In 2013 China produced 3.19 million tons of pesticide, continuing the impressive growth the industry has witnessed over the last five years. Import volumes have also grown over the past 5 years, which have diluted profit margins for domestic interests and greatly increased competition. (See ChemLinked News Release on 13 May 2014.
Domestic interests can take some solace in the fact that the increase in exportation has heavily outweighed importation. In the early 21th century, China mainly exported glyphosate and paraquat to the overseas market, but China become the major exporter of new generics and out of some profitable generic active ingredient, which includes azoxystrobin, kresoxim-methyl, mesotrione and glufosinate, etc.
Driven by favorable exportation importation ratios, the industry has seen growth and significant increase in both revenue and investment.
Most of the investments are in novel product R&D, environmental facilities and automated production facilities Total investment in the pesticide industry has increased by 15.6%, compared to 2012’s 7.6% increase.
CCPIA’s Top 100 list of Chinese Pesticide Enterprise in FY2013
Zhejiang Wynca Chemical Industrial Croup Co. Ltd.
Shandong A&fine Agrochemicals Co.,Ltd.
Zhejiang Jinfanda Biochemical Co.,Ltd.
Zhejiang Xinnong Chemical Co.,Ltd.
Sichuan Beier Chemical Group Co.,Ltd.
Sichuan Leshan Fuhua Tongda Agrochemical Technology Co.,Ltd.
Jiangsu Flag Crop Protection Co.,Ltd.
Jiangsu Yangnong Chemical Group Co.,Ltd.
Shandong Kesai Jinong Chemical Co.,Ltd.
Nanjing Red Sun Co.,Ltd.
Zhejiang Jiahua Group Co.,Ltd.
Hubei Sanonda Co.,Ltd.
Zhejiang Heben Pesticide & Chemicals Co.,Ltd.
Shandong Weifang Rainbow Chemical Co.,Ltd.
Sichuan Guoguang Agrochemical Co.,Ltd.
Shandong Binnong Technology Co.,Ltd.
Guangdong Zhongxun Nongke Co.,Ltd.
Jiangsu Lianhua Technology Co.,Ltd.
Jiangxi Tianren Ecological Co.,ltd.
Jiangsu Nantong Jiangshan Pesticide & Chemical Co.,Ltd.
Guangxi Yiduoshou Bio-technology Co.,Ltd.
Jiangsu Huifeng Agrochemical Co.,Ltd.
Shijiazhuang Xingbai Bioengineering Co.,Ltd.
Jiangsu Changlong Agrochemical Co.,Ltd.
Jiangyin Suli Chemical Co.,Ltd.
Jingma Chemical Co.,Ltd.
Shenzhen Noposion Agrochemicals Co.,Ltd.
Shanghai DuPont Agrochemical Co.,Ltd.
Sinochem Agrochemical Co.,Ltd.
Jiangsu Yangnong Chemical Co.,Ltd.
Jiangsu Good Harvest-Weien Agrochemical Co.,Ltd.
Anhui Fengle Agrochemical Co.,Ltd.
Jiangsu Changqing Agrochemical Co.,Ltd.
Lianbao Crop Technology Co.,Ltd.
Shandong Luba Chemical Co.,Ltd.
Jiangsu Tuoqiu Agrochemicals Co.,Ltd.
Lier Chemical Co.,Ltd.
Beijing Yoloo Pesticide Co.,Ltd.
Shandong Qiaochang Chemical Co.,Ltd.
Jiangsu Suzhou FMC Plant Protection Agent Co.,Ltd.(FMC suzhou)
Jiangsu Tianrong Group Co.,Ltd.
Jiangsu Fengdeng Pesticide Co.,Ltd.
Jiangsu Sevencontinent Green Chemical Co.,Ltd.
Jiangxi Zhengbang Bio-Chemical Co.,Ltd.
Jiangsu Fengshan Group Co.,Ltd.
Shandong Zibo NAB Pesticide & Chemical Co.,Ltd.
