Performance overview of listed seed enterprises in Q1-Q3 2012

The performance differentiation of listed seed companies in China in the first three quarters is basically the same with that in H1 this year, since Q3 is usually the off-season for corn and rice seed sales at home. Seed players with reasonable business structure and sensible operating strategies could generate increasing profits while those with poor status generally witnessed declined performance，according to CCM’s October Issue of Seed China News.

In aspect of net profit, Longping High-tech and Winall Hi-tech achieved sharp growth in the first three quarters this year mainly due to their efforts in seed business expansion. On the contrary, Hefei Fengle and Shandong Denghai suffered a remarkable decline in net profit; Gansu Dunhuang continued to suffer loss in Q3 2012, mainly due to its sluggish cotton and food processing businesses.

It seems that the enhancing and expanding seed business has brought good returns for seed companies like Longping High-tech and Winall Hi-tech, while some players like Hefei Fengle and Gansu Dunhuang have been implicated by non-core businesses with a high proportion in company's total revenue.

Some listed seed companies have started the distribution of seeds earlier for the marketing year of 2012/2013. For example, Shandong Denghai and Hefei Fengle have received increasing advance from customers in Q3 2012, which would be conducive to their performance rebound in 2012.

Shandong Denghai started the corn seed distribution in Sept., with more promotions for its distributors. Thanks to the good performance in field planting, "Denghai 605", a leading corn hybrid bred by Shandong Denghai, has seen a price increase of seeds, probably to create handsome profits for the company. However, the annual performance of Shandong Denghai would be not so optimistic in 2012, mainly in view of the declining profits of "Xianyu 335" promoted by its joint venture with Pioneer Hi-Bred International Inc.

The performance differentiation of listed seed companies in China would be extended throughout the year of 2012. The serious loss of Gansu Dunhuang is almost impossible to be reversed in the remaining period of 2012. Mainly due to depressed non-core businesses, Hefei Fengle would probably continue to generate a decreasing net profit in 2012, following the similar situation in 2011. On the contrary, Longping High-tech and Winall Hi-tech which have been strengthening their core business, would see continuous profit growth in the coming few years.

Source: Seed China News 1210

http://www.cnchemicals.com/Newsletter/NewsletterDetail_28.html

Content of Seed China News 1210:

Non-transgenic soybean price running high in Heilongjiang

"Zhongdan 909" suffered stalk breaking for strong wind in Hebei

Performance overview of listed seed enterprises in Q1-Q3 2012

ZARD to control HPSG

Longping High-tech to divest inferior businesses and enhance seed business

TYLCV occurrence in Northeast China

Foreign varieties dominate sweet pepper seed market in Shandong

SNP technology to reinforce seed testing

Interview to Ma Dehua on "Derit 10" cucumber variety

Major corn varieties promoted in Jilin

For more information about CCM’s Seed China News, please contact us at econtact@cnchemicals.com.

Government purchasing: a double-edged sword

While approaching the end of 2012, Government purchasing has again become a hot topic at many agricultural means of production conferences. Many pesticide enterprises, especially those missing the government purchasing this year, expressed that they will continue to lay great efforts to prepare for the government purchasing battle in 2013, according to CCM’s November issue of Crop Protection China News.

Since the Ministry of Agriculture of China (MOA) released the agricultural subsidy policy on 6 April, 2012, USD254.37 million (RMB1.6 billion) of subsidy has been allocated to 11 winter wheat planting provinces and areas in China to subsidize farmers' use of pesticides and foliar-fertilizers on winter wheat, with total planting area reaching 21.33 million ha. Adding up the subsidies allocated on rice, vegetable, tobacco, cotton, etc., the whole government purchasing capital of agricultural means of production in 2012 is estimated to reach USD317.97 million (RMB2 billion).

