The Future of Pesticide in China 2009-2015

CCM Data & Primary Intelligence The Future of Pesticide in China 2009~2015 The Second Edition

Researched & Prepared by:

Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China

Oct. 2008

Copyright by Guangzhou CCM Information Science and Technology Co., Ltd (P. R. China) Any publication, distribution or copying of the content in this report is prohibited.

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Website: http://www.cnchemicals.com Tel: +86-20-3761 6606

Email: econtact@cnchemicals.com Fax: +86-20-3761 6968

CCM Data & Primary Intelligence Description: Every year, because of pesticide, over billions of hectares of crops are protected against insect pests and diseases in the world. The sales value of pesticide has exceeded USD 30 billion in the world since 2005.

China has become one of the pesticide production centers in the world, with over 2,000 pesticide manufacturers, including 500 pesticide technical manufacturers, and about 1,500 formulation manufacturers and 1,731,000 tonnes pesticide technicals in 2007, with CAGR 14.94% from 2003-2007.

Chinese pesticide structure is becoming more reasonable. In 2008, Chinese government issue some status including reducing export rebate of pesticide, establishing stricter standard of waste treatment etc. Proportion of insecticide, fungicide and herbicide by volume reached 34.80%, 32.50% and 7.90% in 2007, while they were 76.40%, 13.00% and 9.50% in 1994. This change resulted from gradual loss of Chinese pesticide advantages like low cost of labor force and waste treatment.

China is also a large pesticide consumption country. Amount of pesticide technical consumption in China reached 517,762 tonnes in 2007, with CAGR 16.30% from 2003-2007, according to CCM’s investigation.

In this report, you will⎫ get the answers of the following questions: What was the production situation of pesticide, including insecticide, herbicide, fungicide and others, by volume and output value from 2003 to 2007?

What’s SWOT analysis of the top ten pesticide manufacturers in China?

How was consumption situation of pesticide in China by crops and regions from 2003 to 2007?

What's the situation of pesticide export & import 2003-2007?

What will the situation of pesticide production and demand be from 2009 to 2015?

What's the current status of Chinese pesticide industry?

How will Chinese pesticide manufacturers do to adapt the change of Chinese pesticide structure?

Main content: No.

Content

Page

Executive Summary

12

Introduction and Methodology

26

I

Brief Introduction to China’s Pesticide Industry

28

I-1

Classification and Major Products of Pesticide in China

28

I-2

Development History of Chinese Pesticide Industry

31

II

Factors Influencing Pesticide Industry

32

II-1

Governmental Policies

32

II-1.1

Brief Introduction to the Major Regulations

33

II-1.2

Introduction to the Standards in Pesticide Industry

36

II-1.3

Introduction to Environmental Policies

38

II-1.4

11th Five-Year (2006~2010) Plan of Pesticide Industry

41

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CCM Data & Primary Intelligence II-2

Crop Plant Situation

42

II-2.1

Planting Area of Crops

42

II-2.2

Situation of Genetically Modified Crops

43

II-2.3

Situation of Non-Tillage Crops

45

II-3

Plant Diseases and Pests

46

II-4

Characteristics of Pesticide Users

48

II-5

Macro Economic Environment

48

II-5.1

GDP and Per-Capita GDP

48

II-5.2

International Trade

50

III

Pesticide Industry Overview in China

53

III-1

Characteristics of China’s Pesticide Industry

53

III-2

Production Situation of Chinese Pesticide Industry

54

III-2.1

Summary of Production of Chinese Pesticide Industry

54

III-2.2

Summary of Pesticide Manufacturers in China

57

III-2.3

SWOT Analysis of Top 10 Producers

61

III-2.4

Characteristics of Pesticide Species in China

64

III-2.5

About Characteristics of China’s Pesticide Formulation

64

III-2.6

Other Findings

66

III-3

Consumption of Pesticide in China

67

III-3.1

Overview of Consumption Situation

67

III-3.2

Consumption Situation of Pesticide by Crop

69

III-3.2.1

Consumption of Insecticide

71

III-3.2.2

Consumption of Herbicide

72

III-3.2.3

Consumption of Fungicide

73

III-3.3

Consumption Situation of Pesticide by Region

74

III-4

Brief Introduction to the Distribution Channel of Pesticide in China

75

III-4.1

General Situation

75

III-4.2

Marketing Pattern of China’s Pesticide Manufacturers

76

III-5

Introduction to the Import and Export Situation of Pesticide in Recent Years

78

III-5.1

Export situation

78

III-5.2

Import situation

81

III-6

Cutting Edge Technology of Pesticide in China

83

III-6.1

Optimizing Process and Equipment

83

III-6.2

Adjuvant Technology

83

III-7

Growing Points and Hot Spots in China

84

III-8

Competitiveness of Chinese Pesticide Industry

84

IV

Brief Introduction to Major Pesticides in China

86

IV -1

Insecticide

86

IV -1.1

DDVP

87

IV -1.2

Acephate

92

IV -1.3

Trichlorfon

98

IV -1.4

Chlorpyrifos

103

IV -1.5

Dimethoate

109

IV -1.6

Imidacloprid

114

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CCM Data & Primary Intelligence IV -1.7

