Thursday, November 29, 2012

The emerging titanium dioxide market


Titanium dioxide, also known as titanium (IV) oxide or titania, is the naturally occurring oxide of titanium, chemical formula TiO2. When used as a pigment, it is called titanium white. It has a wide range of applications, from paint to sunscreen to food colouring.
There is much industrial application for this mineral. For one thing, it has very high refraction properties. In fact, titanium dioxide is one of the whitest materials known to exist on Earth, which has earned it the nickname "titanium white." For this reason, it is often applied in many cosmetic preparations to reflect light away from the skin. It is also a major component of sun block to deter the absorption of ultraviolet (UV) rays from the sun, and the concentration of it determines the product’s Sun Protection Factor, or SPF.
As a pigment, titanium dioxide is used to enhance the whiteness of certain foods, such as dairy products and candy. It also lends brightness to toothpaste and some medications. Besides, it is also used as a food additive and flavor enhancer in a variety of foods that are not so white, including dried vegetables, nuts, seeds, soups, and mustard, as well as beer and wine.
In recent years, the price of energy and raw material increases, meanwhile titanium dioxide market in developed countries has entered a mature period, and thus the possibility of increasing production by means of investment is not very big. It is estimated that in the next years, the average annual growth rate will be only 1.4%. That makes the transnational corporations place the hope of future development of titanium dioxide in Asia, especially China.
Titanium Dioxide China Monthly Report is published by CCM. This China TiO2 Monthly Report is mainly divided into five parts referred to Supply & Demand, Company Dynamics, Upstream, Downstream and Price Update, including information of new launch, company expansion, value chain analysis, price fluctuation, etc. If your business is connected with TiO2, the report will be very useful for you as it can facilitate your search for commercial opportunities in this promising market. If you are interested in this report, please feel free to contact us.

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

Signs of recovery in glyphosate industry


China's economy recovers first in the world. With the increasing pace of urbanization, the demand in agricultural markets such as glyphosate market will rapidly increase as glyphosate's use in gardening increases. It is expected that in the next few years China's glyphosate market demand will maintain a momentum of rapid growth, therefore, the demand for glyphosate in domestic and international markets in the future remains favorable.
According to the survey, glyphosate factories mainly have at least 2 to 3 months’s or more orders, and customers basically are terminal or overseas dealers. Glyphosate factories are generally in their previous orders, and right now there is no goods available for sale. In addition, the price of local glyphosate has influenced the overseas downstream market. For example, price of glyphosate product in Argentina has reached USD4 per kilogram in Sep., 20% more than that in July/Aug. which priced USD3.2-3.3 per kilogram, and thus affecting the price of crops.
CCM's coming global report World Outlook of Glyphosate 2012-2016 provides readers with comprehensive & in-depth understanding on global glyphosate market through the following aspects.
p       Key suppliers and their competition strategies;
p       Demand by world region (6 continents and 12 selected countries);
p       Use of glyphosate in crop protection in 12 countries;
p       Worldwide flow of glyphosate;
p       Price fluctuation;
p       Future direction of the market with reliable historical data and insightful forecast in the coming five years.

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.
Add: 17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China.                                                      
Tel: 86-20-37616606          Email: econtact@cnchemicals.com

Thursday, November 22, 2012

After-effect from DAP's closing export windows emerges in Oct.


With enlarged gap between China’s DAP supply and demand in H2 2012, some negative impacts are gradually exposed after China closed the window of low export tariff for DAP in Oct. 2012, such as low operating rate and continuously falling price, according to CCM’s November issue of Phosphorus Industry China Monthly Report.

The wholesale price index for DAP abbreviated to CPPI (China Phosphate Price Index) had been down in a row from the first week of Oct. 2012. And at the last week of Oct., the CPPI sunk to the lowest reading since the first time CPPI was published by China National Agricultural Means of Production Circulation Association (CNAMPCA) in June 2012.
 
In general, CPPI can directly reflect China’s market trend of DAP. CPPI consists of wholesale price from phosphate fertilizer dealers in China’s 17 main consumption provinces (More details about CPPI see page 5 issue 6 Vol.2: China publishes the first wholesale price for DAP).
 
In addition to continuously falling price, the operating rate of DAP started to slide in Oct. 2012. According to the data monitor from CNAMPCA, China’s overall operating rate fell to 60%-70% this Oct., compared with 75%-80% in Sept. In addition, the production of low-level DAP (with low content of phosphorus) is generally suspended in China.
 