Government purchasing is now called as a double-edged sword because it brings both advantages and disadvantages to domestic agricultural means of production industries. As the capital of government purchasing gradually grows in recent years, more and more domestic enterprises are attracted to scramble for the bid inviting of local governments and those enterprises who win the bid enjoy good profit. Take Jiangsu Anpon Electrochemical Co., Ltd. (Jiangsu Anpon), a typical enterprise in domestic government purchasing of agricultural means of production for example, it won the bid of 300 tonnes of pymetrozine in the government purchasing of Jiangxi Province in 2010, valuing USD15.9 million. In 2011, its pymetrozine products again won the government purchasing bid of Jiangsu Province with the quantity of 120 tonnes, valuing about USD6.35 million.

The government purchasing not only benefits the performances of the enterprises who win the bid, but also promotes their products for free. Owing to domestic chaotic pesticide market, domestic farmers with low educational level usually can't tell counterfeit agricultural means of productions from good quality ones. When the government purchases agricultural means of productions for them, they believe that these products from government purchasing are reliable and show great loyalty to the brands of the products when they buy them by themselves.

Moreover, government purchasing not only helps farmers to save a considerable spending on agricultural means of production, but also ensures farmers to use the right pesticides and fertilizers which are the main cores of Chinese Central Government to carry out the policy of government purchasing.

However, except for those enterprises who enjoy benefit from government purchasing, others and those traditional dealers of agricultural means of production, on the other sides, complaint that government purchasing is unfair to some extent and has affected greatly the traditional sales channels of agricultural means of production.

Owing to the cumbersome procedures of the bid inviting, lots of pesticide enterprises lack experiences of preparing bidding materials. As many pesticide enterprises located in different provinces need to travel to other provinces for the bid inviting, they are forced to give up when they find that it is 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 of the enterprise's registered capital set by local governments is also a big pressure to the pesticide enterprises who want to gain the bid inviting, especially those medium and small sized ones. Some provinces which invite public bidding by provincial authorities only allow large and famous pesticide enterprises to participate in.

Traditional pesticide dealers feel great pressure in government purchasing activities as well. As those government purchased products are distributed to farmers for free, the sales channels of pesticide dealers continue to shrink. Moreover, some of these products will not be used in the right year due to different planting conditions and outbreak conditions of pest and diseases but will be used next year, thus affecting the sales of pesticide dealers.

Although many enterprises complaint about the unfair rules in local government purchasing, they still believe that it represents the third kind of sales channel in domestic agricultural means of production industry. The only way to get involved in the activity is no other than better preparing and actively participating.

Source: Crop Protection China News 1222

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

Content of Crop Protection China News 1222：

Nantong Jiangshan to acquire Thai agrochemical enterprise

Ningbo Tide achieves remarkable performance in international market

Anhui Guangxin tries IPO again

Government purchasing: a double-edged sword

China's first Agricultural Insurance Regulations issued

China actively participates in development of FAO/WHO pesticide specifications

Lier Chemical shuts down chlorpyrifos production lines

Gofar Bio-Pesticide's production halts

Huilong sets foot in micro-credit industry to promote its development

Crop Protection China News, a monthly publication issued by CCM on 15^th&31^th of every month, offers timely update and close follow-up of China’s Crop Protection industry dynamics, analyzes market data and finds out factors influencing market development

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.

Please visit http://www.cnchemicals.com for more information

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's net import volume of rice soars in 2012

China usually played as a net exporter of rice before 2011. However, the export volume of rice has witnessed a continuous decrease, while the import volume has witnessed a continuous increase in recent two years. According to data from China Customs, in 2011, China became a net importer of rice and its net import volume of rice soars sharply this year. China's import volume of rice hit 1.89 million tonnes in the first nine months of 2012, up 275.7% over the same period of last year, while the export volume of rice was only 237,000 tonnes, down 23.5% year on year. The net import volume of rice hit 1.65 million tonnes in the first nine months this year, even much higher than the total import volume of rice in the whole year of 2011, according to CCM’s November issue of AgriChina Investor.

 

China's total rice import volume in 2012 is estimated to hit 2.4 million tonnes to 2.5 million tonnes. Besides, the smuggling of rice is very common this year. Insiders revealed that China's actual import volume of rice may be much higher than the data from China Customs.

