The counterfeiting of goods is a major economic hazard – and few industries, if any, are immune to its dangers. Manufacturers in the chemical compounds development and services sector are no exception to this threat. In recent years, counterfeit pesticides in particular have been noted as a significant detriment to some of the world's biggest economies, most recently in the EU, according to the European Union Intellectual Property Office.
If left unchecked, this could be crippling for pesticides and chemical services companies. Industry professionals must fully apprise themselves of the situation's gravity and work to avoid these hazards.
Overall counterfeiting on the rise
The creation and sale of imitation products has siphoned billions from the global economy – about $654 billion worldwide, according to data from Havocscope, with the U.S. alone accounting for $225 billion. Meanwhile, in a report commissioned by the International Chamber of Commerce, research firm Frontier Economics, estimated that global product counterfeiting would reach $991 billion in total trade and be worth as much as $2.3 trillion by 2022.
Fiscal impact of counterfeit pesticides
According to a 2009 study by Frederick M. Fishel at the University of Florida, counterfeit pesticides accounted for 25 percent of the pesticide industry in certain areas of Europe at that time, with a value – and resultant loss for legitimate chem services businesses – of up to $370 million.
Since then, the problem of fraudulent pesticide production has only increased. The EUIPO report stated that imitation pesticides now cause annual losses of $1.4 billion in the EU. That represents 2,600 eliminated jobs and 14 percent in lost revenue. More than 65 percent of Europe's pesticide manufacturers are small or midsize businesses. Even though they only produce 38 percent of the continent's pesticides, the economic impact of their losses affects the overall sector by discouraging free-market competition.
Fishel's data pointed out that the majority of imitation pesticides are made in China, long known as a global epicenter of counterfeit goods production. This crime is particularly easy to get away with in that country because the active ingredients and precursors for many legitimate pesticides are also manufactured there. All an unscrupulous producer has to do is slap a forged label on a package of bogus product and get it mixed in with a shipment of real pesticide. Europe, China and India are the biggest trouble spots for this issue, but Fishel reported that some of these fraudulent goods do make their way to the U.S.
Safety risks – and how to avoid them
Beyond the monetary impact on above-board chemical manufacturers, consumers who unwittingly buy fraudulent pesticides are in much more immediate danger. Per the Environmental Protection Agency, they can be incredibly toxic, making them a particular hazard for households with young children. Some of the most common bogus pesticides include:
- Napthalene mothballs and "insect chalk": These have both been identified by the EPA to cause vomiting, convulsions, allergic reactions, fainting and – in the fake mothballs' case – nasal cancer.
- Pet flea repellents and remedies: Often printed with incorrect dosing instructions on forged labels, these can harm or kill dogs and cats.
- Tres Pasitos: This aldicarb-based rodent killer, typically imported from the Dominican Republic and Mexico, can cause fatigue, gastric distress, and convulsions in tiny amounts and is a lethal paralytic toxin in any excessive quantity. It looks like pet food or seeds, making it an extreme danger to any family.
The best way for consumers to avoid fraudulent pesticides is to look for an EPA registration number, as well as an active ingredients, which must be on the label by law. Meanwhile, chem services companies that purchase active ingredients overseas to make their own formulas should avoid any vendors they don't completely trust, and be on the lookout for unusual packing labels as well as incomplete or missing information.
