Kingfa signs framework agreement about promoting its biodegradable agricultural film

On Dec. 5, 2013, Kingfa Sci & Tech Co., Ltd. (Kingfa) announced that it signed a framework agreement with the Xinjiang Production and Construction Corps (XPCC), to promote over 467,000 ha. of its biodegradable agricultural film (using PBSA as biomaterial) in XPCC's crop ecological region within the next three years. Generally, 467,000 ha. of biodegradable agricultural film will consume approximately 20,000 tonnes of biodegradable plastic every year, according to CCM’s Biomaterials China News issued in January.

The framework agreement is reached based on the developmental direction of both organisations. In short, as the spring ploughing   period   approaches, biodegradable agricultural film with good performance has become the first choice for cotton farmers of XPCC, since they have witnessed the good degradation of biodegradable agricultural film in their cotton fields and obtained a cost-recovering reduction last year. Specifically, approximately 3,300 ha. of biodegradable agricultural film was promoted by XPCC in 2012. Kingfa, a leading biodegradable plastic producer in China, is actively preparing for the domestic market for biodegradable agricultural film after the No.1 Proposal was released in March 2013 (the No. 1 Proposal for strengthening the development of green agriculture will set the direction of the Chinese government's major tasks this year).

Kingfa possesses a leading position in the development of China's biodegradable agricultural film industry. Firstly, the company's biodegradable agricultural film has a performance that is comparative with PE material. Moreover, its biodegradable agricultural film has proved to be completely biodegradable and has passed the EU-based EN13432 certification and the US-based BPI certification (ASTM D6400).

Kingfa has even drafted a national standard of the new material industry—the "biodegradable plastic used for blown film" (standard label: GB/T 29646-2013) has got the approval by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the Standardization Administration of the People's Republic of China in Sept. 2013. The national standard is scheduled to be implemented from Jan. 31, 2014.

According to an insider of Kingfa, the amount of biodegradable agricultural film will not compress the orders of existing packaging film. It may, however, increase the sales of its biodegradable plastic.

At present, the development of China's biodegradable agricultural film industry is mostly limited by the high price and disordered industrial standards.

On one hand, the price of biodegradable agricultural film is much higher than that of PE film, making it unaffordable for the majority of farmers.  According to related statistics, the price of traditional agricultural film is about USD2,445.8/t, while the price of biodegradable agricultural film will be over USD3,261.1/t (verified by Zhong Luhua, the chairman of Shenzhen Ecomann Biotechnology Co., Ltd. (Ecomann)).

On the other hand, China has no strict industrial standards for the degradable agricultural film industry, which can cause disorder in the industry. For example, many enterprises including Guangdong Shangjiu Biodegradable Plastic Co., Ltd. (Guangdong Shangjiu) produce their biodegradable film just by mixing PE with starch. Once the starch is decomposed, the PE residue can hide in the soil and still do harm to the environment.

Related preferential policies need to be published to encourage more enterprises to enter the biodegradable agricultural film industry and help ease the problem of white pollution in China.

Table of Contents of Biomaterials China News 1401:

China's PHA industry shows good momentum of development

Biological PE industry achieves progress in 2013

WPC brings business opportunities to domestic enterprises

Glory Biomaterial's biological PDO program put into operation

Kingfa signs framework agreement about promoting its biodegradable agricultural film

Shenzhen Union Red Kite Holding launches new bio-based NPG 100% degradable plastic

Hexing Chemical's PBS project receives governmental support

China's corn price decreases in Oct. but increases in Nov. 2013

New production capacity of 20,000 tonnes is put into SA industry

China's PLA import volume up while export volume down in Nov. 2013

China's import volume of fresh cassava increases sharply in Nov. 2013

China's import volume of castor oil and its derivatives decreases in Nov. 2013

BPFRG warns about biodegradable bags tax exemption

BASF produces its first commercial quantities of bio-based BDO

Futaste's polyol pilot service center project passes inspections

QIBEBT, CAS joins US-based BTB2C

Avantium produces 100% bio-based PEF T-shirts from recycled PEF bottles

Biomaterials China News, with 12 to 14 topics in one issue, published by CCM on 8th every month, will bring you the latest information on the market dynamics, company dynamics, new biomaterials products, new biomaterials technology development, new legislations as well as policies and raw material supply dynamics, which are shaping the significant market intelligence of the industry.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.

