Summary: In recent years, as the domestic
crop composition and distribution is changing and the public are having higher
demand for agricultural produces, the fungicide industry will meet challenges
and opportunities.
Source: Baidu
In recent years, opportunities coexisted
with challenges for the fungicide industry, as the domestic crop composition
and distribution is changing and the public are having higher demand for
agricultural produces.
With the sowing area of grain crops increasing
year by year, the market demand for fungicides is also growing. According to
the statistics from the National Bureau of Statistics (NBS), the sowing area
for grain crops reached 112.74 million hectares in 2014, an increase of 11%
compared with that in 2004. Meanwhile, industrial crops are stable in the
sowing areas, presenting rigid demand for fungicides, which also contributes to
the development of the fungicide industry. What is notable is that the
significant increase in the number of sowing areas for fruits and vegetables
also injected new vigor into the the fungicide industry. According to the NBS,
the sowing areas for vegetables was 20.90 million hectares, an increase of 19%
over 2004, while the sowing area for fruits was 12.37 million hectares, an
increase of around 27% over 2004. According to the working focuses of crop
framing issued by the Ministry of Agriculture of the People’s Republic of China
(MOA) in 2015, China will continue to maintain the current sowing areas for
such crops as grains, cotton, oil plants, sugar crops, vegetables, fruits and
so forth. Besides, China will actively promote potato as staple food.
As can be seen from the above statistics,
the market demand for fungicides will maintain certain growth on the basis of
stability. Actually, China's fungicide industry has achieved rapid development
with the market share rising year by year. According to the statistics from the
NBS, from 2012 to 2014, the output of the domestic fungicides (converted into
100% A.I.) accounted for 4.85%, 6.29%, 6.13% respectively in the national total
output of chemical pesticides. In terms of fungicide types, the market share
growth of triazole fungicides is larger. Active ingredients such as
validamycin, carbendazim, copper sulfate, triadimefon, zineb, mancozeb, maneb,
chlorothalonil, prochloraz, have become the widely used and become hot spots
for people to conduct R&D and register as they have better compatibility
when compounded. Some insiders believe these active ingredients will maintain a
stable market share.
Besides, as China is attaching more and
more importance to the safety of agricultural produces and promoting the policy
of eliminating high toxicity pesticides while encouraging the use of low
toxicity & environmental protection pesticides, as well as implementing the
related measures. The use of bio-fungicides has seen a significant increase,
such as validamycin, bacillus thuringiensis, gibberellin, bacillus cereus,
kasugamycin, beauveria bassiana and metarhizium anisopliae var acridum.
According to the statistics from China Crop
Protection Industry Association, the total profit of China's chemical
pesticides declined by 3.6% yea on year in 2014. However, the total profit of
biochemical pesticides and microbial pesticides saw a sharp increase of 23.7%
year on year, whose increase rate was far higher than that of the chemical
pesticides. Driven by high profit, it is believed that the domestic pesticide
enterprises are willing to put more resources into developing bio-fungicides
and promoting. What is notable is that, as there is much difficulty in
developing the new active ingredients of fungicides, the domestic enterprises
may put more energy into R&D of mixed formulations. The mixed formulations
have the following advantages: reducing pesticides dosage, enhancing efficacy,
enlarging fungicide spectrum, extending the products' lifespan, resolving the
diseases that single formulation can't control, so they will become the major
targets in the future development. Judging from the registration of fungicide
formulations in 2014, there is also a significant increase in the registration
of fungicide mixed formulations.
In the prevention & control of crop
diseases and pests, it is found that, the occurrence of diseases such as sheath
blight and rice blast tends to be more and more serious, and the stricken area
of false smut and verticillium wilt are also on the increase year by year,
which poses great challenges to the fungicide industry. Also, as crop diseases
are becoming more and more resistant to fungicides and highly toxic pesticides
are being eliminated, the demand for efficient and environmental fungicides is
becoming larger and larger. However, in 2015, the MOA will implement the policy
of the Action Plan for Zero Growth of Pesticides Application and plans to
achieve this goal in 2020. Therefore, more effective and more environmental
friendly, but less dosage fungicides will be the development direction in the
future.
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