Domestic Pesticide Market Remains Depressed

Statistics from National Bureau shows that China's pesticide output reached 1.92 million tonnes in Q1-Q3 2011, up 15.7% compared with that at the same period last year. Pesticide output in the whole year of 2011 is predicted to reach about 2.5 million tonnes. Although the amount of pesticide output and sales volume in 2011 is predicted to increase to a certain extent, domestic pesticide industry still seems to be trapped in downturn.

According to the 2011 Q3 financial reports of all the listed pesticide companies in China, net profit of Q1-Q3 in 2011 only reached USD100.66 million, down 32.28% compared with that at the same period last year.

Overcapacity is still considered to be the main reason for the depressed domestic pesticide market. At the beginning of 2011, although insiders have ever predicted that domestic pesticide industry may recover in 2011 due to the prediction of price increase of raw materials, the intense competition and lagging price increase of pesticides have made the industry remain in downturn.

Cracking down and standardizing the chaotic pesticide industry, creating orderly production, investing more in new pesticide R&D, etc. are considered to be good ways to ease the downturn in domestic pesticide industry. Unfortunately, things can’t be changed easily. The severe overcapacity problem in China might still hinder the development of domestic pesticide industry in the next few years.

All findings are from CCM International’s Crop Protection China News. If you are interested in this newsletter, please feel free to contact us.

Specific Headline News of Crop Protection China News 1123:

-According to the performance of domestic listed pesticide enterprises in Q1-Q3 2011, the recovery of domestic pesticide industry has not been realized yet. Overcapacity is still the main reason to drag domestic pesticide industry in downturn.

-Some large agrochemical companies in China have encountered troubles in their business due to the implementation of chain store operation mode, which may be the common difficulties for most of them in China.

-An international press conference, held by Bayer AG in Shanghai on 16 Nov., 2011, declared its expansion plans in Asia in the next four years.

-As more pesticide enterprises in China started to register for nitenpyram formulation and technical production, nitenpyram market is predicted to have an upward trend in the coming years.

-High price of toosedarin insecticides impedes its large promotion in China.

-Registration of the first coumoxystrobin mixed formulation, namely coumoxystrobin·tebuconazole 40% SC, will be approved by the Ministry of Agriculture in 2012.

-CMST released the 12th Five-Year Plan of Biotechnology Development (2011-2015) on 28 Nov., 2011 aiming to better support the development of biotechnology.

-46.7 million ha. arable land in  suitable region in China would be subsoiled again till 2015, trying to enter farming cycle "subsoil the same land once every three years".

-There are some emerging corn pests and diseases beginning to spread in 2011, while proxenus lepigone among them broken out is not an original corn pest.

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_919.html

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

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

2011 Top 100 China Pesticide Manufacturers Come Out

“2011 Top 100 List of China Pesticide Manufacturers” has been released by China Crop Protection Industry Association at 11th National Agrochemical Exchange Meeting on Oct. 19^th, 2011.

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 No.1 with total revenue of USD294.96 million in 2010.

The second place and the third place belong to Jiangsu Yangnong Chemical Co., Ltd. and Zhejiang Jinfanda Biochemical Co., Ltd. with total revenue of USD235.59 million and USD229.13 million in 2010 respectively.

The companies shown in the top 100 list may have great strength, but they still lack competitiveness when facing international pesticide giants. In order to boost the development of domestic pesticide industry, China’s pesticide manufacturers should solve problems of chaotic pesticide market, inefficient pesticide production technology, uncompetitive strength etc.

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

More news of Crop Protection China News 1120:

-The list of 2011 China Top 100 Pesticide manufacturers is released by China Crop Protection Industry Association on 19 Oct. 2011.

-Eco-friendly Pesticide EC Development Forum held on 24 Sept. 2011 has pointed out the development direction of domestic EC formulation in the future.

-The acquisition between ChemChina and MAI successfully completes on 17 Oct. 2011.