17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Credit sales in domestic pesticide industry

According to CCM’s latest monthly newsletter, China Crop Protection Monthly Report issued in June. Credit sales have been prevailing in the domestic pesticide industry in the past decade. As the competition has grown fiercer, credit sales become much more popular nowadays, from pesticide production enterprises, the upper stream of the distribution system for agricultural means of production, to pesticide dealers and pesticide retailers in China, the middle link and end of the system, most are involved in this kind of transaction mode.

As so many pesticide producers, dealers and retailers follow this kind of transaction mode, there must be reasons for its existence. Generally speaking, the apparent reasons for the trend of credit sales can be easily concluded as the following: the test marketing of new products, gloomy market, unsalable products, fierce competition, etc. However, the essential reasons lie in the highly homogeneous market with an oversupply of goods and weak purchasing power in the whole industry. Taking the domestic pesticide industry as an example, most of the products traded through credit sales are old products with high homogenization and competition, but not new products with differentiation, of good quality and reliable brands.

Although most of the pesticide dealers and retailers in China can't do business without credit sales, they share a strong hatred of this kind of transaction mode due to the negative effects it brings, especially the large liquidity pressure that credit sales cause.

Early in Feb. 2011, Zhanjiang Crop Protection Industry Association mobilized large pesticide dealers in Zhanjiang City to sign a cash transaction agreement on agricultural means of production aiming to boycott credit sales in the local pesticide market. The agreement required pesticide dealers who have signed the agreement to select 10 products in the first year and promise to perform the transactions for these products in cash. Those who violated the agreement should be punished. The amount of products selected should be enlarged year by year and the final aim is to wholly boycott credit sales and realize cash transactions among all the pesticide products in Zhanjiang City.

However, after more than two years, the agreement seemed to fall apart because most pesticide dealers continued doing business by credit sales. Some insiders believe that the selfish idea of expanding the sales amount and seizing more market share through credit sales of most pesticide dealers is the main reason for the failure of the agreement.

It has been calculated by Zhanjiang Crop Protection Industry Association that there were more than 80 pesticide dealers in Zhanjiang City in 2012 and most of them haven't actually implemented the agreement in the past two years. Adding to the general low price of agricultural produces in 2012, the whole credit sales value in Zhanjiang reached USD24.31 million (Exchange rate: USD100=RMB616.98), up over 50% of that in 2011.

Actually, the trend of credit sales in China has not only been caused by pesticide dealers, but also by the chaotic market competition environment, rampant counterfeit and shoddy pesticide products, small scale growers, purchasing habits, etc. Considering the national condition, all these factors contribute to the difficulty of eliminating credit sales and affect how long it will continue to exist in the domestic pesticide market

Table Contents of China Crop Protection Monthly Report 1306:

Credit sales in domestic pesticide industry

Development history of credit sales in domestic pesticide industry

Negative effect and benefit of credit sales towards different practitioners in pesticide industry

Opinions that most practitioners hold towards credit sales

Typical measures took to avoid or ease the loss caused by credit sales

Pesticide enterprises that insist on doing business in cash

Differences of credit sales in China and developed countries

Credit sales' future in domestic pesticide industry

China Crop Protection Monthly Report, a monthly publication issued by CCM, will keep an eye on the most important or the latest occurrences or the hottest topics in China’s crop protection industry, and select one or two topics out of these news and information to compose an in-depth feature article. You can obtain professional and insightful intelligence, covering market dynamic, industry development, government policies and more by going through the features articles every month.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Trade Analysis—A Vital Tool in Trading Business

With the globalization of economy in recent years, trading business has been playing a more vital role in the world’s economy development. People are in high demand for valuable intelligence relating to trading activities, so as to find out the latest trading situations of their target products, customers and competitors.

