Pesticide Demand in China Up to 2.3 Million Tons in 2015

The improvement of varieties and quality of pesticides, especially pesticides produced by more sophisticated technology, will promote the expansion of pesticide application and the growth of its demand. Due to the rise in agricultural prices and government subsidies, farmers’ income will retain a stable growth. Government subsidies reduce pesticide costs, therefore lead to a new pesticide application. In addition, from an investment, the increase in the use of pesticides has become a viable way to improve return on investment. The cost is offset by the higher prices of agricultural products, which is why there is an improvement in earnings.

 

Pesticide formulation industry has a bright future. As the competitive price of domestic products, and continuously improvement of the quality, pesticide formulations export is expected to grow at the rate of 5.2% per year, and net exports volume are expected to grow to 717,000 tons. Insectide products will remain the domain position in the market, and the fungicides’ growth rate will exceed the insecticide. Herbicides will still be the largest variety to 2015, although the relatively low growth rates to 3.7%. Existing pesticide products will continue to dominate the entire market, but the trend is to use low-toxicity insecticides, which is the reason of low growth rate of insecticides.

 

Demand and exports of herbicides will grow dramatically driven by the decline in farming labor and growing export market by 2015. As farmers have to fi ght fungal diseases with recurrent, fungicides will achieve the highest growth rate. Pesticide ai sales will achieve 4.8% annual rate to reached 765,000 tons in 2015. By volume, the ai shall account for 26% of the formulation in export volumes in 2015. Herbicide export growth will be mainly affected by the growth of pesticide ai export, and production capacity of domestic formulation product will further promote the growth of demand.

 

Northwest market will become the fastest growing market in China. In the six main regions, pesticide market scale, growth rate and the use of pesticides has their own advantages and characteristics. Middle East and south-central region will continue to maintain as the largest pesticide consumption areas, together accounted for 70% of the total pesticide demand in 2015. Pesticide demand in these two regions will be driven by expansion of economic crop cultivation, the Northwest area is benefit from the western development strategy, and pesticide sales growth rate is expected to exceed other areas.

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