-Zhejiang Wynca reveals that its total revenue in Q3 2011 reaches USD568.98 million, down 3% YoY and the net profit in this period witnesses deficit of USD4.77 million.

-Jiangsu Changqing revealed on 15 Oct. 2011 that its revenue in Q3 2011 rose but net profit dropped.

-Jiangsu Tianrong reveals that it has almost finished relocation and the complete relocation is expected to be finished in Dec. 2011.

-At the 4th China High-Level Forum on Pesticides, the Ministry of Agriculture attaches great importance to the registration and use of pesticides for small crops.

-Jiangsu Province will enhance environmental governance of chemical industrial parks in the next few 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.

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_805.html

Banning Paraquat Raises Dispute in China

According to the information from the 4th China High-Level Forum on Pesticides held on Sept. 23 to 24, 2011, the Ministry of Agriculture (MOA) will take measures to further restrict and forbid the use of paraquat and some other highly toxic pesticides in the near future, based on CCM’s latest issue of Crop Protection China News.

Though it is not a piece of new information in China, it is the first time for Chinese government to officially announce the restriction and forbidding of the use of paraquat.

As people are shocked by the official statement, dispute is raised in and out of domestic pesticide industry. As a non-selective herbicide, paraquat is largely used to control weeds in the fields of fruit, mulberry, rubber, corn, sugarcane, soybean, etc. Although it is featured by high efficient and low price, it is also famous for its high toxicity to human beings and animals. Once being poisoned, especially by oral intake, it is incurable.

Eyeing more than 5,000 people die annually from the poisoning caused by paraquat, many medical workers propose legislating against the use of paraquat in the National People's Congress. As more and more foreign countries have added paraquat into their ban lists, the voice of forbidding the use of paraquat in China has been even louder in the past two years.

However, most of domestic pesticide enterprises and dealers hold different opinions over the forbidding use of paraquat.

With years' development, China has become the largest paraquat producer in the world with the production capacity of paraquat TK reaching 152,500t/a in 2010. The total output of paraquat 42% TK reached 122,000 tonnes in 2010 with the operating rate of 80.0%, compared with 72.4% in the previous year.

As of April 2011, 553 paraquat registration applications from 272 enterprises, both temporary and formal, have been approved in China, including 63 for technical, 483 for single formulations and seven for mixed formulations.

Thus, once paraquat is forbidden, these pesticide players will suffer greatly. As a matter of fact, they will fight to delay the release and implementation of the policy to ban the use of paraquat.

"Domestic apparent consumption of paraquat formulations was 31,256 tonnes (calculated by 200g/L AS) in 2010. And obviously it is hard to find a substitute to replace it. Once it is forbidden, pesticide market will be affected greatly. Actually, it will do little harm to the environment and health of human being if the herbicide is used safely," said Mr. Yu, a district manager from Shandong Luba Chemical Co., Ltd. "Actually, there is a better way to decrease the happening of paraquat poisoning, which is to change the dominant formulation of paraquat AS into DP or ointment."

However, some insiders believe that the announcement from the 4th China High-Level Forum on Pesticides is just a statement of Chinese government to declare its attitude towards highly toxic pesticides. Banning paraquat or not is still can't be nailed down and the implementation of the policy is still beyond expectation. If government carries out the policy, the worst condition of paraquat in the near future is that the use on several fruit or crops may be forced to be banned. The all-out ban on the product in China may still have a long way to go.

Source: Crop Protection China News 1119

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

(Guangzhou China, October 18, 2011)

Content of Crop Protection China News 1119:

Banning paraquat raises dispute in China

Rising pesticide resistance bothers domestic pesticide industry

Heavy metal seriously pollute domestic farmland

Jiangsu Huifeng to expand in fluorine industry

Hubei Sanonda predicts good performance in Q3

Syngenta extends collaboration with SIOC, CAS

Glyphosate price rises but profit stays

China's mancozeb industry faces severe challenges

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.

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