http://en.wikipedia.org/wiki/Capsaicin
Natural function
Capsaicin is present in large quantities in the placental tissue (which holds the seeds), the internal membranes and, to a lesser extent, the other fleshy parts of the
fruits of plants in the genus
Capsicum. The seeds themselves do not produce any capsaicin, although the highest concentration of capsaicin can be found in the white pith of the inner wall, where the seeds are attached.
[21]
The seeds of
Capsicum plants are predominantly dispersed by
birds. Birds do not have the receptor to which capsaicin binds, so it does not function as an irritant for them. Chili pepper seeds consumed by birds pass through the digestive tract and can germinate later, but mammals have
molars, which destroy seeds and prevent them from germinating. Thus, natural selection may have led to increasing capsaicin production because it makes the plant less likely to be eaten by animals that do not help it reproduce.
[22] There is also evidence that capsaicin evolved as an
anti-fungal agent,
[1] and capsaicinoids are broadly anti-microbial.
[23]
In 2006, it was discovered that
tarantula venom activates the same pathway of pain as is activated by capsaicin, the first demonstrated case of such a shared pathway in both plant and animal anti-mammal defense.
[24]
Pest deterrent
Capsaicin is also used to deter mammalian pests. A common example is the use of ground-up or crushed dried chili pods in birdseed to deter squirrels,
[51] since birds are unaffected by capsaicin. Another example is the use of chili peppers by the
Elephant Pepper Development Trust to improve crop security for rural communities in Africa.
Although hot chili pepper extract is commonly used as a component of household and garden insect repellent formulas, it is not clear that the capsaicinoid elements of the extract are responsible for its repellency.
[52]
There are manufacturers that do sell a capsaicin-based gel product that is reported to be a feral-pigeon (Columba livia) deterrent from specific roosting and loafing areas. Some of these products do have an EPA label and NSF approval.
that last part looks interesting enough though...