Bayer Sets up Seed Treatment Application Center in China

Bayer CropScience (China) sets up its first Seed Treatment Application Center in China on 10 Nov., 2011 and it is the seventh one of Bayer CropScience in the world, based on CCM’s latest issue of Crop Protection China News.

The application center is located in Haidian District, Beijing City, with the most advanced seed processing equipment and detection measures. It is considered to be a bond between the R&D of new seed processing products, marketing and seed customers, including the services of customer support & training, tailored technical solutions, etc.

As seed treatment agent is one of the most important products in agricultural production, large international pesticide enterprises, such as Syngenta, Bayer and Dow AgroSciences, have got involved in the field since many years ago. The sales revenue of seed treatment in Bayer CropScience in 2010 reached about USD450.19 million, accounting for 8.9% of its total revenue, about USD5,048.95 million.

Eyeing the growing market of seed treatment agent in China, international crop protection giants have continuously entered China's market with high quality products, such as Bayer CropScience's Gaucho (70% imidacloprid), Sygenta's Dividend (difenoconazole) and Celest (fludioxonil).

Some self-developed products by Chinese enterprises have also shown good performance in domestic pesticide market in recent years, such as Yuezhong (60% imidacloprid) from Shenzhen Noposion Agrochemical Co., Ltd. and Fudie (70% imidacloprid) from Hebei Veyong Bio-Chemical Co., Ltd.

So far, there are more than 400 seed treatment agent players in China. The annual increment speed of the total sales volume has reached 10% in recent years, showing the great prospect of seed treatment agent in China.

According to CCM International, the total consumption volume of seed treatment agent in China reached 41,000 tonnes in 2009, valuing USD150 million.

Some insiders in China even predict that seed treatment agent, after herbicide, will account for large share of domestic pesticide market in the next three to five years.

However, problems still lie ahead of domestic seed treatment agent industry, even though it has witnessed rapid development in recent years, such as weak R&D capability, weak market surveillance, etc.

The R&D capability of seed treatment in China is largely lagged behind that of some developed countries due to the late start of domestic research. Although some large pesticide players have realized the prospect of seed treatment agent and put investment R&D in recent years, most of their products' quality don't come close to those of foreign products. As more and more sub-quality products appear in domestic market (there are some good quality products but without good usage instructions, while foreign enterprises do a good job in this terms), peasants prefer foreign seed treatment agent to domestic one.

Domestic market of seed treatment agent also faces the problem of lacking efficient market surveillance, which has led to many illegal productions and sales of seed treatment agent. Highly toxic seed treatment agents which can bring large profit still take up large market share in China.

However, compared with other branches of pesticide industry in China, the situation seems not so serious.

The registration fee of a compound seed treatment agent reaches USD78,740.16 (RMB500,000), which blocks the entering of small-sized pesticide players.

Source: Crop Protection China News 1122

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

Content of Crop Protection China News 1122:

Bayer sets up Seed Treatment Application Center in China

Jiangsu Huifeng to change IPO projects

Accident occurs again in Nantong Jiangshan

New tax policy barely benefits small agricultural enterprises

China may largely support the development of agricultural technology

Rhizobium inoculant faces market promotion problems in China

Sumitomo expands the capacity of urea-formaldehyde fertilizer

Plant construction upsurge of chloride pesticide intermediate

10 new AIs registered in Q3 2011

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_862.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

Medium and Small Size Pesticide Players Face Great Challenges

It has been more than one year since China released Pesticide Industry Policy on Sept. 19, 2010, aiming to crack down the chaotic pesticide industry. The policy in reducing the number of pesticide companies by 30% by around 2015 has started to take effect on domestic pesticide players.

Recently, many pesticide players of medium and small sizes in Tianjin, Anhui, Hebei, Sichuan, Hunan Province, etc., have put up announcements on related industry websites to seek for investors. With the support of the Pesticide Industry Policy, local governments in China have continuously carried out strict policies to reduce the viability of medium and small size pesticide players, such as raising up the threshold of market entry and environmental standard in pesticide industry, etc.

