May. 23, 2022
Investors recently questioned Chinese agrochemical company Changqing Agrochemical about the company’s repeated delays of its glufosinate project, which has still not started.
Changqing Agrochemical has instead put all its effort into producing dicamba, which is an oversupplied product with a much lower profit margin, being almost unable to operate viably. Changqing Agrochemical has been asked to explain its current business strategy.
The company replied that it has been making an effort to advance the annual 3,500-ton glufosinate project, having spent a long time improving the production process to ensure the competitive superiorities in environmental compliance, work safety and production cost. Based on the successful pilot production, the company is ready to start the construction of the project this year.
Dicamba is a conventional product with relatively stable demand. In the United States, Brazil and Canada, dicamba-tolerant GM crops are being planted extensively. In the 2021 planting season, Bayer’s third-generation GM soybean Intacta 2 XTend was launched in the Brazilian market, which stands for an official start of planting the dicamba-tolerant GM crop in Brazil.
The dicamba technical of Changqing Agrochemical has been granted full registration in Brazil, being currently in the process of joint registration of dicamba formulations. With the promotion of dicamba-tolerant GM seeds in Brazil, the company is confident in the future sale of dicamba products in Brazil, attributable to the promotion of dicamba-tolerant crops in Brazil.