Dow AgroSciences’ overview for South America

The company has reported worldwide outstanding results for 2012, with an increase of 13% (vs 2011) for total sales (compared to 11% average for agricultural (AG) market) that includes seed sales with 27% growth (vs 14% average of AG market) plus crop protection sales showing 10% growth (vs 9% average of AG market). The EBITDA increase was 7%, according to CCM’s latest monthly report, Crop Protection South America Monthly Report issued in March.

A key player for this growth certainly was South America (the second largest worldwide market of sales, behind North America). In the tropical and subtropical climate of this region are grown soybeans, corn, sugarcane, wheat, fruits, vegetables, sunflower oil seed and rice and the company offers a variety of crops protection and seeds to achieve the maximum yields and health protection, as well as for livestock through pasture’s products.

A wide selection of herbicides, insecticides and fungicides to meet customers' needs, as well as trait technologies such as HERCULEX® and POWERCORE™ in corn and WideStrike™ Insect Protection technology in cotton, is available.

The company is deploying the South American market strategy aimed to the following countries and main related products, as follows:

Argentina: 

- Seeds (Hybrids and GMO) for corn, sunflower and sorghum.

- Herbicides for chemical fallow, 2-4 D products and glyphosate products (e.g Panzer Gold).

- Fungicides (e.g Planet X-tra for soybean diseases).

- Insecticides / Omega 9 oils / Pastures (weed’s control).

Brazil:

        - Herbicides, insecticides and pastures.

        - Sentricon: products for controlling termites eliminating the core of the colonies.

        - Lorsban chlorpyrifos based insecticide.

Bolivia and Paraguay: Products for pasture’s weed control.

Colombia: Herbicides, insecticides and pastures.

Chile: Natural insecticides for apple, pear and walnut trees.

Table Contents of Crop Protection South America Monthly Report 1303:

Argentina to build a new R&D biotechnology center

Bayer CropScience looking for expanding business in South America

Dow AgroSciences’ overview for South America

Syngenta – Financial results for Latin America

Argentina: Focusing on barley quality issues

Brasil crop overview for 2012/13 season

Brazil is sustaining the biofuel strategy

Paraguay: Transgenic cotton’s high yields require performing three harvests

Bolivia soybean overview

Bolivia crop export overview

Paraguay crops overview

Brazil: Late corn season (milho safrinha) to be tested at Mato Grosso do Sul state

Brazil: Cargo ships port’s logistic jam – status on March 8, 2013

Brazil: Black bean’s price increases 40% in a year

Argentina: Imported glyphosate price is steady after rising 70% last year

Argentina: Lowest chickpea’s export prices since late 2010

Brazilian Superior Court of Justice rejected Monsanto’s appeal for payment of royalties

Argentine province’s labor court halts Monsanto seed’s investment

Paraguayan Environmental Protection Agency boosts biogas generation project

Peruvian women awarded as “protective guardians from Andean quinoa and other grains”

Colombian Agriculture Society calls for dialogue to negotiate

Colombia: Boosting the new agriculture & livestock technical assistance national policy

Chile approved new pesticide

Brazil with a controversial launching for a soybean fungicide

Argentine researchers to study natural plant showing high resistance to drought

Argentina: GMO Product’s approval & launchings

Nidera Argentina – New GMO crops

Argentina weeds resistance

Paraguay: FAO urges to coordinate actions against HLB citric’s plague

Bolivia celebrated the 18th edition from Exposoya exhibition

Uruguay: Opening of national Expoactiva 2013

Brazil projected production gross value

Paraguay – New elected president for CAPPRO

Bolivia late soybean season

Argentina’s Expoagro 2013 – Early initiatives post-exhibition

Crop Protection South America Monthly Report, a monthly publication issued by CCM on 31^st, offers timely update and close follow-up of South America's crop protection industry’s dynamics and the crops’ evolution and trends. This monthly report also features in-depth analysis on market development through abundant facts and figures. 

