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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.
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
|
|
Demand in tonnes |
100% TC |
YoY change in % |
|
Organophosphorus insecticide |
137,800 |
63,900 |
-10.38 |
|
Carbamate insecticide |
41,100 |
4,900 |
5.49 |
|
Pyrethroids |
53,800 |
3,900 |
5.53 |
|
Others |
140,200 |
23,700 |
1.96 |
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.
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