A new report from the European Union Intellectual Property Office (EUIPO) shows that 13.8% of legitimate revenues are lost each year due to counterfeiting of pesticides in the EU-28. Those lost sales translate into 2,600 jobs directly lost across the pesticides sector in the EU, as legitimate manufacturers employ fewer people than they would have done in the absence of counterfeiting.
When the knock-on effects of counterfeit pesticides in the marketplace are taken into account, 11,700 jobs are lost in the EU economy. The total yearly loss of government revenue as a result of counterfeit products in this sector across the EU-28 in terms of taxes and social contributions is estimated at €238 million.
Germany: The biggest producer of pesticides in the EU is Germany, where the sector is worth EUR 4 billion. The report estimates that counterfeit pesticides cost the German manufacturing sector €299 million each year, with 500 jobs lost.
France: The second biggest producer of pesticides in Europe is France, worth EUR 3.5 billion. The report estimates that the French pesticides sector loses an estimated €240 million in sales and 500 jobs each year due to counterfeiting.
Italy: The report estimates that the pesticides sector in Italy loses €185 million as well as 270 jobs annually.
Spain: The report estimates that €94 million is lost in the Spanish pesticides sector annually as a result of counterfeiting, with 200 jobs lost.
United Kingdom: Total lost sales in the pesticides sector are estimated at €76 million each year with an estimated 200 jobs lost.
This report is the tenth in a series of studies released by EUIPO via the European Observatory on Infringements of Intellectual Property Rights into the economic impact of counterfeiting in industrial sectors in the EU. The series previously looked at: the recorded music sector, the watches and jewellery sector, the handbags and luggage sector, the toys and games sector; the sports goods sector; the clothes, shoes and accessories sector; the cosmetics and personal care items sector, spirits and wine sector, pharmaceutical sector.