China’s Pesticide Recovers but Challenges Remain Tough

May 26, 2011 - PRLog -- China’s pesticide industry has been reviving as global economy improves, with major products all to witness steady growth, as predicted by CCM International. However, the challenges faced by Chinese players are unlikely to disappear, but will be tougher, under the context of China’s and the world situation.

Guangzhou China, May 26, 2011 - China’s pesticide industry has been reviving as global economy improves, with major products all to witness steady growth, as predicted by CCM International, though the word “steady” by CCM represents very different speed, ranging from about 3% to more than 20%. However, the challenges faced by Chinese players are unlikely to disappear, but will be tougher, under the context of China’s and the world situation.

-   ‘Nowadays, China is not only the bio-pesticide producer for guaranteeing its own agricultural production, but also an important bio-pesticide exporter for other countries. China's bio-pesticide output has been continuously increasing in the last three years, with CAGR (2008-2010) of 26.40%, and its output in 2010 witnessed a 21.34% year on year growth in volume and 7.84% by value.’

-   ‘It is forecasted that the export volume of imidacloprid calculated by AI will keep growing with CAGR of 7.2% in next five years and Chinese imidacloprid will be increasingly dependent on overseas market.’

-   ‘It is expected that both the output and domestic demand of triazole fungicides will continue to see stable growth in next five years, and it is certain that triazole fungicide industry will drive the development of the whole fungicide industry and promote the upgrading of fungicide products in China.’

-   ‘China, the largest production base of glyphosate, experienced irrational expansion in 2007 and 2008, and the whole glyphosate industry has been undergoing depressed glyphosate market since late 2008. And it is concluded that the possibilities of glyphosate technical's capacity transferred from China to overseas countries or from Southeast China to Western China are both low, and new capacities are also very unlikely.’

-   ‘From a global perspective, chlorpyrifos technical supply will continue to be concentrated in China and India in the future five years, with the predicted chlorpyrifos technical supply of 90,000 tonnes from the two countries in 2015, capturing 84% of the world’s total supply, thanks to the superiority in scale production and the lower labor cost. Chinese producers also have another advantage of enjoying the world’s most sufficient supply of chlorpyrifos raw materials.’

Note: all these are findings abstracted from CCM’s related reports.

From all these findings mentioned above, it is clear that most pesticides will grow, though some traditional products will face problems in growing slower than new products given their overcapacity.

"China, the largest production base and exporter of pesticide in the world, has produced 2.34 million tonnes of pesticide active ingredients in 2010. Most pesticides produced in China are generic products, and the whole Chinese pesticide industry faces the problems, such as overcapacity, irrational competition, lack of world-famous brands and low added value.

In the 12th Five-Year period, as planned in recently released China Pesticide Industry Policy, China will make efforts to optimize the pesticide industry structure and improve Chinese pesticides’ comprehensive competitiveness in global market. Hence, the whole pesticide industry is expected to undergo great integration and reformation, and many companies will be restructured. It is full of opportunities and challenges in the pesticide market of China.’ - from CCM’s report Company Profiles of Thirty Major Chinese Agrochemical Manufacturers


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