2015 is the last year of 12th Five Year Plan (FYP), lots of discussion about 13th FYP have been conducted recently. During 15th National Pesticide Communication Conference, Mr. Cao Chengyu, the vice secretary-general of the China Pesticide Industry Association shared the results of 12th FYP.
To improve the pesticide industry concentration and industry upgrade, the 12th FYP encourage to building large-scale pesticide group through merger and acquisition, and stock reform. It aimed to build 2-3 international enterprise with over 100 billion sales revenue by 2015. Mr. Cao introduced that though obvious achievement has been get but the total task cannot be completed.
Review of 12th FYP achievement and shortcomings.
1. Main achievements
2. Comparison of 12th FYP target and current status
The red parts mean those have not achieved the target. The results turn to be not ideal, the development of large-scale or super pesticide manufacturer is moving slowly. Also, for the development of R&D capacity, creativity ability, and manufacturing process optimization are all unqualified according to 12th FYP requirement.
Mr. Cao summarized key problems that Chinese pesticide industry is suffering.
The main problems lie on disadvantage in competitiveness, creativity and technical skills, product structure and manufacturing process.
Pesticide manufacture demands large power in product development, only those large scale manufacturers are able to lead the industry. Currently, the top 10 domestic pesticide manufacturers only account for 10% of domestic market share, and the top 20 account for 15.6%. However, the top 6 international enterprises account for 76.5% of global market share. The domestic market demands urgently for more large–scale or super-scale enterprises. Chinese enterprise always pay little attention on product development and only invest less than 1%, while those foreign creative pesticide manufacturers would put more than 10% sales revenue into product research. Due to lacking of creativity, large percentage of products is homogenous with few special fungicides, and development of pesticide adjuvant is also quite backward.
Even through the 12th FYP has not been completed by 2015; the 13th FYP would carry on completing the rest task.