Source: Phosphorus Industry China Monthly Report 1211

Headlines of Phosphorus Industry China Monthly Report 1211

Editor's Note
Headlines of Phosphorus Industry China Monthly Report 1211

Phosphorus ore
Company Dynamics: Sichuan Hebang fuels expansion of phosphorus business  
Policy & Legislation: China’s 2013 export quota application for phosphorus ore starts      
Project Progress: Zhijing Project to make new progress

Yellow Phosphorus
Industry Dynamics: Yellow phosphorus to see interrupted shipment till late Nov.

Phosphate Fertilizer
Company Dynamics: Wengfu to scale up production in Gansu Province   
Industry Dynamics: After-effect from DAP’s closing export windows emerges in Oct.    

Fine Phosphate Chemical
Company Dynamics: Jiangsu Chengxing to extend business to Guangxi Province    
Industry Dynamics: Failed extension project treated with caution 

Global Insight
Vietnam to raise export tariff of phosphorus ore

Supply & Demand
Market review of prime phosphate chemicals in Oct. 2012 

Import & Export
International trade situation of phosphate chemicals in Sept. 2012 

Price Update
Price monitor of some phosphate chemicals in Oct. 2012 
… …

Phosphorus Industry China Monthly Report, a monthly publication issued by CCM on 15th of every month, provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, 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.
CCM International Ltd.
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

Cooperation between Chinese & Overseas Dairy Industries in Vogue


On 9 October, Beingmate revealed a cooperation with Ireland’s Kerry Group Plc (Kerry). It comes in the wake of similar moves from Wahaha, Synutra and China Investment Corporation (CIC) in September, suggesting an acceleration in the trend towards cooperation between Chinese and overseas companies in the dairy industry, according to CCM’s October issue of Dairy Products China News.

Beingmate signed the strategic cooperation contract with Kerry on 2 October; the arrangement includes 4 aspects:
 Cooperation in infant formula & infant foods: Kerry will provide comprehensive technical support for Beingmate (in theory, on a worldwide basis), whilst Beingmate will prioritise Kerry in its raw materials supply and product development initiatives
 Overseas cooperation: Kerry will suggest a “new management structure overseas” – possibly a subsidiary or cooperation project of some sort
 Kerry will be active in providing technology support in nutrition and infant formula/foods for Beingmate when required
 Beingmate can visit Kerry R&D centres, and Kerry should treat Beingmate’s projects preferentially

Kerry has historically transitioned to being a major ingredients and flavours group in which dairy plays a relatively minor role. However it is Ireland’s no. 2 supplier to China of the key formula ingredient demineralised whey powder and has had a longstanding supply relationship with Beingmate. The deal is especially timely as Ireland’s milk supply is undergoing a significant growth phase in preparation for Europe’s post quota era. In the first phase of the partnership, investment is starting immediately at Kerry’s Listowel and Charleville sites in Ireland with the intention of doubling its local output of demineralised whey and infant formula base mix.

Beingmate’s move follows several similar arrangements and initiatives (please see Dairy Products China News Vol.5 October Issue, p14).

The trend is entirely predictable: after the 2008 melamine scandal and years of ongoing dairy and formula safety scares, an increasing number of consumers prefer dairy products produced overseas or based on raw materials from overseas. This situation has caused a marked pickup in demand for imported dairy commodities.

Competitive factors are also key, with the Chinese party often struggling or at some disadvantage in the formula market. The fierce competition from Yili is central to Mengniu’s decision to cooperate with Arla Foods, and similar rationales lay behind the moves to partnership from Synutra and Beingmate – both businesses’ performances have been mediocre in recent times. Bright Dairy is a relative newcomer in formula and so the deal with Synlait was a logical step up on the ladder.

The main targets for such deals are Oceania and Europe. Both regions are attractive in terms of their quality. Oceania scores in terms of logistics and pricing, whilst Europe offers the advantage of being the main source of demineralised whey products. Companies from both regions are regularly in the Chinese market meeting customers and trade.

