Pesticide Revenue of Syngenta Exceeds That of China Top 100 Players

CCM International released the latest issue of Crop Protection China News on November 15, 2011. It shows that total pesticide revenue in 2010 of the top 100 pesticide manufacturers in China can't even catch up with that of Syngenta.

As we know, China's pesticide industry has witnessed great development in the past few decades, and lots of excellent pesticide enterprises has emerged in domestic pesticide market. As reported in CCM international’s last issue, China Top 100 Pesticide Manufacturers come out, ranking by company revenue.

However, the tragedy is that the total revenue of China’s top 100 pesticide manufacturers can not even catch up with that of Syngenta, a foreign pesticide giant. Total revenue of China’s top 100 pesticide companies reached USD7,803.62 million in 2010, while the pesticide revenue of Syngenta reached USD8,900 million with a growth rate of 3% over 2009.

"We are just long-term contract workers of foreign pesticide giants even though we think we are good enough," said Professor Zhang Yibing from Shanghai Pesticide Research Institute. Most pesticide players in China agree with Mr. Zhang’s point of view.

"We provide technical products with high quality to foreign pesticide giants but only gain little OEM (original equipment manufacturer) profit," said an insider from a listed pesticide manufacturer.

Actually, most of the pesticide manufacturers whose names appear on the top of the list have kept good relationships with foreign pesticide giants in recent years. For example, Zhejiang Wynca Chemical Industry Group Co., Ltd., Hubei Sanonda Co., Ltd., Jiangsu Changqing Agricultural Chemical Co., Ltd., etc. are the main pesticide suppliers of Bayer in China; Jiangsu Yangnong Chemical Co., Ltd., Nantong Jiangshan Agrochemical & Chemicals Co., Ltd., Jiangsu Huifeng Agrochemical Co., Ltd., etc. are the main pesticide suppliers of BASF in China.

The identity of long-term contract workers being labeled on domestic pesticide manufacturers hinders their development. Aiming to survive in domestic pesticide market and account for more market shares, most domestic pesticide enterprises are more inclined to the production of off-patent pesticides and OEM production for foreign pesticide enterprises. However, without the support from strong policies and more investment in pesticide R&D from Chinese government, it may still be a long way to go.

You might discover more details in Crop Protection China News 1121 with following headline news:

-Anhui Guangxin's IPO application is rejected by China Securities Regulatory Commission (CSRC) on 2 Nov. 2011.

-Anhui Huaxing releases its Q3 financial report of 2011, showing a deficit in this period. Simultaneously, it announces that it will receive a subsidy of about USD11.81 million from the local government.

-Jiangsu Limin's application for environmental protection supervision submitted for IPO has been initially passed by the local government and is now waiting for the public notification.

-Total pesticide revenue in 2010 of the top 100 pesticide manufacturers in China can't even catch up with that of Syngenta in 2010. It is a painful reality and a serious alert to domestic pesticide players and Chinese government.

-China has laid great efforts to manage pesticide wastes problem and its cooperation with -German experts has started taking effect.

-The Ministry of Agriculture is going to fully implement the designated sales of high toxic pesticides in key vegetable planting areas.

-China's trade surplus of pesticide import and export in Jan. to Aug. 2011 reaches USD1,334.97 million, up 59.6% over the same period of 2010.

-A new pesticide-fertilizer called fungicidal and yielding pesticide-fertilizer WG gets appraisal from experts thanks to its good performances in controlling rice diseases and stimulating growth.

-More than 60% soybean processing enterprises in Heilongjiang Province suspend recently due to the difficulty of purchasing soybean and the intense market competition.

(Guangzhou China, November 17, 2011)

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_829.html

New Pesticide Administrative Regulations to Come out in China

On the basis of the original edition promulgated in May 1997, new Pesticide Administrative Regulations in China is under revision by the Chinese government nowadays, and would be issued formally next year in an estimate. Pesticide Administrative Regulations is an instrumental document in China about governmental management of pesticide industry, generally worked out and promulgated by the Chinese government, according to CCM’s November Issue of Herbicides China News.

