中国作物保护月报(中国作物保护1804月报)

In recent years, as various laws and regulations related to environmental protection have been introduced in succession, pesticide companies have found themselves under increasing pressures. In 2017, local governments in China had stepped up the implementation of environmental laws and regulations. In H2 2017, the pesticide companies obviously felt the pressure from the environmental protection policies in terms of raw material costs and environmental protection costs. Inevitably, many pesticide companies had restricted production, relocated, or even shut down, causing continuous decline in pesticide output and further led to tight supply and increasing pesticide prices. Under such circumstances, traders and manufacturers have raised the price of pesticide technical, causing the price of most pesticides to keep rising. Therefore, China’s exports of pesticides lost their price advantages to some extent.

Under the strict environmental protection policies, there are opportunities for relatively strong pesticide companies. In the pesticide market, where prices have risen sharply in 2017, they have achieved growth in both operating revenue and profits through environmental protection reforms, technology upgrades and effective cost control. Moreover, as enterprises which failed to meet the environmental protection standards withdraw from the market, these powerful enterprises that meet the environmental standards will gain more market share. For small plants, environmental protection policies bring more challenges.

What are the major environmental protection policies in China? How these policies affect China's pesticide market? In this report, CCM introduces the polices and their influences from the aspects of production, sales, exports, prices, supply and demand of pesticides.

 
Note:

1. The USD/CNY exchange rate in this report is USD1.00=CNY6.2764 on 1 April, 2018, sourced from the People's Bank of China.

2. The Ministry of Agriculture of the People's Republic of China (MOA) has been renamed as the Ministry of Agriculture and Rural Affairs of the People's Republic of China in 2018.

3. The Ministry of Environmental Protection of the People's Republic of China (MEP) has been renamed as the Ministry of Ecology and Environment of the People's Republic of China in 2018.