China will give utmost support to foster domestic pesticide leading companies.
China’s Ministry of Industry and Information Technology (MIIT) lately issued the Chinese 12th Five-Year Plan on Pesticides Development, suggesting to foster two to three large-scale pesticide manufacturing enterprises with international competitive strength and capable to produce over RMB 10 billion worth sales during the period of 2011-2015.
Up to 2010, China has been home to more than 1,800 pesticide producers including some 500 crude producers. The pesticide production volume in 2010 amounted to 2.342 million tons with a turnover of RMB 157.6 billion. Still only 8 pesticide producers have achieved the annual turnover of more than RMB 1 billion and 18 pesticide enterprises successfully listed so far today. This means China’s single pesticide producer is rather weak in company scale and business volume. Besides, the market is in want of a domestic industry leader that can be paralleled with its global competitors.
The Planning will carry out industry restructure and centralization via merging, acquisition and equity cooperation to boost large-scale enterprises on one side and reduce the company number on the other side. Specifically, efforts will be made to grow above five pesticide producers with sales reaching RMB 5 billion and 20 producers with RMB 2 billion of sales. The crude produced by top 20 producers is expected to reach above 50% of the total output while the agro-oriented pesticide crude producers will arrive at 50% of the total crude producers.
The Planning also encourages industrial research and development on highly efficient, safe and environment-friendly pesticide products and herbicide varieties. Other priority new projects include biological pesticides, water-based and dust-free pesticides, and products of controllable toxic or hazardous release as well as economic and environment-friendly packages.
It targets that by 2015 highly efficient, safe, economic and environment-friendly brands will occupy over 50% of the total market share and hyper toxic brands or brands with high residues will be reduced to 3% from the current 5%.
In addition, the goal of energy conservation is established to promote special contaminant treatment technologies for the pesticide industry.
This news item was sourced with the help of Agropages.com.
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