According to the latest dynamics report, the relative governmental has finished the collection of public comments about new regulations already since Aug. 31 2011. Contributed by these public comments, the partial modification in the draft of new regulations is in process recently. In terms of the detailed change, it is still undercover at present.

As for the draft of new regulations, many different understandings in the public have been aroused, and are now summarized in several points as bellow:

1. The entry barrier of pesticide industry in China will be heightened in new regulations.

In detail, the temporary registration of pesticide in China will be canceled, which is of lower demand in entry barrier than the formal registration. As a result, new registration volume of pesticide in China will shrink year on year undoubtedly because active period of the registration in all Chinese pesticides will expand to five years (The active period of formal registration is five year and the temporary one is one year). It means that pesticide manufacturers needn't achieve the registration again within five years.

2. It is urgent to improve the quality of pesticide production in China.

Pesticide manufacturers in China should established relative rules or records in relative procedures such as material purchase, package and processing to guarantee the quality of products.

Especially, the manufacturers must recall and then deal with those overdue or harmful pesticides consciously in China.

3. Sales permission of pesticide products in China will be re-executed.

Pesticide sales must have the permission of the Chinese government. Under the government's regulation, these sellers must have the relative qualification such as professional technology, reasonable sales rules, strict supervision and so forth.

It can be said that the Chinese government re-establish the sales permission after the old canceled in 2004, due to the disordered market these years. And some people consider that Toxic Cowpea Event of Hainan Province happened in 2010 is a primacord of the re-establishment of this regulation.

4. Pesticide application in China will be standardized.

Relative trainings and guidance of pesticide application for peasants should be enhanced. Especially, the punishment on illegal applications of acute toxic pesticide will be achieved in the future.

5. Governmental supervision of pesticide industry in China should be reinforced.

On the whole, this draft of new regulations accords with current demand for the industrial development in China. Under a general direction of Pesticide Industry Policy and the Twelfth Five Years Plan, environmental protection and supply/demand balance are also emphasized in this new regulation. (Relative contents about Pesticide Industry Policy and the Twelfth Five Years Plan were mentioned in the previous reports in Herbicides China News and Crop Protection China News)

Even though general content of new regulations can be speculated now, the relative details haven't been released so that many relative governmental measures are unclear. And public estimation and comments are multitudinal now. Aiming to let readers understand more this new Pesticide Administrative Regulations, CCM International will track this topic in the coming reports. Please follow the coming issues closely.

Source: Herbicides China News 1111

http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html

Content of Herbicides China News 1111:

New Pesticide Administrative Regulations to come out in China

Jiangsu Huifeng initiates clethodim technical business

Nantong Jiangshan launches 20,000t/a amide herbicide plant

Jindun Agrochemical to produce diuron

Hangzhou Qingfeng meets peak season in new location

China meets weak agrochemical performances in Q3 2011

Chlorimuron-ethyl manufacturers compete intensely in China

Top three price-increasing herbicides in Nov. 2011

New choice in low-content glyphosate formulations

New production season of nicosulfuron begins

Herbicide manufacturers in China with phosgene resource

Yellow phosphorus meets a pricing U-turn in Nov.

China develops a fungus against barnyard grass

New EC formulation grows up in China

Effervescing formulation weak in Chinese herbicides

Herbicides China News, a monthly publication issued by CCM International on 15^th 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.

(Guangzhou China, November 16, 2011)

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_822.html

China to Issue Newly Revised Edition of Pesticide Administrative Regulations

CCM introduced the latest issue of Herbicides China News on November 15, 2011. The top news is that China will formally release newly revised edition of Pesticide Administrative Regulations in 2012.

