Guangzhou China Feb. 12, 2011–The domestic pesticide market was still weak in 2010, but it may have some recovery in 2011. Two main reasons will be explained as follows:
First, natural disasters happen frequently, which decrease the supply of agricultural products in the world, causing the increasing price of agricultural products. On the other hand, the framers have more incentives to produce grains, so the usage of pesticides will increase at the same time. Due to little snowfall in North China, it has suffered from serious drought-stricken causing the increasing insect pests and plant diseases, which leads to the increasing usage of pesticides.
Second, the government has paid more attention to the pesticide development; it propels the pesticide development forward by enacting policies and laws. On the other hand, CCPIA (China Crop Protection Industry Association) said that the pesticide technical producers will be more concentrated in China, and the number of pesticide technical producers will be reduced to 300 by 2015, including 5 pesticide producers with sales above USD759 million a year, 20 pesticide producers with sales above USD303 million a year and developing 2 or 3 pesticide enterprises with sales above USD1.5 billion a year. The output of the top 20 pesticide technical producers will reach 50% of total in China. There are more than 4000 pesticide producers in China now, which just can gain small profits by quick turnover, and few of them can exceed 5% of market share.
It can be estimated that reorganization and merger of pesticide enterprises will be more frequent and the pesticide market will be more healthy and orderly in 2011 in China.
Source: CCM International