Agricultural Pesticides in China

• Publication date: May 2012
• Report size: 180 pages

Formulated pesticide demand in China to reach 2.3 million metric tons in 2015 Demand for formulated pesticides in the agricultural market in China is forecast to rise 5.3 percent per annum to 2.3 million metric tons in 2015. In value terms, formulated pesticide demand is expected to rise 7.1 percent per year to ¥60 billion. Market gains will be primarily driven by increases in agricultural production as measured by the total area ...

Formulated pesticide demand in China to reach 2.3 million metric tons in 2015

Demand for formulated pesticides in the agricultural market in China is forecast to rise 5.3 percent per annum to 2.3 million metric tons in 2015. In value terms, formulated pesticide demand is expected to rise 7.1 percent per year to ¥60 billion. Market gains will be primarily driven by increases in agricultural production as measured by the total area of sown land, and ongoing expansions in the production of fruits and vegetables, which are by far the most intensive users of pesticides relative to most other crops. Improvements in pesticide variety and quality, especially those that result from a domestic industry that is becoming technically more proficient, will stimulate additional pesticide usage and further contribute to demand growth. Farmers will continue to see steadily increasing income, the result of rising crop prices and government subsidies designed to supplement their revenues and reduce their material costs. Subsidies aimed directly at cutting the cost of pesticides will encourage additional use. Furthermore, increased pesticide usage has become more feasible from an investment standpoint, as use of additional pesticides can greatly increase crop yield, which in turn bolsters farmers’ income. The improved revenues attributable to higher crop prices more than compensate for the cost of the pesticides. The outlook for the Chinese formulated pesticide industry remains good. Shipments are expected to grow 5.2 percent annually and net exports are forecast to rise to 717,000 metric tons, due to the competitive price of domestic products and improvements in their quality.

Insecticides to remain largest market, fungicides to grow fastest

Insecticides will remain the largest product type through 2015 despite a relatively slow growth rate of 3.7 percent per year. Established products will continue to dominate the market going forward while the trend toward using less-toxic insecticides will contribute to the slow rate of growth. Herbicides will see strong growth in both shipments and demand through 2015, driven by a decrease in farming manpower and growth in export markets. Fungicides will post the fastest growth as farmers contend with resilient fungal problems. Pesticide active ingredient sales will advance 4.8 percent annually through 2015 to 765,000 metric tons. By weight, active ingredients comprised 26 percent of formulated pesticide shipments in 2010. Growth will be stimulated mainly by increasing exports of pesticide active ingredients, while heightened domestic production of formulated pesticides will further boost demand.

Northwest to be fastest growing regional market

The size, growth and composition of pesticide demand in China’s six regions vary considerably. The Central-East and Central-South will remain the two largest regional pesticide markets, together accounting for 70 percent of total demand in 2015. Demand in these regions will be driven by increasing output of high value crops. Growth in sales of pesticides in the Northwest will outpace that of other regions through 2015, benefiting from the Great Western Development Strategy.

Study coverage

The study presents historical demand data (2000, 2005 and 2010) plus forecasts for 2015 and 2020 for formulated pesticides and active ingredients, as well as demand by region. In addition, this study considers market environment factors, evaluates company market share and profiles 32 industry competitors, including Bayer CropScience, Jiangsu Kwin Group, Shenzhen Noposion Agrochemicals, Sinochem and Syngenta.

Pesticide Industry in China

TABLE OF CONTENTS

INTRODUCTION viii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
Economic Overview 4
Recent Economic Performance 5
Economic Outlook 7
Demographic Overview 11
Currency Exchange Rates 15
Agricultural Sector Outlook 18
Sown Land Outlook 20
Crop Output 22
Agricultural Value Added 23
Crop Prices 25
Government Subsidies 27
Rural Residents’ Income & Expenditures 29
Policies & Regulations 30
Product Registration 32
Technological Developments 33
The Twelfth Five-Year Plan 34
World Overview 36

