Ways to Curb Counterfeit in Crop Protection Industry: Solutions for Brand and Revenue Enhancement
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The document discusses the significant issue of counterfeit pesticides in India, highlighting the impact on agriculture and food production, with estimates indicating a loss of 10.6 million tons of food due to non-genuine products. It outlines a five-step strategy to combat counterfeiting, which includes changes in product protection, forming dedicated teams, selecting appropriate anti-counterfeiting technologies, monitoring intellectual property, and adopting ISO standards. The conclusion emphasizes the need for effective partnerships among stakeholders to enhance awareness and implement robust authentication solutions.
Ways to Curb Counterfeit in Crop Protection Industry: Solutions for Brand and Revenue Enhancement
- 1. ©2019 ASPA www.aspaglobal.com How to curb Counterfeit in Pesticides Industry & Solutions for Revenue & Brand Enhancement Presented by: Chander S Jeena Secretary Authentication Solution Providers’ Association (ASPA) PMFAI 50th Annual General Meeting, Hotel Sun and Sand, Mumbai, India
- 2. ©2019 ASPA www.aspaglobal.com Agenda Introduction – About ASPA Counterfeiting problem in Agro-inputs Scenario in India Factors responsible Five Steps approach to curb Counterfeit Anti-Counterfeiting solutions Global Examples – Case Studies Conclusion and recommendations
- 3. ©2019 ASPA www.aspaglobal.com About ASPA ASPA (Authentication Solution Providers’ Association) is a non-profit organisation formed in 1998. AIM is to educate brand owners / authorities towards importance of authentication solutions in order to fight the problem of counterfeiting. More than 55+ member companies across the globe providing diversified anti-counterfeiting have join hands with us (including physical and digital authentication solutions providers). Its member companies are protecting more than 15,000 brands across globe. Works very closely with industry association such as International Hologram Manufacturers Association, UK, Counterfeit Intelligence Bureau, UK, FICCI CASCADE, Indian Beverage Association and others.
- 4. ©2019 ASPA www.aspaglobal.com COUNTERFEIT IN PESTICIDES FEW RECENT CASES July 2018: Europol’s annual Operation SILVER AXE Seized 360 tonnes of illegal or counterfeit pesticides, which could cover 48,000 square km, equivalent to the size of the UK. Sources: ASPA Counterfeit News Repository http://www.counterfeitrepository.com/ https://www.europol.europa.eu July 2018:Karnataka farmer writes to CM, says no to loan waiver, request to curb fake pesticides April 2018:मौसम और नकली दवाओं ने तोडी आम की अच्छी फसल की उम्मीद Dec 2018:कृ षि षवभाग बना मूकदर्शक, दवाई षवक्रे ता षबना लाइसेंस बेच रहे नकली कीटनार्क
- 5. ©2019 ASPA www.aspaglobal.com SCENARIO IN INDIA Notes: In 2015, FICCI estimates that the non-genuine pesticides market in India is estimated at Rs 3200 crore (25% by value) and expected to grow 20% per year and by 2019 40%. According to recent study by FICCI, the domestic market increased with CAGR 3.5% for period 2013-16, and expected to grow 6.4% by 2022. Current 1 USD = INR 70.01 estimate for FY 2022 Sources: FICCI knowledge and strategy paper on Indian Agrochemicals Industry / Doubling Farmers’ Income: Role of Crop Protection Chemicals & Solutions 13000 13455 22400 0 5000 10000 15000 20000 25000 FY 2014 FY 2017 FY 2022 Indian Crop Protection Domestic Market Total Market (Rs Crore) CAGR 3.5% CAGR 6.4% Counterfeit Market Rs 3200 cr (25%) CAGR 40% of value Reducing counterfeit market even by 5% means additional business of 600 crore every year considering FY 2014 figure FY 2019
- 6. ©2019 ASPA www.aspaglobal.com IMPACT OF NON-GENUINE PESTICIDES Sources: FICCI knowledge and strategy paper on Indian Agrochemicals Industry Overall yield for farmers across the country in case of 25% non-genuine / illegal products prevailing can reduce by ~4%. This implies ~10.6 million tons of food production loss in the current year. Apart From this, there are other Irreversible damage to environment Hamper India position as one of the leading food grain exporter in the world is fully at stake as the possibility of rumors or sabotage by other countries or rejection of Indian exports food items from developed importing countries would increase. In such a scenario, export of ~29 million tons of food grains worth ~ INR 1, 578 Billion (~ USD 26 Billion) is at stake. Apart from Food grains, export of ~ 3 million tons of fruits and vegetables worth ~ INR 88 Billion (~ USD 1.43 Billion) is also at stake due to non- genuine / illegal pesticides.
