Pesticide Sector Performed Well
Year:2007 ISSUE:28
COLUMN:MARKET REPORT
Click:219    DateTime:Oct.08,2007
Pesticide Sector Performed Well   

By Wang Lvxian

1  Further output growth in the first half of 2007
According to data from the National Bureau of Statistics of China, the output of pesticides (usually refening to pure pesticide technical) in China was 856 thousand tons in the first half of 2007, an increase of 25.6% over the same period of 2006. The output of insecticides was 328 thousand tons, the output of fungicides was 66 thousand tons and the output of herbicides was 285 thousand tons, an increase of 11.2%, 28.1% and 29.8% respectively. Starting from 2007 China has thoroughly prohibited the use of five high-toxicity pesticides including methamidophos in agriculture. To ensure the needs in the control of pests and diseases in the agricultural production, pesticide producers made great efforts to increase the output of high-effect, safe and environmental friendly substitutes such as imidacloprid, avermectin, acephate, triazophos, chlorpyrifos, diazinon and fipronil. The output of insecticides in the first half of 2007 accounted for 38.3% of the total pesticide output, the growth being 2.7 percentage points lower than the same period of 2006. The output of herbicides increased and its proportion in the total pesticide output reached 34.8%, the growth being 3.4 percentage points higher than the same period of 2006.
   The sampling supervision by the National Supervision Commission to the quality of pesticides was conducted to 80 varieties produced by 55 enterprises in Hebei province, Shanghai, Zhejiang, Jiangsu, Anhui, Jiangxi, Shandong, Henan, Guangdong, Hainan and Yunnan provinces. The overall rate of qualified products was 92.5% and the rate of qualified products in large and medium enterprises reached 100%.

2 Import reduction and export increase

According to data from the General Customs Administration, the import amount of pesticides in China was 24 thousand tons (physical goods, including formulations) in the first half of 2007, a drop of 9.5% from the same period of 2006. The import value was US$132 million, an increase of 2.7%. The average import price rose slightly to US$5 500 per ton. The import of fungicides had a growth of 26.2% whereas the imported amount of insecticides and herbicides reduced considerably. The imported amount of herbicides accounted for 50% of the total pesticide imported amount. The exported amount of pesticides in China was 247.3 thousand tons (physical goods, including formulations) in the first half of 2007, an increase of 12.5% over the same period of 2006. The export value was US$653 million, an increase of 14.4%. The average export price reached US$2 720 per ton. The exported amount of herbicides had a growth of 8.6% and accounted for 56.6% of the total pesticide output amount. The imported amount of pesticides was 10% of the exported amount and 2.8% of the output during the same period. The foreign trade favorable balance in the pesticide import and export was US$520 million in the first half of 2007, an increase of 17.8% over the same period of 2006. Major export destinations included North America, Southeast Asia, South America, Japan and the Middle East.

3  Brisk demand in the
second half of 2007
According to the projection made by agricultural departments, pests and diseases in crops will be serious in 2007. The pesticide production sector made great efforts to overcome difficulties in the first half of 2007. They produced and sold more pesticides with high effect, low toxicity and great safety and ensured the needs in the control of pests and diseases in the agricultural production. Agricultural departments predict that pests and diseases in crops will still be serious in the second half of 2007. The task for control of pests and diseases will be heavy and the demand for pesticides will increase. The production and sales of pesticides will maintain sound in the second half 2007. It is expected that the output of pesticides in the whole 2007 will reach 1.4 million-1.5 million tons and the production/sales ratio will be more than 95%.

Table 1  Output of Pesticides in China from  
                January to June 2007   (thousand tons)
Product          Output     Growth (%)    Proportion in total (%)
Pesticides      856     25.6    100.0
Insecticides    328     11.2    38.3
Fungicides     66      28.1    7.7
Herbicides     28.5    29.8    34.8
Source: CNCIC

Table 2  Import of Pesticides in China in 2006
Product    Import amount    Growth      Import value   Growth
            (thousand tons)      (%)     (US$ million)       (%)
Pesticides      24.0    -9.5    132    2.7
Insecticides    4.0     -22.4    32    4.0
Fungicides     6.9     26.2    4.0    18.1
Herbicides     12.0    -18.5    54    -8.1
Source: CNCIC

Table 3  Export of Pesticides in China in 2006
Product       Export    Growth    Export value    Growth
         (thousand tons)   (%)  (US$ million)   (%)
Pesticides      247.3    12.5    653     14.4
Insecticides    71.1    11.6    197     7.8
Fungicides     25.9    12.8    77      6.5
Herbicides     139.5    8.6     354     16.8
Source: CNCIC