Since its establishment in 2001, CCM has been devoted itself to conducting market research on a variety of industries, including chemicals, energy, agricultural, life science, etc. As a leader in the field of market research for over one decade, CCM revealed that its trade analysis service aimed to offer the updated, objective and accurate statistics and summaries of target products to manufacturers, importers, and exporters across the world.,

According to CCM, the raw data of its trade analysis are obtained from China Customs, CCM’s independent research findings and other research channels, and finally analyzed by CCM’s experienced analysts.

“At present, China Customs can provide three types of raw data resources, namely 8-digit data, 10-digit data and port data. If people intend to purchase the data from China Customs and try to figure out a complete summary by themselves, it will take considerable time. That’s why we are committed to offering our clients trade analysis service,” introduced Mr. Du Hong Xiang, manager of CCM’s Client Center.  

Mr. Du also revealed that CCM’s trade analysis will be more important for client’s business starting from this year, as China Customs is attempting to further tighten the access to the raw data resources. If so, China Customs will not provide the 10-digit data anymore. According to our observation and feedbacks from several clients, this new policy is quite likely to be implemented soon,” added Mr. Du.

According to CCM, once China Customs carries out the new policy, people will meet more difficulty in obtaining the market data they need. “We have successfully established a reliable and exclusive methodology in data processing and analytics, even without 10-digit data resources, we can still conduct accurate data summaries based on 8-digit data resources to meet client’s needs,” remarked Mr. Du.    

The trade analysis by CCM, as introduced, can help clients indentify the export and import situations of target products in several industries, particular in chemicals and agricultural industries. Not only can it offer export volume, price, time, source, destination countries, specification, but also the information of exporters, manufacturers, etc.

Please go through the following link to know more about CCM’s trade analysis: http://www.cnchemicals.com/ResearchCenter#type=T

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

China brews soybean industrial policy adjustment

China is brewing soybean industrial policy adjustment, eyeing that the import volume of soybean hit a new record high in 2012 while domestic soybean production and processing industry continued to shrink in recent years. It's estimated that China would issue some new policies, hoping to improve the enthusiasm of farmers to grow soybeans and enhance the self-sufficiency rate of domestic soybean, according to CCM’s latest issue of AgriChina News Alert 1301.

  

In recent years, China’s soybean import volume showed an upward trend year by year while the output of domestic soybean has been declining. According to China Customs, China has imported 58.38 million tonnes of soybean in 2012, with an increase rate of 10.9% year on year.

 

At present, soybean industry insiders and food experts are expecting the supporting policy on the adjustment of soybean price eagerly. Price subsidy is considered to be a helpful policy tool. It is understood that the government would subsidize the price difference when the target price which provides a reasonable return to farmers is higher than current market price. Some experts also suggest that China should develop policies to support domestic soybean enterprises, including but not limited to tax incentives and government grants. 

Table Contents of AgriChina News Alert 1301:

2012 China's agricultural produces output sees increase

2013 Lowest purchasing price of rice released

China imports corn from Argentina for the first time

2012 Import & export of agricultural produces in China

MOA suggests increasing 2013 lowest purchasing price of rice drastically

China's main grain production area shifts northward

Gumuzhen: 2012 net profit would decrease by 80%-93%

Shaanxi: an important fruit production region both for China and the world

Edible Fungi Research Center founded in Yunnan Province

China's cigarette output up less than 2.4% in 2012

China brews soybean industrial policy adjustment

MOF allocates USD19.4 billion subsidies to support spring farming

China: cotton reserve measure facing with dilemma

Twelfth Five-Year Circular Agriculture and Crop Straw Utilization Policy Seminar held

Oil content of China's rape variety YN171 breaks world record again

Sinograin purchased 37.47 million tonnes of grain in 2012

China's accumulated occurrence area of pests and diseases to hit 367 million ha. in 2013

