China’s Pesticide Industry Performance in 2012

China’s pesticide production increased by 19.0% to record high of some 3,549,000 tonnes in 2012 which ended December 31th, representing continued consecutive double digit growth, according to the data from National Bureau of Statistics of China.

Herbicides, the largest category, were considered as the main growth driver, with production increased by 42.5% to 1,648,000 tonnes, equivalent to 46.4% of total production. The growth of herbicide output is driven by higher demand for commodity herbicides such as glyphosate, 2,4-D and atrazine. Insecticide production fell by 12.0% to 813,000 tonnes, making up 22.9% of total production, while fungicide production dropped 7.1% to 144,000 tonnes, accounting for only 4.1% of total production.

Among them, Jiangsu province remained China’s leading region in terms of manufacturing volume, with 966,076 tonnes (+13.4%), accounting for almost one third of national production during the period. Month-to-month, Shandong province saw the largest growth in output, up 66.5% to 745,425 tonnes in 2012.

tab1

 

According to the data released by the Chinese General Administration of Customs, pesticide import/export in 2012 is shown in table 2.

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It is shown from the table above that the imported and exported pesticide both increased in 2012. The volume of imported pesticide increased by 30.3% to 68,900 tonnes, which accounted for 1.9% of total domestic output; the value reached $592 million, increased by 21.2%, the imported average price decreased by 7.1% to $8,592.2/ton. Among them, imported insecticide price was highest, dipped by 4.1% to $ 15,070/ton; imported fungicides went up by 26.9%.

Volume of exported pesticide grew by 12.7% to 821,700 tons, the exported pesticide value increased by 18.2% to $2,860 million, and the exported average price rose by 5.0% to $3187.0/ton. The volume of exported pesticides accounts for 25.3% of the total output. Among them, exported herbicides volume grew by 19.4% to 598,700 tonnes, accounting for 66.7% of the total export, 36.3% of herbicide production. The exported herbicide value was $1,673 million; the average exported price was $3,240.4/ton, increased by 7.1%. As carbendazim exports declined nearly 50% due to the Brazil exported orange juice residue issues at the beginning of the year, fungicides exports volume and value continued to fall. The volume of exported fungicide decreased by 8.1% to 70,700 tonnes, accounting for 7.9% of the total exported volume, 49.1% of fungicide production; the exported fungicide value reached $337 million, down by 9.1%, the average exported price was $4,761.9/ton, decreased by 3.0%. The trade surplus grew up by 17.5% to $ 2,268 million.

According to the statistics of China National Bureau of Statistics, total 804 Chinese pesticide enterprises above designated size whose data were collated realized a total industrial output value of Yuan 25.4 billion in December 2012, with an increase of 37.6% on the same period last year. Sales of pesticides grew by 35.2% to Yuan 24.4 billion. Among them, output value and sales growth of biopesticides both exceeded 45%.

In the year of 2012, accumulative total industrial output value of pesticide rose by 24.4% to Yuan 244.0 billion, and sales of pesticides increased by 23.2% to Yuan 236.3 billion. Due to higher domestic demand, fast growing market overseas and higher price, the profit of pesticide industry grew by 40.0% to Yuan 17.5 billion. The industry loss fell by 28.5% to Yuan 650 million, which showed the better performance this year.

tab3

Features of the pesticide industry:

1. Production and sales both increased in the year, the output up to a new high of 3.55 million tonnes. Pesticide production fully met the demand for agricultural production.

2. Pesticide product structure further improved. Market driven substitutes of highly toxic insecticides were produced, particularly those insecticides used in rice production. Water-based and solid pesticide formulations aiming at improving efficacy and safety were increasingly.

3. The economic benefit of the industry climbed 40.0% attributed to the higher demand for agchem.

4. The role of the multinationals’ formulation products has gradually become dominant, while the sale of domestic products has been restricted to some extent.

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