimated for 1987 based on data from NACA member firms only.
    R&D figures for 1988 are not available.

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TABLE 7:  U.S. Pesticide Production and User Sectors—Key Profile Parameters, 1988.(1)
                                 (Approximate Values)
  Basic Production
       Level
              Marketing
                Level
                User
                Level
     30 Major Basic
        Producers
            3,300 Formula-tors
         0.8-1.0 M.  Farms
    100 Other Producers      29,000 Distributors        90,000,000 Households
                                    & Establishments
                                                            40,000 Commercial Pest
                                                                   Control Firms

  1,200 Active Ingredients   37,000 Formulated Products   (Several  Other Industry/
        Registered                  Registered at Fed-   million)  Government Users
                                    eral Level
    850 Active Ingredients
        in Production

    200 Leading Active
        Ingredients in
        Proc uction

     11 New Active Ingre-
        dients/Calender Year

 11,000 Employment
              200  Firms Registering
                  Pesticides per Year
U.S. Production
U.S. Exports
U.S. Imports
U.S. Supply
                                 Market
(bil Ibs)
    1.43   Domestic Usage
    0.45
    0.15
    1.13
(bil  Ibs)
   1.13
Value of U.S.
 Purchases
(bil $)
  7.38


Value of Sales
Agricultural Share
(bil $) Ind/Com/Gcvt Share
4.97 Home/Garden Share
75% Agricultural Share
18% Ind/Com/Govt Share
7% Home/Garden Share
69%
16%
15%
Source:  EPA staff estimates.

 (1) Estimates  for registered active ingredients and products varied little from 1987
    to  1988.   However, due to FIFRA '88,  some of the above  figures will  change
    significantly in  1989.
                                       10

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TABLE 8:  United States Conventional Pesticide Usage, Total and Estiinated
         Agricultural Sector Share for 1964-1988
Year

1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
Total U.S.
Ml 1 1 i r-in T Ht^
" i"i I ' ' 1 "I" JLOS.
540
610
680
735
835
775
740
835
875
910
950
990
1,030
1,075
1,110
1,150
1,175
1,205
1,100
953
1,080
1,112
1,096
1,085
1,130
Agricultural
Sector
M--

320
335
350
380
470
430
430
495
525
560
590
625
660
720
780
840
846
860
880
733
850
861
820
815
845
Agricultural
Sector
Share
•ptoTTV»T>
tercen
59
55
51
52
56
55
58
59
60
62
62
63
64
67
70
73
72
71
80
77
79
77
75
75
75
Note:  Excludes wood preservatives, disinfectants, and sulfur.

Source: EPA staff estimates.
                                       11

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r-o
                                       U.S.  Pesticide Usage,
                               Total and Agricultural Share, 1964-1988.
                Millions Lbs. A.I.
            1400
            1200
            1000
            800
            600
            400
            200
                64 65 66 67 68  69 70 71 72 73  74 75 76 77 78  79 80  81 82 83 84  85 86 87 88
                                                  Year
                                         Total U.S.   HH Agricultural

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TABLE 9:  Annual Usage Estimates of the Largest Agricultural Pesticides in U.S. 1
                           (approximate values, 1987)


    Pesticide                              Usage in Million Pounds
                                              Active Ingredient


     Alachlor                                      75 - 100

     Atrazine                                      75 - 100

     2,4-D                                         52 -  67

     Butylate                                      44 -  58

     Metolachlor                                   45 -  55

     Trifluralin                                   30 -  35

     Cyanazine                                     20 -  25

     Carbaryl                                      12 -  25

     Malathion                                     15 -  20

     Metribuzin                                    13 -  17

     Maneb/Mancozeb (4-6/8-12)               12-18

     Glyphosate                                    10 -  15

     Captan                                         9-11

     Chlorpyrifos                                   7-11

     Methyl Parathion 2                             5-10



Source: EPA staff estimates based on a variety of sources.
     1  The estimates represent all usage of the active ingredient
including noncrop usage.

     2  Hie estimate does not include the estimated 4 -7 mil. pounds of
ethal parathion usage.
                                         13

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TABLE 10:  Number of Chemicals Registered for First Time as Pesticides Under FIFRA, by Type,
                                       Calender Years 1967-1988
Year



Insecticide
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
4
6
7
1
0
4
5
6
8
2
1
2
8
4
4
5
5
6
8
2
3
2




Herbicide Fungicide
2
2
4
2
1
5
3
8
11
3
1
2
2
3
3
5
5
1
1
7
5
5
2
5
0
2
1
6
4
6
5
2
0
0
4
1
2
1
3
2
1
0
0
1
Type
Bactericide/
Slimicide
5
4
2
3
1
5
2
0
11
4
1
0
0
0
1
1
1
2
1
0
1
0




Nematicide Rodenticide
0
0
0
0
0
0
1
1
0
0
0
0
0
0
0
0
0
0
0
1
1
1
2
0
0
0
1
o
0
1
0
0
0
0
1
2
0
2
0
1
0
0
0
0



Total
Uses

Total
Chemicals
Other Registered Registered
1
1
1
2
1
1
0
0
1
1
0
1
2
1
6
3
0
2
2
2
2
2
16
18
14
10
5
21
15
22
36
12
3
5
17
11
16
17
14
14
13
12
12
11
16
18
14
10
4
17
13
22
35
12
3
5
17
11
16
17
14
13
10
11
11
11
Source:  EPA registration files.