The US is another key option but suffers by comparison on most of these points, despite its dairy industry’s strong capabilities in whey products. The US formula industry’s preference for the WPC/
lactose combination over demineralised whey does not position it well in the face of the Chinese preference for D70/D90. Although Euroserum delivered the first demineralised whey powder to Chinese formula producers, the key factor in establishing this preference was the New Zealand push to sell this simpler solution to the Chinese industry whilst it sought to focus on WPC manufacture for higher value applications. That decision also reflected the lack of consistency of the quality of WPC at the time, especially to infant formula standard. New Zealand later moved away from demineralization but the practice was established, and nowadays Chinese buyers also express concern over the consistency of lactose and WPC options. This background is one reason why so far the US role has been mainly in terms of investment – for instance in the cases of Modern Dairy, Feihe Dairy, Synutra, etc. Such considerations surely point to partnership opportunities in China for some of the South American processors, though to date there has been little evidence that they are ready to take them up.

Source: Dairy Products China News 1210

Content of Dairy Products China News 1210:
Cooperation between Chinese & Overseas Dairy Industries in Vogue
Sichuan Dairy Industry Development
New Standards for Powdered Beverages & Soy Milk/Drinks
New Concern Over Raw Milk Standard
Privatisation of Feihe Likely
Xiaoyangren Group to Launch Plant
Kangquan Dairy Pushes for Growth
Treasure of Plateau Invests in New Plant
Raw Milk Price Remains High
Industry Focus on Dairy Farming Continues
Flower Cow Milk Launches New Premium Milk
A2C to Launch Formula

Dairy Products China News, a monthly publication issued by CCM on the 30th/31st of every month, brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market.


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 International 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

Q3 financial reports of domestic listed pesticide enterprises


Domestic listed pesticide enterprises in China gradually released their 2012 Q3 financial reports (July to Sept. 2012) before the end of Oct. 2012, showing the good performances made by most of them in this period, according to CCM’s November issue of Crop Protection China News.

So far, there are 19 listed enterprises which are mainly engaged in the business of pesticide in China (Actually there were 21 in 2011, but among which two successfully launched reorganization in H1 2012 and changed their main business into mining, namely Shandong Dacheng Pesticide Co., Ltd. and Shandong Huayang Technology Co., Ltd.). Summed up the Q3 performances of all the 19 listed enterprises, the total revenue in Q3 2012 reached over USD1.56 billion, up 31.19% over Q3 2011 and the total net profit gained a considerable growth of 118.13% over Q3 2011, reaching USD76.89 million.
 
Only two of these 19 listed enterprises suffered deficits in this period, namely Shandong Shengli Co., Ltd. and Zhejiang Qianjiang Biochemical Co., Ltd., with respective loss of USD4.36 million and 0.64 million.

The top three companies in terms of revenue: Nanjing Redsun, Zhejiang Wynca and Huapont Nanjing Redsun Co., Ltd. (Nanjing Redsun), Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) and Chongqing Huapont Pharm. Co., Ltd. (Huapont) still ranked as the top three by revenue in this period as what they did in H1 2012.

Nanjing Redsun's revenue and net profit in this period continued to surge, reaching USD253.53 million and USD12.06 million, up 41.87% and 14,868.33% over those in Q3 2011. The company kept announcing that this year's performance has no comparability with that of last year because of the reorganization with Nanjing First Pesticide Group Co., Ltd. (NFP Group) it successfully completed in Sept. 2011. The performances of the three subsidiaries of NFP Group, namely Nanjing Redsun Biochemicals Co., Ltd., Anhui Guoxing Biochemical Co., Ltd. and Nanjing Redsun International Trade Co., Ltd., have been counted into the total revenue and net profit of Nanjing Redsun in this period.

Zhejiang Wynca, as the pesticide enterprise which retained No. 1 with its pesticide revenue in 2011 in the list of 2012 China Top 100 Pesticide Manufacturers, was seen as the second largest revenue gainer in Q3 2012. By summing up the revenue in H1 2012, Zhejiang Wynca may lose the title of No. 1 domestic pesticide manufacturer in 2012.

Actually, Zhejiang Wynca has witnessed deficit in H1 2012, losing about USD4.38 million. However, as the price of its main pesticide product, namely glyphosate, continued to grow in Q3 2012, the company turned deficit into profit. The revenue and net profit of the company in this period reached USD249 million and USD5.64 million respectively. The company also predicted in its Q3 financial report that its net profit in 2012 may enjoy a 50% growth over that in 2011.
Huapont ever as a famous pharmaceuticals production company in China has earned its reputation in domestic pesticide industry by its pesticide subsidiary, namely Nutrichem Laboratory Co., Ltd. Although pharmaceuticals is still one of its main business, it should be counted in the list of domestic pesticide enterprise because of its expanding pesticide business. In H1 2012, the pesticide revenue of Huapont already surpassed the revenue of pharmaceuticals business, accounting for 77.3% of its total revenue in this period. Even though Huapont didn't reveal the detailed performance data of its pesticide business in Q3 financial report, it is still believed that pesticide business was also the largest contributor to its performance in this period.

