Glyphosate and other pesticide products seek new breakthroughs

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China Drying Network News: "This year, China's pesticide exports have been in a good overall situation. Among them, the price of China's superior pesticides such as glyphosate and chlorpromazine has been rising all the way, and it has always been in a state of supply in the market." The National Bureau of Statistics released a few days ago. According to statistics, in the first five months of this year, China's pesticide exports stood at 392,000 tons, an increase of 11.1% year-on-year, and the export amount was 1.237 billion US dollars, an increase of 15.8% year-on-year.

Statistics from the General Administration of Customs also showed that in the first half of this year, China’s pesticide exports reached 473,200 tons, an increase of 11%, and exports also achieved growth, reaching US$1,480.7 million, an increase of 15% year-on-year. Among them, the largest export share of herbicides was 402,200 tons, an increase of 17.8%, and the export value was US$879.1 million, a year-on-year increase of 23.4%.

Compared with the overall export data of the recession, China’s pesticide exports can be described as “good for the landscape”. How long can this good market last? This reporter interviewed a number of pesticide companies in China.

"This year's market is good. During the Mid-Autumn National Day holiday, our company did not release a day off. We have been working overtime to get production." On October 7, Dai Yafei, general manager of Jiangsu Luye Agrochemical Co., Ltd. said in a telephone interview with this reporter.

According to public information, Jiangsu Luye Agrochemical Co., Ltd. was established in 2005 and is mainly engaged in the production and operation of agricultural chemicals and intermediates.

"Compared with other pesticide companies in China, especially compared with pesticide companies that produce glyphosate and acetamiprid, the export growth of green leaf agrochemicals is not the fastest." Dai Yafei told reporters that the company's pesticide products are mainly exported to Europe and the United States. In the region, affected by the European debt crisis, in the first nine months of this year, the company’s pesticide exports only increased by about 10%.

“The pesticide companies that produce glyphosate and acetamiprid are different. Due to the surge in demand in overseas markets this year, all companies are operating at full capacity. The price of products has also risen from about 20,000 yuan per ton at the beginning of the year to the current price per ton. About 3.6 million yuan." Said Dai Yafei to reporters.

According to Dai Yafei, in 2008, the price of glyphosate soared. The highest price once exceeded 120,000 yuan per ton. Therefore, domestic enterprises began to flock to produce glyphosate, which led to the rapid decline of glyphosate prices from early 2009. This explains a wave of “roller coaster” prices, and almost all glyphosate manufacturers lose money, and many companies only cut production. Or exit. Until the fourth quarter of 2011, the price of glyphosate began to rise slightly, from the lowest of 19,000 yuan per ton to the current price of 36,000 yuan per ton. The glyphosate market picked up.

"This is mainly because the prices were too low before many companies have low enthusiasm for production, but rigid demand still exists. Under circumstances where many companies are underemployed or not started, market demand is difficult to meet, and the market will naturally be better," said Dai Yafei.

This year, not only is the business day for the production of glyphosate better off, the pesticide industry has shown a good market. The shortage of supply of raw pharmaceuticals has fallen short of demand. The export of pharmaceutical preparations has experienced rapid growth. The prices of mainstream products have also steadily risen, and the operating conditions of most companies have improved over the same period of last year.

According to the latest data released by the General Administration of Customs, in the first half of this year, the output of pesticides in China was 1.724 million tons, which was a year-on-year increase of 21.7%; both the export volume of pesticides and the export volume achieved growth.

The efficiency of pesticide companies is also generally good. Data show that in the first half of this year, China's main business income of pesticides raw drugs reached 111.98 billion yuan, an increase of 22.2%; total profit of 6.76 billion yuan, an increase of 24.7%, sales profit rate of 6.0%.

"In the future, the global demand for pesticides will continue to be strong, and China's pesticide exports will face an opportunity." An industry person who declined to be named admitted in an interview that the benefit from the rapid development of genetically modified crops will be the global demand for herbicides. Increasingly, next year, China's exports of most pesticide products have a bright future.

In an interview with this reporter, Wu Zhongxing, chairman of Shanghai Weidi Biochemical (Nanchang) Co., Ltd., said that although China’s pesticide exports have shown signs of recovery, the industry’s product structure is unreasonable and the low-level production is serious. Fundamental improvement.

"Because of the lack of core competitiveness, such a good market may not last long. If pesticide companies want to seek long-term development, they must intensify their efforts in innovation and improve their core competitiveness," said Wu Zhongxing.

Wu Zhongxing told reporters that at present, research funds invested by large-scale enterprises in the domestic pesticide industry account for only about 2% of annual sales, while large foreign companies account for 10% to 20%. The shortage of scientific research funding has seriously affected the sustainable development of domestic pesticide companies.

In response, Chang Yingzhi, a research fellow in the chemical industry of China Investment Advisors, said earlier in an interview with the media that although China's pesticide industry has increased its research and development efforts in recent years, it has developed a number of high-efficiency pesticides with independent intellectual property rights. However, compared with multinational companies, the independent innovation capability of Chinese pesticide companies is still not strong.

As for how to improve the innovation capability of China's pesticide companies, Wu Zhongxing believes that it can exert its power in the following three areas: First, increase research funding. The second is to speed up the adjustment of industrial structure and layout, guide pesticide production enterprises to gradually gather suitable regions for the development of pesticides and form industrial clusters based on their own conditions of production and development. Third, the state should introduce more policies to benefit small and medium-sized enterprises and implement them in order to enhance their development.

In order to avoid the recurrence of the “roller coaster” in the price of glyphosate, some companies have begun to change their business ideas. Among them, Huaxing Chemical has placed the domestic market in an important position. In response, the company’s insiders emphasized that “Glyphosate exports have accounted for about 80% of the company's output all along. We are already reducing our exports, and we must continue to reduce, while at the same time increasing our domestic sales. We will strive to achieve half of the global market for glyphosate products."

Due to the consideration of future development, Xinan does not want to rely on the two industries of glyphosate and iron ore. The company also made it clear that it will give priority to the development of silicon materials, the core business of agrochemicals, and vigorously explore new areas such as biotechnology and new energy. Previously, the company’s acquisition of Shandong Xinfeng Seed Industry was a testament. It is understood that Xinfeng Seed Industry is committed to the research and development and promotion of new varieties of major crops such as corn and wheat. It is a national large-scale seed industry technology enterprise that integrates crop breeding research, improved seed breeding, production and processing, and sales and service.

"Not only glufosinate, pesticide industry is seeking new breakthrough points." Tang Hongquan, general manager of Wuhan Tianhui Biological Engineering Co., Ltd., said in an interview with this reporter.

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