 

China's imported rice is mainly from Vietnam and Pakistan. According to data from the Ministry of Commerce of People's Republic of China, Vietnam exported 5.90 million tonnes of rice in the first ten months this year, exceeding Thailand for the first time and becoming the largest rice exporter in the world. Among the total, much was exported to China.

 

Although China's rice import volume increases greatly this year, it still accounts for a very small share in the total rice consumed in China. However, the price of imported rice is much lower, which shocked the rice price in domestic market.

 

"Imported rice is easily available in the domestic market at present. The price of imported rice is USD545.7/t to USD577.8/t, while that of home-produced rice is USD609.9/t to USD706.3/t. Imported rice has brought huge impact to the rice price in China," revealed by a rice trader in Jiangxi Province.

 

The purchase price of rice this year is also impacted by the low price of imported rice. For example, the purchase price of middle and late indica rice (before milling) is about USD425.4/t. Some farmers revealed that the purchase price is about the same as that of last year. However, the production costs, covering pesticides, seed, labour, etc., all witnessed increase this year.

 

"China does not advocate exporting or importing a large amount of rice. The sharp increase in rice import volume may impact farmers' enthusiasm for rice planting, to which the government should pay attention," according to Li Guoxiang, a researcher from the Rural Development Institute, Chinese Academy of Social Sciences.

Source: AgriChina Investor 1211

http://www.cnchemicals.com/Newsletter/NewsletterDetail_192.html

Content of AgriChina Investor 1211:

China's net import volume of rice soars in 2012

China to vigorously promote biological crop protection technology

Ukraine allowed to export corn to China

John Deere launches its fourth agricultural machinery factory in China

Huaying Agricultural sees first quarterly loss in Q3 2012

Greentown China enters modern agriculture formally

Guangdong Sky Dragon invests one-million Rongchang pig farm in Chongqing

China's edible fungi industry develops quickly in past decade

Cotton planting in Xinjiang supported by harvesting machinery

Q3 financial reports of domestic listed pesticide enterprises

Sugar: market price downtrend to continue in 2012/2013

Opportunities in domestic potato processing industry

2003-2012: Central Government allocates USD963 billion to Three Agriculture Issues

China's pesticide output up 20% in Jan.-Sept. 2012

Zhengzhou Hualiang and CCB set up cooperation

Hainan starts tropical plant base project

CMBC offers USD802.5 million of loan to tea enterprises

China's import volume of soybean and edible oil increases fast

Luoyang Zhengda launches 1.5 million pigs per year slaughtering line

……

AgriChina Investor, periodically published on 31^th every month, offers timely update and close follow up of agriculture investment in China, analyzing market data and trends, as well as related policies. Major columns include investment environment, investment dynamics, market watcher, market review etc.

If you are interested in AgriChina Investor, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

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 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

Brazil still has potential to increase production of wheat

From Oct. 21 to Oct. 23, 2012, the 19th International Wheat Conference, one of the main events inside Brazilian wheat chain, was held in Florianópolis, the provincial capital of Santa Catarina in Brazil. During this event, about 500 people including producers, equipment suppliers, experts, researchers and the public authorities from many different countries attended the meeting and discussed on the theme of “It’s Time for Wheat”, according to CCM’s November issue of South America Crop Protection Monthly Report.

On the second day of the meeting (Oct. 22), according to Sergio Amaral, the President of the Brazilian Association of Wheat Industry (ABItrigo), if Brazil continues to develop the new technology and new variety of wheat, its wheat production still has potential to be increased.

In fact, the unit yield of wheat in Brazil has increased significantly from 1970 to now. According to the Food and Agriculture Organization of the United Nations (FAO), the unit yield of wheat in Brazil was about 886 kg/ha. in 1970, but in 2012, the unit yield is expected to reach 2,800 kg/ha. However, the unit yield of wheat has been little changed in recent five years, plus no obvious expansion of wheat planting area, the production of wheat failed to increase continuously in Brazil during this period. In order to meet domestic demand, Brazil needs to import wheat from other countries every year.

