Crop Protection China Monthly Report

Since China carried out Pesticide Industry Policy in 2010, the overall integration of domestic pesticide industry has been formally started. Many M&A transactions between domestic pesticide enterprises were successfully dealt in the past three years. The number of these merger cases in 2012 has reached to 13 involving 26 enterprises which has largely surpassed those numbers in 2010 and 2011.

However, the enterprises involved in these M&A cases accounted for little of all the existing pesticide enterprises in China at present (As of the end of 2012, there were totally over 1,800 pesticide manufacturers in China). This means there is still a large gap between the integration condition and the goals of integration set in Pesticide Industry Policy and 12^th Five-Year Plan for Pesticide Industry.

2013 is the third year of the implementation of 12^th Five-Year Plan in China. It is also a very important year for the domestic pesticide to fulfill its goals set in the polices. However, according to the difficulties that hinder the development of domestic pesticide industry, such as more non-tariff barriers from the EU and the WTO, poor R&D capacities of domestic pesticide enterprises, fierce competition from foreign competitors, etc., some goals are seem very hard to achieve.