Mushroomed multinationals in China crop protection market
Jun. 17, 2011
20 years age, none of the foreign agrochemical companies has ever entered into Chinese crop protection market, the accelerated opening up of China has encouraged more and more multinationals involvement into the section.
In 2001, China has attracted $100 million of investment from multinationals such as Dow, DuPont, Rohm & Haas, AgrEvo and launched 15 joint-ventured projects of pesticides. With China’s deregulation of sales and retailing policies of foreign companies in 2004, the multinationals were more inspired in operations in China and 21 provisional approvals from multinationals have been officially approved by authority singly in 2006. So far, all the top global 20 companies have set up their subsidiaries in China and 30% of Chinese crop protection market was taken by the multinationals.
Syngenta from Switzerland has its total investment of $200 in China by the year of 2009, and 5.5% of the crop land was treated with its products. The Roundup from Monsanto has ever dominated 90% weeds control market in Hunan. In Jiangsu and Zhejiang, 60% of the paddy field was treated with the insecticides from overseas companies.
Booming agrochemical market and relatively comfortable HSE policies in China have inspired the strong will of the multinationals. Advantages in products, innovation and market exploring abilities have ensured their sustainable growth in China. Recent years’ elimination of fipronil and methamidophos from paddy products has brought great opportunities for their products and they did achieved success by their cost-products. Their marketing ability has ever penetrated into agriculture services system by employing local agriculturist in training growers. Further more, their stable supplies and prices were more favored by the retailers.
With the development of China and more and more pesticides consumption, China crop protection market is of more and more uncertainties such as bans on products, changing pest & diseases, pesticide resistance problems. Flexibilities and sophistication of the multinationals have put them the edges over Chinese companies due to their poor innovation and conservativeness.
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