 

In 2012, due to the higher price of corn, farmers preferred to plant corn instead of wheat in Brazil. As a result, the planting area of wheat in Brazil is expected to decrease in 2012/13. According to the latest report of the US Department of Agriculture (USDA), the planting area of wheat in Paraná, the main wheat production region in Brazil, is estimated to decrease by 27% in 2012/13 compared with that in 2011/12, which will lead to the decreasing production of wheat in Brazil in 2012/13. As a result, the import volume of wheat in Brazil will also increase in 2012/13. 

 

The possibly increasing import volume of wheat in Brazil is unfavorable for the development of its wheat planting. So it’s much important for Brazil to develop the new technology and variety of wheat to improve the unit yield of wheat, since the improving unit yield of wheat will help boost the willingness of farmers to plant wheat in Brazil, thereby increasing the wheat production.

With the improvement of people living standard and change of lifestyle, people need more and more wheat in the world. According to USDA, the world’s consumption of wheat has increased by 8% from 643 million tonnes in 2008/09 to 695 million tonnes in 2011/12. Although USDA estimated that the consumption of wheat will decrease to 678 million tonnes in 2012/13, it’s still higher than that in previous years.

 

However, the total production of wheat in the world is unstable amid the increasing consumption of wheat. According to USDA’s estimation, the production of wheat in the world in 2012/13 will be less than the consumption. As a result, the supply of wheat will be in shortage in the world. In this context, if Brazil increases its production of wheat, it's believed that it can help reduce the wheat supply pressures in the world.

Source: South America Crop Protection Monthly Report 1211

http://www.cnchemicals.com/Newsletter/NewsletterDetail_256.html

Content of South America Crop Protection Monthly Report 1211：

Argentina may lose 20% of projected corn crop in 2012/13

Peru coffee production to drop in 2012

Chickpea planting develops fast in Argentina

Mato Grosso court orders Monsanto to suspend royalties

Paraguay regulates responsibilities of GM cotton importers

Brazil suspends citrus exports to EU

Brazil authorizes temporary use of spinosad-based pesticides on fruit

FMC launches new ripener for sugarcane in Brazil

Syngenta launches Ampligo® in Argentina

Arysta LifeScience gets approval for Legacy® fungicide in Paraná, Brazil

Brazilian farmers must be alert to pest management on soybeans

PSA appears in kiwifruit orchards in Chile

Embrapa warns of occurrence of green belly stink bug in wheat

Brazil still has potential to increase production of wheat

South America Crop Protection Monthly Report , a monthly publication issued by CCM International on 31^th of every month, offers timely update and close follow-up of South America's  Crop Protection industry dynamics, analyzes market data and finds out factors influencing market development.

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.

Please visit http://www.cnchemicals.com for more information

Guangzhou CCM 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

Vietnam intended to raise the export tariff of multiple minerals

On Oct. 25, Vietnam's medium Th i Báo Kinh T Sài Gòn （TBKTSG） disclosed that Vietnam intended to raise the export tariff on multiple minerals, including phosphorus ore. Besides, the new export tariff on phosphorus ore will rise from 10%-15% to 15-25% and is expected to be implemented this year.

Vietnam's restriction on export of phosphorus ore takes a toll on the international market of phosphorus ore. As for China, the pressure may be exerted on domestic ammonium phosphate producers if Vietnam's ammonium phosphate industry gets a booming development in the future. For the moment at least, there's no intersection between China and Vietnam in terms of phosphorus ore business.

According to data from United Nations Commodity Trade Statistics Database (UN comtrade), India was the main export destination of Vietnam's phosphorus ore in 2008-2011. In 2011, Vietnam exported 586,846 tonnes of phosphorus ore, of which 71.11% was exported to India.

