Thursday, January 31, 2013

Corn fungicides: an increasing market

China's corn output hit a new record of about 208.12 million tonnes in 2012, up 8.0% year on year, according to recent estimates from National Bureau of Statistics. With an output that is 3.83 million tonnes more than rice, corn has become the biggest crop in China by output. With the adjustment of crop planting structure, demand structure of pesticides will also change and corn fungicides' market will become more important in domestic pesticide industry, according to CCM’s latest report, Fungicides China News 1301 issued on Jan.10, 2013.

The new record corn output in China is mainly boosted by the increasing planting area. Supported by the strong price, the planting area of corn in China has increased very quickly in the past few years. In fact, China's corn planting area exceeded that of wheat in 2002 and that of rice in 2007, becoming the largest crop in China by planting area. Moreover, it is expected that corn will maintain a higher growth rate of planting area compared with other crops such as wheat and rice.

Domestic demand for corn has witnessed a huge increase in recent years, and China has tried very hard to increase corn production to meet the rising demand. However, it still has to import a large amount of corn since 2010 to meet the gap.

To maintain self-sufficiency in corn, it is expected that China will release more policies to enlarge the planting area of corn. China's corn planting area may reach 36.66 million ha. in 2020, 3.24 million ha. more than that in 2011, according to an article from Mr. Han Changfu, Minister of Agriculture of China. (The article was published in People's Daily, an official newspaper of China, in early 2012).
In addition to the increasing planting area, imitative breeding of corn is very common at home and the homogenization of corn varieties would cause the increasing risk of outbreaks of diseases in China, which also will boost demand for fungicides. Some corn diseases like corn stalk rot, rough dwarf disease and leaf blight, are likely to occur seriously in the future.

As revealed by Han Junqiang, Sales Director of Shanxi Tunyu Seed Industry Co., Ltd., most corn planting varieties in Huang-Huai-Hai Plain, the largest corn planting base in China, have similar genetic background. Mr. Han believes that the successive planting of the same or similar corn varieties would cause great potential risks for disease occurrence.

Zhang Shihuang, Chief Expert of National Corn Industrial Technology System, worries that corn stalk rot would probably break out in Huang-Huai-Hai Plain in future. In recent years, most corn varieties released in Huang-Huai-Hai Plain are susceptible to corn stalk rot. The enlarged planting of susceptible varieties has increased the potential occurrence risk of corn stalk rot.

Insiders also reveal that continuous cropping will also increase the occurrence of diseases. Due to a lack of farmlands, continuous cropping for corn and other crops is inevitable in China, which, however, increasing the possibility for disease occurrence.

According estimate released by National Agro-tech Extension & Service Center (NATESC) in July 2012, the total corn disease occurrence area was 20 million ha. in 2012, which provides a huge market for pesticide companies. Furthermore, both demand and price of corn fungicides are expected to witness increase in the future. Therefore, pesticide companies should pay more attention to this market.

Table contents of Fungicides China News 1301:
Corn fungicides: an increasing market
Seed treatment agents for potato to increase
SYRICI approved to be National Technology Innovation Demonstration Enterprise
Huifeng Agrochemical's biggest shareholder pledges stocks again
Yangnong Chemical's fungicide business to be enhanced
Jiangsu Sword to consolidate fungicide position
Taizhou Bailly strengthens fungicide business
Xi’an MPC temporarily registers bupirimate in China
Sevencontinent Green obtains temporary registration of cyproconazole in China
New fungicide technical registrations in 2012
Four fungicides' application for formal registration unapproved
Price update in Jan. 2013
Most fungicides' prices decrease in 2012

Fungicides China News, a monthly publication issued by CCM on 10th, releases a wealth of exclusive analysis on market dynamics, company dynamics, import and export data, and other more brief news inside the industry. You may find cooperative opportunities with domestic and international manufacturers, supplier and exporters.

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