China’s first attempt to match pesticide manufacturer for prime user

Date:03-28-2012

On the “Pesticide Manufacturer – Prime Pesticide Users Fair” held in Beijing on March 17 & 18, China’s famous pesticide manufacturers entered into 42 agreements with prime pesticide users amounting to over RMB37 million Yuan. A large number of pesticide manufacturers not only reached agreement with prime pesticide users for supply, but also signed agreements on crop protection solutions and new product trial experiment.

The income increase of Chinese farmers is always restrained by excessive trading channels and higher prices of agricultural production materials; this is the first time in China to try out a direct channel between farmer cooperatives, major growers and pesticide manufacturers in a purpose to reduce unnecessary trading channels and promote establishment of crop protection system.

According to statistics, some 300 farmer cooperatives and major growers, who participated in the Fair, own a land area of more than 933,333 ha (14 million Mu). Hebei Junyin Farmer Cooperatives entered into a Letter of Intent with Dalian Ruize Corporation covering procurement of herbicide for 666 ha. (10,000 Mu) summer corn and insecticide for 100 ha. (1,500 Mu) cotton at prices 40-50% lower than market level.

Tong Yulong, a major grower in Heilongjiang Province signed procurement intentions with Hailir Pharmaceuticals Group, Shandong Qiaochang Chemicals Ltd and Shanghai Lvyeyuan Agro Science & Technology Ltd for an amount of RMB1.76 million Yuan.