Friday, September 23, 2011

Chinese Farmers Become More Rational on Pesticide Purchasing

CCM has launched the latest issue of Glyphsoate China Monthly Report, showing Chinese farmers are more rational in choosing products, and cost-performance ratios has become the first important factor to make purchasing decision.

Shenzhen Noposion Agrochemicals Co., Ltd. (Noposion), China's first listed pesticide formulation producer, found that their market share of glyphosate in China is shrinking. The reason is that prices of Noposion's glyphosate products are very high, but the actual efficiency is not significantly superior to other brands with medium price, according to CCM’s investigation.

The selling point of Noposion's glyphosate 41% IPA, which could turn blue when diluted by water used to attracted thousands of farmers in the past, although the price is much higher. However, many professionals and market insiders have pointed out that Noposion's "formulation color change" has no contribution to the glyphosate's actual weed control efficiency. And farmers also find that Noposion's glyphosate product has no significant superiority over others, but it costs more money. Therefore, the selling point of magic color change can't build up good reputation among farmers.

In fact, the pesticide purchasing habit of Chinese farmers has changed. They don’t highly depend on retailer's recommendation and product's famous brand any longer. They are more intellectual, and they choose product with best cost-performance ratios. With the increasing efficiency of domestic glyphosate product, more and more Chinese farmers choose domestic glyphosate product with low price and comparable performance rather than famous brands.

The following highlights are covered in Glyphsoate China Monthly Report 1109:
-Yangnong Chemical saw ugly performance in glyphosate business in H1 2011, due to the depressed glyphosate market and the lack of overseas channels.
-Zhejiang Wynca suffers from operating profit loss in H1 2011, reflecting the dreadful glyphosate market.
-Asia is expected to be the largest growth point of global glyphosate consumption, due to the increasing potential of approval of planting GMO food crops and the increasing ratio of chemical weeding in these developing countries.
-Cost-performance ratio becomes the key factor for Chinese farmers' purchasing decision.
-Porter's five forces model is applied in China's glyphosate technical industry.
-Yellow Phosphorus price skyrockets in September 2011 because of the heavy drought in Southwestern China and the increasing phosphorus ore price.
-Increasing glyphosate formulation export drives up MIPA demand in China.
-Application of CWAO technology in glyphosate waste water treatment is introduced.
-Glyphosate price slightly increases in Sept. 2011, driven by the raw material price and recovering overseas demand.
-Glyphosate export kept an uptrend in July 2011, driven by the recovering demand in American countries.
For more information about Glyphsoate China Monthly Report, please feel free to contact us at
 (Guangzhou China, September 22, 2011)

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.

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

No comments: