The Chinese Ministry of Industry and Information Technology on a recent day issued its 12th Five-Year Plan for pesticide industry development, suggested to foster two or three internationally competitive large business groups respectively with more than RMB10 billion Yuan of sales in the 12th-Five-Year Plan period.
Up until 2010, there have been more than 1,800 pesticide producers including some 500 crude producers in China. The pesticide production volume in 2010 amounted to 2.342 million tons with a turnover of RMB157.6 billion Yuan. At present there have been eight pesticide producers that have achieved a turnover of more than RMB1.00 billion Yuan and 18 listed pesticide enterprises which means that the business volume of a single producer is rather small and there is not yet an industry leader in the market.
The Planning proposed to carry out a restructuring and centralization of the industry via merge, acquisition and equity cooperation so as to form large-scale pesticide groups while reducing the number of pesticide producers. Specifically speaking, effort will be made to grow above five pesticide producers with sales reaching RMB5.00 billion Yuan and 20 pesticide producers with RMB2.00 billion Yuan of sales. The crude produced by the top 20 producers is expected to reach above 50% of the total output while the agro-oriented pesticide crude producers will arrive at 50% of the total crude producers. Meanwhile two or three internationally competitive large business groups with sales more than RMB10 billion Yuan will be established.
The Planning also put forward that product restructuring will be carried out during this period where high efficient, safe and environment-friendly pesticide and herbicide varieties will be developed; biological pesticide, water-based, dust-free and controlled release pesticide will be encouraged; also economical and environment-friendly packaging will be promoted.
The target is that by 2015 high efficient, safe, economical and environment-friendly pesticide varieties will take up above 50% of the total pesticide while high toxic products or products with high residues will be reduced down to 3% from the past 5%.
The Planning also set a target for energy conservation – by 2015 special contaminant treatment technology is going to be further improved where the “3 wastes” discharge will be further reduced with the main contaminant discharge to be reduced by above 10%.
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