Market Trends: Aug. 2001

This year, late summer may produce increased insect activity in some parts of the country, according to Rick Brandenburg, professor of entomology, North Carolina State University, Raleigh, N.C.

Due to sufficient rainfall, white grubs, particularly, the Oriental beetle, Japanese beetle and Masked Chafer beetle, will be widespread and not isolated to irrigated turfgrass areas, Brandenburg pointed out. "Control of larger grubs in the late summer and early fall is difficult and treatment of areas that consistently see white grub problems should not be delayed," he stressed.

Lawn care operators (LCOs) need to watch out for armyworms the rest of the summer as well, Brandenburg warned. "They have been popping up here and there and when they do, they cause serious problems," he said. "These worms generally do a good job of hiding from us when we look for them. The birds are much more successful and large numbers of birds in a turf setting are often an indicator of caterpillars."

Brandenburg recommended LCOs use soapy water to flush armyworms up out of the soil and thatch to the surface. "Place about 2 tablespoons of liquid dishwashing detergent in 2 gallons of water and slowly pour it over a 9-square-foot area," he explained. "Then observe the area carefully for about five minutes for the presence of worms."

LAWN & LANDSCAPE NEWS
A Prize-Winning Report

CLEVELAND - Lawn & Landscape and its sister publication, Interior Business, recently earned graphic and editorial recognition, including a national prize from the American Society of Business Publication Editors (ASBPE), Naperville, Ill., and the honor of being named the "Best Trade Magazine in Ohio" by the Press Club of Cleveland.

Contest judges shared their views on many of the winning publications, including Lawn & Landscape, calling it a "great looking magazine with great graphs and charts and a lot of information; very newsy and easy to navigate the whole issue," pointed out Press Club of Cleveland judges. "Good topics, well written and attractively displayed. It makes you want to read it."

ASBPE, which is an association for business and trade press, awarded Lawn & Landscape a second place national award for its "How We Do It" department, and regional awards, including first place for "How We Do It" and third place for the 2000 State of the Industry Report. Interior Business was awarded the prize for outstanding new publication and received a third place award for its "IB Upfront" news department.

In addition to the Best Trade Magazine in Ohio honor, the Press Club of Cleveland recognized Lawn & Landscape with two first place writing awards, a second place award for its 2000 State of the Industry Report and a first place award for cover design. Interior Business' State of the Industry Report also took home a Press Club honorable mention.

Lawn & Landscape also received awards from the Turf and Ornamental Communicators Association (TOCA), including a first place prize for its 2000 Aventis Leadership Issue. Interior Business won TOCA merit awards for writing and overall design.

"Our goal has always been to produce the finest business management publications for our readers," affirmed Cindy Code, group publisher, Lawn & Landscape Media Group. "One way we do that is by making sure we hire the most talented editors and designers. These awards are just another indication of how talented our staff is and our long-standing commitment to excellence."

For more information about the awards visit:

• Lawn & Landscape Media Group Awards Roll In
• Prize-Winning Pages Of Lawn & Landscape Media Group Announced

IN THE NEWS
Bayer Expected To Buy Aventis CropScience

FRANKFURT/PARIS - Aventis and Schering announced that the negotiation process concerning the potential sale of Aventis CropScience will continue exclusively with Bayer.

Aventis said Bayer was the most promising partner "financially and socially" for CropScience, in which it owns 76 percent and Schering 24 percent. This acquisition, which would be the largest in Bayer’s history, would more than double its existing business, remarked Manfred Schneider, Bayer’s chairman of the board of management. "By merging the two businesses, we would create one of the world’s leading companies in this industry – headquartered in Europe with global reach," he said.

While no price details were revealed, analysts said the deal could value CropScience at $6.8 billion, positioning Bayer close to Syngenta, the current market leader in annual sales.

Investors say the deal is logical for all parties, but some are concerned Bayer may overpay, warning that since the farm chemicals market is growing in low single-digits, the prospects for agrochemicals are unexciting. "It’s a slow-growth business," said Reinhard Pfingsten, fund manager, ADIG in Frankfurt, who owns Aventis, Bayer and Schering stocks. "We don’t know what synergies Bayer might extract but the figures of $6 billion or more look expensive, making it a better deal for Aventis and Schering than Bayer."

Duesseldorf-based analyst Andreas Theisen of WestLB Panmure said acquiring CropScience was a "unique chance" for Bayer, which has been frustrated in its past attempts to build up its life sciences business. It lost a bidding war for DuPong Pharma to Bristol-Myers Squibb in June and was beaten to Cyanamid, the agrochemicals unit of American Home Products, by BASF last year.

