Huge Potential in China’s 2,4-D Industry

In 2011, a new 2,4-D product namely 2,4-D choline has been under industrial production by Dow AgroSciences. Owing to its advantages of high efficiency of weeding, low pollution to the environment, wide application areas can also be applied to GM crops, and production of 2,4-D choline will create more development space for the whole 2,4-D industry worldwide. Meanwhile, the promotion of this new product is largely affected by many factors, such as its price higher than that of other 2,4-D products, planting areas of GM crops affected by the attitude of local governments, etc.

Over the years, 2,4-D has been playing an increasingly important role in weed control in the world. Dow AgroSciences, Nufarm and Atul Ltd. are the 3 leading 2,4-D producers in the world. As one of the largest producers of chemicals and plastics in terms of sales in the world, Dow AgroSciences has global operation and strong R&D capability, which enables the company to come up with new and innovative products.

In China, as of the end of 2011, the capacity of 2,4-D technical has reached over 65,000t/a, maintaining an oversupply situation. Major domestic 2,4-D producers include Changzhou Wintafone (20,000t/a), Shandong Rainbow (10,000t/a), Jiangsu Huifeng (10,000t/a), etc., and capacities are of technical grades. In spite of severe oversupply, domestic large-scale 2,4-D technical producers will continue to expand their capacity to occupy more market share and remain competitive.

With the application rate increase of chemical weeding in China, herbicides including 2,4-D are becoming widely accepted by farmers. In addition, 2,4-D is often used to mixed with glyphosate to kill the weeds that own resistance to glyphosate, which is also the main driver for the development of 2,4-D industry in China. Other factors such as technology innovation, sufficient raw material supply, promotion of GM technology in 2,4-D tolerance, etc. have also provided the development space and opportunity for 2,4-D industry in China. CCM International has newly published the report of 2,4-D Survey in China, which will present you an in-depth analysis of China’s current 2,4-D market and future trends.

 This report attaches importance to the following parts:
 Supply and demand situation of 2,4-D in China, 2008-2011;
 Upstream industry (chloroacetic acid & phenol);
 Production technology of 2,4-D;
 2007-2011 price and 2009-2011 export of 2,4-D technical and formulations;
 Forecast on Chinese 2,4-D supply & demand, 2012-2016;
 Key factors influencing the development of 2,4-D in China;
 Commercial opportunities.

If you are interested in this report, please do not hesitate to contact us at econtact@cnchemicals.com or 86-20-37616606.

About CCM International

CCM International 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.

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

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_r_992.html

Technology Feeds China

Enhancing the development of agricultural science& technology is the major focus of China's first central document of 2012. The document reveals that China will accelerate the reform of agricultural science&technology system and enhance the innovation of agricultural science&technology, aiming to safeguard food security in China, according to CCM’s January issue of AgriChina Investor.

The first central document of the year, also known as the "No. 1 Document", is issued annually by the Central Committee of the Communist Party of China and the State Council, the Cabinet.

Before the release of the "No. 1 Document", the Ministry of Agriculture had issued the 12th Five-Year Plan (2011-2015) on Agricultural Science&Technology (the Plan) in late Dec. 2011. "The Plan" serves as the guideline for China's agricultural development in the next five years. According to the Plan, the major tasks in the coming years include innovation of the seed industry, transformation of achievements in scientific research, etc.

"The fund needed will be guaranteed. In the next ten years, China will invest over USD 475 billion (RMB 3 trillion) in agricultural science& technology." said an insider from the Ministry of Agriculture.

The aims of the "No. 1 Document" and "the Plan" are to safeguard domestic food security. China's grain output hit 571.21 million tonnes in 2011, up 24.73 million tonnes, or 4.5% over 2010, representing the eighth consecutive year for increased grain production, as shown in the figures from the National Bureau of Statistics of China. However, China faces heavy task for food security because of the decrease of farmland and the soaring food demand.

Statistics show that China's cultivated land decreased from 130 million ha. in 1995 to 121 million ha. in 2010.

With the limited sources, the effective way to safeguard domestic food security is to increase the per unit area yield through the investment in agricultural science& technology, especially in seed innovation.

China's grain per unit area yield has witnessed big increase in the past decades due to the application of improved seeds and the input of chemical fertilizers and pesticides. However, the grain per unit area yield is still very low compared with those in some developed countries. There is still big room for the increase of grain per unit area yield.

There is a saying in China, "Agriculture feeds the nation, and seed feeds agriculture". It is believed that the application of improved seed varieties is the best way to increase grain per unit area yield. Actually, before the "No. 1 Document" of 2012, China has already paid close attention to the seed industry and issued a series of policies in 2011.

