China’s agrochemical production rising at alarming rate

Date:04-21-2010


Japanese industry participants note that China’s agrochemical production is climbing at a double-digit pace, with Chinese agrochemical makers beginning to step up their sales in overseas markets, mostly of inexpensive generic products that are unfettered by the costs of R&D, time and human-resource investments.

They report that the cumulative production of agrochemicals in China reached some 2.04mn tons at the end of November 2009, more than double the volume in 2005, when it first exceeded 1 mn tons an annual basis.

The Chinese pesticide market is large on the whole, with its value estimated at 200 bn yen($2.02bn)/y,  and it is certain to expand. But it is dominated by generics, and the industry participants say that business opportunities have been scant for the high-priced products of overseas manufacturers and that the only room left for market access has been for a limited number of valued-added products. The market is consequently much more competitive than those in other countries. On top of this, Japanese companies have to deal with measures against the counterfeiting of their agrochemicals.

The situation is evolving, however, because of a flood of problems that has given rise to concerns among local consumers regarding the safety of food products. According to one Japanese manufacturer, the Chinese government is addressing pesticide safety and exerting efforts toward intellectual-property-right protection. With moves such as the formation this February of a food-safety commission by China’s State Council, the pressure is mounting on local makers and business opportunities could expand for their overseas counterparts.

China’s agrochemical production
year	production（in 1,0000 tones）	% change
2004	87.0	12.6
2005	103.9	20.3
2006	129.6	20.2
2007	173.1	24.3
2008	190.2	12.0
2009	204.3	12.0