On the basis of the original edition promulgated in May 1997, the new regulations, which are under revision by the Chinese government nowadays and will be promulgated in 2012, are expected to manage domestic pesticide industry effectively. The following aspects might be mentioned in the draft of the new regulations:

1.       The entry barrier of pesticide industry in China will be heightened.

The temporary one-year-registration period of pesticide in China will be cancelled. The active period of pesticides registration will be expanded to five years, which will result in shrinking registration volume of pesticide in China.

2. It is urgent to improve the quality of pesticide production in China.

Pesticide manufacturers in China should establish relative rules or records in relative procedures such as material purchase, package and processing to guarantee the quality of products.

3. Sales permission of pesticide products in China will be re-executed.

Pesticide sellers must have relative qualifications, such as professional technology, reasonable sales rules, strict supervision, and so on.

4. Pesticide application in China will be standardized.

Relative trainings and guidance of pesticide application for peasants should be enhanced. Especially, the punishment on illegal applications of acute toxic pesticide will be achieved in the future.

5. Governmental supervision of pesticide industry in China should be reinforced.

You might discover more details in Herbicides China News 1111 with following headline news:

-New Pesticide Administrative Regulations in China is under revision by the Chinese government nowadays, and will be promulgated in 2012.

-Jiangsu Huifeng initiates clethodim technical business recently with a 1,000t/a clethodim production line.

-Nantong Jiangshan will launch a 20,000t/a amide herbicide plant this month or next month.

-Jindun Agrochemical will supply diuron products in the near future.

-Hangzhou Qingfeng meets the first peak season currently, after the company relocation into Hangzhou Xiaoshan Linjiang Industrial Zone finished in the beginning of 2011.

-China meets weak agrochemical performances in Q3 2011.

-Chinese chlorimuron-ethyl manufacturers compete intensely.

-Pendimethalin, trifluralin and oxyfluorfen ranked No.1 in Nov. 2011 in terms of price uptrend.

-Mixed formulation with low-content glyphosate can be a good choice for consumers, but can't benefit manufacturers too much.

-New season of nicosulfuron production in China comes.

-Approximately seven herbicide manufacturers in China can self-source phosgene materials at present.

-Yellow phosphorus meets a pricing U-turn to decline to USD2,783/t in Nov. 2011.

-China develops a fungus against barnyard grass now, namely HGE.

-New EC formulation with environmentally friendly trait grows up in China gradually.

-Effervescing formulations such as PP, KPP and EA are unpopular in Chinese pesticide market.

(Guangzhou China, November 16, 2011)

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_823.html

Identity of Long-term Contract Workers Bothering Domestic Pesticide Players

China's pesticide industry has witnessed great development in the past few decades and lots of excellent pesticide enterprises emerged in domestic pesticide market, such as Zhejiang Wynca Chemical Industry Group Co., Ltd., Jiangsu Yangnong Chemical Co., Ltd., Hubei Sanonda Co., Ltd. and Nanjing Redsun Co., Ltd. These pesticide enterprises have shown great competitiveness and influence, and become the mainstay in the development process of domestic pesticide industry, based on CCM’s latest issue of Crop Protection China News.

However, as more and more problems appear in domestic pesticide industry, such as overcapacity, over competition, lack of innovation capability and chaotic market management, the survival condition of domestic pesticide enterprises has changed from bad to worse.

As CCM International reported in the last issue, the high-profile list, namely 2011 China Top 100 Pesticide Manufacturers, showed the ranking of 100 domestic pesticide manufacturers and their revenues in 2010. It is till now the most authoritative version of pesticide enterprise rankings in China.

Although it should be excited for companies who are on the list, most of them feel very depressed.

It is very disappointed to see the result of comparing the total revenue of most competitive domestic pesticide manufacturers to one foreign pesticide giant, namely Syngenta. According to the list of 2011 China Top 100 Pesticide Manufacturers, the total revenue of the first 100 pesticide manufacturers reached USD7,803.62 million. However, the pesticide revenue of Syngenta in 2010 reached USD8,900 million with a growth rate of 3% over 2009.

