Top 100 pesticide companies' revenue rising fast

According to CCM’s monthly issue, China Crop Protection Monthly Report 1311, The CCPIA annual list of top 100 pesticide companies was first published in 2011, making this the third year the ranking has been in place. The three Top 100 Lists from 2011 to 2013 show the significant improvement in the performance of the ranked companies as a whole, and the growth of these large companies has led the development of China's pesticide industry over these years.

Total pesticide revenue of the top 100 companies has clearly increased in the period. With a Compound Average Growth Rate (CAGR) of 26.38% (all calculations have been based on values in RMB) from 2010 to 2012, the total pesticide revenues of the top 100 pesticide companies reached USD12.9 billion (RMB79.1 billion) in 2012. The CAGR of the top 100 pesticide companies is higher than that of the total pesticide sales revenue of China's pesticide industry in 2012.

The numbers also show that the top 10 and top 30 in the list enjoyed even more remarkable growth rates. The total pesticide revenue CAGR of the top 10 and the top 30 are 31.37% and 29.11% respectively, a strong sign of the pesticide industry's development.

With rapid growth, the top 100 pesticide companies accounted for 33.49% of the total sales revenue of the industry in 2012, up by 2.23 percentage points compared with 2010. In the meanwhile, the top 10 and the top 30 companies accounted for 9.52% and 19.53%, respectively, of China's total pesticide sales revenue in 2012.

The Top 100 List also indicates that competition among pesticide companies is intensifying. Companies must strive for improvement if they want to keep their positions in the Top 100 List, since the threshold is becoming higher. The 100th company in the 2011 list had a pesticide revenue of USD27.7 million (RMB170 million) in the previous year (2010). Meanwhile, the last place in the 2013 Top 100 earned USD42.4 million (RMB260 million) the previous year.

Competition among the top companies in the list is even fiercer. It is estimated that as many as 24 pesticide companies brought in over USD163.13 million (RMB1.0 billion) in pesticide revenue in 2012, 8 more than the number in 2011 and double of the number in 2010 (10 companies).

Nantong Jiangshan Agrochemical & Chemical Co., Ltd., for instance, had pesticide revenues of USD166.1 million (RMB1,018 million) in 2010, placing it at number 10 in the 2011 list. However, if it had maintained the same revenue, the company would only have ranked 24th in the 2013 list.

Table of Contents of China Crop Protection Monthly Report 1311

CCPIA announces the Top 100 pesticide companies in China

Top 100 pesticide companies' revenue rising fast

Geographical distribution changes in the top 100

M&A and pesticide industry recovery boost Top 100 growth

15 companies keep their places in the top 20 for the past three years

Some companies could not keep their ranking

Top 30 pesticide formulations companies announced

Top 100 companies’ progress and challenges

China Crop Protection Monthly Report, a monthly publication issued by CCM, will keep an eye on the most important or the latest occurrences or the hottest topics in China’s crop protection industry, and select one or two topics out of these news and information to compose an in-depth feature article. You can obtain professional and insightful intelligence, covering market dynamic, industry development, government policies and more by going through the features articles every month.

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, and Consultancy Service. 

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

Email: econtact@cnchemicals.com

Further Government Focus on Infant Formula Standards

According to Dairy Products China News issued by CCM in June, On 4 June, the Ministry of Industry and Information Technology (MIIT) released an Action Plan for Improving the Quality Level of Formula Powder and Enhancing Consumer Confidence (the Plan), aiming to strengthen the competitiveness of domestic infant formula.

The Plan emphasizes several aspects as follows:

• Strengthening internal management procedures: MIIT will organize special inspections to assess the quality and safety of infant formula processors during June- August, aimed at driving them to improve and implement their internal quality and safety management systems, and take measures to improve consumer confidence. For example, they should publicize basic information about their business and make available a contact number for their chief executives on the National Food Industry Enterprise Credit Information Public Service Platform (a website which was launched in September 2011 by the China government to foster greater “integrity” amongst food enterprises). They should also make a public commitment in advertising media that they are working to ensure product quality and safety

• Strengthening management of industry development: the Plan aims to regularize the numerous investments in new plants or in plant refitting/expansion by reviewing these during the year and eliminating projects which are judged to be non-beneficial

• Boosting the industry’s restructure by encouraging M&A to achieve a more concentrated industry which can allocate more funds to R&D, whilst closing down backward production facilities

• Promoting technical renovations of infant formula enterprises to put in place better processes for quality control, safety and health, monitoring and testing of products, and establishing traceability systems

• Improving industrial standards: the government will speed up the formulation or revision of product standards, management and inspection standards, as well as increasing the transparency of the standard formulation process (an aspect which has encouraged no little controversy in the past)

• Strengthening the industry’s public image: in order to increase consumer confidence, infant formula enterprises should organize consumer visits to their plants. The industry association should work to raise awareness of food safety laws and regulations and relevant scientific knowledge, and strengthen the education and training of processors’ staff in terms of professional ethics and know-how

It is estimated that about half of the infant formula brands (both domestic and imported) will be eliminated from the Chinese market, if the Plan is implemented strictly. At present, most Chinese infant formula producers are small-scale. It is reported that overall local sales of infant formula stand at USD9.6 billion/RMB60 billion (USD6.2 billion/RMB38.5 billion in 2012 according to AC Nielsen), and that about USD1.6 billion (RMB10 billion) comprises product from small-scale producers, mostly operating as OEMs. If the Plan succeeds in requiring true traceability systems these products will not survive, opening up the USD1.6 billion (RMB10 billion) segment to national and some 2nd and 3rd tier brands.

However, such a dramatic level of industry restructuring seems ambitious to say the least − what the government wants and what the market provides may prove hard to align. Certainly the Plan represents the continuation of the State Council’s decision making. On 31 May, Chinese Prime Minister Li Keqiang held an executive meeting of the State Council and emphasized that the government will further strengthen the quality and safety supervision of infant formula. This followed the release by the China Dairy Industry Association in April of a report which announced that the quality of domestic infant formula is much higher than that of imported infant formula, while the latter is twice as expensive. Unsurprisingly this prompted a good deal of consumer questioning, as it flew in the face of their perceptions. Whether realistic or not, the Plan does at least set out to address such matters in a more credible fashion.

Table of Contents of Dairy Products China News 1306:

Xinjiang Dairy Expansion Faces Challenges

Dairy Industry Overview, January-April

Further Government Focus on Infant Formula Standards 

Mengniu + Yashili: The Start of China’s Dairy Industry Integration

Mead Johnson Focus On Online Sales

Western Stock Raising Targets Infant Formula Market

Fengxing Dairy Expansion

Yahua Dairy Sets Up JV

Ningbo Dairy Responds to Products Incidents

Chinese Government Supports Milk Production

Mengniu Launches UHT Yoghurt

Bimbosan Introduces Super Premium Formula

Dairy Products China News, a monthly publication issued by CCM on 30^th or 31^st, offers you the latest information on new market dynamics, company development, new products, technology, packaging and raw material supply, etc. It also focuses on the government’s direction and polices, helping you get the whole picture of the 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, and Consultancy Service. 

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

Email: econtact@cnchemicals.com