Beta-cypermethrin

119

IV -1.8

Phoxim

125

IV -1.9

Abamectin

131

IV -1.10

Others, Including Endosulfan, Phosalone, Malathion, DDT

137

IV-2

Herbicide

140

IV-2.1

Glyphosate

142

IV-2.2

Acetochlor

150

IV-2.3

Paraquat

156

IV-2.4

Butachlor

162

IV-2.5

Atrazine

167

IV-2.6

Nicosulfuron

173

IV-2.7

Others, Including Alachlor, Metolachlor, Quizalofop-P-ethyl, Glufosinate-ammonium

178

IV-3

Fungicide

180

IV-3.1

Mancozeb

180

IV-3.2

Carbendazim

186

IV-3.3

Chlorothalonil

191

IV-3.4

Thiophanate Methyl

196

IV-3.5

Triadimefon

201

IV-4

Others

205

IV-4.1

Ethephon

205

IV-4.2

Paclobutrazol

210

V

Future Forecast

215

V-1

Key Factors and Driven Forces for the Development of Pesticide Industry in China

215

V-2

Future Forecast on Pesticide Industry to 2015

218

VI

Conclusion, Recommendation, and Opportunities

227

VII

Appendix

229

VII-1

Profile of Major Pesticide Producers in China

229

VII-1-01

Hebei Xinfeng Pesticide & Chemical Stock Co. Ltd.

229

‌

‌

VII-1-33

Shandong Binnong Technology Co., Ltd.

0 277

Executive summary: (Note: The following summary is based on the situation in 2008 and maybe different to what it is nowadays. Please be noted.)

Every year, because of pesticide, over billions of hectares of crops are protected against insect pests and diseases in the world, which shows the importance of pesticide and pesticide industry to the world.

The sales value of pesticide has exceeded xx billion USD all the world since 2005.

China has become one of the pesticide production centers of in the world, with over xxxx pesticide manufacturers, including 500 pesticide technical manufacturers, and about xxxx formulation manufacturers.

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CCM Data & Primary Intelligence Chinese government is taking measures to adjust its pesticide structure to follow the world pesticide development trend. Before 2000, China’s insecticide volume constituted over xx% of total pesticide. In 2007, insecticide’s share has dropped to xx%, and the shares of herbicide and fungicide are xx% and xx% respectively.

CCM predicts that output of insecticide, fungicide, herbicide in 2008 will be about xxxx tonnes, xxxx tonnes and xxxx tonnes. The insecticide output in 2008 will decrease with the withdrawal of five highly toxic insecticides, though they still existed in China’s pesticide market in 2007, and strict standard of waste discharge. Output of herbicide will increase because of robust demand both at home and abroad, and that of fungicide will change little.

Organic insecticide is the largest category among all the insecticide categories. It accounts for over 95% of the total output in China. Organophosphorus insecticide is key species. In addition, biological insecticide has developed fast, with growth rate of xx% in 2007, compared with that in 2006. However, its application is not wide because of its high price and slow effect.

With economy developing, fewer peasants, especially young people from rural areas, are engaged in agriculture. Peasants’ moving into cities has increased by xx million from 2003 to 2007, which results in insufficient labor force in agriculture. This situation stimulates the demand for pesticide.

Thanks to the low labour cost and prosperous economy, China has become a key supplier of global pesticide market. China ranked the largest by global trade volume and the fourth largest by global trade value in 2007. ......

(The rest content of this report is omitted.)

Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.