- 7. ©2019 ASPA www.aspaglobal.com FACTORS RESPONSIBLE Counterfeiting Increase because of various factors, however, the two key factors are Lack of Awareness Only 25-30% of the farmers are aware of the use of pesticides and they don't exactly know what to spray in their fields Consumer / Industry/ Govt. empowerment to identify fake vs. genuine Counterfeiters arrested for period 2016-18 in India Investigated 4949 1936
- 8. ©2019 ASPA www.aspaglobal.com Step 1: Change in approach towards product protection Step 2: Formation of team focuses on anti- counterfeiting strategy Step 3: Selection of right anti- counterfeiting technology Step 4: Monitoring and developing IP strategy Step 5: ISO Standards FIVE STEP STATEGY
- 9. ©2019 ASPA www.aspaglobal.com Step 1: Change in approach towards product protection As a first step, every CEO or Brand owner should take the responsibility of brand attack and make Brand Risk Management (BRM) an intrinsic part of the Business Plan with regular review
- 10. ©2019 ASPA www.aspaglobal.com Step 2 A: Formation of team focuses on anti- counterfeiting strategy Team to be formed for Brand risk management May comprise of CEO/Brand owner; Brand Managers; Head of Marketing, Product Development, Sales, Logistic, Packaging, Manufacturing or outside consultant accountable for the brand. Periodically review the BRM by analyzing various issues like: i) Product categories & markets ii) Buyer profiles iii) Supply chain management and SWOT analysis of the counterfeiters Make a customized & integrated solution: This can be done by increasing the participation of co-opting consumer or channel partner and by conducting verification, raids or ensuring strong law enforcement
- 11. ©2019 ASPA www.aspaglobal.com Step 2 B: Assess your current packaging The need of an hour is the secured packaging (integrate your current existing packaging with Anti- counterfeiting solutions). Bottles / Jars / Glass Tubes Plastic Pouch / Mono carton Label Shrink Sleeve Wads Cap Direct Printing Label Strip Strip Label Laminate
- 12. ©2019 ASPA www.aspaglobal.com Step 3 A: Selection of Authentication Element – Basic Parameters 1. Physical characteristics such as static, dynamic, durability, environmental, feature (overt, covert or machine readable) 2. Attack resistance of authentication element such as tampering resistance 3. Integration process (security, manufacturing, compliance etc.) 4. Attack resistance of authentication tools
- 13. ©2019 ASPA www.aspaglobal.com Step 3 B: Selection of anti-counterfeiting technology Security buying, important consideration; Use at-least one level of overt authentication Focus on ethical vendor which can provide multi layered security solution, have secure manufacturing / services and adhering to best practices The solution should provide authentication element such as tampering resistance and can fulfill integration process (security, manufacturing, compliance etc.) To select technology take help of published standards such as ISO 12931 and NASPO Authentication Physical Authentication Anti- Counterfeitin g OVD’s Security Printing Security Inks & Coatings Substrates – Security Papers Chemical & molecular taggants Anti- Tamper Tamper Evident Labels / Closures Digital Serialization Track and Trace Mobile Authentication Blockchain / AI
- 14. ©2019 ASPA www.aspaglobal.com Step 4: Monitoring and developing an Intellectual Property strategy Constant monitoring at distribution channel with the help of anti- counterfeiting technology. Planned surveillance program If any infringement is found, take action
- 15. ©2019 ASPA www.aspaglobal.com Step 5: Adopt Standards and best practices ISO has published new Standards 12931 to fight against counterfeiting of material goods Study the best practices adopted by others and constantly review and refine your strategy Source: http://www.iso.org/iso/catalogue_detail?csnumber=52210 http://ficci.in/publication-page.asp?spid=20641 . Human Senses Authentication Tool Forensic Analysis Off the shelf Purpose built General audience OVERT COVERT - - Restricted audience OVERT COVERT COVERT COVERT ISO has categorized authentication solution as;
- 16. ©2019 ASPA www.aspaglobal.com GLOBALLY INTEGRATED INDUSTYRY APPROACH BY FEW COMPANIES Source: https://agriculture.basf.com / https://www.bayer.com / De La Rue Steps BASF Bayer DuPONT Raising awareness among farmers, retailers and authorities as well as the broader public YES YES YES Relentlessly investigating and strongly responding to cases of counterfeiting of BASF products YES YES YES Collaborating with global and national trade associations to implement anti-counterfeiting measures Yes CropLife/E CPA YES CropLife / ECPA YES Supporting governments globally to establish and enforce anti-counterfeiting regulations, policies and practices YES YES Implementing technical means to authenticate products / Safeguarding supply chain YES Cap Seal Izon
- 17. ©2019 ASPA www.aspaglobal.com GLOBAL CASE STUDIES - COUNTRY Background Uganda National Agro-input Dealers Association notes that close to Shs14b is lost annually through counterfeit agro-chemicals. This is corroborated by a Food and Agriculture Organisation study that revealed that in 2012, Uganda lost Shs13.8b in fake agro-chemicals. ICT Solutions In 2012, International Fertilizer Development Centre in collaboration with CropLife and other partners in Uganda introduced ways to reduce counterfeits. Among these was a mobile authentication service. Three products Roundup, Dursban and Mamba (most counterfeited) were stuck with a scratch panel bearing a 12-digit code. UGANDA Most common type of counterfeiting Mislabeling & tampering of labels and packages Source: http://www.monitor.co.ug/Magazines/Farming/Counterfeit-agro-inputs-high-on-the-market/689860-2510874-uossl6z/index.html
- 18. ©2019 ASPA www.aspaglobal.com 11. RECOMMENDATIONS AND CONCLUSION While the trade of counterfeit pesticides has dramatically increased, tackling counterfeits is not impossible. Counterfeiting is a problem that needs to be addressed quickly and decisively. Ideally, as a first move, more effective partnerships should be built between the brand owners, authentication solution providers enforcement agencies and consumers with focus on intelligence sharing, creating awareness and product identification training. Secondly, for any authentication solutions please contact ASPA members / ASPA. We would be pleased to help.
- 19. ©2019 ASPA www.aspaglobal.com Thank You For more information, please contact Secretariat Authentication Solution Providers’ Association 21-Ground Floor, Devika Tower 6, Nehru Place, New Delhi 110019, India Email: info@aspaglobalcom Website: www.aspaglobal.com Disclaimer: Presentations are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of the Authentication Solution Providers 'Association (ASPA). ASPA does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented. The data used here are from various published and electronically available primary and secondary sources. Despite due diligence the source data may contain occasional errors. In such instances, ASPA would not be responsible for such errors.