Deep analysis to six measures taken on the healthy development of pesticide industry in China
In the first five months of this year, the accumulative production of pesticide in China was 1.496 million tons, which increased 2.9 percents compared with the same period of last year. Among them, bactericide increased most, of which the yield was 84,000 tons, increasing 21.1 percents year-on-year; the insecticide output was 2.66 million tons, increasing 6.2 percents compared with last year; the herbicide output was 6.93 million tons, decreasing 2.5 percents compared with last year. The drug monitoring result in China showed that the national pesticide enterprise inventory in June increased 69.3 percents from the previous month. Among them, the insecticide inventory increased 118.3 percents and the herbicide inventory increased 105.8 percents. Many pesticides and preparations varieties are faced with a fall in prices and transaction volume. It can be seen from the above two groups of data that the pesticide industry growth rate in China is slowing down, the inventory is increasing obviously and pesticide industry is faced with adjustment period. In the face of the integration of international pesticide market, below six measures will help the pesticide industry in China break bottleneck and encirclement.
Firstly, strengthen the innovation consciousness and transform “made in China” to “created in China”. Currently, China’s pesticide innovation has caught up with the unprecedented development opportunity. Therefore, the enterprises and research units should seize the opportunity and strengthen the cooperation under the support of government so as to expand the development. The low level of imitation has failed to keep up with the world pesticide development. As a result, pesticide industry can only become bigger and stronger through innovation drive.
Secondly, combine the imitation and creation as well as enhance the profitability. The pesticide industry in China will not change its imitation pattern in a very long time. Therefore, pesticide manufacturers should attach great importance to the use of expired patent varieties as well as increase the investment on preparations and application development. In the future five years, with the patent expiration of pesticide compounds that occupies fairly market shares, such as Bayer, BASF, Dupont, Syngenta and other companies, the market shares of generic will further expand. As long as China’s enterprises can avoid blind adoption and explore suitable process route as well as learn from the imitation and create from imitation, they can achieve more development opportunities.
Thirdly, strengthen the environmental protection and transform the pressure to power; change the reality by action and transmit pesticide industry positive energy to the society. Glyphosate environmental protection verification has pointed out a way out: enterprises can only survive if they are highly responsible to the society. Some transnational corporations have expressed that enterprises which have passed environmental protection verification will have strong strength, reliable product quality and strong social responsibility. Therefore, in the future, they will strengthen the cooperation with these companies.
Fourthly, strengthen the cooperation of Chinese and foreign enterprises and develop market together. China’s pesticide industry is still facing over capacity, low income, big environmental pressure, lack of innovation and other problems, therefore, it is very urgent for us to eliminate outdated capacity and promote the industrial structure to develop into intensification. According to the statistics, the summation of China’s listed pesticide enterprise assets and sales revenue is only equal to Sumitomo and Maksim that respectively ranks seventh and eighth in the world. However, the existing 1800 pesticide enterprises in China mostly have small scale and are generally scattered and disordered, besides, they have very low innovation ability. In the future, it will be an inevitable trend to integrate the pesticide enterprises in China. In addition, it will be a choice for more and more domestic enterprises to cooperate with foreign companies and go out for development.
Fifthly, implement brand strategy and change “three lack” situation. The development trend of China’s pesticide industry basically coincides with the global development trend, but the speed is too slow, which still takes advantage of low labor cost and low cost of raw materials as well as earns low profit. Experts pointed out that China’s products are mostly sold in “OEM” instead of shown in China’s brand in the pesticide international trade. China’s pesticide enterprises should change the “three lack” situation of lacking core technology, lacking proprietary intellectual property rights and lacking world brand as soon as possible. Therefore, government at all levels, industry associations at all levels and pesticide production enterprises should cooperate jointly, strengthen the researches on pesticide core technology and key technology, increase the product added value, change the low-end link in the international manufacturing chain, build brand and create famous brand as well as improve the international market recognition.
Sixthly, strive to develop efficient, low toxic, less-persistent, safe and environment friendly pesticide preparations and especially speed up biopesticide development. The development of eco-friendly agriculture cannot be separated from green prevention and control, while the green prevention and control cannot be separated from efficient, low toxic and less-persistent environment friendly pesticide. Therefore, low toxic pesticide (such as abamectin insecticide) will become the market mainstream. In 2014, China’s national policy will slant on efficient, low toxic and environmental new type pesticides. The Ministry of Agriculture will vigorously promote the demonstration subsidy work of low toxic and less-persistent pesticide this year, therefore, spinosad, pyrethrins, matrine, rotenone, ethylicin and muscalure are expected to become popular in the future, besides, the market prospect of green ecological pesticide will be optimistic.