Sample pages：

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III-2 Production Situation of Chinese Pesticide Industry III-2.1 Summary of Production of Chinese Pesticide Industry - Capacity and Output Table III-2.1-1 Capacity and Output of Pesticide Technical in the Past Years Insecticide

Herbicide

Fungicide

Others

Total

Year Cap.(t/a)

Output(t)

Cap.(t/a)

Output(t)

Cap.(t/a)

Output(t)

1994

400,000

#######

######

######

######

######

#####

#####

#######

#######

1995

474,000

#######

######

######

######

######

######

#####

#######

#######

1996

513,000

#######

######

######

######

######

######

######

#######

#######

1997

#######

#######

#######

######

######

######

######

######

#######

#######

1998

#######

#######

#######

######

######

######

######

#####

#######

#######

1999

#######

#######

#######

######

######

######

######

#####

#######

#######

2000

#######

#######

#######

#######

######

######

######

######

#######

#######

2001

#######

#######

#######

#######

#######

######

#######

######

#########

#######

2002

#######

#######

#######

#######

#######

######

#######

######

#########

#######

2003

#######

#######

#######

#######

#######

######

#######

######

#########

#######

2004

#######

#######

#######

#######

#######

######

#######

#######

#########

#######

2005

#######

#######

#######

#######

#######

#######

#######

#######

#########

#########

2006

#######

#######

#######

#######

#######

#######

#######

#######

#########

#########

2007

#######

#######

#######

#######

#######

#######

#########

#######

#########

#########

……….

Cap.(t/a)

Output(t)

Cap.(t/a)

Output(t)

III-2.2 Summary of Pesticide Manufacturers in China Table III-2.2-2 Major Manufacturers of Insecticide in 2008, (shares by capacity) Ranking 1st

Ranking 2nd

Ranking 3rd

Others

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Acephate

Trichlorfon

Chlorpyrifos

Dimethoate

xxxxxxxxxxxxxxxxxxxxxxxxxxx

Insecticide Phoxim

Abamectin

Beta-cypermethrin

Imidacloprid

III-3.2 Consumption Situation of Pesticide by Crop Table III-3.2-1 Consumption Situation of Pesticide by Species and Crops in 2007 (Unit: tonne) Species Insecticide

Fruit

Vegetable

Corn

Cotton

Tea

Sugarcane

Rapeseed

Soybean

Rubber

Others

#####

#####

#####

#####

###

###

###

###

###

###

###

#####

########

#####

#

#####

#####

###

###

##

###

###

###

###

###

#

###

#####

#####

###

###

###

###

###

###

###

#####

Chlorpyrifos

#####

###

#####

#####

###

###

###

###

###

###

###

#####

Dimethoate

###

###

#####

###

###

###

##

###

###

###

###

###

######

###

###

#####

#####

#####

###

###

###

###

###

###

#####

##

##

##

##

#

##

###

###

###

###

###

##

###

##

###

###

###

##

#

###

###

###

###

###

############

#####

###

###

###

###

##

###

###

###

###

###

###

Glyphosate

#####

###

######

#

#####

###

###

###

###

#####

#####

#####

Acetochlor

#

###

###

###

######

#####

###

###

#####

#####

###

#####

#########

######

#####

###

###

###

###

###

###

###

###

###

#####

############

###

###

##

###

###

###

###

###

###

###

###

###

Atrazine

###

#####

#####

###

###

###

###

###

###

###

###

#####

Paraquat

###

###

#####

###

#####

#####

###

###

###

#####

#####

#####

Mancozeb

###

###

######

#####

###

#

###

###

###

###

###

#####

Carbendazim

#####

#####

#####

###

###

#

###

###

###

###

###

#####

Chlorrothalonil

#####

###

#####

###

###

#

###

###

###

###

###

##

###

#####

###

###

###

#

###

#

###

###

###

###

######

######

######

######

######

#####

###

#####

#####

#####

#####

######

######### #################

Fungicide

Wheat

DDVP

###########

Herbicide

Rice

Tria Dimefon Total

III-3.2-1 Consumption of Insecticide in China Table III-3.2-1-1 Consumption of Insecticide by Crop in 2007 (Unit: tonne) Rice

Wheat

Fruit

Vegetable

Corn

Cotton

Tea

Soybean

Others

Total

DDVP

#####

#####

#####

#####

###

#

#

#

#####

######

Acephate

#####

#####

#####

###

#

##

#

###

######

#

#####

#####

#

###

#

#

#####

#####

#####

#

#####

#####

#

#

#

#

#####

######

Dimethoate

#

#

#####

###

###

#

##

#

###

#####

Phoxim

#

#

#####

#####

#####

###

###

#

#####

#####

##

##

##

##

##

#

#

##

###

###

##

###

###

###

##

#

#

###

#####

#####

###

#

#

#

##

#

###

###

#####

######

#####

######

######

#####

#####

###

###

######

######

Trichlorfon Chlorpyrifos

Abamectin Beta-cypermethrin Imidacloprid Total

III-3.2-2 Consumption of Herbicide Table III-3.2-2-1 Consumption of Herbicide by Crop in 2007 (Unit: tonne) Rice Glyphosate