"We are just long-term contract workers of foreign pesticide giants even though we think we are good enough," said Professor Zhang Yibing from Shanghai Pesticide Research Institute. And this point of view has been agreed by most pesticide players in China.

"We provide technical products with high quality to foreign pesticide giants but only gain little OEM (original equipment manufacturer) profit," said an insider from a listed pesticide manufacturer.

Actually, most of the pesticide manufacturers whose names appear on the top of the list have kept good relationships with foreign pesticide giants in recent years. For example, Zhejiang Wynca Chemical Industry Group Co., Ltd., Hubei Sanonda Co., Ltd., Jiangsu Changqing Agricultural Chemical Co., Ltd., etc. are the main pesticide suppliers of Bayer in China; Jiangsu Yangnong Chemical Co., Ltd., Nantong Jiangshan Agrochemical & Chemicals Co., Ltd., Jiangsu Huifeng Agrochemical Co., Ltd., etc. are the main pesticide suppliers of BASF in China.

Although China is considered to be one of the largest pesticide production and consumption countries in the world, its pesticide industry is highly depended on export with an export dependence ratio of over 50%. Its pesticide export volume reached over 1 million tonnes in the past three years. In 2010, domestic pesticide output reached 2.34 million tonnes and the export volume reached 1.22 million tonnes.

Eyeing that the price of raw materials, cost of environmental protection and labor, RMB appreciation, etc. rapidly rose in H1 2011, domestic pesticide manufacturers suffered great pains in running pesticide business this year.

The identity of long-term contract workers being labeled on domestic pesticide manufacturers bothers them seriously now and then. Although they have been considering changing the situation through technology innovation, with Chinese government's high-profile encourage but poor continuous investment in pesticide R&D, the development of pesticide innovation is painfully slow. Thus, aiming to survive in domestic pesticide market and account for more market shares, most domestic pesticide enterprises are more inclined to the production of off-patent pesticides and OEM production for foreign pesticide enterprises. Shaking off the identity of long-term contract workers means a lot to domestic pesticide players. However, without the support from strong policies and more investment in pesticide R&D from Chinese government, there may still be a long way to go.

Source: Crop Protection China News 1121

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

Content of Crop Protection China News 1121:

Anhui Guangxin's IPO rejected

Anhui Huaxing to tide over deficit by aid

Jiangsu Limin tries IPO again

Identity of long-term contract workers bothering domestic pesticide players

Pesticide waste management in China

MOA: designated sales of highly toxic pestisides in key vegetable planting areas

Trade surplus of pesticide import and export surges in Jan. to Aug. 2011

New pesticide-fertilizer appraised by experts

Most of Heilongjiang soybean processing enterprises suspend

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

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_816.html

List of 2011 China Top 100 Pesticide Manufacturers Released

On 19 Oct. 2011, the high-profile list, namely 2011 China Top 100 Pesticide Manufacturers, has been released by China Crop Protection Industry Association at the 11th National Agrochemical Exchange Meeting during 19 Oct. to 21 Oct. 2011, based on CCM’s latest issue of Crop Protection China News.

The top 100 pesticide manufacturers in China are ranked according to the companies' revenue in 2010 from domestic market. Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), a large listed pesticide company in China mainly engaged in glyphosate and anosilicon business, ranks first with its total revenue of USD294.96 million in 2010. The second place and the third place respectively go to Jiangsu Yangnong Chemical Co., Ltd. and Zhejiang Jinfanda Biochemical Co., Ltd. with their revenues of USD235.59 million and USD229.13 million in 2010 respectively.

Among all the listed pesticide manufacturers, there are 82 pesticide technical manufacturers, among which Zhejiang Wynca ranks No. 1. The rest 18 companies are pesticide formulation players, among which Shenzhen Noposion Agrochemical Co., Ltd. (Noposion, the largest pesticide formulation player in China), ranks first with its revenue of USD225.83 million in 2010.