Plus, eyeing the high inflation driving the increasing price in every field in China, Chinese government carried out tight monetary policy which has led to the continuous tightening of credit scale in domestic financial market. Owing to the continuous shrunken bank lending channel, many pesticide players of medium and small sizes are now facing a much more serious operation condition. What will they react? What kind of challenges and opportunities await for them?

Want to know more details about how the governmental policies affect domestic medium and small size pesticide companies, please check CCM’s Crop Protection China News 1118.

More news in Crop Protection China News 1118:

-China hungers for import corn

-Medium and small size pesticide player start seeking for help

-GM grain commercialization in China: impossible in next ten years

-San Ya leads to carry out new pesticide policy

-Shaanxi Limin’s expansion kicks off

-Hunan Haili finishes constructing 10,000t/a carbamate insecticide plant

-Seed dressing agent: growth point of imidacloprid

-China's ethephon output increases in Jan. - July 2011

-Using predatory mites to control pest mites on tea plant

For more information about CCM’s Crop Protection China News, please feel free to contact us at econtact@cnchemicals.com.

 (Guangzhou China, October 31, 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_795.html

Regulations on Pesticide Management Will Make Great Impact in China

Guangzhou China, August 2, 2011 – New regulations on pesticide management are to be nailed down soon and they will largely impact current pesticide market, according to CCM’s latest issue of Crop Protection China News.

On July 21, 2011, the Legislative Affairs Office of China State Council released a draft for seeking opinions on Regulations on Pesticide Management, with the purpose to further regulate domestic pesticide industry and ensure domestic food security.

Two big changes in the draft include (1) Cancel the temporary registration of pesticides and further standardize the processes of pesticide registration; (2) Set up license system of pesticide business and the validity period of pesticide business license is three years.

If the government releases the above two regulations, the cost of pesticide registration and pesticide dealing will be largely increased. That means small pesticide players in China may face great challenges in future company operation which would provide good chances for the integration of domestic pesticide industry.

The two big changes in the draft will largely impact current pesticide market in the future. Although the implementation may encounter a lot of difficulties, combining with implementation with China Pesticide Industry Policy, domestic pesticide industry will enter a new era in the future.

More news about the industrial trend, company dynamics, market price, and future forecast will be shared in Crop Protection China News.

You may find more in the latest issue of Crop Protection China News:

-On July 21, 2011, the Legislative Affairs Office of China State Council releases a draft for seeking opinions on Regulations on Pesticide Management.-On July 26, 2011 China releases 12th Five-Year Plan for Pesticide Industry which has stimulated the boost of pesticide stocks against market trend.-China newly approved 861 pesticide production licenses in H1 2011.-China cotton price has experienced continuous descent for four months since March 2011, nearly hitting the minimum purchase price set by the government.-Overcapacity, raw material price hike, RMB appreciation continue bothered domestic glyphosate players in H1 2011.-Export of domestic imidacloprid technical witnessed huge increase in the first five months of 2011 compared with the same period of 2010.-Anhui Huilong intends to purchase 51% equities of Huangshan Xinan which indicates its expansion road unveils after its IPO.-NATESC predicts pests and diseases of mid and late rice will be more serious than that of 2010.-Ministry of Agriculture aims to promote the professional control on pests in the whole country.

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.
Please visit http://www.cnchemicals.com for more information or contact econtact@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

New Regulations on Pesticide Management to be Nailed down Soon

August 2, 2011, CCM – On July 21, 2011, the Legislative Affairs Office of China State Council released a draft for seeking opinions on Regulations on Pesticide Management, with the purpose to further regulate domestic pesticide industry and ensure domestic food security.
According to CCM’s latest issue of Crop Protection China News, regulations on Pesticide Management have experienced several revisions after it was issued and implemented on May 8, 1997. However, the last revised version of Regulations on Pesticide Management on July 27, 2002 no longer keeps pace with the great development of domestic pesticide industry in recent years. Moreover, food security accidents triggered by irrational use of pesticides which frequently happened in recent years have alerted Chinese Government the emergency to fix the deficiencies of pesticide management.