Wheat

Fruit

Corn

Cotton

Tea

Sugarcane

Rapeseed

Soybean

Rubber

Others

Total

#####

###

######

#####

###

#

###

#

#####

#####

#####

######

#

###

#

######

#####

#

#

#####

#####

#

#####

######

######

#####

#

#

#

#

#

#

#

#

#####

######

Nicosulfuron

#

#

##

###

#

#

#

#

#

#

###

###

Atrazine

#

#####

#####

#

#

#

#

#

#

#

#####

#####

Paraquat

#

#

#####

#####

#####

###

###

#

#####

#####

#####

######

######

#####

######

######

#####

###

#####

#####

#####

#####

######

######

Acetochlor Butachlor

Total

III-3.3 Consumption Situation of Pesticide by Region Table III-3.3-1 Consumption Situation of Main Species by Region in 2007 (Unit: tonne) Pesticide Region

Herbicide

Insecticide

Fungicide

Total

Henan

#####

#####

#####

######

Shandong

#####

#####

#####

######

Hebei

#####

#####

#####

######

Hunan

#####

#####

#####

######

Sichuan

#####

#####

#####

######

Guangxi

#####

#####

#####

######

Guangdong

#####

#####

#####

######

Anhui

#####

#####

#####

#####

Jiangsu

#####

#####

#####

#####

Jiangxi

#####

#####

#####

#####

Hubei

#####

#####

#####

#####

Heilongjiang

#####

#####

###

#####

Shanxi

#####

#####

#####

#####

Yunnan

#####

#####

#####

#####

Jilin

#####

#####

###

#####

Liaoning

#####

#####

###

#####

Xinjiang

#####

#####

#####

#####

Fujian

#####

#####

#####

#####

Zhejiang

#####

#####

#####

#####

Shanxi

#####

#####

###

#####

Guizhou

#####

#####

###

#####

Gansu

#####

#####

#####

#####

Inner Mongolia

#####

###

###

#####

Chongqing

#####

#####

###

#####

Hainan

###

###

###

#####

Ningxia

###

###

###

###

Tianjin

###

###

###

###

Beijing

###

###

###

###

Shanghai

###

###

###

###

Qinghai

##

##

##

###

Tibet

##

##

##

##

Total

######

######

######

#######

IV Brief Introduction to Major Pesticides in China IV-1 Insecticide Insecticides have been taking up the largest proportion of pesticide. In 2007, the ban of the 5 highly toxic insecticides has left USD######### (RMB###### million) market gap for other insecticides substitutes in the market. The capacity washed out reached #######t/a which took up ####% of the total insecticide capacity in China.

The production of insecticide in China was mainly distributed in Jiangsu, Shandong, Hunan, Hubei and Zhejiang, and the output of these regions accounted for #####% of total insecticide output in 2007.

Table IV-1-1 Classification of Insecticide Classification standard Reacting ways

Category

Main Product

################

################

###################

###############

########

###################

Mechanism of action

####################

###############

#################

###############

##################

#####################

###############

################

……….

IV-1.1 DDVP (Dichlorvos) 

Production

Figure IV-1.1-1 Capacity and Output of DDVP Technical, 2005-2008 est. ……….

With great demand, both capacity and output of DDVP technical have been increasing in recent years. In 2008, capacity of domestic DDVP amounts to ###### tonnes from only ###### tonnes in 2005.

Why did the capacity of DDVP production expand? 

Firstly, with the abolishment of the 5 highly toxic insecticides in China, coupled with DDVP’s quick effect, application of DDVP in mixed formulations is increasing, which drives the capacity expansion of DDVP.

……….

- Manufacturers Table IV-1.1-1 Key Chinese Manufacturers of DDVP Technical in 2008 Manufacturer

Capacity, t/a

Share by capacity

Hubei Sanonda Co., Ltd.

##############

######

Hebei Xinfeng Pesticide And Chemical Co., Ltd.

##############

######

#############

######

Nantong Jiangshan Agrochemical & Chemical Co. Ltd.

##############

12.00%

Total

##############

######

Shandong Dacheng Pesticide Co., Ltd.

……….

-

Specification

80% DDVP EC and 50% DDVP EC are the major specifications among all the DDVP formulations in China. ………. 

Price

Figure IV-1.1-3 Price Change of DDVP Technical, 2005-2008 est. ………. 

Technology

………. 

Consumption

In general, the supply and demand of DDVP keeps relatively balanced.

Table IV-1.1- 2 Consumption of DDVP in 2007 Rice Volume, tonne Share

………. 

Future

………

Wheat

Fruit

Vegetable

Corn

Others

Total

#####

#####

#####

#####

###

#####

######

######

######

######

#####

#####

######

#######