III. FORMULATED PESTICIDES 43

General 43
Foreign Trade 46
Imports 47
Exports 50
Formulated Insecticides 53
Supply & Demand 53
Demand by Crop 55
Formulated Herbicides 56
Supply & Demand 57
Demand by Crop 58
Formulated Fungicides 59
Supply & Demand 60
Demand by Crop 62
Other Formulated Pesticides 63
Supply & Demand 64
Demand by Crop 65

IV. PESTICIDE ACTIVE INGREDIENTS 67

General 67
Pricing Trends 69
Foreign Trade 71
Imports 72
Exports 74
Insecticide Active Ingredients 76
Supply & Demand 76
Demand by Class 77
Herbicide Active Ingredients 79
Supply & Demand 79
Demand by Class 81
Fungicide Active Ingredients 82
Supply & Demand 83
Demand by Class 84
Other Pesticide Active Ingredients 85
Supply & Demand 86
Demand by Class 87
Plant Growth Regulators 87
Rodenticides 88
Biopesticides 89
All Other 90

V. REGIONAL TRENDS 93

General 93
Regional Demographic & Economic Trends 95
Population Patterns 96
Economic Outlook 97
Regional Crop Production 99
Regional Sown Land 101
Regional Demand for Pesticides 102
Central-North 104
Overview 104
Formulated Pesticide Demand 106
Northeast 107
Overview 107
Formulated Pesticide Demand 109
Central-East 111
Overview 111
Formulated Pesticide Demand 113
Central-South 114
Overview 114
Formulated Pesticide Demand 116
Southwest 118
Overview 118
Formulated Pesticide Demand 119
Northwest 120
Overview 120
Formulated Pesticide Demand 122

VI. INDUSTRY STRUCTURE 124

General 124
Industry Composition 124
Market Share 129
Formulated Pesticides 129
Pesticide Active Ingredients 131
Marketing & Distribution 134
Foreign Participation in China 135
Legal & Regulatory Issues 135
Joint Ventures 137
Wholly Owned Foreign Enterprises 139
Representative Offices 140
Company Profiles 141
Aestar Zhongshan Company Limited 142
Anhui Huaxing Chemical Industry Company Limited 143
Bayer AG 144
Dalian Regar Pesticides Company Limited 147
Dow Chemical Company 148
DuPont (EI) de Nemours 150
Hangzhou Qingfeng Agro-chemical Company Limited 152
Hebei Kaidi Agrochemical Enterprises Group 153
Hebei Veyong Bio-Chemical Company Limited 154
Hunan Haili Chemical Industry Company Limited 155
Jiangsu Changlong Chemicals Company Limited 156
Jiangsu Changqing Agrochemical Company Limited 157
Jiangsu Fengshan Group Company Limited 158
Jiangsu Huifeng Agrochemical Company Limited 160
Jiangsu Kwin Group Company Limited 161
Jiangsu Suhua Group Company Limited 162
Lianhe Chemical Technology Company Limited 163
Nanjing Redsun Company Limited 164
Nantong Jiangshan Agrochemical & Chemical
Company Limited 165
Qingdao Hailir Pesticide & Chemicals Company Limited 166
Shandong Dacheng Pesticide Company Limited 167
Shandong Huayang Technology Company Limited 168
Shandong Qiaochang Chemical Company Limited 169
Shenzhen Noposion Agrochemicals Company Limited 170
Sinochem International Company Limited 171
Syngenta AG 173
Zhejiang Jinfanda Biochemical Company Limited 175
Zhejiang Linghua Chemicals Group Company Limited 176
Zhejiang Qianjiang Biochemical Company Limited 177
Zhejiang Shenghua Biok Biology Company Limited 178
Zhejiang Wynca Chemical Industry Group
Company Limited 179
Zhengbang Group Company Limited 180

LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 Gross Domestic Product in China 11
2 Population of China 14
3 Currency Exchange Rates, 2000-2010 17
4 Sown Land in China by Crop 21
5 Selected Crop Output in China 23
6 Agricultural Value Added in China 25
7 Crop Prices in China, 2000-2010 27
8 Rural Resident Income & Expenditures, 2000-2010 30