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

Oil content of China's rape variety YN171 breaks world record again

A new rape variety named YN171, bred by Wang Hanzhong, researcher of Oilcrops Research Institute, Chinese Academy of Agricultural Sciences, as well as chief scientist of the National Rape Industrial Technology System, has broken the world record of oil content again from the   previous record of 54.74% which was also created by Professor Wang. It is reported that the oil content of YN171 has hit a high record of 64.8%, which will provide valuable parent resources for China's rape breeding and research on gene regulation on high oil content. Meanwhile, it indicates that the oil content of China's rape has a huge room for improvement. In addition, Professor Wang and his team also bred a high-yield rape variety named 11-zy293 with oil content of 49.57%, which gained an oil output of 1,434 kilograms per hectare in 2011-2012 regional test, 193 kilograms per hectare higher than that of common rape variety. Besides, 11-zy293 in the regional test also showed good performances like lodging resistance, disease resistance, etc. which is suitable for mechanical sowing and harvesting.

The Ministry of Agriculture (MOA) suggests to increase the lowest purchasing price of rice drastically in 2013, in consideration of the increasing planting cost of rice in China. For example, in 2012, the planting cost of rice in Jiangxi Province grew by more than 20% over the previous year. Besides, due to continuous rain in harvesting period, the labor cost of rice harvesting in Heilongjiang Province increased by USD238/ha.-USD476/ha. in 2012. In order to stabilize farmers' enthusiasm for planting, the lowest purchasing price of rice is expected to increase largely in 2013. Actually, it is reported that the lowest purchasing prices of per kilogram of early rice, late indica rice and japonica rice in 2012 have been raised by 17.7%, 16.8% and 9.4% respectively over the previous year. Besides rice, the planting costs of other grain crops like wheat have also increased. According to investigation from the National Development and Reform Commission (NDRC), the net profit of wheat planting has been decreasing for three years and is expected to continue to drop this year owning to planting cost rise.

AgriChina Investor is a monthly publication released by CCM’s. It is covering sections of investment environment, investment dynamics, market watch, industry discovery, expert view and market review etc.AgriChina Investor will focus on the economic situation, governmental policy, financial capital flow, key players' dynamics, big events and hot issues etc. in agriculture industry. Providing the most comprehensive information about the capital investment dynamics and market dynamics, this newsletter can make you clear about the investment environments in China's agriculture industry.

About CCM
As a leading market research consulting company in China with more than 10-year-experience, 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.

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Argentine seed law to be revised to attract more biotechnology investments

The Argentine government is revising its seed law and expects that the new seed law will attract the multinational companies to increase their investment in biotechnology business, so as to promote the development of the biotechnology industry in Argentina, according to CCM’s September issue of South America Crop Protection Monthly Report.

The new seed law draft established by the National Seed Committee (CONASE) is submitted to a temporary committee organized by Argentine Ministry of Agriculture. The temporary committee's members are from the Farm Bureau and seed companies producing transgenic products, and they discuss some details of the draft at a meeting, but there is still no consensus so far.

Unlike the current seed law, the new seed law draft is mainly focused on the transgenic soybean royalty payments problem. Argentine farmers generally use the new soybean seeds generated from the old seeds bought from the seed companies without paying any royalty so as to cut the planting cost, but the new law is to prevent farmers from doing so, since this action has hurt many seed companies, thereby eroding their willingness to invest in Argentine biotechnology business. Corn planting area is the second largest in Argentina, but different from soybean seeds, corn's pollination process dilutes the transgenic traits quickly and farmers need to buy corn seeds directly from the companies every year to enjoy the yield-enhancing benefits.

Currently, the main argument is how to implement the royalty payments for the seed companies in the future. It is estimated that the new law will be continuously debated over the next few months and the Ministry of Agriculture is optimistic that the Congress may pass the draft at the end of 2012. "We've decided to push forward the seed law draft in an effort to prompt Argentina to be a leader in food production," Agriculture Minister Norberto Yauhar said in a press release in Aug. 2012. Although the new seed law will raise the farmers' cost in planting soybean, the yield-enhancing benefits brought by the new transgenic soybean seeds such as the new products made by Monsanto and the promising future of soybean processing industry in Argentina will guarantee the farmers' interest to some extent.    