Hence, Chinese Government decides to amend this policy again by carrying out a more intensive one over pesticide management. The draft released for seeking opinions this time includes eight chapters and 84 articles, covering registration, production, sales, etc. of domestic pesticide industry.

Compared with the current pesticide management policy, the draft is formed by adding one chapter and 35 articles with more intense regulations into the current one.

According to the draft of Regulations on Pesticide Management, two of the items may deeply impact domestic pesticide industry.

1. Cancel the temporary registration of pesticides and further standardize the processes of pesticide registration, mainly emphasizing on pesticide safety, the effectiveness evaluation of pesticides, higher investigation requirements, etc.

2. Set up license system of pesticide business and the validity period of pesticide business license is three years. Cancel the restriction that only some pesticide operators, such as pesticide supply and marketing cooperatives, agricultural technology extension station, etc., own the qualification to apply for pesticide business licenses, stating that individual business dealers could also apply for pesticide business if they meet the requirement of pesticide operation standards according to the regulations of local government.

Between the two large modifications, cancelling the temporary registration of pesticides is considered to be the most critical one. China has started the temporary registration system of pesticides since 2001. Owing to its much lower fees and shorter registration processes on getting the permission of pesticide production, it has provided great benefits to either most pesticide players in China or the development of domestic pesticide industry.

However, fast development of domestic pesticide industry has offered a positive environment for pesticide business, thus more and more pesticide players sprang up in China in the last decade which has somewhat given rise to a chaotic market in domestic pesticide industry.

To better manage domestic pesticide market and cut down the numbers of pesticide players, cancelling the temporary registration of pesticides is considered to be an irresistible trend. Actually Chinese government has also considered setting up a special registration system which is popular in international pesticide industry in response to emergency situation.

As for setting up license system of pesticide business, it is another trend of domestic pesticide management in the future. Owing to the great negative effects caused by food security events in recent years, such as poison cowpea in Hainan Province, two main pesticide consumption provinces in China are carrying out or to carry out license system of pesticide business, namely Hainan Province and Shandong Province.

The implementation of license system is believed to be nationally promoted after the revision and release of Regulations on Pesticide Management in the near future. However, there may be some kinds of regional disparities according to the real situation in local areas.

Apparently, it may be difficult to understand the government's decision on permitting individual dealers to apply for pesticide business while Hainan is carrying out the Implementation Measures of Hainan Province Pesticide Wholesale and Retail Business License Management Regulation (Trial), saying it is going to limit the number of individual pesticide dealers to 205 in the whole island from more than 4000.

According to the draft, although it intends to permit individual dealers to apply for pesticide business, it still sets a higher threshold but not clearly stated in the draft. The requirement may be released in the coming implementary provisions and there will be some differences among provinces.

Outlook
Actually, the amendment of Regulations on Pesticide Management had been launched last year and it was expected to be released by the end of 2010. However, owing to a wide divergence of opinion among government departments, pesticide players, etc., the issue of the policy has to be pushed off and revised over and over again.

The two big changes in the draft will largely impact current pesticide market in the future. Although the implementation may encounter a lot of difficulties, combining with implementation with China Pesticide Industry Policy, domestic pesticide industry will enter a new era in the future.

Source: Crop Protection China News 1114

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

Content of Crop Protection China News 1114:

New Regulations on Pesticide Management to be nailed down soon
New policy boosts pesticide stocks against market trend
China newly issues 861 pesticide production licenses in H1 2011
China cotton price to hit minimum purchase one
Downturn of domestic glyphosate continues in H1 2011
Domestic imidacloprid export up in H1 2011
Anhui Huilong's expansion kicks off
Rice pests and diseases to be serious in H2 2011
China promotes the professional control on pests

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31th) 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.

Please visit http://www.cnchemicals.com for more information or contact us at econtact@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