Yongnong BioSciences Co.,Ltd.
Jiangsu Baoling chemical Co.,Ltd.
Jiangsu Rotam Chemical Co.,Ltd.
Shandong Greenfeild Pesticide Co.,Ltd.
Jiangsu Kesheng Group Co.,Ltd.
Hebei Shuangji Chemical Co.,Ltd.
Zhejiang Zhongshan Chemical Industry Group Co.,Ltd.
Xuchang Dongfang Chemical Co.,Ltd.
Syngenta (Suzhou) Crop Protection Co.,Ltd.
Zhejiang Ningbo Sinochem Chemical Product Co.,Ltd.
Zhejiang Shenghua Biok Biology Co.,Ltd.
Hangzhou Udragon Chemical Co.,Ltd.
Guangxi Tianyuan Bio-Chemical Co.,Ltd.
Henan Yingtai Agrochemical Co.,Ltd.
Shandong Vicome Greenland Chemical Co.,Ltd.
Jiangsu Luye Agrochemical Co.,Ltd.
Shanghai CAC Group
Jiangsu Jialong Chemicals Co.,Ltd.
Shandong Sino-agri Union Chemical Co.,Ltd.
Haoyang Chemical Industry Co.,Ltd.
Anhui Guangxin Agrochemical Co.,Ltd.
Rosi Chemical Co.,Ltd.
Shandong Qingdao Hansheng Biotechnology Co.,Ltd.
Anhui Jiuyi Agriculture Development Co.,Ltd.
Hunan Haili Chemical Industry Co.,Ltd.
Shaanxi Shanggezhilu BioScience Co.,Ltd.
Jiangsu Sword Agrochemicals Co.,Ltd.
Dalian Ruize Pesticide Co.,Ltd.
Syngenta (Nantong) Crop Protection Co.,Ltd.
Hunan Gofar Fine Chemical Industry Tech Co.,Ltd.
Jiangsu Agrochem Laboratory Co.,Ltd.
Zhejiang Weierda Chemical Co.,Ltd.
Hailir Pesticides & Chemicals Group Co.,Ltd.
Hebei Sannong Agrochemical Co.,Ltd.
Anhui Huaxing Chemical Industry Co.,Ltd.
Sichuan Lifeng Chemical Co.,Ltd.
Jingbo Agrochemicals Technology Co.,Ltd.
Chongqing Shurong Chemical Co.,Ltd.
Shandong Cynda Chemical Co.,Ltd.
Jiangsu Anpon Electrochemical Co.,Ltd.
Zhejiang Shenghua Biok Biology Co.,Ltd.
Hengshui Northern Pesticide & Chemical Co.,Ltd.
Shandong Huayang Pesticide Co.,Ltd.
Guangxi Antai Chemical Co.，Ltd.
Hubei Xianlong Chemical Industry Co.,Ltd.
Yifan Biotechnology Group Co.,Ltd.
Hebei Veyong Bio-Chemical Co.,Ltd.
Jiangsu Jiangu Chem Co.,Ltd.
Limin Chemical Co.,Ltd.
Shaanxi Hentian Chemical Co.,Ltd.
Qilu Pharmaceutical(Neimenggu) Co.,Ltd.
Jilin Bada Pesticide Co.,Ltd.
It is clear from the above data that larger companies perform considerably better than SMEs indicating that the government’s natural selection by regulation industry reforms are starting to show(See Agro Analysis on 8 Jul 2014). From a geographical point of view, Jiangsu, Shandong and Zhejiang were still the highest performing regions for the pesticide industry with companies from these three provinces accounting for over 68% of total sales. An interesting trend is shown in sales figures of companies from central and western regions in China which jumped by 25.1%, indicating that the industry is shifting to less developed areas.