Other listed pesticide enterprises also witnessed good growths in this period while comparing with its performance in the same period of last year, even though some of them gained little profit. The Q3 revenue from Nanjing Redsun is 27 times larger than that of ABA Chemicals Corporation, the listed pesticide enterprise in the last place of the list. However, the large growth of the adding up revenue and net profit of all these listed pesticide enterprises in Q3 2012 is still comforted and it has also shown the gradual recovery in domestic pesticide industry.


Source: Crop Protection China News 1221

Content of Crop Protection China News 1221
Q3 financial reports of domestic listed pesticide enterprises
New round of domestic soybean purchasing battle starts
Pesticide enterprises pay close attention to pesticide-fertilizers
Pesticide intermediates industry scale enlarging but profit slipping
China to largely promote biological crop protection technology
12th Five-Year Plan of Hazardous Waste Pollution Management released
Shandong takes lead in simplifying pesticides I&E procedures
Hubei Sanonda's reorganization aborts
Hebei Veyong's involving in coal chemical business denied


Crop Protection China News, a monthly publication issued by CCM on 15th&31th 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

PE investment plays a more and more important role in high-risk investment projects


A private equity firm is an investment manager that makes investments in the private equity of operating companies through a variety of loosely affiliated investment strategies including leveraged buyout, venture capital, and growth capital. Often described as a financial sponsor, private equity firm will raise funds which later can be invested in accordance with one or more specific investment strategies.

Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions. Private equity firm will receive a periodic management fee as well as a share in the profits earned (carried interest) from each private equity fund managed.

In recent years, PE (Private Equity) is increasingly favored by the investment community. According to a report released by the Zero2IPO Group, in 2011, PE industry continues the trend of rapid development in previous years with 235 investable China’s Fund proceeded, which ranks a record high. While the amount of fund raised is as high as USD38.858 billion, making an increase of 40.7% year on year.

China's strong economic development projects also attracted many foreign private equities' participation. At the same time, the localized private equity investment has developed sufficiently.

CCM's Investment Target Screening for PE Firms analyzes the industry background, resources and ability, SWOT, market conditions, sales strategy, financial environment and project value, reflects various economic indicators of specific projects and finds out the investment value of specific segments within the industry basing on industry investigations (such as domestic development situation, life cycle, demand and supply, price, market concentration, competitiveness, channels, import and export, key sub industries, geographic segmentation, etc.)
CCM holds the third-party perspective and provides objective, scientific, impartial analysis and argument of risks, strategies, prospects, investment environment and the value of the project. If you want to know more, please contact us.

About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 highly-educated professionals, CCM provides 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.
Add
: 17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China.                                                          Tel: 86-20-37616606                                                                Email: econtact@cnchemicals.com

Jiangsu Lianhe launches 300t/a carfentrazone-ethyl production


Recently, Jiangsu Lianhe Chemical Technology Co., Ltd. (Jiangsu Lianhe) announced that its 300t/a carfentrazone-ethyl technical project had got complete check from Environmental Protection Agency of Yancheng City on Oct. 17, 2012 and the 300t/a carfentrazone-ethyl technical production line has been launched in Jiangsu Xiangshui Chemical Industrial Park of Xiangshui County, according to CCM’s November Issue of Herbicides China News.

Revealed from Jiangsu Lianhe's announcement, the company totally invested about USD24.3 million (RMB152.05 million) on the project, and thereinto about USD1.6 million (RMB9.8 million) was invested on environmental protection. In fact, on April 29, 2011, Jiangsu Lianhe accomplished the additional public issue of 19,295,700 shares, and the additional capital (about USD103.7 million/RMB648.0 million) raised was invested into two projects which include a series of pesticide and intermediate production lines, such as carfentrazone-ethyl.
 
