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Analysis of China Pesticide Export to Latin America in 2014qrcode

Aug. 26, 2015

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薛智昂 Erwin Xue
Erwin Xue

Project manager of AgroPages. Email: erwin@agropages.com

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According to the data released by the Chinese General Administration of Customs, China exported a total of 2,891,560 tons of pesticide in 2014 under HS code 29, with total value of $ 21.27 billion, among which a quarter of destinations were Latin America. While export volume to this region increased 1.39% comparing to last year, the value went down by 2.92%, which may have been affected by the run-down of general economic situations in large market like Brazil and Argentina, the inflation and adjusting of cropping structure. 
 
This article analyzes the exportation data of China to Latin America countries in 2014 by destination countries, pesticide products, as well as export companies, to help readers gain a better understanding of the exportation structure of China pesticide, and provides references for those who want to explore Latin America market.
 
TOP Countries Analysis
China exported 499,260 tons of pesticide to Latin America in 2014, valued at $ 3.58 billion with export destination covering 31 out of 34 countries and regions in Latin America. The top 10 export countries in terms of value are Brazil, Argentina, Mexico, Uruguay, Colombia, Chile, Paraguay, Peru, Guatemala, and Ecuador, accounting for more than 90% of the total value that exported to the region (Figure 1). 
Figure 1. Top 10 export destination countries of Chinese agrochemicals in 2014

Brazil and Argentina remained the two largest export destinations for Chinese pesticide products, with export value of $ 1,200 million and $ 796.64 million, accounting for 32% and 21% respectively of the total . The two major agriculture countries imported mostly pesticide technicals. According to SINDIVEG, Brazil imported pesticide 418,030 tons or value at $ 7.3 billion in 2014, with China its largest pesticide supplier country. 
 
Pesticide exported from China to Mexico, Uruguay, Colombia, Chile, and Paraguay were over $ 100 million respectively, with formulation export increasing gradually. As for pesticide exported to Peru, Guatemala, and Ecuador, the value of Top 5 formulations has surpassed top 5 technicals (Table 1).
 
TOP Products Analysis 
 
Top 20 pesticide products exported from China to Latin America reached 353,270 tons with value at $ 2.25 billion, making up 62.69% and 70.76% respectively of all the products exported to this region, indicates that export from China mainly focused on some bulk commodities. 
 
11 products out of the top 20 were herbicide products, making it the largest category, with value accounting for 76.4% (Table 2). The problems of weed resistance to glyphosate and other herbicides are getting worse in Brazil and Argentina, leading to the increase of herbicide use. 4 of top 20 were fungicide and their export value accounted for 7.4%. Multinationals launched many new patented fungicide products in Latin America, including Syngenta’s benzovindiflupyr and BASF’s fluxapyroxad. However, fungicide exported from China to Latin America stayed on the traditional products. Insecticide took 5 places in top 20 and had16.2% in terms of value. More stressful pressure of cotton bollworms (Helicoverpa armigera) and soybean loppers (Pseudoplusia includes) has driven the demand of insecticide products in the region. 
 
Table 2. Top 20 pesticide products exported from China to Latin America in 2014
 
Among the top 20 products exported, the export value of glyphosate, paraquat, imidacloprid and glyphosate IPA all passed $ 100 million, making up 67% of the total value. Export of several formulations largely increased beside those traditional technicals. The most exported 3 formulation types of glyphosate are 68% SG, 30% SL and 46% SL; paraquat are 200g/L SL, 20% SL and 27.6% SL; imidacloprid are 70% WG, 70%WP and 35% SC; glyphosate IPA are 41% SL, 62% SL and 48% SL.
Figure 2. Top 4 of 20 Chinese export pesticide products for Latin America by value
 
TOP Companies Analysis 
 
Top 20 Chinese companies of export pesticide volume and value to Latin America are 241,140 tons and $1.74 billion, accounting for 48.3% or 48.4% of the total exportation from China to this region (Table 3), among which 7 companies exported more than $ 100 million pesticide. The companies include Rainbow, Leshan Fuhua, Youth Chemical, Wynca Chemical, Nanjing Red Sun, Sinochem Ningbo and Nantong Jiangshan. 
 
Rainbow, Fuhua and Wynca provide high qualified agrochemicals to global market, and also they are the major suppliers of glyphosate. Rainbow has business covering 19 countries in Latin America, and has built a manufacture and logistics center in Panama in Aug 2014 to support its operation in the market. Fuhua in China completed a 120, 000 tons of glyphosate resource recycling project, aiming at creating a globally glyphosate production center. Wynca ranked No.1 on the list of top Chinese agrochemical companies released by AgroPages. Good Harvest-Weien exported $ 53.7 million of pesticide in 2014, the company has strengthened the diversification of its product portfolio by integrating some biopesticide and novel fertilizer products to its pipeline.
 
Table 3. Top 20 Chinese pesticide exporters for Latin America in 2014
 


Table 1. Top5 TC/TK & formulations of China’s export pesticide by Latin America country in 2014
 

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