Outlook for China's Pesticide Market in 2010        

Experts predict that in 2010, China will need about 302 700 tons of active pesticide ingredients (or pesticides technical), including 129 500 tons of insecticides, 9 700 tons of acaricides, 70 700 tons of fungicides and 89 100 tons of herbicides. In the next few years, China's demand for pesticides will grow by ranging 3% and 6% annually. In 2010, in China the demand for insecticides will fall off, the demand for fungicides will generally remain steady, but the demand for herbicides will grow rapidly.

Three factors reduced demand for insecticides in China in 2010:

   1) This year's drought and cold climate reduced major pest hazards. In the first five months of the year, because south China suffered from serious drought and north China suffered from a long, cold, icy winter, major crop pests were greatly reduced, leading to a sharp drop in the demand for insecticides such as chlorpyrifos, phoxim and buprofezin. The demand for some insecticides fell by more than 40% year over year. But the demand for some insecticides increased, such as emamectin benzoate and pymetrozine. In 2010, most emamectin benzoate-based formulations produced in China have a high content. As some emamectin benzoate manufacturers expanded their production, the sale price declined, despite the growing demand. A few years ago, the rice stem borer was not a serious hazard in China. But this year, its population increased, so the demand for monosultap and triazophos rose. This year, cotton leaf mites and red spiders presented unusually serious threats, boosting the demand for abamectin, cypermethrin, bifenthrin and dicofol. As rises offset declines, China's overall demand for insecticides decreased this year.

   2) The intensified promotion and application of integrated pest control measures have reduced the demand for insecticides. Local governments actively cooperate with universities and research institutes to develop harmless technologies for the control of pests threatening wheat, corn and fruit trees. For example, in Handan county, Hebei province, in addition to wide use of minimally toxic insecticides and bio-insecticides to control wheat aphids and corn stem borers instead of highly toxic pesticides, biological pest control technologies that use insects to eliminate pests are actively promoted. This reduces the use of chemical insecticides. Jiangsu province enforces the application of integrated pest control measures, such as insect control network, pest-resistant crops and crop rotation. The professional pest control pattern gradually replaces the traditional single-family pest control pattern, further reducing the demand for insecticides.

   3) The promotion of high-efficiency, low-dosage and low-toxicity insecticides has reduced the average consumption of insecticides per hectare of farmland. This year, high-efficiency, low-persistence, low-toxicity and low-dosage insecticides are applied into more farmland than in 2009, such as emamectin benzoate, pymetrozine, nitenpyram, indoxacarb, chlorantraniliprole and flubendiamide. This reduces the demand for high-dosage insecticides, such as buprofezin, chlorpyrifos, dichlorvos, dimehypo and their formulations. As a result, China's demand for insecticides may be reduced by about 10%-15% in 2010.

   In addition, China's import of insecticides has grown rapidly in recent years. Insecticide products of multinational companies flood the Chinese insecticide market and snatch market share from domestically made insecticides.

Demand for fungicides
was steady in 2010

China's total demand for fungicides has grown for two consecutive years. Especially in 2010, the demand for some common fungicides used on fruit trees and vegetables in China will increase by more than 10% over 2009. There are two major reasons for this. First, this year's weather conditions are conducive to diseases. Second, with the adjustment of the crop planting mix in China, the occurrence of diseases tends to be aggravated.
   Moreover, the planting acreage of high-quality rice across China continues to expand. Because high-quality rice is more susceptible to diseases, this has resulted in an increase of about 10% in the demand for some fungicides, such as copper sulfate, EBDC, carbendazim and Jinggangmycin and their compound formulations. With the increased planting acreage of non-grain crops, the occurrence of diseases increased, driving up the demand for fungicides. In 2010, the demand for triadimefon, tebuconazole and mancozeb for the prevention and control of wheat stripe rust increased, and their prices have also been rising. Polyoxin has been widely used to control several diseases of non-grain crops, rice and wheat and has become a highlight among fungicides in China. As cotton fusarium wilt is aggravating year by year, it has increased the demand for fungicides. The demand for some conventional protective fungicides, such as chlorothalonil, thiram and thiophanate-methyl, has decreased slightly, but the overall demand for fungicides will remain steady and even increase slightly this year.

Sulfonylurea herbicides will have broad market prospects

The acreage of farmland that uses the chemical weed control has now reached 53 million hectares in China and grows at a rate of 2 million hectares per year. The demand has increased for some new types of highly selective grass weed herbicides, such as chlorotoluron, chlorsulfuron and tribenuron. Because of its high efficiency, low toxicity and safety, tribenuron has been widely used to control stubborn broadleaf weeds in wheat fields in China. In addition, new barnyard grass control agents developed by Chinese companies, such as molinate, benthiocarb, topiramate ethyl and bispyribac-sodium, have occupied a certain share of China's rice herbicide market. Corn farmers have an increasing demand for rimsulfuron and nicosulfuron, and rice farmers have an increasing demand for glyphosate and paraquat.
   Sulfonylurea herbicides are the second largest class of herbicides, surpassed only by amino acid herbicides (glyphosate, glufosinate, etc.). Their market grows at an annual rate of more than 2% now. Sulfonylurea herbicides have been successfully used in rice fields to control weeds. They are also used to control weeds for soybean and cereal crops.