2010 Economic Performance of China's Pesticide Industry   

By Wang Luxian  China Crop Protection Industry Association

Chinese pesticide producers managed to overcome a number of unfavorable factors such as severe natural disasters and rising raw material prices to realize good operation in 2010, ensuring stable supply to the market and safeguarding agricultural production.

1  Fresh record for pesticide output
The accumulative pesticide output in 2010 totaled 2.687 million tons, up 18.8% from a year earlier. In breakdown, insecticide output rose 6.0% to 845 000 tons, or 31.4% of total pesticide production; bactericide output fell 20.8% to 190 000 tons, or 7.1% of total; herbicide production gained 33.4% to 1.089 million tons, 40.5% of total. By region, provinces and municipalities where growth rate exceeded national average include Hebei (34.6%), Shanxi (38.9%), Heilongjiang (35.2%), Shanghai (185.4%), Jiangxi (41.5%), Shandong (68.3%), Henan (22.8%), Hubei (57.6%), Guangxi (161.8%), Shaanxi (74.7%), Xinjiang (154.8%). In addition to ensuring supply to agricultural production, the priority of the industry is to adjust product structure by increase the offering of high-efficiency, safe and environmental friendly products and new formulations.

2  Economic indicators keep rising
The industrial production value at current prices of China's pesticide industry totaled RMB164.4 billion in 2010, up 23.8% from a year earlier. Of this, the chemical pesticide technical sector contributed RMB145.41 billion, rising 23% while the bio-pesticide sector produced RMB18.99 billion, up 30.3%. The sales of the pesticide industry rose 23.4% from a year earlier to RMB158.96 billion, of which the chemical pesticide contributed RMB140.75 billion, up 22.9%, and the bio-pesticide sector contributed RMB18.21 billion, up 27.2%. The bio-pesticide sector accounted for 11.5% of the total pesticide sales, one of the highest worldwide. The sales-to-production ratio was 95.8% in December - down 5.2 percentage points from a year earlier - and 96.7% for the whole year, roughly the same as 2009. The pesticide industry posted total profit of RMB8.69 billion in the first eleven months of 2010, up 13.0% from the same period a year earlier. Profit of the bio-pesticide sector jumped 35.1% to RMB1.33 billion. In the January-November period, 140 companies lost money, an increase of 14.8% from a year earlier and representing 14.2% of all pesticide companies. These loss-making companies posted combined loss of RMB540 million, an increase of 37.8%. Among regions, the industrial production value of the following provinces exceeded that of the nation's rate of 23.8%: Innner Mongolia (31.8%), Liaoning (28.5%), Jiangxi (50.6%), Shandong (38.6%), Henan (28.2%), Hunan (33.4%), Guangxi (32.9%), Sichuan (47.9%), Shaanxi (38.2%), Qinghai (316.7%) and Xinjiang (26.1%). And the sales value at current prices of the following regions exceeded that of the nation's growth rate of 23.4%: Inner Mongolia (32.7%), Liaoning (23.8%), Jiangxi (49.3%), Shandong (35.9%), Henan (29.6%), Hunan (34.5%), Guangxi (30.1%), Sichuan (51.7%), Shaanxi (35.8%) and Qinghai (353.7%).


3  2011 outlook
According to the Ministry of Agriculture, there will still be major pest occurrence in 2011, more serious than in 2010, up 4% from a year earlier. China's total pesticide demand will rose 2.7% to 308 200 tons (100% active ingredient) in 2010, according to the Ministry of Agriculture. Of them, China will need 124 900 tons of pesticide, down 1.43% from a year earlier. The demand for organophosphate and carbamate insecticides will fall 5% and 6% respectively. The demand for antiseptic will rise 2.94% to 72 800 tons while that for herbicide will increase 9.33% to 97 500 tons. For dichlorvos, acetochlor, glyphosate, copper sulfate, carbendazim and trichlorfon, the demand of each product will exceed 10 000 tons. The following provinces will consume 20 000 - 30 000 tons: Heilongjiang, Shandong and Guangdong; the following provinces will need 10 000 - 20 000 tons: Liaoning, Yunnan, Jiangsu, Hubei, Guangxi, Anhui, Henan, Hunan, Sichuan, Jiangxi, Hebei, Jilin and Zhejiang provinces. Experts at the Ministry of Agriculture predicted the pesticide market in 2011 will maintain a rigid growth.
   The author of this article estimated annual pesticide demand from the agricultural sector should be around 450 000 - 500 000 tons. There will be both opportunities and challenges for pesticide producers this year. Full-year output is estimated to be around 2.5 million tons, enough to meet domestic demand and export demand.