Preliminary Ideas on Pesticide during 2006-2010


Present status


Both the state and enterprises have increased inputs in the
pesticide industry since the 1990s and the pesticide industry
in China has made a considerable development. The output of
pesticides in China can basically meet the needs in the
agricultural production and there is also a considerable amount
for export. Since 1994 the export of pesticides has exceeded the
import in both amount and value and presented a trend of constant
rise.
   According to preliminary statistics, China has more than 2
600 pesticide producers today, more than 600 of them being
producers of pesticide technical, and owns an original asset
value of RMB36.2 billion.
   The capacity of pesticides in China is 900 000 t/a today and
the output was 869 600 tons in 2004. More than 300 varieties can
be produced and more than 250 varieties are in normal production.
   The sales revenue of pesticides in China was RMB46.89 billion
in 2004 and a profit of RMB1.92 billion was achieved.
   The import amount of pesticides in China was 28 000 tons in
2004 and the import value was US$150 million. The export amount
was 392 000 tons and the export value was US$1.19 billion.
   With the deep-going reform and opening up, the organizational
structure in the production and research of the pesticide sector
has made a great change. Some comprehensive enterprises mainly
engaged in the pesticide production and also undertaking
diversified operations such as Fujian Sannong Group Co., Ltd.,
Jiangsu Chemical & Pesticide Group Corp., Jiangsu Nantong
Jiangshan Agrochemical & Chemicals Limited Liability Co.,
Shandong Dacheng Chemical Group Co., Ltd., Zhejiang Xinan
Chemical Group Co., Ltd. and Nanjing Redsun Group Corp. have
emerged. There are also enterprises with science and technology
as the lead such as Hunan Haili Chemical Industry Co., Ltd.,
Dalian Kaifei Chemical Co., Ltd. and Mianyang Lier Chemical
Industry Co., Ltd. Mingda Co., Ltd. under ChemChina has started
to purchase some state-owned or state controlled companies (such
as Hubei Sanonda Co., Ltd. and Jiamusi Heilong Pesticide &
Chemical Co., Ltd.) in 2005 and established China Agrochemical
Group. All these changes will stimulate producers in China to
develop large-scale production and build up great strength.
   In more than 600 pesticide technical producers, most of them
are concentrated in 5 coastal provinces including Jiangsu,
Shandong, Zhejiang, Hebei and Liaoning. The pesticide
production in Henan has also made a rapid development in recent
years. Pesticide technical producers in these regions account
for more than 70% of the national total number of pesticide
technical producers.
   In spite of the outstanding achievements made by the
pesticide sector in China, there is still a big gap in the overall
strength including research and development ability, economic
strength and technical level compared with advanced countries.


Market demand


The export of pesticides has always exceeded the import since
1994 and a considerable growth was made in 2004. The export
amount already accounts for 45.3% of the output. The domestic
consumption of pesticides was 505 600 tons in 2004. The
consumption is based on the output data provided by the State
Statistical Bureau. The output data may include the output of
formulations. The actual consumption of pesticides as modified
by experts from relevant departments was 260 000-280 000 tons
in 2004. Insecticides accounted for 55%, fungicides accounted
for 10% and herbicides accounted for 15%.
   Major consumption markets of pesticides in China include rice,
cotton, corn, fruits and vegetables.
   Due to various factors, the cultivated area and the sown area
in China are gradually reducing and the sown area of grain crops
in particular has made a considerable drop. China is a country
with a great population. For the sake of grain safety, the grain
sown area will be basically maintained stable. The sown area of
vegetables, fruits, flowers and fodder crops will have a
considerable increase. The demand of pesticides for fruits and
vegetables will therefore be promoted. With the development of
rural economy, especially the development of central and western
regions, the demand of dry field herbicides will have a drastic
increase. The rice planting technology in China is undergoing
a change. With the dissemination of light cultivation technology,
the consumption distribution of paddy field herbicides will also
have some change. Owing to the development of rural economy and
the improvement of technologies for the control of pests,
diseases and weeds, the growth of the area with the control of
pests, diseases and weeds will be higher than the growth of the
area with the occurrence of pests, diseases and weeds. With the
increase of pesticide varieties with high effect and super high
effect and the restriction on organophosphorus pesticides with
high toxicity, the application amount per unit area will be less
than today. Along with the increase of the area with the control
of pests, diseases and weeds, the total demand of pesticides will
also have an increase. It is expected that the demand of
pesticide technical in China will reach 300 000-330 000 tons in
2010.


Ideas on pesticide
sector during the
Eleventh Five-year
Plan Period
(2006-2010)


According to the present status and the development trend of the
pesticide industry in China and in view of the market demand of
pesticides in both domestic and overseas markets, the major task
of the pesticide industry in China during the Eleventh Five-year
Plan period (2006-2010) is to continue to conduct readjustments
to industrial distribution and product distribution, strength
research forces, construct labs conforming to GLP (Good
Laboratory Practice) standards, upgrade overall technical level
and enhance competitive edge in enterprises.


     (1) Readjust industrial distribution and product
distribution


Efforts will be made to further carry out restructuring,
encourage other sectors and departments to enter the pesticide
industry and welcome the investment of various forms of capital
into the pesticide industry through capital injection, equity
holding and merging to jointly develop the pesticide industry.
During the Eleventh Five-year Plan period, several large
enterprise groups with an asset value of RMB5.0- 10.0 billion
and a sales revenue of over RMB5.0 billion and a group of medium
enterprises with considerable economic and technological
strength will be established in the pesticide sector. Large and
medium enterprises will become the key force in the pesticide
industry in China.
   According to the readjustment to the sown area of main crops,
the development of the farming system and the need in export,
it is proper to maintain the capacity of pesticides in China at
850 000-900 000 t/a, the proportion of insecticides, fungicides
and herbicides being 50%, 15% and 25%. More market demand will
be satisfied by domestic pesticides. The readjustment will be
focused on the development of new insecticides to replace
high-toxicity varieties, new herbicides for paddy fields and dry
fields and new fungicides and freshness preserving agents for
fruits and vegetables.


 &nbs