China Crop Protection Industry Association about Bright Prospects for National Pesticide Sector

Apr 18th, 2017

The head of China Crop Protection Industry Association (CCPIA) expresses the optimistic forecasts regarding the market of pesticides this year. Due to low prices for crude oil and other raw materials, in 2016 the export prices for pesticides fell, and thus the volume of exports reduced. 2016 financial reports of the major players in this market indicate the scanty income from the production of plant protection means. For example, glyphosate, which accounts for 15% of exports, increased significantly in price due to the fact that the price of oil shot up from $ 25 to $ 50 per barrel. This caused a partial decrease in glyphosate production.

To ensure a stable business development, CCPIA has asked producers to stabilise the prices for pesticides. High raw materials and labour costs force the domestic producers to import pesticides and commodities from India. The most competitive goods from India are deltamethrin, insecticides, mancozeb, fungicides and such raw materials as pyridine and permethrin. However, China buys less than India and is unlikely to increase import volumes further.

Modern market situation and environmental protection rules dictate to the producers corresponding conditions. Thus, for the production of quality pesticides companies crucially need integrated technology to produce quality pesticides.

A favourable factor to consider is that the Chinese manufacturers synthesise pesticides from the stage of processing of ample raw materials. Compared to the production of electronics, garment and toy industries, which are sensitive to the cost and price of products, the pesticide industry is in a more advantageous position that provides an opportunity for the development of the industry in the future.

As for the safety of pesticides, while maintaining their effectiveness, it is advisable to reduce the dosage to the active ingredient. In addition, the CCPIA offers to train farmers on how to use the pesticides and implement customised recruitment programs on the usage of pesticides by types of agricultural crops and in accordance with the size of farms. Farmers need to be convinced that 85% level of pesticide effectiveness may provide high productivity. Such strategies will inevitably affect the development and strengthening of pesticide production in China.