  

As the new seed law will have the potential to improve the income from the seed royalty payments, many multinational enterprises are optimistic about the future of the Argentine biotechnology market.

 

Carlos Becco, Director of Syngenta Soybean Department in Argentina, believes that the establishment of the new seed law is a good news for the country, which not only helps his company increase the competitiveness in Argentina, but also creates more favorable conditions for attracting new investment in Argentina. The data statistics reflect the importance of the royalty payments in biotechnology investment. According to the information of the seed industry, the R&D of a new event represents an average investment of USD136 million and an average term of 13 years. 

 

The new seed law will help companies recoup their investment in a shorter period and improve companies' willingness to invest in new programs, thereby promoting the development of biotechnology. Among the biotechnology companies, Monsanto will become the biggest beneficiary when the new seed law is officially launched. Recently, transgenic soybeans planted in Argentina are mainly the Roundup Ready (RR) soybean produced by Monsanto. 

As the new seed law will be launched in the future, it is believed that the transgenic business in Argentina will recover, regaining the competitiveness against Brazil and even returning to the dominating position in South America.

 

Before 2006, the total authorized transgenic products in Argentina surpassed Brazil, dominating the biotechnology field in South America. But in 2006, the Brazilian government established a country-level biotechnology policy which redesigned the regulatory framework for transgenic application process. This policy streamlined the application process and made the benefits obtained by seed companies more reasonable. Thanks to Brazilian government's action, biotechnology investment environment in Brazil gradually became attractive and many multinational enterprises decided to develop their biotechnology business in Brazil instead of Argentina.  

 

In addition to the multinational companies, Brazilian enterprises are also willing to invest in biotechnology business under the favorable policy. For instance, an imidazolinone tolerant soybean co-developed by Brazilian Agricultural Research Corporation (Embrapa) and National Institute of Agricultural Technology (INTA) now is at the final stage of testing and will be launched in the coming years.

 

Due to the lack of the royalty protection in Argentina, the transgenic development in Argentina has stagnated and is surpassed by Brazil. According to the statistics, adding the new soybean and corn from Dow AgroSciences approved by the Argentine government, Argentina has approved a total of 27 events including corn, soybeans and cotton as of Aug. 2012, compared with 33 in Brazil. Argentina has more maize events approved than Brazil, 20 versus 18. As for soybeans, 5 events have already been authorized in Brazil, versus 4 in Argentina.  

Source: South America Crop Protection Monthly Report 1209

http://www.cnchemicals.com/Newsletter/NewsletterDetail_256.html

Content of South America Crop Protection Monthly Report 1209：

GM crops help increase consumption of pesticides in Brazil

Soybean seed in Brazil may be in short supply in 2012/13

Venezuela to import more rice by exporting urea

Brazil sells rice in stock

Brazil to invest USD18.9 billion in fertilizer industry

Pesticide companies face difficulties in registration in Latin America

Brazil extends credit limit for corn planting

Argentine seed law to be revised to attract more biotechnology investments 

Cheminova's Authority ® gets registration in Brazil 

Proficol enters Peru pesticide market

Ecuadorian government continues efforts to control snail plague

Argentina starts new round of control for grapevine moths

Cassava pests may break out in Southern Brazil

Brazilian transgenic planting area to increase by 12% in 2012/13

South America Crop Protection Monthly Report , a monthly publication issued by CCM International on 31^th of every month, offers timely update and close follow-up of South America's  Crop Protection industry dynamics, analyzes market data and finds out factors influencing market development.

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

Guangzhou CCM 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/Detail/Release_1227.html

China’s Corn Deep-processing Industry Might be Further Restrained

CCM’s October issue of Corn Products China News has been published recently. The top story is that China's corn deep-processing industry may still be restrained by governmental policy in 2012.