Some listed pesticide companies didn't perform well in 2010. Shandong Huayang Technology Co., Ltd. (now is changed into a mining company after being merged) ranks 80th with its revenue of USD36.22 million in 2010. There are 21 listed pesticide companies appeared on the list of Top 100 Pesticide Manufacturers. However, only ten of them rank as the first twenty manufacturers.

It is calculated that there are ten pesticide manufacturers whose revenue in 2010 surpassed USD157.48 million (RMB1 billion). The total revenue of the top ten pesticide manufacturers adds up to USD2.05 billion, accounting for 26.3% of the total revenue of the top 100 pesticide manufacturers, about USD7.8 billion.

There are 24 pesticide manufacturers who gained revenue between USD78.74 million (RMB500 million) and USD157.48 million (RMB1 billion) with total revenue of USD2.64 billion in 2010, accounting for 33.80% of the total revenue of the top 100 pesticide manufacturers.

The revenue of 66 pesticide manufacturers among the 100 pesticide manufacturers is less than USD78.74 million (RMB500 million) in 2010. Their total revenue adds up to USD3.11 billion, accounting for 39.87% of the total revenue of the top 100 pesticide manufacturers.

As one of the largest pesticide markets and pesticide production countries in the world, China is believed to own great potential in pesticide industry. However, the reasons like chaotic pesticide market, inefficient pesticide production technology, pesticide companies lacking strong competitiveness, etc. all drag down the development of domestic pesticide industry. The companies which are shown as the top 100 pesticide manufacturers in China may own good strength in pesticide business. However, they still lack good competitiveness while facing international pesticide giants. It can be easily seen from the total revenue of the top domestic 100 pesticide manufacturers which did not exceed USD7.87 billion (RMB50 billion) in 2010.

Source: Crop Protection China News 1120

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

(Guangzhou China, November 3, 2011)

Content of Crop Protection China News 1120:

List of 2011 China Top 100 Pesticide Manufacturers released

Development direction of domestic EC formulations set

ChemChina and MAI: takeover completes

Zhejiang Wynca witnesses deficit in Q3 2011

Jiangsu Changqing: net profit downs in Q3 2011

Jiangsu Tianrong relocation to be completed

Government to increase support for registration and use of pesticides for small crops

Jiangsu Province to enhance environmental governance of chemical industrial parks

Research progress on southern rice black streaked dwarf virus

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

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

Market Report of 10 Chinese Agrochemical Manufacturers Comes out

As the release of China Pesticide Industry Policy, the whole pesticide industry is expected to undergo great integration and reformation. Many companies will be restructured, bringing both opportunities and challenges to China’s pesticide market.

Many pesticide producers have strong comprehensive competitiveness in China’s industry and have distinguished competence in specific product /area with each other. CCM picks 10 companies for research. The second edition report of Company Profiles of Ten Chinese Agrochemical Manufacturers newly-released by CCM provides a profound analysis of key players in China’s pesticide industry.

The report focuses on ten pesticide manufacturers from many aspects including company basic information, financial performance, products portfolio, market share, new investment, marketing, sales, commercial activities, export, etc.

Through this report, you can:
-Gain an overview of development status of Chinese pesticide industry throughout the in-depth analysis of 10 key players in China’s pesticide
-Understand the history, supply of main products, macroeconomic of ten companies
-Know the market share of specific products of these key pesticide players
-Learn about product portfolio, market focus and future interests and of China’s 10 key pesticide players
-Obtain distinguished features of the 10 key pesticide manufactures, including their outstanding and core competence, main weakness, future growth points and challenges
-Understand the change in financial performance of the ten companies. For example, Zhejiang Wynca’s sales decreased from 1,061.86 million dollars in 2008 to 558.51 million dollars in 2009;
-Understand R&D level and new products in China. For example, Jiangsu Kwin’s IPP
-Identify the export situation of these companies. For example, Shandong Rainbow has seen 165 million dollars export business in 2010, accounted for 95.35% of its turnover

If you are interested in this report, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, October 13, 2011)

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.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_757.html