Five kinds of agricultural production supported by central financial

2012: China's enterprises purchased 314 million tonnes of grain

Seed companies' competitiveness to be enhanced in future few years

Biological Industry Development Plan to benefit seven main sub-industries

Denghai Seeds invests in a new subsidiary

Seventh China Biological Industry Convention to be held in June 2013

China to build three state-level grain seed production bases

2012: China's pesticide technical output and profit both increase

2012: Abamectin-aminomethyl becomes the hottest registered pesticide in China 10

Both volume and value of China's pesticide import & export increase greatly

Domestic pesticide demand to see growth in 2013

Consolidation of pesticide industry accelerates in China

Canpotex to offer Sinofert one million tonnes of potash fertilizer in H1 2013

China Ocean University Organism signs agreement with World Horticultural Exposition

Overcapacity intensifies competition of China's fertilizer industry

Agricultural machinery and technology integration project launched in Wuhu, Anhui

MOA revises 2013 state supporting agricultural machinery product list

State-level High Yield & Quality of Alfalfa Demonstration Project located in Huanghua, Hebei

AGCO increases investment in China

Fast-growing chicken calls for more supervision

Gaoping City again introduces live pig project

Chongqing to build state-level pig trading market

Twelfth Five-Year Plan for National Livestock & Poultry Breeding Pollution Prevention issued

DHN: 2012 net profit to increase by 8%-28% YoY

2012: Number of China's live pig slaughtering enterprises declines by 26.2%

Kondarl acquires the largest pig breeding enterprise in Xiamen

Zhengbang Group to invest USD317 million in pig industry in Bayan, Heilongjiang

Sunner Development: 2012 net profit to decline by 70%-100%

Market risk fund of pig industry development launched in Ziyang, Sichuan

Pork price up sharply in early 2013 but may not continue in the whole year

Beef price rises for 11 consecutive years

China sees large increase in pork import

2012 Jiangxi leading animal husbandry enterprises gain USD16 billion in revenue

Sanquan Food intends to invest in pig breeding industry

Output of Hubei's freshwater aquatic products ranks No. 1 for 17 years continuously

Strategic cooperation established between CMBC and China Fisheries Association

China's first state-level freshwater aquatic product wholesale market located in Jingzhou

Haid Group to invest USD188 million in nine feed projects

First aquatic index in China officially released

Baiyang Group intends to purchase 100% shares of Jiadexin Food

The U.S. launches countervailing investigation on shrimp from China

2012 Guangdong Port exports of aquatic products & seafood see increase

Yashili invests USD175 million to build new milk powder factory in New Zealand

Domestic vegetable prices continue to rise in Jan. 2013

Yunnan coffee tries to gain pricing right

Lu Zhou Lao Jiao makes great efforts to develop medium-end white spirit

Jiugui Liquor: net profit down 43% at least in Q4 2012

2012/2013 State reserve of sugar launched

Heilongjiang: Q1 2013 raw milk purchasing price determined

Huishan Dairy to launch infant formula

Shunxin Agriculture to invest USD76 in wine project

COFCO Tunhe: 2012 net loss predicted to hit more than USD111 million

Mengniu Dairy denies rumors of taking over Modern Farming

China intends to finish existing food standards clear-up work by the end of 2013

China's CPI in Dec. 2012 up 2.5% YoY

China's urbanization rate hits 52.57% in 2012

China's 2012 GDP growth at 7.8%

China's 2012 foreign trade growth misses 10% target

Online shopping continues surging in 2012

AgriChina News Alert, daily newsletter online issued by CCM starting from February 2013, (previously a monthly publication issued on every 31^st), offers timely news covering a variety of industries, including marine lives, stockbreeding, forestry and so forth.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Forecast on Agricultural's performance

Forecast on Huaying Agricultural's performance in Q4 2012: Entering Q4 2012, with the demand increase of poultry products, coupled with the estimated price decrease of feed (corn and soybean meal), Huaying Agricultural's performance will be improved.

 

In the past few years, domestic poultry market has developed rapidly, especially in total consumption volume. And this trend will continue in the future few years, mainly driven by the per capita income increase of residents, urbanization process, people's consumption structure adjustment and favorable industrial policies.