According to Guidance about Promoting the Healthy Development of Corn Deep-processing Industry (the Guidance) published in 2007, the proportion of corn consumption in deep-processing industry among its total consumption shall be less than 26%. However, it is estimated that China’s corn consumption volume in deep-processing industry accounts for over 26% in 2011. Therefore, the government will continue to regulate and restrict the corn deep-processing industry in order to reduce the proportion in 2012.

On the other hand, China's corn is in slightly short supply now. Statistics shows that corn output in 2011 is estimated to reach 181.5 million tonnes, while its consumption volume will reach 181.3 million tonnes and the number will probably get higher in 2012. Since the country needs to replenish its national stock, the relationship between corn supply and its demand in China is predicted to be tight in 2012.

Moreover, if there is no significant increase of corn output in next five years, the corn supply in China can not meet the demand. But according to the 12th Five-Year Plan of the Development of National Farming, domestic supply of corn, wheat and rice should completely satisfy their demand at home by 2015. In order to achieve the goal, Chinese government should focus on how to increase corn supply and curb its demand. Unfortunately, deep-processing industry is always the first target to be restrained.

Based on the above reasons, it's believed that China’s corn deep-processing industry might be further restrained in 2012.

Headline news of Corn Product China News 1110:

-PLA’s import volume and export volume respectively increase by 43.2% and 8.4% during Jan. to Aug. 2011 over the corresponding period of 2010.

-HFCS witnesses a fast development in 2011, especially F55.

-Import volume of corn products in August 2011 witnesses an obvious increase, while the export volume suffers a slight decline.

-Domestic price of threonine has witnessed a downtrend since Aug. 2011, majorly due to its sluggish export demand.

-Domestic price of corn starch witnesses a downtrend in Oct. 2011, and the tendency may remain in the near future.

-Corn deep-processing industry in China may still be restrained in 2012.

-A new regulation on domestic VC industry may be published in 2011.

-The 12th Five-Year Plan of feed industry is published on 12 Oct. 2011, indicating a fast growth of the industry in the next five years.

-Star Lake Bioscience decides to improve lysine’s production technology in its wholly-owned subsidiary in Zhaodong City.

-Ministry of Commerce of China announced its final determination of the anti-subsidy duty on EU’s potato starch in Sept. 2011.

-Corn price in China witnesses a slight downtrend in Oct. 2011 due to the newly marketed corn in 2011.

-Large traders are becoming more and more important in domestic corn’s circulation, bringing positive effects on the corn industry.

All the above findings are from CCM’s Corn Product China News. If you are interested in this newsletter,  please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, October 24, 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_776.html

China's Corn Deep-processing Industry Probably Remain being Restrained in 2012

According to the information from the 5th International Corn Industry Conference (the 5th ICIC), held on 22 Sept. 2011 in Changchun City, Jilin Province, China's corn deep-processing industry may still be restrained by governmental policy in 2012, even for a longer time, according to CCM’s October issue of Corn Products China News.

Firstly, corn's consumption volume in deep-processing industry accounts for over 26% of its total consumption volume in 2011. According to Guidance about Promoting the Healthy Development of Corn Deep-processing Industry (the Guidance) published in 2007, the proportion of corn consumption in deep-processing industry among its total consumption shall be less than 26%. However, according to Mr. Sun, secretary general of China Starch Industry Association, corn's consumption volume in deep-processing industry in 2010 reached about 52 million tonnes, accounting for 28.9% approximately in corn's total consumption. Moreover, he estimated that the proportion in 2011 might get higher. Thus, the government will keep regulating and restricting the corn deep-processing industry in order to reduce the proportion to the object proportion in 2012.

