CAMMR Issue 201510: The price fall of 3 staple food affecting agricultural inputs

The price fall of 3 staple food affecting agricultural inputs

Starting from this autumn, China’s food grain harvesting looks good except the dropped purchasing prices of 3 staple food grains – corn, wheat and rice, of which prices of corn and wheat have dropped considerably. The situation will result in reduced incomes of farmers from plantation, which will cause a loss of disposable income of nearly Yuan 100 billion, thus indirectly affecting agricultural inputs business, and land transfer is expected to be accelerated. When choosing agricultural inputs, farmers might be apt to purchase product of lower prices, which will be a good opportunity for e-commerce suppliers. The dropping of profitability of agricultural material industry may result in survival of good players and elimination of poor ones as well as to result in accelerated industry mergers.

The 13th-Five-Year Plan released, pesticide cluster to form soon

The specific indicators of the 13th-Five-Year Plan for Pesticide Industry has been publicized, where the new indicators will continue to target at completion of the balance of the objectives of the 12th-Five-Year Plan focusing on centralization of pesticide industry. It is requested that the total number of pesticide enterprises be reduced by 30% and the percentage of pesticide technical manufacturers present within industrial parks be increased from 48% to 50%. Small-size pesticide enterprises, which are lacking technical capacity for waste treatment, need to move into an industrial park to the benefit of industry restructuring and technical upgrading, thus also to raise the industry entry level to change the status of decentralized and out-of-date small-size pesticide enterprises.

Pyraclostrobin to be used in rice crop

In a recent marketing activity, BASF presented its latest pyraclostrobin formulation product – Seltima, which will be launched for application to Chinese rice crop market in 2016. Pyraclostrobin is of low toxicity and of high bactericidal activity, but is too toxic to aquatic life, therefore so far being not registered for use in paddy rice. Pyraclostrobin was off patent in China in June 2015, BASF utilizes its active ingredients to successfully create a new formulation, which solves the safety problem without affecting the pesticide effect, having successfully opened up a new crop market.