Chlorpyrifos: Market Promotion Still Faced with Difficulties

By Zhang Weinong   

Export increased steadily

Chlorpyrifos is an organophosphorus insecticide developed by
Dow Chemical of the United States and already has an application
history of over 30 years. It is extensively used in farmland
crops and cash crops such as rice, wheat, corn, soybean and tea
trees and also has satisfactory control effect on underground
pests and livestock vermin. Owing to its low toxicity to man and
livestock, long effective period and broad spectrum of killing
insects, it has gained worldwide extensive applications.
   The market sales amount of chlorpyrifos has maintained a
stable growth in China in recent years. The growth is the most
rapid in Zhejiang and Jiangsu provinces. Take 40% chlorpyrifos
formulation produced by Zhejiang Xinnong Chemical Co., Ltd. for
instance, the sales amount was 42 tons and 57 tons in Zhejiang
and Jiangsu province respectively in 2003 and increased to 200
tons and 195 tons in 2005.
   More than 200 companies at home and abroad are involved in
the chlorpyrifos business in recent years. According to
statistics made by the Ministry of Agriculture, 21 domestic
producers have registered the production of chlorpyrifos
technical since 1993. One hundred and nineteen companies produce
single-component chlorpyrifos formulations and 279 companies
produce compound formulations. Major chlorpyrifos producers
today include Zhejiang Xinnong Chemical Co., Ltd., Zhejiang
Xinan Chemical Industrial Group Co., Ltd., Jiangsu Red Sun Group
Corporation, Zhejiang Dongfeng Chemical Industrial Co., Ltd.,
Jiangsu Kesheng Group, Jiangsu Baoling Chemical Co., Ltd.,
Dalian Chemphy Chemical Co., Ltd., Zhejiang Yongnong Chem. Ind.
Co., Ltd., Shandong Vicome Lunan Pesticide Co., Ltd., Anhui
Fengle Agrochemical Co., Ltd., Shandong Huayang Technology Co.,
Ltd., Anhui Huaxing Chemical Industry Co., Ltd. and Lianyungang
Liben Agrochemical Co., Ltd. The capacity in Zhejiang Xinnong
Chemical Co., Ltd. has reached 5 thousand t/a. Jiangsu Red Sun
Group Corporation has a chlorpyrifos technical capacity of 4
thousand t/a. The output of chlorpyrifos technical in China is
around 10 thousand tons a year today.
   Major foreign companies that have registered the production
and sales of chlorpyrifos in China since 2001 include Dow
AgroSciences of the United States, Agrolex Private Limited of
Singapore, Gharda Chemicals Ltd. of India and Makhteshim
Chemical Works Ltd. of Israel.
   The production technology of chlorpyrifos in China has
reached the world advanced level. Properties of products made
by local company can be compared very well with those of the
imported products. The price of imported products has therefore
reduced relatively. The price of chlorpyrifos technical
produced by Dow AgroSciences of the United States was basically
equal to that of local products in 2005.
   The export of chlorpyrifos in China has presented a rising
trend in recent years. The export amount was 5 thousand tons
(being 1 thousand tons in Zhejiang province alone) and the export
value was more than US$10 million in 2004. The export amount of
chlorpyrifos was 5.2 thousand tons in 2005 and export
destinations included mainly Chile and Costa Rica.
   Chlorpyrifos has become a substitute for pesticides with high
toxicity and a constant development has also been achieved.
Pesticides with high toxicity still hold a proportion of 25% in
the domestic market. Substitutes such as chlorpyrifos can really
occupy the domestic market only after pesticides with high
toxicity have quitted the market.

Five pesticides with high toxicity will be totally prohibited
for use and substitutes will gain huge market space.

Since January 1st, 2007, China will totally prohibit the use of
five pesticides with high toxicity including methamidophos,
parathion, methyl parathion, monocrotophos and dimecron in
agriculture. According to statistics made by China Pesticide
Industry Association, China has thirty-eight production units
in twenty-seven producers making the production of five
pesticides with high toxicity, including nineteen methamidophos
units, five parathion units, eleven methyl parathion units and
three monocrotophos units. The output of five pesticides with
high toxicity was 92 thousand tons and the sales amount was 80
thousand tons in 2005. The amount of five pesticides with high
toxicity sold in the domestic market was 49 thousand tons,
accounting for 61% of the total sales amount, and the amount for
export was 31 thousand tons.
   Methamidophos is the major variety in these five pesticides
with high toxicity. The output of methamidophos was 67 thousand
tons in 2005, accounting for 73% of the total output of
pesticides with high toxicity. Its average annual growth from
2003 to 2005 was 12.8% for capacity, 7.4% for output and 27.2%
for export amount. The consumption of methamidophos in the
domestic market is reducing constantly.
   The substitution for five pesticides with high toxicity is
making headway in China. After a comprehensive evaluation on
substitutes, experts have recommended seventeen pesticides
including chlorpyrifos, abamectin, triazophos and imidacloprid
as the first group of substitutes. The prohibition to the use
of pesticides with high toxicity has brought huge development
opportunities to these substitutes.