Since the policy, namely
Regulations of Professionally Unified Management on Pest and Disease
(Regulations for short), has been carried out by the Ministry of Agriculture of
China from 1 Aug., 2011, China China
Although the policy has been well
implemented and largely supported by peasants in some provinces in the past few
months, it, in deed, brought impact to traditional pesticide sales model in
these areas.
As the professional team's demand
for pesticide is much larger compared with that from single peasant, usually
they'd rather choose to directly purchase pesticides from pesticide enterprises
than from retailers and dealers. By this means, pesticide purchasing of
professional teams avoids paying extra cost not only to retailers, but also to
those pesticide dealers in the middle link of traditional pesticide sales
model.
Since the large amount of
pesticide sales has been suddenly cut off by unified management services, many pesticide
retailers suffered great loss in the past few months. It is reported that over
8,000 pesticide retailers have went bankrupt in Hunan Province
Actually, not only pesticide
retailers and dealers suffered loss in the large promotion of unified
management services, but also some of the large pesticide enterprises may
confront big challenges.
Shenzhen Noposion Agrochemical
Co., Ltd. (Noposion), one of the large pesticide formulation enterprises in China
In late 2009, Noposion started to
build another sales network in consideration of its long term
development–selling pesticides directly to retailers. Aiming to build up the
new sales model as fast as possible, Noposion continuously added a lot of
investment in the past two years which led to a decline in net profit growth
year by year.
Although Noposion has disclosed
that the construction of the new sales model was still under way, some insiders
doubted that the new sales model will not perform as well as the company imagined.
And they believed that the pesticide sales model of unified management services
which ignores the sales links of pesticide in traditional sales model will
become one of the main factors that impact Noposion's new sales model.
Another pesticide enterprise in
China, namely Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng), also
considered unified management services as one of the main impact factors of its
IPO project, namely the county-level pesticide marketing network construction
project.
Considering the difficulties it
may face in the process of building up so many retail stores and the impact
from unified management services, the company decided to change the raised
project into building up Shanghai
Aiming to cut down the number of
sales links, directly supply pesticides to retailers and decrease the cost of
peasants, Jiangsu Huifeng planned to widely promote the new sales model in China
As China China China
Background information
Professionally unified management
on pest and disease is a kind of socialized, large-scale and intensive pests
and disease control services which are led by professional teams with
well-trained and experienced technicians. Eyeing the better effect on pest and
disease management and lower cost it brings to peasants, it has been
successfully promoted in many developed countries in the world. Although China
Content of Crop Protection China
Unified
management bothers traditional pesticide sales model
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classification of paraquat TK raises dispute between enterprises and GAC
Total
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Jiangsu
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More and
more pesticide manufacturers set foot in fertilizer industry
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Agro China
Crop Protection China
About CCM
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