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Maxunitech Inc.
Beijing Multigrass Formulation Co., Ltd.

Good to-the-point answers: "How's your business with China in 2019?"qrcode

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Jan. 21, 2020

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Jan. 21, 2020
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The year 2019 was passing away, the topic of the Annual Survey: 
What are the biggest challenges you have encountered in purchasing from China in 2019?
In 2019, many countries is considering the ban or phase-out of some traditional agrochemicals, will it affect your future business? Do you have plan to look for some new products to replace them? Please name the new products you are looking for if any.
What changes have happened to Chinese suppliers in 2019? What do you think are the main reasons for these changes?
How do you see the trend of China’s agrochemical supply in the future?
Please chose one or more your favorite answer(s), give your precious vote. Moreover, don’t save your words, leave the messages down.
For sure the biggest challenge was an in-time supply for "hot" products such as tribenuron-methyl 750 g/kg WDG and dimethoate 400 g/l EC. No matter confirming order 3-4 months ahead with a 100% prepayment we faced significant delays in shipment. As our company operates in Russia where agrarian season is just once a year in the very end such situation caused a big stock in our warehouses that we were late to sell in season time. Stock means frozen money in cargo as it led to the decrease in our purchase volumes for next 2020 year.
Yes for sure this will affect. Our R&D department is already carrying studies for finding efficient product substitutes of banned agrochemicals. Recently our team managed to find bio-herbicide based on nonanoic acid. Still for sure it's not a complete solution for "glyphosate problem" that all world faces but still a small light in the end of dark tunnel I would say. At least for small private farms it can be used efficiently. Hope with lapse of time this product will be developed in order to meet the requirements of "Big agro manufacturers".
I would say Chinese factories started to be more would say "responsible". Even 10 years ago even big factories sometimes were facing quality problems and constant quality control as soon as cargo is delivered was necessary. But last years we sometimes even don't test the quality as such cases of inappropriate quality standards are really rare for our long-time partners. Chinese factories started to do excellent products that still are much more competitive by price in comparison with agrochemicals manufactured in different parts of the world. 
Hard to say exactly about agrochemicals in China. I'd better mention how I see trend in my country. I believe that in coming 5-7 years in Russia local generic companies will almost disappear. The more and more big Chinese factories are starting to be interested in Russian market. Some of them are even finishing their own registrations. And this trend will only continue. Within definite period of time this market will be divided between 3 strong groups of companies that will have almost equal market shares: multinationals, local manufacturers and Chinese (probably Indian) factories.

Availability of registration dossier some products are not registered in OECD countries.
Yes, it is very important to have alternative to ban products Flonicamid as insecticide is one of the product we are looking for.
Shortage of active ingredients, reason is the closing of many facilities and plant productions.
Supply chain will be more efficient, we believe that the market is more stable and the all the regulation of manufacturing in China is well organized after the last inspections by the government. we are dealing with many Chinese supplier and we can see the supply chain is developing.

- Significant price increase 
- Delayed deliveries 
- Shortage of raw materials
No, the banning of traditional agrochemicals will not affect our future business. We shy away from marketing too- generic pesticides. We focus our market on the first generics and proprietary products.
Many Chinese pesticide suppliers have shifted to other industry. Environmental concerns has been the main reason which resulted to shortages and thereby the prices skyrocketed to unimaginable levels. 
With the reduction of Chinese pesticide manufacturers, I can see the increasing price trend will still continue. If ever the supply will normalize, I don't think the price will go down. Less competitions means they can control the market and thus the price will just plateau over time.

- The deficit of TC and formulations containing fenoxaprop, clodinafop. 
- Extreme price increase for many products.
- Strong requirements to logistic & transportation.
- Yes, it will affect any business in agriculture. 
- Banned products most probably will be replaced by other, but for higher direct costs. It will cause increase of prices for production commodities.
- Chlorantraniliprole, pinoxaden.
Higher requirements to ecological standards, unstable supply for some TC's. Main reasons are: ecological state control , deficit of key intermediates , explosion of factories.
- Move of production sites from regions with higher ecological control to other regions.
- Unstable supply chains. 
- Increased costs for agrochemicals in general.

The main challenge was the processing duration of our order. 
Yes, it will affect our business,we have plan to go for new products like spirotetramat, fluopyram and sulfaxaflor.
Started dealing with Chinese supplier in 2019 so i cannot judge about any changes.
See it will be good if they opt for new molecules.
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