On 18 April 2011, the State Council released the formal "Suggestions for Accelerating Development of Modern Crop Seed Industry" (the Suggestions) to enhance the development of domestic seed industry.

According to the Suggestions, research institutes and universities should focus on the basic researches in the future, such as the collection and conservation of crop germplasms, the breeding theory, the GM technology, etc. It also encourages the cooperation between research institutes and seed companies, and research institutes should share their germplasm resources and research achievements with seed companies.

At present, most of the crop varieties in China are developed by research institutes or universities. Most seed companies pay little attention to the breeding of new varieties. They usually try to buy variety patents from research institutes or universities, which is not good for the long-term development of seed companies. The Suggestions shows the intention of Chinese government to change this status.

As for GM crops, although there is much controversy over the commercialization of GM crops (China issued biosafety certificates for GM rice and GM corn in late 2009, but no staple crop has achieved commercialization yet), Chinese government attaches importance to GM technology and has invested a lot of funds in the development of GM technology.

At present, GM crops are mostly insect-resistant and herbicide-tolerant. It is expected that China will also focus on GM crops with high yield and quality. "China should enhance the development of GM crops, such as GM corn, to ease domestic supply pressure," according to an insider from the Ministry of Agriculture recently.

Besides the development of seed industry, "No. 1 Document" and "the Plan" also pay attention to the mechanization of agriculture. "The Plan" reveals that mechanization farming of major grain crops in China should increase to 60% by the end of 2015 from about 52% at present.

Chinese government has been continuing the trend which started from 2004 of tackling rural problems in its first annual document, and the first document of 2011 focused on water infrastructure construction.

Source: AgriChina Investor

http://www.cnchemicals.com/Newsletter/NewsletterDetail_192.html

Content of AgriChina Investor 1201:

New Catalogue for the Guidance of Foreign Investment Industries to come into force

Technology feeds China

Government strengthens establishment of circulation system of fresh agricultural produces

Ministry of Agriculture to focus on development of livestock & poultry breeding

China's urbanization rate exceeds 50% in 2011

China to encourage agricultural insurance businesses

Central Rural Work Conference to promote 2012 agricultural development

China resumes beef import from Argentina

……

AgriChina Investor, periodically published on 25^th every month, offers timely update and close follow up of agriculture investment in China, analyzing market data and trends, as well as related policies. Major columns include investment environment, investment dynamics, market watcher, market review etc.

If you are interested in AgriChina Investor, please do not hesitate to contact us by +86-20-37616606, or email us at econtact@cnchemicals.com.

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

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_959.html

Crop Protection Products Make Great Contributions to China

Recently, CropLife, the American Industrial Association, reveals that crop protection products can improve the quality of field crops, fruits and vegetables in the US, with the total value increasing by USD 82 billion, according to the survey by Mark Godwin Consulting Ltd.

And when it comes to the contribution of crop protection products in China, we can find some clues from Zhonghui Wu’s presentation. Zhonghui Wu, CEO of CCM International, was invited to present in 2011 Annual China Investment Frontier held by Goldman Sachs and he participated in one of the seminars, namely “Seed, fertilizer and crop protection products are solutions to China’s food problem in 2030”. Mr. Wu shared his own opinion on the significance of crop protection about how it ensures China’s food security in the future. The major difficulties and challenges to increase China’s future crop yield are as follows:

1.       How to reduce the negative impacts that natural disasters and climate change make on agricultural production and crop yield in maximum degree

2.       How to slow down cultivated land shrinking and prevent soil fertility loss

3.       How to raise the utilization rate of arable land and accelerate the process of land circulation and intensity

4.       How to further increase the farming enthusiasm of Chinese peasants so as to reduce abandoned rate, adopt scientific farming and boost crop production

5.       How to eliminate people’s misunderstanding and prejudice on agricultural biotechnology, especially GM technology

Mr. Wu thinks the agrochemicals have been playing a vital role in enhancing crop yields and increasing farming gains. Fertilizer contributes 40% - 45% to the growth of crop yield, while pesticide contributes 20% - 25% to the growth of crop yield. In the major crop planting areas in China, the benefits after using pesticide are almost equivalent to or even have exceeded the most advanced countries in the world. But in the non-crop planting areas, the benefits are far lower than the average level in the world because of the limited resource conditions and low pesticide application skills. How to increase the future benefits of pesticide mainly depends on the following aspects: the improvement of pesticide inert ingredients, the development of new pesticide formulations and new pesticide, as well as the enhancement of farmers’ pesticide application skills.

