Upload
davis-chen
View
92
Download
0
Embed Size (px)
Citation preview
The Overview of Chinese Agrochemical Industry @ Davis Chen
Chia-yi Chemical Industry Corporation
1
CONTENT
Overview of Agrochemical Production & Export
Overview of Companies Manufacturing Active Ingredient
New Agrochemical R&D
Illegal Manufacturing
Outlook on the Future Market
Overview of Agrochemical Production & Export
01 Total Agrochemical Production During 1995-2010 Total Agrochemical Export During 1995-2010 Major Export Products
Total Agrochemical Production During 1995-2010
The production of Active Ingredient in 2010 reached 2.34 million tones, increased by 20.4% on year-on-year basis.
0
300
600
900
1200
1500
1800
2100
2400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
648 696822 822 863
1,039
1,296
1,7361,902
2,262 2,342
(YEAR)
(Unit: Kilotons)
1-1
4
Total Agrochemical Export During 1995-2010Sixteen Years’ Spectacular Export Growth Export volume exceeded imports for the first time in 1994, and since then, rapid export growth has continued. In fact, during the 16-year period as illustrated below, export volume increased tenfold to 613,000 tones in 2008, accounting for around 40% of the industry’s total output.
0
100
200
300
400
500
600
700
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
162192
222274
391428
398
477 485 508
613
(YEAR)
(Unit: Kilotons) [ Total Chinese Agrochemical Export Volume ]
1-2
5
Total Agrochemical Export During 1995-2010
0
314.286
628.571
942.857
1257.143
1571.429
1885.714
2200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
463 541 592730
1,191
1,400
1,040
1,350
2,020
1,353
1,770
(YEAR)
(Unit: Million USD)
[ Total Chinese Agrochemical Export Value ]
1-2
6
Total Agrochemical Export During 1995-2010Main Export market: Asia and Latin America are the main export markets. With the rapid growth of herbicide application, it is noteworthy that exports to the United States, Japan and Western Europe have prospered in recent years.
JAPANUNITED STATESWestern EU
1-2
7
Total Agrochemical Export During 1995-2010
0
26
52
78
104
130
United States
Thailand
Ukraine
Australia
Russia
Indonesia
Vietnam
Uruguay
Israel
Nigeria
41.943.143.244.845.753.3
61.364.2
117.6127.1
(Nations)
(Unit: Millions USD)
[ Top 10 Export Markets, 2008, Herbicides]
1-2
8
Total Agrochemical Export During 1995-2010
0
5.2
10.4
15.6
20.8
26
Vietnam
Thailand
Indonesia
Ukraine
Bengal
Brazil
United States
Turkey
Belgium
Colombia
6.87.27.78.28.59.810.6
11.811.8
25.9
(Nations)
(Unit: Millions USD)
[ Top 10 Export Markets, 2008, Fungicides]
1-2
9
Total Agrochemical Export During 1995-2010
0
10
20
30
40
50
Vietnam
Pakistan
Thailand
United States
Korea
Indonesia
Japan
Philippines
South Africa
Ukraine
141515151619
22
34
39
47
(Nations)
(Unit: Millions USD)
[ Top 10 Export Markets, 2008, Insecticide]
1-2
10
Total Agrochemical Export During 1995-2010
China is able to produce 600 more active ingredients now.
ClethodimGibberellic Acidlambda-cyhalothrinCartap
MetolachlorEthephonAluminium PhosphideAcetamiprid
ParaquatTebuconazoleChlorpyrifosDimethoate
AtrazineCarbendazim2,4-DCarbofuran
ClopyralidChlorothalonilAbamectinProfenophos
DicambaPropiconazolMethylaminoavermectinCypermethrin
GlyphosateMancozebDiazinonFenitrothion
1-2
11
Agrochemical Products Structure Adjustment
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
1995 2000 2005 2010
11% 11% 10%7%
15%18%
29%
45%
70%
61%
42%
32%
InsecticideHerbicideFungicide
(YEAR)
(Market Share)
[ Ratio Change of 3 Types of Pesticides during 1995-2010 ]
The ratio among insecticides, fungicides and herbicides was optimized continously and underneath table shows this distinctive change.
