In 2015, the central government released
the No.1 Document, which affects the development of the pesticide industry.
Source: Baidu
On 1 Feb., 2015, the No.1 Document of
Several Opinions on Accelerating Reform and Innovation of Agricultural
Modernization, which was authorized by the CPC Central Committee and the State
Council, was issued by Xinhua News Agency. The Document was closely connected
to the development of pesticide industry from different aspects, including land
reform, food safety, ecological agriculture and e-commerce.
Firstly, the government is implementing
pilot programs on rural land system reform, which triggers changes to pesticide
sales models.
Consistently pushing forward pilot programs
of rural land system reform will become the direction of modern agriculture.
The essence of land transfer is to focus on market potential of land, so that
it can provide a broader opportunity for the development of large-scale, intensive
and highly efficient agriculture. Therefore, land transfer will bring
tremendous changes to pesticide manufacturers. Land transfer will change how
agricultural products are supplied and will have a profound influence on
pesticide management and pesticide circulation channels, which will further
alter the layout of pesticide industry.
With the expansion of intensive management
of rural land, the operation of pesticides will be changed and circulation
channels will become more focused and professional. In addition, pesticide
manufacturers will compete more against all-round crop solutions and
consolidated prevention and treatment of pests & diseases.
Secondly, the government attaches great
importance on improving the quality of agricultural produce and food safety,
which boosts the R&D of environmentally friendly pesticides.
The Document once again listed "the
improvement of agricultural produces quality and food safety" as top
priority. In recent years, many agricultural produces' quality and food safety
scandals were exposed. In 2014, Pesticide Residue Standards officially came
into effect, and set higher standards for pesticides industry. Therefore, the
Document highlighted the determination to safeguard food safety and the quality
of agricultural produces. This required pesticides enterprises to put greater
emphasis on developing environmentally safer pesticides.
Thirdly, the government is supporting the
development of pesticide e-commerce, which changes how pesticides are
distributed.
The Document affirms the government support
for innovating new distribution methods and systems for agricultural produce.
This provides an opportunity for the development of pesticide e-commerce and
deserves significant attention from pesticide enterprises. At present, with the
supporting policies of the government and the popularization of mobile
internet, there are increasing business relationships between large growers and
specialized cooperatives. Growers’ demand for economical and efficient
pesticides and the reduction of intermediate distribution channels by pesticide
enterprises are creating opportunities for the development of pesticide e-commerce.
Pesticide enterprises are embracing
e-commerce and are establishing e-commerce platforms. New platforms include the
Rotam E-commerce established by Jiangsu Rotam Agrochemical Co., Ltd. and
http://www.1 6899.com/, which is being developed by China Association of
Pesticide Development & Application and 5 enterprises. Other enterprises
such as Beijing Zhongbao Lunong Hi-tech Group Co., Ltd. and Jiangsu Kwin Group
Co., Ltd. have opened flagship stores on Tmall and Alibaba. Additionally,
Shenzhen Noposion Agrochemicals Co., Ltd. invested several hundred million yuan
into establishing an O2O platform for agricultural produces. Some agricultural
supplies dealers are selling pesticides from different manufacturers through
e-commerce.
Lastly, environmental regulations and
supervision have been strengthened and will focus on reducing the application
of pesticides.
This requirement is aimed at reducing
agricultural pollution. The government is supervising over the reduction of
pesticide application and this stipulation within the document complements the
Measures on the Recycling of Pesticides Package Waste.
It is worth mentioning that on 28 Jan.,
2015, the Ministry of Agriculture of the People’s Republic of China (MOA)
reviewed and passed the Action Plan for Zero Growth of Pesticides Application,
which was the first specific document on reducing the application of pesticides
by the MOA. This policy will restrain the expansion of the pesticide industry,
speed up the adjustments to the structure of the pesticide industry, accelerate
the elimination of highly toxic and high residue pesticides and encourage the
innovation of low toxic and efficient pesticides and bio-pesticides.
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