Thursday, April 26, 2012

Notice to Further Manage Glyphosate SL Mixtures with Content Lower than 30%

The question that whether glyphosate SL mixtures with content lower than 30% are legal or not which has been debated in domestic pesticide industry for almost one year has finally drew to an end clearly. On 5 April, 2012, the Ministry of Agriculture of China (MOA) released Notice No. 1744 announcing that it will stop accepting and approving the application for field trial and registration of glyphosate SL mixtures with content lower than 30% from the release date of the notice, based on CCM International’s latest issue of Crop Protection China News.

Those approved registrations of glyphosate SL mixtures with content lower than 30% are required to change the content to upper than 30% before 31 Aug., 2012. The content of those products which have got the approval certificates of field trial but still unregistered should be changed to upper than 30% when being registered.

Actually, the contents of the Notice have already been put forward at the 10th Plenary Meeting of the 8th National Pesticide Registration Review Committee held on 15-16 Dec., 2011. However, the results from the review committee didn't have any legal effectiveness. The Notice released this time has put an end to the production of glyphosate SL mixtures with content lower than 30% in China.

So far, there are three kinds of glyphosate SL products with content lower than 30% in China, namely 10.8% 2,4-D·glyphosate SL, 15% MCPA·glyphosate SL and 20% dicamba·glyphosate SL. These products have ever been predicted to enjoy a large share of domestic pesticide market after the retreat of 10% glyphosate SL since 1 Jan., 2012.

However, the release of the Notice has caused direct impact on the three products, especially 10.8% 2,4-D·glyphosate SL and 15% MCPA·glyphosate SL.

Owing to the high production cost and high sales price of 20% dicamba·glyphosate SL, it faces difficulties in promotion in domestic market. Plus, because the technology requirement of applying it on broad leaf weeds is high, it is now mainly used in commercial forest land. It is believed that even if the notice was not released, 20% dicamba·glyphosate SL would also retreat from domestic market automatically.

One one side, producers of 10.8% 2,4-D·glyphosate SL and 15% MCPA·glyphosate SL will suffer greatly from now on. Compared with glyphosate 30% SL (ammonium salt) and glyphosate 41% IPA, the production cost of 10.8% 2,4-D·glyphosate SL and 15% MCPA·glyphosate SL is much lower, about USD952.38/t. Plus, the lower use cost of the two products is also lower than that of glyphosate SL with content upper than 30%. Thus, the channel profit of 2,4-D·glyphosate SL and 15% MCPA·glyphosate SL will be much higher than that of high-content glyphosate SL products. The Notice has undoubtedly hit hard on the producers who are engaged in the production of low-content glyphosate SL.

On the other side, to those high-content glyphosate SL producers, it seems to be a piece of good news, but not definitely. Some of these producers are still worried about the long buffer period for low-content glyphosate SL products and they still believe that it will continue to affect their business in one or two years.

Source: Crop Protection China News 1207

Content of Crop Protection China News 1207:
Notice to further manage glyphosate SL mixtures with content lower than 30%
New registration policy encourages bio-pesticides' development
Financial policies support grain production
Banned pesticides detected in tea products
Investment wants discretion
Pesticides with growing price in 2012
Hubei Sanonda expects to collaborate with MAI
Noposion & Maruyama co-run agricultural machinery corporation
Jiangsu Limin to complete construction of new production base

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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