While for India, it seemed it did not rely too much on Vietnam's phosphorus ore. Among India's import of phosphorus ore in 2011, only 8.16% was from Vietnam. Generally speaking, Vietnam's push in this direction is definitely in the best interests of protecting local resources and restricting exports. In the meantime, it would be conducive to developing local downstream phosphorus products like yellow phosphorus and ammonium phosphate.

By the end of Oct. 2012, the capacity of phosphate in Vietnam had increased to 1,370,000t/a, whilst Vietnam's capacity expansion of ammonium phosphate was under way. In Jan. 2012, Vietnam National Chemical Corp. (VNCC) constructed its second ammonium phosphate facility. By 2015, VNCC's capacity of ammonium phosphate is expected to increase to 660,000t/a, which can surely boost the demand for phosphorus ore. In addition, this also can entail sufficient feedstock to supply its booming yellow phosphorus industry.

As the second largest holder of phosphorus ore resource in the world, China has been a net phosphorus ore exporter over these years. Phosphorus Industry China Monthly Report provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, and supply & demand of China's phosphorus 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

What is the key target of Chinese pesticide industry in the next five years?

With over 60 years' development, China has become the biggest pesticide production base and also a huge pesticide consumer market in the world.

The amount of grain per capita in China continued improving in 60 years, but it is just close to the world average, and much lower than that in developed countries, it can be said that the future per capita demand for food will continue to upgrade. China's total population, even under the current population policy, will continue to grow until 2025. As a result, China's domestic demand for food will continue to grow, the demand for corresponding agricultural materials supplies will also increase.

The Chinese pesticide consumption growth is expected to go on. China’s average pesticide spending is expected to be more than ￥700/ha in 2016, while the industry output value is expected to reach ￥186 billion in 2012 according to the current sales price. Counting food demand, planting area, planting structure and the income of the farmers together, the pesticide spending per unit area in the report is ​​a comprehensive reflection of the influencing factors of the long-term consumption of pesticides.

Chinese government now is actively raising the overall industrial strength of domestic pesticide industry by means of releasing stricter policies in environmental protection, heightening industry entrance threshold and phasing out highly toxic and highly residual pesticide varieties, etc.

Overview of Pesticide Industry in China 2012-2016 is CCM's summary report on Chinese pesticide industry. This study explores market landscape and competition of Chinese pesticide industry and is comprised of two major sections: Historical description—a full market commentary provides a summary comprehension on Chinese pesticide history. Development situation is presented in ways of industrial dynamic and market supply/demand. Future forecast—expertise analysis provides the most credible forecast on pesticides in the coming five years (2012-2016).

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.

Please visit http://www.cnchemicals.com for more information
Guangzhou CCM 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

Australia restarts antidumping investigation on formulated glyphosate from China

"In economics, "dumping" is any kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market competition.”

On Nov. 16, 2012, the Australian Customs and Border Protection Service (CBP) announced the resumption of antidumping investigation on formulated glyphosate exported to Australia from China. The CBP has initiated an investigation following an application by Nufarm Limited and Accensi Pty Limited, manufacturers of formulated glyphosate in Australia. The application seeks the publication of a dumping duty notice in respect of formulated glyphosate exported to Australia from China. The application alleges that formulated glyphosate has been exported to Australia from China at prices less than its normal value and that the dumping has caused material injury to the Australian formulated glyphosate industry.

The Australian Customs started the antidumping probe in February and terminated the probe with a no-dumping ruling in Aug. 2. Then Nufarm Ltd, a representative of the Australian formulated glyphosate industry, lodged an application to the Review Officer for a review of the decision to terminate the investigation on Aug. 28, 2012. And the Review Officer revoked the terminate decision on Oct. 23, 2012, which led to the resumption of the investigation as of Oct. 25, 2012.

Faced with such event, what will be the fate of the Chinese glyphosate? CCM‘s experts will investigate the future development of Chinese glyphosate market, please stay focus on CCM's coming global report: World Outlook of Glyphosate 2012-2016.

http://www.cnchemicals.com/Special/SignsOfRecoveryInGlyphosateIndustry.html

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