Insecticides China Monthly Report

Factors that influence the domestic market of insecticides, even pesticides in a broader sense, are: pesticide residue, legal registration of pesticides, the climate, etc. These factors, to some extent, will influence the development of pesticide enterprises and even the companies' product promotion. Based on the understanding of the dynamics of these factors, pesticide enterprises should arrange its business operation, which is beneficial to its long-term development and its market status.

Insecticide China News 1410 will focus on the market dynamics of three aspects:

1. China issued new policies and laws on pesticide residue, but the more emphasis should be put on the new pesticide technology R&D. Innovating new green pesticide formulations is one of the requirement of the national strategies. Nano-materials are characterized by their small size, specific surface area, and can easily be modified. Nano-materials have the following advantages: they are waterborne so they have high dispersibility, and they are closed carriers so their stability is strengthened. The targeted use improves their efficiency; the controlled release helps to prolong its duration; and their catalyzed degradation can reduce the pesticide residue. Nano-technology can foster China's pesticide scientific research.  China is organizing relevant researches. Nano-technology has the potential to solve the problem of pesticide residual pollution.

2. In the past few months, natural disasters in China like droughts, especially the following severe strike, called for demand for various pesticides. Therefore, it is required that agricultural enterprises adjust their production orientation and structure, work hard in the market survey, strengthen the marketing, and clarify the marketing products.

3. Now in China, prevention and control of vegetable pests and diseases, is in shortage of legally registered pesticides. To innovate the registered pesticides for vegetable varieties is a trend in the pesticide market. The Institute for the Control of Agrochemicals, Ministry of Agriculture held, in Beijing, a grouped experts review on the registration and efficacy tests of pesticides used for vegetables. The review introduced the specific situation and the progress made in the present scientific research of pesticide legal registration.

In Oct. 2014, ADAMA Agricultural Solutions Ltd. (the previous Makhteshim Agan Industry Company) and China National Agrochemical Corporation (CNAC) under China National Chemical Corporation (ChemChina) signed a final agreement declaring that ADAMA would wholly purchase the business of CNAC. The agreement meets the long-term developmental strategy and brings benefits for both sides. This will also change the picture of China's pesticides and stimulate the virtuous competition within the pesticide industry. CCM has introduced the details of this case, and analyzed the impact it brought to the related enterprises and the whole industry. CCM will follow the purchase progress.

Note: 1. All tables and figures in this issue are calculated by the same RMB/USD exchange rate (1USD=6.1539RMB); 2. Nuances in some data are mainly caused by rounding principle.