Mr. Wu pointed out that crop protection is important to food security, while pesticide is important to crop protection. Therefore, China’s pesticide industry plays a crucial role in the crop protection. In order to ensure food security, the main task of crop protection is to increase crop yield, improve product quality and guarantee safety of food supply and product quality in the future. The pesticide will become less harmful, more effective, much easier to use and more eco-friendly. With larger application of highly effective pesticides, the future demand of pesticide will decline to a certain extent, but the market value will be greater and greater. Mr. Wu suggests the government boosting the application of agricultural technology, strengthening the education and training of Chinese peasants, guiding the farmers to use pesticide scientifically and enhancing the effectiveness and benefits of pesticides.

In terms of the contributions that crop protection products make on food security, Keke Lan, Researcher of CCM International said that as people’s living standards improving, the demand of food and other agricultural products will be constantly increasing. People will pay more attention to the food security problem. Concerning the safety of human beings and animals, eco-friendly crop protection products will play a crucial part in the development of Chinese agricultural economy.

Nowadays, agriculture industry is heading towards to be more superior, safer, more productive and non-toxic. To create and produce the new eco-friendly crop protection products with high efficient and supreme safety play irreplaceable roles in increasing crop yields, preventing insect pests and reducing damage loss. More and more crop protection companies are making great efforts to develop and produce the new eco-friendly crop protection products so as to dominate domestic market in the future.

With the release of industrial policies and regulations in recent years, the Chinese government is engaging in encouraging and guiding domestic agrochemical industry to develop in a sustainable and healthy way. For example, Policy of Pesticide Industry issued in September, 2010, further regulates domestic pesticide industry to develop timely, appropriately and orderly. It is estimated that China will launch more and more agrochemical policies and regulations to ensure the safety of agriculture production and the quality of agricultural products, and to strengthen the support of crop protection products to agriculture production and food security.

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, and Import/Export Analysis all through its new proprietary product Val Tracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huizhou Commercial & Trade Mansion, No.80 Xian lay

Hong Road, Guangzhou

510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_a_944.html

GM Crop Breeding Should be Encouraged in China

Developing GM technology will be an unswerving strategic guideline for the country, though Chinese government would not implement the commercialization of GM staple foods, like rice and wheat in the next few years. According to Chen Xiaohua, Deputy Minister of China's Ministry of Agriculture (MOA), the major projects of GM crop breeding should be added into the new development plan of China's seed industry.

However, most people are against the promotion of GM crops, mainly due to the concern of consumption security for GM products. Some experts doubt the necessity of promoting GM staple crops, like rice and corn, as they believe that GM crops do not show obvious advantages in high yielding.

Chinese government aims to boost the development of GM products. The government has strengthened the propagation of the knowledge on GM crops since late 2010. Ministry of Agriculture published a book in June 2011, namely "100 questions about GM crops", aiming to spread scientific knowledge about GM crops and GM products.

Besides, the government also frequently invited some agricultural professionals to GM forums for discussing problems of GM crops commercialization and developing GM technology.

It is still a long time to go when the government dispels the public fear for GM products and establishes a perfect GM system covering safety evaluation, product registration, market supervision, etc.

The above is extracted from CCM’s October issue of Seed China News. If you are interested in it, please feel free to contact us at econtact@cnchemicals.com.

More news of Seed China News 1110:

-China is going to issue 2011-2020 Modern Crop Seed Industry Development Plan, aiming to enhance the competitiveness of domestic seed enterprises.

-Some grain experts showed their support on GM crop breeding, in spite of the widespread safety disputes for GM products.

-China would still face tight supply of corn with the soaring consumption, despite the expected higher output in 2011.

-Longping High-tech predicts that its net profit would increase significantly in 2011, thanks to the dramatic growth in main product sales.

-Hefei Fengle increases investment in its subsidiary located in Southwest China, in order to consolidate its leading position in seed industry.

-Liaoning Danyu established an academician workstation, aiming to cultivate corn varieties with great competitiveness.

-ZARD, a listed agribusiness group, has been orientated towards seed business by acquiring competitive seed companies.

-CNDK is building a corn seed processing plant in Northwest China, with great investment from CNSGC and Monsanto.

-Jixiang 1, a new superior corn variety in China, confronts multiple resistance in promotion.

-Y Liangyou 2 achieved the average yield of 13,899 kg/ha., which created a new yield record in hybrid rice production.

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

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_804.html