Mar. 25, 2015
According to the latest China Agrochemical Market Monthly Report (CAMMR Issue 201502) published by AgroPages, the Chinese government recently published the 'No. 1 Central Document' of 2015, which focuses on agricultural issues and highlights the vital role of agriculture in national socioeconomic development, especially with great importance to food security.
Highlights in this issue
2015 No. 1 Central Document focuses on the 'three rural issues'
For consecutive 12 years, the No.1 Central Document of Chinese Government of 2015 has focused on the 'three rural issues,' which emphasize the importance of food security, the strengthening of GM crop research and popularization, as well as a higher food safety requirement. The new requirements indicate a new step in China’s food strategy and official acknowledgement of the nation-wide disputed GM technology.
China projects zero growth of fertilizer and pesticide use by 2020
The Chinese Ministry of Agriculture projects that by 2020, there will be a zero growth of fertilizer and pesticide use in the country. The zero growth is going to become the new normal status of fertilizer and pesticide industry, which will restrain the industry expansion and speed up the industry restructuring, possibly leading to a change in the industry.
China in principle to stop incorporation of pesticide production
According to the provisions of the Pesticide Industry Policy and the 12th Five-Year Planning of Pesticide Industry, incorporation of new pesticide manufacturers was stopped while taking into account the government’s requirement on reduction of excess production capacity. Enterprises were encouraged to merge and restructure outdated capacity to centralize productions.
Chinese pesticide enterprises turn to service-based operation
More and more Chinese pesticide/seed/fertilizer manufacturers are going for cross-sector merger or cooperation to increase their product range and provide farmers with more product portfolio. Some of these manufacturers have started to develop farming APP to expedite the product and service integrated business mode, playing the role of service provider.
Multinationals accelerate the launch of new pesticides
Multinationals launched more pesticides than before in China, especially Bayer CropScience, which recently introduced eight new pesticides for field crops, fruits and vegetables.
Furthermore, AgroPages also focuses on tracking the price trends of a part of products in this issues, including 2,4-D, glyphosate
and glufosinate. With more and more enterprise investment in glufosinate projects, related companies will face a new round of competition in the near future.
CAMMR is published mid-month, providing fresh news on the Chinese agrochemical market, including market dynamics, company & product dynamics, and regulations & policies updates, to provide assistance in exploring the investment and business opportunities in China.