Secondly, China's corn witnesses a little short supply situation. In terms of Mr. Fan, deputy general manager of COFCO Agri-Trading & Logistics Limited, corn's output in 2011 is estimated to reach 181.5 million tonnes, and its consumption volume will reach 181.3 million tonnes and the number will probably get higher in 2012. Since the country needs to replenish its national stock, corn's supply and demand relation is predicted to be tight in 2012.

Besides Mr. Li, director of National Animal Husbandry Service and vice chairman/secretary general of China Feed Industry Association, said in the 5th ICIC: if corn's yield per unit couldn't increase significantly in the next five years, the gap between corn's supply and demand in China would reach 15 million tonnes in 2015. But according to the 12th Five-Year Plan of the Development of National Farming, domestic supply of corn, wheat and rice shall completely satisfy their demand at home by 2015. In order to achieve the goal, Chinese government shall focus on how to increase corn's supply and curb its demand. Unfortunately, deep-processing industry is always the target to be restrained first.

Mr. Li also revealed that the government should strengthen the supervision over deep-processing industry, especially fuel alcohol industry using corn as feedstock, which consumes about 5 million tonnes of corn per year currently. He also suggested that foreign enterprises should be restrained to enter into the corn deep-processing industry, otherwise corn's consumption volume will surge.

Based on the above reasons, it's believed that corn deep-processing industry would be probably restrained to step further in 2012. Mr. Sun disclosed that Ministry of Environmental Protection of China (MEP) would carry out environmental examinations on starch, starch sugar, alcohol and organic acid manufacturers, but detailed examination methods will be separately announced by MEP in the future. After the examinations, MEP will disclose the lists of the qualified manufacturers, and the unlisted ones are not allowed to engage in corn deep-production. Besides, MEP will reject any environmental assessment for any new projects, including the reconstructed or expanded ones, refuse to take any application for environmental examination or provide any certificates of compliance for unlisted manufacturers.

In order to facilitate healthy development of the corn deep-processing industry, especially starch industry, Mr. Sun considered the following measures shall be taken in the future.

1 Capacity expansion and duplicate construction at low levels must be put under rigorous control. The mode of capacity expansion must be shifted toward quality and efficiency improvement.

2 Extend industrial chain and develop products with high added values. Varieties of products with high added value must be increased, and the proportion of products with low added value must be reduced so as to avoid disorderly competitions caused by similar product structures.

3 Raise the threshold and limit the access to the industry.

4 Backward production capacity represented by small enterprises must be limited, while advanced production capacity represented by large enterprises should be encouraged. Enterprises with high consumption, huge deficit and poor environmental performance should be shut down to maximize utilization of resources.

5 Investment in science and technology must be increased, and a scientific system integrating industry and research institutes should be established to encourage independent innovation and ensure healthy development of the industry.

6 More attention should be paid to the bio-industry.

Source: Corn Product China News 1110

http://www.cnchemicals.com/Newsletter/NewsletterDetail_6.html

Content of Corn Products China News 1110:

Both PLA's import and export volumes witness increases in 2011

Fast development in China's HFCS industry

Chinese corn products Imp. & Exp. analysis in August 2011

Domestic threonine price has seen a downtrend since Aug. 2011

Domestic corn starch price heads down in Oct. 2011

China's corn deep-processing industry probably remain being restrained in 2012

Domestic VC industry may face a new regulation

The 12th Five-Year Plan of feed industry comes out

Star Lake Bioscience to improve lysine's production technology

7.5%-12.4%, final determination of the anti-subsidy duty on EU's potato starch

Corn price in China drops in Oct. 2011

Analysis into corn's trade pattern in China

Corn Products China News, a monthly publication issued by CCM International on 20^th of every month, reveals the driving force of news stories and deeply analyzes the influence of trends and dynamics on domestic and international corn deep processing industry.

For more information about Corn Product China News, please 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

Decreasing Jingangmycin Market Share in China

Market share of jingangmycin, which is an antibiotics fungicide and has dominated domestic rice sheath blight control market for almost 30 years, has been gradually shrinking in Chinese main rice planting areas in recent years mainly due to its decreasing control effect and thinner profits, as well as the competition from other products, according to CCM’s September Issue of Fungicides China News.