It seems that carfentrazone-ethyl project was pushed slowly. In fact, the 300t/a carfentrazone-ethyl trial production was finished in Feb. 2011. After the trial run, the production line had been in debugging in Jiangsu Lianhe till Oct. 2012 when the project was put into operation. (Herbicides China News 1104: Lianhe Technology initiates carfentrazone-ethyl production)
  

In an estimate, Jiangsu Lianhe takes a conservative attitude towards the new product, carfentrazone-ethyl, although the company got a nice performance in H1 2012. According to the semi-annual report of Jiangsu Lianhe released in July 2012, its net profit has reached about USD21.6 million (RMB135.1 million) in the first half of 2012.
 
Jiangsu Lianhe considers that the new product may face risks after being launched to the market, because Jiangsu Lianhe can't sure that the quality and profit of this new product are able to help the company gain a leading position. In addition, whether the new product can adapt to the changes in market demand is uncertain.
 
At any rate, the 300t/a carfentrazone-ethyl capacity makes Jiangsu Lianhe outstanding among other Chinese carfentrazone-ethyl pursuers. Furthermore, Jiangsu Lianhe enjoys self-supply of o-fluoroaniline, the raw material of carfentrazone-ethyl, and can lower the production cost in the carfentrazone-ethyl production. Besides, the company can also extend its production chain towards downstream production by producing carfentrazone-ethyl. As a result, Jiangsu Lianhe's profit room in the future is expected to be larger.
 
It's suspected that Jiangsu Lianhe's carfentrazone-ethyl production is run as the company's customized manufacturing services. As the developer of carfentrazone-ethyl, FMC Corporation has stable cooperation relationship with Jiangsu Lianhe. Naturally, FMC Corporation is considered as one of Jiangsu Lianhe's potential clients of this new product.
 

As of Oct. 2012, there are five companies with carfentrazone-ethyl technical registration in China, according to the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), namely Jiangsu Lianhe, Jiangsu Baozong & Baoda Pharmachem Co., Ltd. (Jiangsu Baozong & Baoda), Shandong Cynda Chemical Co., Ltd., Luzhou Dongfang Agricultural Chemical Co., Ltd. and FMC Corporation.
 
In fact, carfentrazone-ethyl has only a few pursuers in China currently due to technological barriers. Although the administrative protection of carfentrazone-ethyl technical patent in China (the administrative protection number: NB-US99010415) has expired for almost five years since 2008, Chinese pursuers still can't master the production technology of carfentrazone-ethyl by now. Moreover, the high price of carfentrazone-ethyl drags down its consumption in China. In Nov. 2012, FMC Corporation quoted the 40% WG at about USD0.21 million/t (RMB1.3 million/t).
 
Besides Jiangsu Lianhe and FMC Corporation, only Jiangsu Baozong & Baoda owns carfentrazone-ethyl technical production line. In addition, Jiangsu Baozong & Baoda plans to expand its carfentrazone-ethyl technical production line from 160t/a to 300t/a and this production line has got the EIA acceptance by Nantong Environmental Protection Bureau on June 26, 2012.
 
It's predicted that carfentrazone-ethyl will become another profit growth point of Jiangsu Lianhe. Although carfentrazone-ethyl has brighter prospect for its excellent effect, in a short time, there will be only a few carfentrazone-ethyl manufacturers in China due to the technological barriers. As a result, Jiangsu Lianhe can maintain relatively high profit on that product.
 

Carfentrazone-ethyl, a post-emergent triazolinone herbicide, is usually applied in the fields of wheat, rice, corn, etc. Contributed by high selectivity and excellent effect, 40% carfentrazone-ethyl SC marketed as Affinity® could control many broadleaf weeds, such as bedstraw, China Weasel-snout, Veronica Henryi yamazaki and so forth, with dosage of only 60~75g a.i./ha.
 
Jiangsu Lianhe, a subsidiary of Lianhe Chemical Technology Co., Ltd., is built in 2003. The company is mainly engaged in pesticide and intermediate production and sales. Up to now, the company has achieved six herbicide technical registrations in China. The main products are clomazone, fomesafen, metamifop and fluthiacet-methyl.


