the future of pesticide in china 2009 2015

CCM Data & Primary Intelligence

Website: http://www.cnchemicals.com Email: [email protected] Tel: +86-20-3761 6606 Fax: +86-20-3761 6968

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. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: [email protected]

mailto:[email protected]



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



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



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 … … 0 VII-1-33 Shandong Binnong Technology Co., Ltd. 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.



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：

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) 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 ####### ####### ####### ####### ####### ####### ######### ####### ######### #########

……….

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

Acephate Xxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxx

Xxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxx

Xxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxx



Trichlorfon Xxxxxxxxxxxxxxxxxxxx

xxxxxxxxxx







Chlorpyrifos Xxxxxxxxxxxxxxxx

xxxxxxxxxxx







Dimethoate xxxxxxxxxxxxxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxxxxxxxxxxx






Phoxim Xxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxx







Abamectin Xxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxx







Beta-cypermethrin Xxxxxxxxxxxxxxxxxxxxxxxxx








Insecticide

Imidacloprid Xxxxxxxxxxxxxxxxxxxxxxxxx








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 Rice Wheat Fruit Vegetable Corn Cotton Tea Sugarcane Rapeseed Soybean Rubber Others

Insecticide DDVP ##### ##### ##### ##### ### ### ### ### ### ### ### #####

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

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

Chlorpyrifos ##### ### ##### ##### ### ### ### ### ### ### ### #####

Dimethoate ### ### ##### ### ### ### ## ### ### ### ### ###

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

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

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

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

Herbicide Glyphosate ##### ### ###### # ##### ### ### ### ### ##### ##### #####

Acetochlor # ### ### ### ###### ##### ### ### ##### ##### ### #####

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

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

Atrazine ### ##### ##### ### ### ### ### ### ### ### ### #####

Paraquat ### ### ##### ### ##### ##### ### ### ### ##### ##### #####

Fungicide Mancozeb ### ### ###### ##### ### # ### ### ### ### ### #####

Carbendazim ##### ##### ##### ### ### # ### ### ### ### ### #####

Chlorrothalonil ##### ### ##### ### ### # ### ### ### ### ### ##

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

Trichlorfon # ##### ##### # ### # # ##### #####

Chlorpyrifos ##### # ##### ##### # # # # ##### ######

Dimethoate # # ##### ### ### # ## # ### #####

Phoxim # # ##### ##### ##### ### ### # ##### #####

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

Wheat Fruit Corn

Cotton

Tea

Sugarcane Rapeseed

Soybean

Rubber

Others Total

Glyphosate ##### ### ###### ##### ### # ### # ##### ##### ##### ######

Acetochlor # ### # ###### ##### # # ##### ##### # ##### ######

Butachlor ###### ##### # # # # # # # # ##### ######

Nicosulfuron # # ## ### # # # # # # ### ###

Atrazine # ##### ##### # # # # # # # ##### #####

Paraquat # # ##### ##### ##### ### ### # ##### ##### ##### ######

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 Category Main Product

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

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

Reacting ways

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

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

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

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

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. ############## ######

Shandong Dacheng Pesticide Co., Ltd. ############# ######

Nantong Jiangshan Agrochemical & Chemical Co. Ltd. ############## 12.00%

Total ############## ######

……….

- 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 Wheat Fruit Vegetable Corn Others Total

Volume, tonne ##### ##### ##### ##### ### ##### ######

Share ###### ###### ###### ##### ##### ###### #######

……….

Future ………

the future of pesticide in china 2009 2015

Education

consumption of pesticide

pesticide industry32

future of pesticide

export situation of

chinese pesticide industry54

pesticide industry overview

plan of pesticide industry

pesticide production