  

Anhui Huilong Agricultural Means of Production Co., Ltd. (Huilong Agri), the only listed agricultural production means chain company in China, suffered a decline of 33.14% year on year in its net profit from Jan. to Sept. 2012 to USD11.67 million (RMB72.91 million), though the company's revenue increased by 19.67% year on year to USD1.36 billion (RMB8.51 billion) in the meantime.

  

AgriChina Investor is a monthly publication released by CCM’s. It is covering sections of investment environment, investment dynamics, market watch, industry discovery, expert view and market review etc.AgriChina Investor will focus on the economic situation, governmental policy, financial capital flow, key players' dynamics, big events and hot issues etc. in agriculture industry. Providing the most comprehensive information about the capital investment dynamics and market dynamics, this newsletter can make you clear about the investment environments in China's agriculture industry.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China.

Tel: 86-20-37616606      Email: econtact@cnchemicals.com

Signs of recovery in glyphosate industry

China's economy recovers first in the world. With the increasing pace of urbanization, the demand in agricultural markets such as glyphosate market will rapidly increase as glyphosate's use in gardening increases. It is expected that in the next few years China's glyphosate market demand will maintain a momentum of rapid growth, therefore, the demand for glyphosate in domestic and international markets in the future remains favorable.

According to the survey, glyphosate factories mainly have at least 2 to 3 months’s or more orders, and customers basically are terminal or overseas dealers. Glyphosate factories are generally in their previous orders, and right now there is no goods available for sale. In addition, the price of local glyphosate has influenced the overseas downstream market. For example, price of glyphosate product in Argentina has reached USD4 per kilogram in Sep., 20% more than that in July/Aug. which priced USD3.2-3.3 per kilogram, and thus affecting the price of crops.

CCM's coming global report World Outlook of Glyphosate 2012-2016 provides readers with comprehensive & in-depth understanding on global glyphosate market through the following aspects.

p       Key suppliers and their competition strategies;

p       Demand by world region (6 continents and 12 selected countries);

p       Use of glyphosate in crop protection in 12 countries;

p       Worldwide flow of glyphosate;

p       Price fluctuation;

p       Future direction of the market with reliable historical data and insightful forecast in the coming five years.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer. For more information, please visit http://www.cnchemicals.com.
Guangzhou CCM Information Science & Technology Co., Ltd.
Add: 17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China.                                                      

Tel: 86-20-37616606          Email: econtact@cnchemicals.com

CCM will participate in the Twelfth National Pesticide Exhibition

During October 18^th ~ 22^th, 2012, the 12^th National Pesticide Exchanging Meeting and Agricultural Products Exhibition will be held in Shanghai, when firms from different countries and regions will be attracted to visit, exchange experience and negotiations. Guangzhou CCM Information Science & Technology Co., Ltd. (CCM) will participate in meeting and communicating with many businesses. We are welcome you consultation.

Chinese agriculture industry has experienced rapid development in recent years and has achieved important outputs. In the future, China’s agriculture will continue to attract investments, improve productivity and product quality, and expand international trade. Foreign investors and business practitioners who are eager to be participated in commercial opportunities in the China’s agricultural industry need timely access and analysis on information of China agricultural news. The National Pesticide exchanging meeting has just provided the platform for exchanges and cooperation to businesses and investors.

CCM is a professional industry information consulting institutions. CCM has an experienced team of outside experts and provides high-quality market research in the life sciences, agriculture, chemicals and energy, which are welcomed by many overseas customers. The company is not only committed to marketing consulting, research report, monthly report and discuss the summit, import and export analysis, database and other services. Besides, CCM can custom a set of service that meet your demand. CCM hopes to break down the Borders barriers to the exchange of information through high-quality service and provide two-way communication channels for the development of domestic and foreign enterprises. CCM has established long-term cooperative relationship with customers.