With good control effect on rice sheath blight in the early stage of application, jingangmycin become popular among domestic producers since 1970s. The output of jingangmycin (calculated by 5% AS, similarly hereinafter) had increased in China over the last few decades, especially in the late 1980s.

However, the decreasing control effect on rice sheath blight is one of the key factors leading to the market shrinkage of jingangmycin. After several decades of successive use, the control effect of jingangmycin 5% AS against rice sheath blight has been reduced from about 90% to 65%.

Moreover, the persistent period of jingangmycin has also been shortened by around 65% to 7 days from original 20 days. Last but not least, many domestic dealers and retailers are reluctant to sell jingangmycin mainly due to the decreasing profit, which has hindered the development of jingangmycin accordingly.

Actually, some domestic producers of jingangmycin technical have gradually cut back or stopped their production in consideration of the shrinking market. It is estimated that the output of jingangmycin in China will continue to go down to a certain extent in the near future with the gradual reduction of jingangmycin production; the situation of the shrinking market share for this biological fungicide will remain grim.

The following highlights are covered in Fungicides China News:

-Jiangsu Lanfeng has achieved a significant increase in its fungicide business in H1 2011.  

-Noposion has achieved a steady performance growth in H1 2011. 

-Changqing Agrochemical's fungicide performance was poor in the first half of 2011.   

-Jingangmycin's market share has been gradually shrinking in Chinese main rice planting areas in recent years.

-Zhejiang Longwan's thiediazole copper will vitalize the market of disease control in the near future.

-Shandong Dacheng will further cement its fosetyl-aluminium production after completing the first stage relocation.

-Sichuan Lomon launched its 20t/a abscisic acid technical production line on 22 Aug. 2011.

-Shaanxi Meibang's fenoxanil 20% WP is about to be on the market of Guangdong Province.

-Hunan Haili plans to expand its thiophanate-methyl technical production to 5,000t/a by the end of 2012.

-Demand for trimethyl orthoformate from the domestic and overseas market will keep rising in the field of pesticides in the near future.

-Ethylenediamine's capacity in China has witnessed jump in the past months of 2011.

-The application of chemical pesticides witnesses decline in China.

-Fungicides to control rice blast sell well recently in main middle and late rice planting areas.

-Price of azoxystrobin technical has plummeted in the domestic market since 2008.

-Southern rice black streaked dwarf continues spreading in the southern rice planting areas recently.

-Cotton verticillium wilt has stepped into a high occurrence period especially in most cotton planting areas of Jiangsu, Anhui and Hebei.

 (Guangzhou China, September 19, 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.
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

Market Share of Jingangmycin Gradually Shrinking in China

Jingangmycin, an antibiotics fungicide, had ever dominated the domestic market of rice sheath blight control for as long as around 30 years. However, its market share has been gradually shrinking in Chinese main rice planting areas in recent years mainly due to its decreasing control effect and thinner profits, as well as the competition from other products., according to CCM’s September Issue of Fungicides China News 2011.

As one of the major rice diseases, the occurrence area of rice sheath blight all over the country exceeds accumulatively 16.67 million ha. every year, which has been seriously threatening the production of rice in China. Since the advent of jingangmycin in 1970s, this biological fungicide has been received favourably in the domestic market.

Thanks to the good control effect on rice sheath blight in the early stage of application, many domestic producers attached great importance to the development and production of jingangmycin. Therefore, the output of jingangmycin (calculated by 5% AS, similarly hereinafter) had increased in China over the last few decades, especially in the late 1980s.

For example, the total output of jingangmycin in Zhejiang, one of the provinces distinguished for its jingangmycin production, had reached about 57,000 tonnes in 1987. It is worth noting that the annual output of jingangmycin in China has been reduced to 30,000~40,000 tonnes in recent years, which indicates that jingangmycin is encountering the predicament of shrinking market domestically.