1-3
12
Agrochemical Products Structure Adjustment
0
20
40
60
80
100
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20106.9 6.7 8 9.1 10.5 11.2 13.7 17.2 19.6
2416.6
12.217.3 20.4 23.1
33.242.2 45.5
58.2 61.6
81.1
112.7
39.7 41.245.9 47.8
42.5 43.450.5
6065.8
79.774.6
InsecticideHerbicideFungicide
(YEAR)
(Unit: Kilotons)
[ Total Agrochemical Outputs by Class in China during 2000-2010 ]
1-3
13
Overview of Companies Manufacturing Active Ingredient
02 Total Number Distribution Size Management Consolidation
Total Number of Agrochemical Manufacturer in China
There are currently over 1800 agrochemical companies in China, among which only around 450 actually manufacture active ingredients, and the rest are all formulators.
2-1
15
Distribution of Manufacturers in China
[ Distribution of Manufacturers in China ]
2-2
45%
5% 8%9%
10%
23%
JiangsuZhejiangShandongHebeiHenanOthers
Jiangsu is the largest agrochemical production.Shanghai and Guangdong are also two important areas for agrochemical export, where there are more foreign trade companies than manufactures, as they have a pool of excellent foreign trade talents. 16
Size of Agrochemical Manufacturers in China 2-3
300+Sales Value over USD 10 Million
200Sales Value over USD 100 Million
28Export Value over USD 30 Million
[ Size of Manufacturers in China Including Domestic Sales & Overseas Sales]
17
Business Administration & Management 2-4
Many good companies have adopted DCS in all their plants, which not only ensure production safety but also higher the yield.
18
Consolidation 2-5The government has realized the scattered industry is not good for the sustainable development of China‘s agrochemical industry for several years.
The Pesticide Industry Policy lately issued in September states the government aims to have 50% ofagrochemical manufactures operating from designated chemical industrial parks by 2015, increasing to 70% by 2020. By 2015, the number of the companies should account for at least 50% of annual agrochemical sales, reaching 70% by 2020.
More big and strong players have speed their expansion thru acquisition. They are not lacking money any more, for they can finance capital easily from market. Eg. the largest formulator in China NOPOSION Pesticide. Since its going public in 2008, it has bought 20 more companies in different provinces, and with the accelerating of merger and expansion, NOPOSION gets more positive supplements in products structure and region coverage.The sales figure is only 1 billion USD before 2007,but now the figure has doubled more in 2010.
From the Political Side
From the Market Side
19
New Agrochemical R&D
03
New Agrochemical Research & Development
Since the reform and opening-up, China has started to establish its own national innovation centers, and two R&D institutions have been set up in North and South of China, respectively. China also has made great progress in technology improvement and innovation since 2003, there have been 30 new compounds developed by the industry.
The policies lately published, like the “12th Five Year Plan”, has showed the government's unprecedented passion to encourage innovation and advocates “changing the capacity driven economic development model to innovation driven model”.
During the “Eleventh Five-Year Plan”, 34 varieties of agrochemicals with intellectual property rights have obtained registration certificates, and the accumulated market income exceeded 1.909 billion Yuan.
21
Illegal Manufacturing
04
Combating Against Illegal Manufacturing
In recent years, we are receiving more and more complaints from our members, overseas companies and our counterparts in different areas that many bad quality products from China bring them big troubles.
Collusion between importers and Chinese illegal manufactures!
23
Measurement Against Illegal Manufacturing
Verify and combat against illegal manufacturing activities, aiming to eliminate the counterfeit agrochemicals from the origins
Improve supervision system of agrochemical industry and clearly stipulated the enterprises who are manufacturing agrochemical for export, must obtain production approval, and meet the environmental requirements ( exporters can avoid some supervisions easily under the previous rule ).
Promote Legal Manufacture List to related authorities in other countries.Conduct credit evaluation of pesticide companies,promote credit awareness in this industry
24
Outlook on the Future Market
05
Outlook on the Future
Land Reform will drive greater consumption of agrochemicals domestically. More rigorous environmental requirements for manufacturing facilities eliminate many weak companies, and at the other side, advantageous company is easy to get capital from market to buy other companies, which together will surely speed the industry consolidation.
Industry-sponsored working groups aim to stabilize supply of key actives (glyphosate, imidacloprid, paraquat, abermectin, 2,4-D).
26
Outlook on the Future
Rebate programs are intended to create more branded formulations for export versus technical actives.
Greater interest in fungicides of farmers will increase the ration of fungicide among the total agrochemical output.
Marketing of the self explored new products in the oversea marketing is to be increased and see the achievement within several years.
27
Q & A