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Agrow China Pesticides Industry Report 2013

  • September 2013
  • 174 pages
  • Agrow
Report ID: 3387413


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Companies, Trade, Registration, Legislation, Packaging and New Innovations (Biopesticides and GM Crops).

China is a vast country, and it is home to an equally vast pesticide industry.

Over the past two decades, annual pesticide usage in China has been between 250,000 tonnes and 300,000 tonnes. While there has not been any significant increase in usage, production has maintained a huge level of growth. Annual agrochemical production in China during 2012 exceeded 3 million'tonnes?for the first time, reaching over 3.5 million'tonnes, with very robust growth of nearly 20% on the previous year.

The figures in this report show that China is a global pesticide manufacturing powerhouse. A large proportion of the pesticides manufactured in China are used elsewhere in the world; half of China’s domestically manufactured pesticides are exported. Export volumes in 2012 were 1.6 million'tonnes, some 45.1% of total output.

Equally large in scale is the sheer number of pesticide companies operating in the country, with over 2,000 individual enterprises. This large number is the main roadblock to modernization for the industry, and China’s leaders hope that its proliferation of small-scale, “embarrassing” companies, which engage in the low-quality production of pesticide active ingredients already in oversupply, will fall by the wayside, and quickly.

New industry policies stipulate that by 2015, the number of pesticide companies in China should have been reduced by 30%, while the top 20 Chinese pesticide manufacturers should account for at least 50% of annual pesticide sales. These targets may prove tough to attain given the diversity of the industry at present, but increased M&A activity over recent years, not least by the state-owned corporations, ChemChina and Sinochem, has at least shown that China is making moves in the right direction. Comparisons are also made in the report with the pesticides sector in Taiwan.

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