As the largest pesticide exporting country in the world, over one third of the pesticide exported out of China was glyphosate and the highest performers in the Top 100 companies were glyphosate producers. The three largest producers, Wynca, Jinfanda and Fuhua Tongda each ranked the first, second and fourth places of the Top 100 list. The growth of Jinfanda and Fuhua Tongda even exceed 60%. Four of the Top 5 companies have product capacities in excess of over 30, 000 tons per year. The volume and value of glyphosate export have grown by 55% and 49% respectively and over 85% of the herbicide was export to North America and Latin America.
Nevertheless, glyphosate is not the only sector whose rise and decline are at the mercy of global demand. Increased exportation throughout the pesticide sector has made global market forces hugely important for the Chinese industry as a whole. Zhang Yibin, Professor of the Shanghai Pesticide Research Institute, summarized the possible benefits and impacts brought about by increased trade and influence of overseas markets and MNCs during an industrial conference held by CCPIA.As the fifth largest pesticide market in the world, China enjoyed an average growth of 10% over the past five years.
Photo taken by ChemLinked reporter Fang Lin on 6 May 2014.
Market Percentage of Crops
The data of China is sourced from NATESC
Market Percentage of Three Major Product Category
China(by Production Volume)
Over 80% of the global market is dominated by MNCs. China has become the largest pesticide producer and exporter in the world and the influence of these MNCs has a profound impacts on China’s crop protection market and pesticide industry.
Imported active ingredients introduced by the MNCs to the Chinese market have promoted diversification and update of China’s domestic industry. For example, China’s is the largest supplier of glyphosate and a major exporter of other generics such as paraquat, imidacloprid and chlorpyrifos, etc. Meanwhile, the patent or newly patent-off pesticides introduced by the MNCs have enriched the solution of Chinese growers:
Volume, Value, Patent Status of the Top 12 Imported and Exported Active Ingredients in China
MNCs of these active ingredients not only import/export Chinese pesticides, but also establish subsidiaries or contract manufacturers in China bringing with them new concepts and technologies. The GLP management on labs and environmental awareness would likely be far less developed without the influence of these MNC’s. The business activities of these MNCs have also had negative impact on the Chinese pesticide industry. Of the approximately 600 active ingredients in widespread global distribution, about 300 of them are in widespread use in China, of which 90% were developed by MNCs. If calculated by value, the percentage would be 95%. In fact, China developed only 30 new active ingredients ( see ChemLinked News Release on 25 Feb 2014), which accounted for 10% of the active ingredients utilized in China. But the total market share of these active ingredients is less than 5% and none of them has ever been exported to overseas markets by a Chinese company. The active ingredients introduced by the MNCS has somewhat inhibited the commercialization of the new pesticides developed by Chinese industry and thus has hindered innovation on a domestic front.
For more information about the active ingredients and formulation regstered in China and the manufacturing approval/license of Chinese producers, Please click here to explore our CPAD database.
Though China’s pesticide exportation statistics were robust, it should realize its disadvantaged position in the global supply chain. Most of China’s exportations were technical materials or important intermediates of some patented pesticide. Most of these chemicals generate heavy pollution during the production process. Most importations are proprietary formulations and patent pesticides. In fact on a unit per unit comparison the market value of exports in on average three times cheaper than imported pesticides.
Average Import and Export Prices of China’s Pesticide(2009-2013)
MNCs demand for product precursors is not always a positive thing for the Chinese pesticide industry and can often negatively affect China’s domestic industry. When MNC precursor demand increases it often stimulates Chinese producers to increase production capacity which often leads to overcapacity ultimately leading to devalued product. The best example of this was seen in the glyphosate industry. The closer a patent active ingredient gets to the expiry, many Chinese producers apply for pesticide registration and production licenses, etc. (see ChemLinked News Release on 9 Apr 2013).
Encouragingly, some Chinese producers are seeking to address the trade imbalance by rationalizing their product line. The exportation of pesticide formulation has seen significant grown since 2011 and the value accounted for about 40% of the total exports in 2013. Professor Zhang forecasts that “Double- digit growth of formulation exportation is expected in 2014!”