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            Number of Chemicals Registered Annually,
                             1967-1988.
  Number
40
35
30
25
20
15
10
   67  68  69 70 71 72 73 74  75  76 77 78 79 80 81  82  83 84 85 86 87 88
                                                               11

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TABLE 11:  Number of Certified Applicators in the United States,
                    1988 Estimates(1).
EPA Region
I
II
III
IV
V
VI
VII
VIII
IX
X
U. S.(4)
Private (2)
7,797
19,377
52,344
248,582
147,784
227,187
144,707
63,367
31,483
50,292
992,920
Commercial (3)
7,529
31,995
18,268
40,724
41,739
28,895
23,053
14,073
21,011
26^787
254,074
Source:  EPA staff estimates.

   (1)-The following page presents a map of EPA regions.

   (2) Private refers primarily to individual farmers.

   (3) Commercial refers to professional pesticide applicators.

   (4) These estimates reflect some double counting, as some
      applicators are certified in ..more than one state.
                                     16

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EPA
Regional Offices
         Regions
     4 —Alabama
    10 —Alaska
     0 —Arizona
     6 —Arkansas
     9—California
     8 —Colorado
     1 — Connecticut
     3 —Delaware
     3—O.C.
     4—Florida
     4 —Georgia
     9—Hawaii
    10—Idaho
     5—Illinois
     5—Indiana
     7 — Iowa
     7 —Kansas
     4— Kentucky
     6 —Louisiana
    Regions
 1 —Maine
 3—Maryland
 1 —Massachusetts
 5 —Michigan
 5 —Minnesota
 4—Mississippi
 7—Missouri
 8 — Montana
 7—Nebraska
 9—Nevada
 1 —New Hampshire
 2 —New Jersey
 8 —New Mexico
 2 — New York
 4 — North Carolina
 8 —North Dakota
 5—Ohio
 8 —Oklahoma
10 —Oregon
    Regions
 3 —Pennsylvania
 1 —Rhode Island
 4 —South Carolina
 8 —South Dakota
 4 —Tennessee
 8 —Texas
 8—Utah
 1 —Vermont
 3—Virginia
10 —Washington
 3 — Weal Virginia
 5 —Wisconsin
 8 —Wyoming
 9 —American Samoa
 9 — Guam
 2 —Puerto  Rico
 2 —Virgin Islands
                              17

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oo
     TABLE 12:   U.S.  Annual Volume of Pesticide Usage,  by Type,  1979-1988.
Pesticide
Type


Herbicides
Insecticides
Fungicides
Other
Total
1979


560
378
106
106
1,150
1980


555
395
120
105
1,175
1981


570
405
123
107
1,205
1982 1

I'LL i lions
544
391
119
106
1,160
983
/-\-f
OI
575
255
68
55
953
1984
T >-,£? TV T
LiDS. A. 1 .
675
270
80
55
1,080
1985


670
300
82
60
1,112
1986


655
295
86
60
1,096
1987


645
260
122
60
1,087
1988


660
268
132
70
1,130
      Source:   EPA reports for years indicated.

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                         U.S. Annual Volume Usage,
                         by Pesticide Type, 1979-1988.
    Millions Lbs. A.I.
1400
1200
1000
 sod
 600
 400
 200
                                                                   -e-
                                                              -£]
   1979     1980     1981    1982
                     1983    1984    1985    1988    1987     1988
                          Year
Herbicides   ~4~ Insecticides   -rff- Fungicides   -Q- Other
                                                                  Total

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TABLE 13:  U.S. Annual User Expenditures on Pesticides, by Type, 1979-1988.
Pesticide
Type

Herbicides
Insecticides
Fungicides
Other
Total
1979


2,830
1,370
425
425
5,050
1980


3,100
1,600
520
580
5,800
1981


3,500
1,700
620
650
6,470
1982


3,500
1,700
620
650
6,470
1983
f.f-i 1 1 T f
rill 11C
3,600
1,800
450
200
6,050
1984
)ns of $ —
4,260
1,880
428
215
6,783
1985


3,700
1,975
515
370
6,560
1986


3,625
1,980
515
370
6,490
1987


3,745
1,990
730
385
6,850
1988


3,930
2,110
860
480
7,380
Source:  EPA reports for years indicated.

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     Millions of $
8,000



7,000



6,000



5,000



4,000



3.000



2,000



1,000 -
                      U.S. Annual User Expenditures,
                         by Pesticide  Type, 1979-1988.
   1979    1980
1981     1982    1963    1984
                                             1986     1987     1988
Herbicides
                           Insecticides   -£- Fungicides   -B~ Other   -X- Total

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