Agrochemical Industry to Embrace End Markets

The 18th China International Agrochemical & Crop Protection Exhibition (CAC2017) was opened at the Shanghai New International Expo Center on March 1, with “End Market” being the buzzword. The agrochemical industry is set to enhance R&D on technology and products and further reach out to the end markets, according to a visit to CAC2017.
The downstream end market boasts higher profit margin and bigger growth potential, but it also requires technology of higher level, according to China Petroleum and Chemical Industry Federation Chairman Li Shousheng. For the agrochemical industry to realize its target of zero growth in fertilizer and pesticide use by 2020, it needs to strengthen R&D on new products, improve technology level, and seize opportunities in those niche end markets.
At present, China is promoting the development of facility agriculture such as drip irrigation, and the market for water-soluble humic fertilizer and other new fertilizers is gradually taking shape. To adapt to the market changes, some companies have managed to make water-soluble humic fertilizers using lignite, humic acid and seaweed as ingredients. The move has helped meet demand from plant growers while promoting the development of facility agriculture. To further tap the end markets and meet farmers’ demand for the cultivation of different crops, some companies have begun to launch specified water soluble fertilizer products, built with a tailored fertilizer formula according to specific crop needs to ensure maximized effect.
To embrace the end markets, industry insiders say, needs sustained and strong R&D support. Chinese pesticides companies are typically focused on API manufacturing, having to share profits with companies making preparations. To abandon this tradition, China’s pesticide sector has to open up the end markets with more R&D spending on preparations. The pesticide sector also has to give more focus on services to better serve farmers and satisfy market needs. The agrochemical industry shall not only focus on the domestic end markets, but also should consider how to expand market share overseas.