Six measures for the healthy development of China's pesticide industry

In the first five months of this year, 1.496 million tons of orthopaedic drugs were produced nationwide, an increase of 2.9% year-on-year. Among them, the growth of fungicides was the most, the output was 84,000 tons, an increase of 21.1% over the same period; the output of pesticides was 266,000 tons, an increase of 6.2% over the same period of last year; and the herbicide output was 693,000 tons, down 2.5% year-on-year.

According to the monitoring results of the national drug situation, in June, the inventory of pesticide companies nationwide increased by 69.3%. Among them, insecticide stocks increased by 118.3% month-on-month, and herbicides increased by 105.8%. Many kinds of original drugs and preparations have shown signs of falling prices and prices.

It is not difficult to see from the above two sets of data that the growth rate of the pesticide industry is gradually slowing down, and the product inventory has increased significantly. The development of the pesticide industry faces an adjustment period.

Three bottlenecks

China's pesticide industry lacks varieties with core technologies and independent intellectual property rights, and its technological innovation capability is not strong. This is the biggest bottleneck facing the development of the pesticide industry.

The revised "Environmental Protection Law" has increased the penalties for illegal discharge of pollutants. Environmental pressure will become the norm in all regions of the country in the next few years. The one-vote string of rejected environmental protection issues is getting tighter and tighter. Environmental protection issues are the second bottleneck faced by the development of the pesticide industry.

The country’s prohibition on the use of highly toxic pesticides and pesticides that are at risk of use has been increasing year by year. The quality and safety of agricultural products are the third bottleneck facing the development of the pesticide industry.

Six initiatives

Faced with the new situation in which domestic and international pesticide markets have been integrated, the following five measures will help the pesticide industry in China to break the bottleneck and get out of it.

The first is to strengthen the sense of innovation and realize the transformation and upgrading of Chinese manufacturing to China. At present, China's pesticide innovation has caught up with unprecedented opportunities for development. Enterprises and research institutes should seize the opportunity to strengthen cooperation with the support of the government to achieve the goal of development and growth. Low-level imitation has been unable to keep up with the new situation in the development of pesticides in the world. Only through innovation, the pesticide industry can become bigger and stronger.

The second is to imitate creation and enhance profitability. For a long period of time, the pattern of imitation in China's pesticide industry will not change. Therefore, companies should pay attention to the use of expired patents, increase dosage forms, and apply R&D investment. In the next five years, with the expired patents of pesticide compounds that have a considerable market share for large companies such as Bayer, BASF, DuPont, Syngenta and Dow Corning, the market share of non-proprietary pesticides will further expand, and domestic companies will only need to avoid Blindly, through technological innovation, exploring suitable process routes, through the imitation of middle school, imitation in the creation, you can win more development opportunities.

The third is to increase environmental protection, change pressure as the driving force, change the reality with actions, and transmit the positive energy of the pesticide industry to the society. The environmental verification of glyphosate points out a way out: Only companies that are highly responsible to the society can survive. Some multinational companies have expressed that companies that pass environmental protection verification have strong capabilities, more reliable product quality, and stronger social responsibility. In the future, they will strengthen cooperation with these companies.

The fourth is to strengthen cooperation between Chinese and foreign enterprises and jointly develop markets. China's pesticide industry still faces the problems of overcapacity, low yield, environmental pressure, and lack of innovation. The industry urgently needs to eliminate backward production capacity and the industrial structure is intensifying. According to statistics, the sum of assets and sales income of China's pesticide listed companies is only comparable to Sumitomo and Maxim, which are ranked seventh and eighth in the world. However, there are more than 1,800 pesticide companies in China that are mostly small, scattered, and chaotic, and have low innovation capacity. In the future, the integration of domestic pesticide companies is an inevitable trend, and cooperation with foreign companies and going abroad will be the choice of more and more domestic companies.

The fifth is to implement brand strategy and change the status of "three shortages." The development trend of the pesticide industry in China is basically consistent with the global trend, but it is too slow. It is still in the situation of using low-cost labor, low-cost raw materials, and earning low profits. Experts pointed out that in the international trade of pesticides, most of China's products do not appear as Chinese brands but are sold as "OEM." China's pesticide companies should quickly change the current situation of lack of core technology, lack of independent intellectual property rights, and lack of a global brand. In this regard, governments at all levels, industry associations at all levels, and pesticide production enterprises should work together in various ways to strengthen research on the core technologies and key technologies of pesticides, increase the added value of products, and change the status quo at the lower end of the international manufacturing chain. Brand, create famous brand, improve international market awareness.

The sixth is to vigorously develop high-efficiency, low-toxicity, low-residue, safe and environment-friendly pesticide formulations, especially to accelerate the pace of development of biological pesticides. The development of eco-friendly agriculture is inseparable from green prevention and control. Green prevention and control cannot be separated from efficient, low-toxicity, low-residue, environment-friendly pesticides. Therefore, low-toxic pesticides will become the mainstream market trend. In 2014, the national policy will be tilted toward new pesticides that are highly efficient, low-toxic, and environmentally friendly. The Ministry of Agriculture will vigorously promote demonstration subsidies for low-toxicity, low-residue pesticides this year. The biocidal agents of spinosad, pyrethrin, matrine, rotenone, ethyl allicin, and inhalantene are expected to come out of the limelight. As for the odd circle, the prospect of green ecological pesticides is promising.