The decreasing control effect on rice sheath blight is one of the key factors leading to the market shrinkage of jingangmycin. After several decades of successive use, the control effect of jingangmycin 5% AS against rice sheath blight has been reduced from about 90% to 65%.

Moreover, the persistent period of jingangmycin has also been shortened by around 65% to 7 days from original 20 days. Under the circumstances, increasing its application dosage and frequency has been a common way in recent years so as to achieve better control effect.

With some new products to control rice sheath blight constantly emerging, the market share of jingangmycin in China's main rice planting areas has suffered carve-up to a great extent. In particular, these new fungicides mainly include hexaconazole, tebuconazole, prochloraz, propiconazole•difenoconazole, polyoxin and so on.

Thereinto, the sales of hexaconazole with high efficiency has been heating up in the domestic rice sheath blight control market in recent years. Owing to the enhanced promotion, some companies' hexaconazole formulation products are very popular, such as 30% SC produced by Shaanxi Sunger Road Bio-Science Co., Ltd., 50% WDG produced by Shaanxi Meibang Pesticide Co., Ltd., 10% EC produced by Lianyungang Liben Agro-chemical Co., Ltd., etc.

Besides hexaconazole, propiconazole•difenoconazole, an excellent mixed formulation to control rice sheath blight, has also been in popularity in the domestic market, especially in Hunan, Hubei, Zhejiang, etc. It is estimated that the market share of propiconazole•difenoconazole will continue to go up in 2011.

Last but not least, many domestic dealers and retailers are reluctant to sell jingangmycin mainly due to the relatively thinner profit, which has hindered the development of jingangmycin accordingly. Although many fungicides' prices have witnessed rise with the increasing production cost, it is rather difficult for most domestic peasants to accept the price increase of jingangmycin as its previous price is very low and keeps stable for many years. It is inevitable that the profit margin of jingangmycin will confront further decrease.

Actually, some domestic producers of jingangmycin technical have gradually cut back or stopped their production in consideration of the shrinking market. For instance, a staffer of Jiangsu Jiatai Chemical Co., Ltd. revealed that the company has not produced this product for several years.

It is well known that Zhejiang Qianjiang Biochemical Co., Ltd. is the largest domestic producer of jingangmycin technical with a capacity of 2,000t/a. As reported in Fungicides China News 1104, the company has begun to reduce jingangmycin's production since 2010.

It is estimated that the output of jingangmycin in China will continue to go down to a certain extent in the near future with the gradual reduction of jingangmycin production; the situation of the shrinking market share for this biological fungicide will remain grim.

Source: Fungicides China News 1109

http://www.cnchemicals.com/Newsletter/NewsletterDetail.aspx?id=2

(September 13, 2011, Guangzhou)

Main content of Fungicides China News 1109:

Jiangsu Lanfeng's fungicide business significantly increases in H1 2011

Noposion's performance steadily grows in H1 2011

Changqing Agrochemical's fungicide business performs poor in H1 2011

Market share of jingangmycin gradually shrinking in China

Thiediazole copper to vitalize the market of disease control

Shandong Dacheng to further cement fosetyl-aluminium production

Sichuan Lomon launches 20t/a abscisic acid technical production line

Shaanxi Meibang's fenoxanil to be on the market

Hunan Haili to expand thiophanate-methyl technical production

Demand for trimethyl orthoformate to keep rising in pesticide field

Ethylenediamine capacity sees jump in China

Chemical pesticide application shows decreasing trend in China

Fungicides to control rice blast sell well recently

Azoxystrobin: price plummets amid capacity expansions since 2008

Southern rice black streaked dwarf continues spreading

Cotton verticillium wilt stepping into high occurrence period

Fungicides China News, a monthly publication issued by CCM International on 10th of every month, provides a wealth of exclusive information and analysis, research and development dynamics of domestic competitors, analysis on import and export of key products, cooperative opportunities with domestic and foreign companies, and market information of foreign patent-expired products.

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.