[Market Opportunities] Going Green

Many recall botanical pesticides from the 1980s and early ’90s. Their questionable efficacy, poor residual and higher costs just couldn’t compete with conventional products on the market.

Going natural may not have made sense then, but new botanicals are gaining the attention of pest management professionals and customers, alike, for reasons ranging from personal safety to marketing opportunities to pending regulatory changes.

How are these new products better than before? And do they offer pest management professionals a way to grow their business while meeting potential new regulatory changes?

EARLY DAYS. Natural pesticides and inorganic materials were the primary pest control options up until the 1930s. Chemistry developments during World War II led to the creation of synthetic compounds, among them DDT, which were cheap, effective and widely used. Not until the early 1960s, prompted by works like Rachel Carson’s "Silent Spring," did environmental concerns of pesticide overuse come to light. The following decades saw the creation of the Environmental Protection Agency, federal pesticide bans, Integrated Pest Management and "softer" insecticides such as insect growth regulators, baits and lower-dose formulations.

Effective natural pesticides like pyrethrum and boric acid have never left the market, says Dave Poling, business director — Residential Markets, Whitmire Micro-Gen Research Laboratories, St. Louis, Mo., a 30-year market leader of pyrethrum products. "Botanicals have been around a long time and have been formulated into excellent products," he said. Interest in natural pesticides is increasing as pest management professionals become more aware of pesticide exposure risks to themselves and their customers, Poling added.

BOTANICALS ON REBOUND. Botanical pesticides of the ’80s and early ’90s may not have equaled the effectiveness of conventional pesticides, but second-generation products have pest management professionals taking a second look. Manufacturers like EcoSMART, Whitmire Micro-Gen, Dr. T’s Nature Products, Woodstream Corp., Eco Safety Products, and others are investing millions in research and development. EcoSMART, alone, has invested $15 million since the early 1990s, acquiring 25 patents and 40 pending patents worldwide.

In lab tests vs. conventional pesticides, botanicals have the same residual, and feedback from the field supports this, says David Murphy, Commercial Division vice president, EcoSMART, Franklin, Tenn. Years of laboratory trial and error have yielded novel technologies, he adds. Plant essential oils, for instance, when combined with natural pyrethrum, have a microencapsulation effect that synergizes the pyrethrum for improved kill power and longer residual.

"Make no mistake about this. They work," says Orkin New England Region Manager Bill Minahan, of botanical pesticides. The region recently unveiled a "green" residential service that uses botanical pesticides indoors and conventional pesticides outside. "Technical failures are not a problem," the Albany, N.Y.-based Minahan added.

Orkin Technical Director Frank Meek, B.C.E., confirms this. "The products we’re utilizing perform as the manufacturers have indicated."

Western Exterminator Company, Anaheim, Calif., is conducting a 10-route, 2,400-account test program to evaluate natural only and a combination natural-nonrepellent service. The one-year test, which began in January, is measuring callbacks, cost and customer feedback, says Western Exterminator Co. Technical Services Vice President Keith Willingham.

For the first seven months, costs, callbacks and customer satisfaction are in line with conventional treatment, Willingham says, but summer’s increased pest pressure may be more telling.

Other large firms may follow suit. Pending a thorough evaluation, Orkin’s "green" service in New England may be expanded, Meek says. And Home Paramount, Forest Hills, Md., is testing botanicals at commercial facilities, says Technical Director Jim Fredericks. "The products are performing well," he says, but it’s too early to roll out a formal program.

No one disputes botanicals’ safety. Some are made with food-grade plant essential oils and inorganic materials listed on EPA’s 25b list and are exempt from federal EPA registration; however, not all states honor this exemption. Others carry minimum and reduced-risk labeling.

New products in the pipeline will continue to expand botanicals’ broad-spectrum coverage. "We are evaluating naturally derived active ingredients and where they may fit the industry all the time," says Whitmire’s Poling, who expects to introduce several new, natural products next year. Likewise, EcoSMART will soon introduce an EPA-exempt concentrate specific for home mosquito misting systems, as well as a new residual concentrate bio-pesticide in 2007.

Botanical repellents offer a non-kill, long-term control solution, says Jim Springer, CEO, Dr. T’s Nature Products, Pelham, Ga., which has been providing natural control alternatives for 17 years. The company’s new granular, outdoor rodent repellent eliminates decay and odor issues, trap clean-out, and potential poisoning while reducing rodent activity by 72 to 90 percent up to three months, according to university studies.

