Fungicides China Monthly Report

Generally speaking, China usually suffers natural disasters more severely in July and Aug. than that in other months. In July 2014, the damage by natural disasters in July is reckoned to be more serious than that in ordinary years. From 18 July to 20 July, 2014, Typhoon Rammasun, the strongest typhoon that made a landfall in South China since 1973 landed in four provinces and has brought a great impact on local agricultural production. As of the beginning of Aug. 2014, the drought areas of crops in China had nearly reached 4 million ha., covering 12 provinces, regions and cities in total. Thereinto, Henan Province suffers the most serious drought since 1951.

It is estimated that domestic pesticide market in the disaster areas would be affected pessimistically in a short term. As is shown by an investigation, many farmers said they are not willing to afford pesticides because they consider they won't gain even if they input a large number of pesticides in the case of currently severe disasters. 

However, it is expected that the Chinese government will give guidance and help to the affected farmers to resume production by providing direct subsidies for disaster relief and rehabilitation or directly purchasing agricultural materials for them. Therefore, it is predicted that the affected areas will see a peak demand in the long run.

Besides, Jiangsu Huifeng, Shandong Shengli and Zibo Wanchang have released their semi-annual reports respectively, which is reported in this issue.

Note: 1. All tables and figures in this issue are calculated by the same RMB/USD exchange rate (1USD=6.1615RMB); 2. Nuances in some data are mainly caused by rounding principle.