Source: Herbicides China News 1211

Content of Herbicides China News 1211:
Stable growth in Lier Chemical in Q3 2012
Lier Chemical gets govermental support
Jiangsu Kuaida enhances intermeidate capacities
Significant asset reorganization in Sanonda in progress
Jiangsu Huifeng completes technological transformation project
Clodinafop-propargyl draws interest in China
Diuron price continually slips in Oct.
Paraquat price keeps ascent in Oct.
Clopyralid TC export volume grows in Jan.-Aug. 2012
Indonesia, the biggest cyhalofop-butyl export destination in China
Jiangsu CF enhances 2,4-D and MCPA production
Jiangsu Lianhe launches 300t/a carfentrazone-ethyl production
Diquat supply appears short in Q3 2012
Atrazine meets tense supply in Oct.
Price Review in Nov. 2012
Chongqing Huapont Jiangsu Tenglong  Jiangsu Agrochem Laboratory CAC Nantong anti-dumping pyridine fluroxypyr Pendimethalin clodinafop-propargyl metamitron PMIDA Clethodim  flumioxazin diuron Dicamba


Herbicides China News, a monthly publication issued by CCM on 15th of every month, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide 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.
CCM International Ltd.
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

Wednesday, November 7, 2012

Bovine Colostrum Products Face Challenges


There are indications that recent sales of bovine colostrum products have been poor. This appears to be the result of the policy – released in April by the Ministry of Health (MOH) and effective from 1 September – which stipulated that bovine colostrum could not be added to 1st/2nd/3rd stage infant formula (please see Dairy Products China News, Vol.5 May issue, p9) , according to CCM’s September issue of Dairy Products China News.

Pure colostrum powder, tablets and capsules are still available now and are not limited by the policy. However it appears that, as was raised as an issue by the trade back in April, many consumers have become concerned about products with added bovine colostrum since the policy was released. Some distributors are indicating that sales of bovine colostrum products decreased by nearly 90% from May to August, and some suppliers have been streamlining their product ranges as a result.

Yet bovine colostrum infant formula remains available, especially on e-commerce sites: whilst they are being discounted, products imported or produced before 1 September may still be sold up to their expiry dates. For example, Nouriz colostrum milk powder imported from New Zealand with its original package is selling at USD15.8 (RMB100), a 3.8% discount. But the sales seem poor: only 225 cans were sold in the last 3 months according to the sales record from Nouriz’s official e-commerce site on tmall.com.

There is no national standard for bovine colostrum products in China, only the industry standard RHB602-2005 for bovine colostrum powder. Their efficacy is unproven and demand appears largely limited to mothers. According to a survey from China.com which ran up to 18 September, mothers represented 73.2% of customers for bovine colostrum products. From these mothers, 67.6% indicated that they knew something about bovine colostrum. The spending on such products is relatively low, in most cases only accounting for 9-10% of the total spending of a family.

The most popular brand of bovine colostrum powder is Shelca among domestic consumers according to the survey; 2 New Zealand products which we have covered before in past issues fared less well: Biolife ranked 9th favourite and 6th most familiar, and Neutrien ranked 8th and 7th respectively (please see Figure 9). Unexpectedly, Sunlife, Biolife and By-health all achieve mediocre rankings, though they are the largest players in the market (the former 2 import their products pre-packaged, whilst By-health manufactures its products with imported ingredients).

Marketers typically target their bovine colostrum products at adults, elderly consumers and older children who need nutrition supplements, and persuade consumers to add bovine colostrum powder to infant formula, but avoid discussion of the Government policy wherever possible.

Impact on the infant formula market seems minor, as this is a minor niche in the overall market. Most domestic producers state that they will not produce such products any more; major dairy processors avoid the category and no new bovine colostrum products are likely to be launched until the situation is clarified. This will certainly assist challenges to the category from other nutrition products unless the Government moves to address the issues which have arisen about standards of identity in this area. Meanwhile the effect has been to make the international colostrum market difficult for suppliers – for example the market situation was a factor in Westland Milk Products reduced colostrum collection and its lower 2012-13 payout forecast in August.

Source: Dairy Products China News 1209

Content of Dairy Products China News 1209:
High Prices for Dairy Products
Prospects for Pasteurised Milk
Bovine Colostrum Products Face Challenges
Dairy Imports Increase
Jiangsu Addresses Potential School Milk Safety Scares
Mengniu Growth Strategy
Bright Dairy Faces Further Scandal
Tianhong Enters the Dairy Industry
Natural Dairy Records Further Losses
Wahaha to Target Overseas Investment
Modern Dairy Performs Well in 2011 & 2012
Carrickmore Targets Formula Market
Amway Expands Nutrilite Business

Dairy Products China News, a monthly publication issued by CCM on the 30th/31st of every month, brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market.


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 International 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