National Pesticide Exchange Conference Gauges Industry Trends


Release Date:

2017-10-27

  On October 14, the 17th National Pesticide Exchange Conference opened in Shanghai, under the theme “Facing Multiple Industry Challenges and Pursuing a Path of Green Development.” The conference focused on the promulgation and implementation of new industry regulations, highlighted the transformation, upgrading, and technological innovation of China’s pesticide industry, and explored pathways for green development in the sector.

  At the thematic conference (Yangnong Forum) held on October 14, experts noted that China’s pesticide industry is steadily enhancing its innovation capacity, presenting a critical opportunity for transformation. In an era of stringent pesticide regulation, dual pressures from policy and market are driving pesticide companies toward green development. During this phase, firms should clearly define their strategic positioning, focus on both product innovation and service optimization, develop high-efficiency, low-toxicity, and environmentally friendly green pesticides, and build leading brands in niche segments.

  At the conference, Sun Shubao, President of the China Pesticide Industry Association, stated that China is a major global producer of pesticides. In recent years, the Chinese pesticide industry has shifted from imitation to innovation; however, overall, its share of the high-value-added segment remains relatively low. With the introduction this year of the new Regulations on Pesticide Administration and the increasingly stringent environmental protection policies, coupled with the ongoing transformation and upgrading of agriculture, the pesticide industry is being compelled to enhance quality and efficiency, while demands for the scientific use of agricultural chemicals are steadily rising. Against this backdrop, enterprises should identify development strategies that suit their specific circumstances and strive to become “little giants” in niche markets.

  Zeng Yande, Director-General of the Department of Crop Production under the Ministry of Agriculture and the inaugural Director of the Pesticide Administration, stated at the meeting that China is the world’s largest producer of pesticides, with more than 2,100 pesticide manufacturing enterprises currently in operation. Annual pesticide output stands at approximately 1.5 million tonnes (in active ingredient equivalent), enabling the production of over 600 active ingredients and formulated products. The proportion of insecticides, fungicides, and herbicides in total pesticide use has now approached the international average. However, current pesticide use is characterized by low precision in application and relatively underdeveloped green pest-control practices, resulting in high overall consumption of chemical pesticides.

  Zhou Puguo, Director of the Pesticide Testing Institute of the Ministry of Agriculture, frankly acknowledged that in recent years, while China’s pesticide industry has experienced rapid growth, it has also been confronted with prominent problems such as product homogenization, overcapacity, and improper pesticide use. On average, more than 50 products are registered for each pesticide active ingredient in China, with the majority of these registrations concentrated on major cash crops; many specialty minor crops still lack registered pesticides. The number of pesticide retailers has reached 370,000, yet the educational level of personnel in this sector is relatively low. Illegal addition of hidden ingredients is frequently reported, and about 15% of products still fail to meet quality standards. Overdosing and excessive application frequency are widespread, and pesticide packaging is often disposed of indiscriminately, posing a potential threat of agricultural non-point source pollution. Moreover, food safety incidents caused by the unauthorized or off-label use of pesticides continue to occur from time to time. Zhou Puguo stated: “Accelerating the development of a green pesticide industry has become an urgent task. It requires the entire sector to comprehensively leverage policy measures, scientific and technological advances, capital investment, information technology, and other tools to foster a more dynamic market environment and thereby expedite the transition toward green pesticide production.”

  Zhao Jungui, Vice Chairman and Secretary-General of the China Petroleum and Chemical Industry Federation, stated that over the past two years the agrochemical industry has experienced relatively rapid growth within the broader petrochemical sector. Looking ahead, agrochemical companies should not only focus on how to grow stronger and larger but also on how to achieve sustainable development while safeguarding the interests of the industry, thereby jointly elevating the agrochemical sector into an industry with distinct competitive advantages.