CCM will participate in the 12^th National Pesticide Exhibition and Agricultural Products Exhibition carrying the company's products information and meet up with everyone. Customers can apply for 3-month free service there. Welcome to consult and our company's booth number is 3B154.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/Detail/Release_1225.html

Government Purchasing: Excited but Hard to Involve for Most Pesticide Enterprises

Since the Ministry of Agriculture of China (MOA) released the agricultural subsidy policy on 6 April, 2012, USD253.16 million (RMB1.6 billion) of subsidy has been allocated to 11 winter wheat planting provinces and areas in China to subsidize peasants' use of pesticides and foliar-fertilizer on winter wheat, with total planting area reaching 21.33 million ha., based on CCM International’s latest issue of Crop Protection China News.

The main reason for allocating such large amount of subsidy by the MOA in just two months is to ensure the high and stable yield of the winter wheat this year.  

Although the subsidy seems to be a tip of the iceberg of Chinese Government's agricultural budget made at the beginning of 2012, over USD194.41 billion, it is still a big cake for domestic pesticide enterprises.

Driven by the large profit in the subsidy, many domestic pesticide enterprises scrambled for the bid inviting of local governments. Some pesticide enterprises in other provinces and areas even made great effort to go cross-regional bid.

 

"We have paid great attention to the dynamic of government purchasing. We set the goal of achieving an order worth USD12.66 million when we got the information that the Henan Government was planning a government purchasing of USD63.29 million. Aiming to get the order, we set up a special team to prepare all the documents needed in the bid and tried our best to make all the procedures right," said a manager from Guoguang Agro-Chemical Co., Ltd., a large pesticide enterprise located in Sichuan Province.

However, even if enterprises are very excited about government purchasing and put a lot of enthusiasm on it, many of them still can't get involved, even for some large pesticide enterprises.

 

Owing to the cumbersome procedures of the bid inviting, lots of pesticide enterprises lack the experiences of preparing bid materials. As many pesticide enterprises located in different provinces went to other provinces for the bid inviting, they were forced to give up when they found that it was impossible to fetch the materials needed in a short time.

 

In addition to the cumbersome procedures and lots of bid materials needed, the high threshold set by local governments was also a big threat to the pesticide enterprises who want to gain the bid inviting, especially those medium and small sized ones.

 

Take the threshold of the bid inviting of pesticide purchasing by governments in Shandong Province and Henan Province for example. The two provinces invited public bidding by county-level authorities.

Suppliers should be independent legal entity with registered capital no less than USD1.58 million. Owing pesticide production license, pesticide registered license and product standard certification should be one of the main requirements and all these licenses should be valid. Pesticide products should get registered on wheat. Enterprises should issue qualification test report of provided products. Enterprises should own the quality control lab and five years of production experience of related products. And the capacity of the related products should exceed 1,000t/a.

 

Some provinces which invited public bidding by provincial authorities only allowed large and famous pesticide enterprises to participate.

 

Facing the high threshold set by governments, small-sized pesticide enterprises have to find their own ways to attend the bid. Aiming to meet the requirements, many small enterprises choose to co-found pesticide enterprises with manufacturers, large pesticide dealers, etc. Forming coalition bidder with qualified enterprises also can help them to participate.

 

As Chinese government's focus on the governments purchasing of pesticides increases year by year, domestic pesticide enterprises start to realize the importance of anticipating and achieving the bid inviting. It not only provides great profit but also a good marketing measure for a company's products due to the government's credibility. However, different from normal marketing channels, government purchasing seems to be a tough task for most of domestic pesticide enterprises. How to overcome the problems of less experience in dealing with governments, knowing well all the cumbersome procedures during government purchasing is now become the first puzzle for most domestic enterprises to solve.

Source: Crop Protection China News 1212

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

Content of Crop Protection China News 1212:

Government purchasing: excited but hard to involve for most pesticide enterprises

Glyphosate price rises against market trend

Large area in China attacked by drought

Full implementation of new pesticide policy in Hainan postponed again

MIIT releases new policy for renewal of pesticide production licenses

Zhejiang Wynca to set foot in seed industry

Shandong Dacheng ready for being backdoor listed

Jiangsu Kuaida to largely expand phosgene capacity

Jiangsu Lanfeng puts some new projects into production

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1129.html