SECTION III -- FORMULATED PESTICIDES

1 Formulated Pesticide Supply & Demand in China by Type 45
2 Chinese Foreign Trade in Pesticides 47
3 Chinese Formulated Pesticide Imports by Type & Source,
2007-2010 48
4 Chinese Formulated Pesticide Exports by Type & Destination,
2007-2010 51
5 Formulated Insecticide Supply & Demand in China 54
6 Formulated Insecticide Demand in China by Crop 56
7 Formulated Herbicide Supply & Demand in China 58
8 Formulated Herbicide Demand in China by Crop 59
9 Formulated Fungicide Supply & Demand in China 61
10 Formulated Fungicide Demand in China by Crop 63
11 Other Formulated Pesticide Supply & Demand in China 65
12 Other Formulated Pesticide Demand in China by Crop 66

SECTION IV -- PESTICIDE ACTIVE INGREDIENTS

1 Pesticide Active Ingredient Demand in China by Type 68
2 Selected Pesticide Active Ingredient Pricing in China 71
3 Chinese Foreign Trade in Pesticide Active Ingredients 72
4 Chinese Pesticide Active Ingredient Imports by Type 73
5 Chinese Pesticide Active Ingredient Exports by Type 75
6 Insecticide Active Ingredient Supply & Demand in China 77
7 Insecticide Active Ingredient Demand in China by Class 79
8 Herbicide Active Ingredient Supply & Demand in China 80
9 Herbicide Active Ingredient Demand in China by Class 82
10 Fungicide Active Ingredient Supply & Demand in China 84
11 Fungicide Active Ingredient Demand in China by Class 85
12 Other Pesticide Active Ingredient Supply & Demand in China 86
13 Other Pesticide Active Ingredient Demand in China by Class 87

SECTION V -- REGIONAL TRENDS

1 Population of China by Region 97
2 Gross Domestic Product of China by Region 99
3 Crop Output in China by Region 100
4 Sown Land in China by Region 102
5 Formulated Pesticide Demand in China by Region 103
6 Central-North Region of China: Formulated Pesticide Demand 107
7 Northeast Region of China: Formulated Pesticide Demand 111
8 Central-East Region of China: Formulated Pesticide Demand 114
9 Central-South Region of China: Formulated Pesticide Demand 117
10 Southwest Region of China: Formulated Pesticide Demand 120
11 Northwest Region of China: Formulated Pesticide Demand 123

SECTION VI -- INDUSTRY STRUCTURE

1 Formulated Pesticide Sales in China by Company, 2010 127
2 Pesticide Active Ingredient Sales in China by Company, 2010 128

LIST OF CHARTS

SECTION II -- MARKET ENVIRONMENT
1 Population of China by Age, 2000-2020 15
2 Chinese Currency Exchange Rates, 2000-2010 18
SECTION III -- FORMULATED PESTICIDES
1 Formulated Pesticide Demand in China by Type, 2010 46
2 Chinese Formulated Pesticide Imports by Type, 2010 49
3 Chinese Formulated Pesticide Imports by Source, 2010 49
4 Chinese Formulated Pesticide Exports by Type, 2010 52
5 Chinese Formulated Pesticide Exports by Destination, 2010 52
SECTION IV -- PESTICIDE ACTIVE INGREDIENTS
1 Pesticide Active Ingredient Demand in China by Type, 2010 69
2 Chinese Pesticide Active Ingredient Imports by Type, 2010 74
3 Chinese Pesticide Active Ingredient Exports by Type, 2010 75
SECTION V -- REGIONAL TRENDS
1 Pesticide Demand in China by Region, 2010 104
2 Central-North Region of China 106
3 Northeast Region of China 109
4 Central-East Region of China 112
5 Central-South Region of China 115
6 Southwest Region of China 119
7 Northwest Region of China 122
SECTION VI -- INDUSTRY STRUCTURE
1 Formulated Pesticide Market Share in China
by Company, 2010 129
2 Pesticide Active Ingredient Market Share in China
by Company, 2010 132