EXPANDING THE MARKET. Although commonly pegged for sensitive accounts like schools, health-care and organic facilities, natural pesticides offer pest management professionals a way to reach homeowners currently not using professional pest control services. "Medium and larger players in the industry are seeing botanicals as a way to grow their business," says Murphy, by drawing homeowners wary of pesticides into the category. "It’s a great opportunity to meet the needs of customers who normally would not be your customers," adds Home Paramount’s Fredericks.

Orkin’s Minahan heartily agrees and has the sales figures to prove it. May 2006 sales were up 37 percent in his region compared to May 2005 with Orkin’s new "green" service responsible for the lion’s share of the increase, he says. The new residential offering has helped well-educated "fence sitters" commit to a professional pest control service, Minahan says.

He said he wasn’t expecting commercial accounts to follow suit but they did. In the program’s first 30 days, Orkin’s New England region was awarded three commercial accounts without being the low bid. We weren’t targeting commercial accounts, says Minahan, but the increase in business "speaks volumes" for all customers’ interest in green alternatives.

"There’s a market out there for it and it fits well with IPM concepts," says Western Exterminator Co. Entomologist Dr. Pari Pachamuthu, citing frequent customer calls requesting natural and organic pest control.

Minahan also expects "green" service to help reduce lost leads by offering potential customers a new pest control alternative, as well as increase customer and employee retention due to lower exposure risks. "Our mission statement as a company includes being environmentally responsible, and I just can’t think of a better way to satisfy that mission than to go down this road," he said.

Pest management professionals may do well marketing a service that convinces pesticide-sensitive customers they understand their concerns and can provide a service that addresses them, says Whitmire’s Poling.

"All these materials have positives and negatives just like conventional products," adds Meek. The key, he says, is finding the right mix of products. And, they have to work, reminds Fredericks. "We have to be able to take care of our people" and their pest problems.

Botanicals aren’t for everyone. Fragrance can be an issue for some customers, especially when citrus, mint, clove, rosemary and thyme odors linger several days after application. Manufacturers, however, are taking steps to reduce these levels. "It is a concern on the initial service visit, but overall there is general acceptance of the products. Fragrance is a non-issue after the first few service visits," says Pachamuthu, who’s had one customer in Western’s test program refuse botanicals due to fragrance. "You have to be prepared to talk to customers about it." Fredericks agrees. "Odor can be a ‘con,’ but it’s a good opportunity for the communication and education of our customers."

And, some botanical concentrates don’t contain an emulsifier, which must be added manually when mixing. This extra step, though common in the agricultural market, is a new approach for pest control. Learning botanical best practices is essential, experts agree, and pest management professionals are increasingly open to the subject.

NEW REGULATIONS, NEW APPROACH. Pending federal and state regulatory changes are underlying factors driving interest in botanicals. The 1996 Food Quality Protection Act, which requires all pesticide tolerances to be reassessed, caused the removal of Dursban, diazinon and other pesticides from the market.

Bob Rosenberg, senior vice president of Government Affairs, National Pest Management Association, said he believes the pesticides undergoing re-registration won’t go away, but significant new use restrictions are likely. "Label changes are very possible" in 2007, he says.

State regulations also are precipitating changes. In California, pesticide residue found in groundwater and the resulting regulatory and remediation issues have some pest management professionals seeking alternatives. The potential for new regulations "weighs in for sure" when evaluating botanical pesticides, says Orkin’s Minahan. "Minimum and reduced-risk labeling is very attractive," he said.

"You don’t want to be dependent on one group of pesticides," warns Willingham, who asks, "How will you meet customer needs" if these products are no longer available? It’s imperative to investigate effective alternatives that also give you a competitive advantage, he adds.

Even though botanicals are natural and many are exempt from EPA registration, some states still require registration, warns Orkin’s Meek. No "consensus of opinion" exists for using exempt products, such as in school IPM programs, he adds.

With improved efficacies and residuals and federal/state regulations mandating changes, the use of botanicals makes sense, says Dr. T’s Springer. And, growing market demand may be the proverbial icing on the cake.

When customers learn their technician is using a natural pest control product, says Western’s Dr. Pachamuthu, they respond, "How come you didn’t use it before?"

The author is a contributing writer to PCT magazine and can be reached at via e-mail at anagro@giemedia.com.