CEH Report

Table of Contents

Abstract

The term fungicide refers to an agent that controls plant diseases caused by fungal or bacterial infestation. This report reviews the recent history of and future prospects for the fungicide sector of the pesticide industry, with emphasis on the use of these products in major agricultural and selected nonagricultural markets. Because of the diversity of chemicals employed at relatively low levels of consumption, industrial fungal control markets (e.g., pulp and paper mills, cooling towers, and paint, leather, paper and textile users) have not been included in the nonagricultural market analysis.

Disease control by chemical means has evolved from the early use of inorganics such as sulfur and copper compounds, which are still widely used today, to use of the more recently developed synthetic organic products.

The organic fungicide market is composed of products with either systemic or nonsystemic modes of action. Nonsystemic products act either as protective or protective-contact disease control agents. The protective products (e.g., ferbam, ziram, captan, sulfur) are applied frequently to keep disease-causing fungi from entering the plant by forming a chemical barrier on the plant surface. In addition to preventing the establishment of disease, several dithiocarbamates and heterocyclic nitrogen products also destroy established infections (often called “kickback” action).

In recent years, there has been a dramatic increase in the development of new systemic chemicals for disease control. The systemics are characterized by reduced rates and frequency of application because of their targeted control when absorbed and distributed within the plant. Systemics are effective in controlling established infections and provide control for several weeks.

Biotechnology will eventually have a negative impact on the U.S. fungicides market, initially in the small-grains sector. Transgenic fungus-resistant wheat varieties were introduced after 2000 as well as potatoes with resistance to late blight.

The U.S. market for fungicides amounted to an estimated $850–900 million at the end-user level in 2002 with the following breakdown: maize 27%, soybeans 20%, cotton 13%, fruit 11% and other 29% (with noncrop markets accounting for about 18% of the 29%).

Fungicide sales in Western Europe totaled an estimated $2.1 billion in 2002. Cereals—principally wheat and barley—accounted for 46% of the total Western European market. Vines (i.e., grapes) and tree fruits accounted for 38% and other crop and noncrop markets accounted for 16%.

The Japanese market for fungicides was valued at an estimated $880–950 million in 2002. Rice is the most important sector of the Japanese fungicide market, accounting for 43% of the market; vegetables accounted for 31%, tree fruits for 22%, and other crop and noncrop sectors for 4%.