10-Year Targets for Pesticide Industry     

The Ministry of Industry and Information Technology on September 19th released the Pesticide Industry Policy which outlines the development targets of China's pesticide industry in terms of production capacity, industry layout, technological innovation and market regulation over the next decade. This is an industry policy especially designed for the agricultural related industry which has been prepared by the Chinese government for years.
   At present China is one of the world's most important pesticide producers and exporters. However, problems such as overcapacity, imbalance in industry mix, and a disordered operation environment have affected the sustainable development of the pesticide industry.
   The pesticide industry policy proposes to strictly cap the overall pesticide production capacity, with an aim to grow the industry in terms of quality rather than quantity.
   In addition, China's pesticide industry needs improvement in its layout. China aims to increase the percentage of pesticide technical manufacturers that are based in chemical parks to more than 50% by 2015 and to over 80% by 2020.
   China will vigorously encourage mergers and acquisitions among pesticide companies, increase the competitive edge in the pesticide groups, as well as establish an industry chain-based partnership. The pesticide industry will be developed into a concentrated, large scale, professional and specialty one. By 2015, the number of pesticide companies will be reduced by 30%, and sales of the top 20 domestic pesticide companies will account for more than half of the nation's total. Their proportion will rise to more than 70% by 2020.
   By 2015, all pesticide processing and packaging in China will be under automation control. And 70% of the general pesticide technical products will be produced under automation control and with large-size equipment by 2015, and the ratio will reach 90% by 2020.
   The policy also aims to improve companies' innovation capability, by optimizing the current system and mechanism and strengthening the importance of intellectual property right. In the past, innovation was driven by the government, while in the future companies will be encouraged to do itself or by combining production, schools and research institutes. The top ten pesticide companies in China will have a relatively complete innovation system and affiliated intellectual right protection management system by 2015. The R & D spending for every top ten pesticide companies will account for more than 3% of its sales revenue by 2015, and more than 6% by 2020.
   The policy also set targets in environmental protection for the pesticide industry. Discharge of the waste gas, waste water and industrial residue by the pesticide industry will be cut by 30% by 2015 and by 50% by 2020. The utilization of byproducts as resource will be increased to 30% by 2015 and to 50% by 2020. Also, the disposal rate of pesticide wastes will be lifted to 30% by 2015 and to 50% by 2020.
    It will improve market orders by expanding the market shares for brand products. The sales of pesticides with renowned brands will account for 30% of the national total by 2015 and more than 50% by 2020.
   China will also optimize its exit mechanism for pesticide companies. It will accelerate the elimination of pesticide companies that are with irrational product structure, outdated technology and equipment and poor management, as well as polluting, by raising industry entry threshold and curbing overcapacity and outdated capacity. It will improve related guidance policies and the exit compensation mechanism.
   China will give priority to the development of insecticides and nematicides which are used to kill those commonly-seen and refractory pests, soil pests, nematodes and invasive insects. Priorities will also be given to the development of herbicides that can adapt to the changes in farming system and technology, new type fungicides and virus inhibitors used in fruit trees and vegetables, as well as fungicides, seed treatment agents and environmentally-friendly fumigants used in greenhouses, urban greening, flowers and garden crops. The nation will also actively develop plant growth regulators and fruit preservatives and encourage the development of pesticides for minor crops, bio-pesticides, and new pesticide products used in non-agricultural field.
   The nation will vigorously promote the development of water-based, dust-free, controlled-release agricultural pesticide formulations, making them more efficient and safer. China will support the development, production and wide-scale use of water dispersible granules, suspension concentrates, water emulsions, micro-capsules and large granules (tablets) and other new formulations, as well as accompanying new type additives. It will lower the percentage of powder, emulsion and wettable powder, and strictly control the use of toxic and hazardous solvents and additives.
   The government will improve the regulations on pesticide imports and exports. It will raise the entry threshold for the production of pesticides for exports and tighten production permission and registration process. Companies which fail to meet environmental requirements will be barred from producing and exporting pesticides. Pesticides on the government's energy-intensive and resource-intensive list will also be barred from or restricted in imports and exports.
   China Crop Protection Industry Association officials said the policy will play a significant role in the development of China's pesticide industry over the next ten years as the pesticide industry is in a key transitional period now.