As the deal progresses, industry watchers believe Bayer might sell its insecticide business to BASF to pre-empt anti-trust issues.

Aventis’ decision, stemming from its focus on the pharmaceutical business, does not constitute any legally binding agreement between the two companies, but does move the process forward in terms of evolving purchasing dialogue and procedures.

IN THE NEWS
Syngenta, Bayer Continue Patent Dispute

BASEL, Switzerland, and LEVERKUSEN, Germany – The legal battle between Syngenta Crop Protection and Bayer over thiamethoxam patents took a significant turn when the Board of Patent Appeals and Interferences of the U.S. Patent and Trademark Office denied Bayer the right to claim priority of its initial U.S. patent, which covered thiamethoxam. Bayer has since secured a second patent, also covering thiamethoxam.

Thiamethoxam, a class of neonicotinoid insecticides, is the active ingredient in Syngenta’s agricultural seed treatment products, Adage and Helix, and also in two of Syngenta’s products currently in development – Meridian for lawn and golf applications and Flagship for ornamental applications.

Bayer said its initial patent and its second patent, which was granted May 15, both cover the thiamethoxam class. Therefore, the company has maintained that Syngenta should not be allowed to use thiamethoxam to directly compete against Bayer’s imidacloprid-based product, Merit. Imidacloprid is the active ingredient in Merit, which is an insecticide used on turf and ornamentals.

The Board of Patent Appeals and Interferences decision means that all claims contained in Bayer’s initial patent are invalid because the compounds claimed were different from those described. The ruling strengthens Syngenta Crop Protection’s claim that it was the first to invent thiamethoxam, according to Syngenta Communications Manager Ken Gordon. "Now the company can move forward and market its thiamethoxam-based products," he said. "The USPTO ruling simply reinforces our position that the Bayer patent was invalid."

Although disappointed in the USPTO’s ruling, Bayer believes it is still positioned favorably for a legal victory because of the second patent granted to the company, according to Bayer Spokesperson Dr. Franz Josef Placke, Leverkusen, Germany.

"The initial patent had some formal weaknesses which were due to the practices used to file patents in the United States," Placke said. "Our newest patent does not have the formal weaknesses of the prior patent. From an intellectual property point of view we are at least in as good a position as before."

Bayer AG and Syngenta Crop Protection are also involved in a separate patent infringement lawsuit over thiamethoxam filed in 1998 in the Louisiana District Court.

State of Emergency – Is Your Facility Ready for the Challenge?

Lawn care operators who don’t have an emergency response plan in place for their facilities should prepare one immediately, according to the Professional Lawn Care Association of America’s Safety & Regulatory Manual.

Setting up this plan can be easy, as long as a few simple steps are followed.

First, select an emergency coordinator and alternates. Then work up response agreements with local emergency teams and contractors (fire department, police, doctor, hospital, clean-up contractor, etc.).

Second, evaluate the site’s current emergency response system, including the condition of the existing firefighting equipment, such as extinguishers. This also involves evaluating the facility’s drainage pattern and water movement offsite. The key here is to ensure that a major spill or water runoff from firefighting activities can be contained. While conducting this evaluation, check that pesticide storage areas are properly marked as well.

After performing a site evaluation, certain documents must be prepared to aid in emergency response. These include:

• A detailed facility site plan showing the pesticide storage area, all firefighting containment equipment, shut-off valves for gas, electricity and water, a site drainage plan and evacuation routes and a preselected staging area.



• A map of the surrounding area. Mark routes of ingress/egress and also all neighbors needing special attention during a crisis (i.e. hospitals, nursing homes, schools, etc.).



• A list of emergency equipment located on site, as well as a listing of other people who can be contacted to obtain additional equipment (backhoes, barricades, extra dirt or other absorbent material) that may be needed on short notice.



• A listing of the pesticides stored on site, as well as an inventory of approximate quantities normally present. For each product on-site, a Material Safety Data Sheet (MSDS) and associated label should be kept. These documents will provide emergency personnel with information that can be crucial to their assistance during a crisis.

After an initial emergency response plan is compiled, duplicate it and distribute copies to all individuals who are needed in an emergency, including in-house emergency coordinators and alternates and key contacts outside of the company.

All this planning is only effective if it is tested. Conduct varying drills on a regular basis to see if the plan works and to better acquaint all involved with the plan. The plan should be updated annually and distributed.

For a sample "In-An-Emergency Checklist," see below.