According
to the deputy director of the NATESC, Guo Yongwang, an increasing market demand
for pesticides, especially insecticides, in China is very likely to happen in
2017. This will mean the turnover of the weak year for Chinese insecticides
producers in 2016, says CCM.
Source: Pixabay
The
National Agro-Tech Extension and Service Centre (NATESC) is the first contact
to get an overview of the pesticide market situation in China because they are
collecting the data from different crop protection station all around China. Therefore,
the deputy director of this organisation gives a yearly statement on the
Chinese pesticide demand with a prediction of the following year.
For
2016, the occurrence area of pests, diseases, weeds, and rodents is numbered
with 420 million ha, a down of 10.80% compared to 2015. However, the weather
phenomenon El Nino had negative effects on several areas in southern China,
leading to increasing pests, diseases, and weed struck particularly in this
area, according to CCM.
Some
of the most occurred problems have been aphids, plant hopper, armyworms, and
bollworms, affecting the planting of wheat, rice, corn, and cotton partly
devastating.
The
report furthermore states an overall weak profitability of Chinese pesticides
manufacturers. While Fungicides and Herbicides have shown an increase in output
and production, one of the insecticides went down 16.70% YoY in 2016.
The
pesticide consumption in China also fell in 2016, as well as insecticide consumption.
The reasons, according to CCM, are decreased areas of control and prevention,
more effective control and prevention, and increased pesticide utilization
rate.
The
combination of lower prices due to lower demand and higher production costs as a
result of environmental protection efforts led to the overall low profitability
of China’s pesticide manufacturers.
The
share of insecticides used on rice, wheat, corn, and potatoes was 21.7%, which
gave it the third place after herbicides and fungicides. However, insecticides led
the total national pesticide expenditure with an amount of 36.50%.
Relating
to the weak demand of pesticides worldwide, partly caused by the El Nino
phenomenon, the exports and imports of pesticides formulations as well as technical
went down in H1 2016.
Forecast for 2017
According
to NATESC, an increasing demand for pesticides in China is not very likely,
unless there is a huge rise of pest and diseases problems in Chinas
agricultural areas. Reasons for this prediction are the plan of zero growth in
pesticide consumption by 2020 in China and the specialization in more effective
and less harmful pesticides with an overall fewer usage.
The
forecast for insecticides specifically contains a further drop of the total
demand, but an increase of bioinsecticides. The predicted number are an demand
of 372,800 tonnes of pesticides, which represents an drop of 6.30%.
Predicted
demand of insecticides in 2017
Source:
CCM
The
demand forecast of other pesticides is different. According to the report, the
demand for acaricides and herbicides will not show any significant changes.
Fungicides in the opposite are expected to have a slight increase in demand
with a rise of 1.45% YoY. Plant growth regulators will likely experience a
decrease in demand, while Rodenticides also are expected to rise around 40%
YoY.
What’s
more, the corn planting area in China will be reduced once again, which will
lead to a lower consumption of herbicides and grain to feed/cash crops/soybean
initiatives are also affecting its demand. Together with the zero growth in pesticide
consumption action of the Chinese government, the trend will go in using more
and more biopesticides with low toxicity and high efficiency.
About CCM:
CCM
is the leading market intelligence provider for China’s agriculture, chemicals,
food & ingredients and life science markets.
Do
you want to find out more about the pesticide market in China? Join
our professional online platform today and get
insights in Reports, Newsletter, and Market Data at one place. For more trade
information on pesticides visit our experts in trade analysis to get your answers
today.
Tags: Insecticides, Pesticides