Tuesday, April 24, 2012

China Holds First Matchmaking Meeting for Direct Pesticide Sales

Hosted by Farmer's Daily, the 2012 Matchmaking Meeting for Pesticide Enterprises and Large Pesticide Consumers was successfully held in Beijing City on 17 March-18 March, 2012. It's considered to be an innovation measure for domestic pesticide industry to try such a new sales mode which directly connects pesticide enterprises and large pesticide consumers, based on CCM International’s latest issue of Crop Protection China News.

Attracting more than 300 agricultural cooperatives and large-scale plantations and over 60 large pesticide enterprises, the meeting turned out to be very satisfactory. There were totally 42 procurement letters of intent signed at the meeting, valuing about USD5.87 million.

Representatives from all parties sang highly of this new sales mode and expressed their appreciation to such a face-to-face communication platform. Pesticide enterprises, including some very famous pesticide giants such as Shenzhen Noposion Agrochemical Co., Ltd. (Noposion), DuPont and Qingdao Hailir Pesticides and Chemicals Co., Ltd., all attached great importance to the opportunity and brought along their own advantaged products.

"I have attended many pesticide industrial exhibitions, but most of the participants were pesticide enterprises and dealers. This is my first time to attend such a meeting with plenty of attendances from enterprises and large-scale plantations. We now have considered the direct matchmaking among our company, agricultural cooperatives and large-scale plantations to be one of the big pictures of sales and long-term strategies," said Mr. Wang, Vice General Manager of Noposion.

Noposion, as one of the beneficiaries of the matchmaking meeting, has won three procurement letters of intent valuing USD678,730. Some other companies such as Shaanxi Sunger Road Bio-Science Co., Ltd. and Bainongsida (Beijing) Agrochemicals Co., Ltd. also signed lots of procurement letters of intent with agricultural cooperatives and large-scale growers.

Not only pesticide enterprises but also those large pesticide consumers have benefited from the matchmaking meeting. Discussing business face to face with pesticide enterprises has offered large-scale growers a good opportunity to get much cheaper pesticides (20%-50% off the market price), more quality products and even customized products.

"I attend the meeting not only for purchasing quality pesticides, but also for seeking a professional and integrated solution for the green and organic development of my 5,333 ha. medlar farm," said Mr. Qin, President of a medlar production company in Qinghai Province.

Actually, it is very wise for Farmer's Daily to hold such a matchmaking meeting in China at present. After several years' development, especially in the past three years, the step of rural land circulation transactions has speeded up. On one hand, with the development of urbanization, lots of small-scale growers abandoned their farmland for finding works in cities. On the other hand, lots of large-scale growers now appear in China after policies are carried out by Chinese Government to encourage land leasing in rural areas. Moreover, according to recent government reports released on the Fifth Session of the 11th National People's Congress (5 March-14 March, 2012), China will continue to encourage the development of large-scale growers and is planning to carry out policies to cite those large-scale growers who have made great contribution to local grain production.

The signal from the government's direction and policies may inspire domestic pesticide industry that the matchmaking between pesticide enterprises and large-scale growers is one of the irreversible trends in domestic pesticide market. The old sales mode that pesticide dealers dominate sales links is no longer suitable for the development of domestic pesticide industry, even though it is still the mainstream. With the great opportunity of sales channel innovation, domestic pesticide enterprises should prepare themselves and make a long-term strategy toward the new sales mode.

Content of Crop Protection China News 1206:
China holds first matchmaking meeting for direct pesticide sales
China’s pesticide import in Q1 2012 rises
Increasing oil price increases agricultural production cost
Glyphosate: TC price climbs but formulation price stays
Policy to support development of leading agricultural enterprises
China releases 2012 Temporary Purchasing and Storage Plan for Cotton
Huapont raises money to expand pesticide business
Heilongjiang's soybean planting area continues to shrink
Areas from south to north in Shanxi attacked by drought

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.

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