A double digit decrease in exportation figures and a muted performance from China’s domestic market have reduced the profits of Chinese agrochemical producers;
The full chain agronomic services offered by multinationals and domestic distributors have forced the traditional middleman out of the supply chain equation;
Rising costs of compliance with China’s EHS regulations has transmitted to the agrochemical industry;
Domestic products saw reduced or flat prices while imported products achieved 10 to 20 percentage growth;
In 2015, China produced 1.33 million tons of pesticide active ingredients, down from 1.49 tons in 2014. Exportation fell by more than 10% in both volume and value terms. Influenced by complex factors including weather, regulatory policies and changing distribution channels, the domestic usage was slightly lower than expectation at 0.3 million tons, causing Chinese producers to feel the pinch of higher fuel and labor costs.
Production and International Trade
The largest percentage reduction occurred in herbicide and insecticide categories, decreasing the total production by about 11.7% compared to 2014, representing a 4-year low.
Table1- Chinese Pesticide Production in 2015 (a.i., 000 tons)
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