Published by CCPIA CHINA AGROCHEMICALS · value accounts for 90% of the national total pesticide production. Besides,CCPIA issued the China Crop ... Azoxystrobin Triazines ... growing

CHINA AGROCHEMICALSPublished by CCPIA

APR 2013

www.ccpia.org.cn/en

Founded in April, 1982, China Crop Protection Industry Association (CCPIA) was one of the earliest trade associations in China's chemical field. It is a non-profit national institution covering different regions, organizations/departments and industries, and possesses independent legal person status.

In the course of the more than two decades period since its establishment, CCPIA has undergone rapid development, witnessing its members increased from the originally 45 to 564 at present, covering producers/ enterprises , R & D and design institutions, universities and colleges, provincial/municipal pesticide associations related with technicals and formulations, intermediates, auxiliaries, packing materials, packing equipments and applying machines, etc. CCPIA members companies' production value accounts for 90% of the national total pesticide production.

Founded in April, 1982, China Crop Protection Industry Association (CCPIA) was one of the earliest trade associations in China's chemical field. It is a non-profit national institution covering different regions, organizations/departments and industries, and possesses independent legal person status.

In the course of the more than two decades period since its establishment, CCPIA has undergone rapid In the course of the more than two decades period since its establishment, CCPIA has undergone rapid development, witnessing its members increased from the originally 45 to 564 at present, covering producers/ enterprises , R & D and design institutions, universities and colleges, provincial/municipal pesticide associations related with technicals and formulations, intermediates, auxiliaries, packing materials, packing equipments and applying machines, etc. CCPIA members companies' production

Besides,CCPIA issued the C h i n a C r o p P r o t e c t i o n Industry Yearbook 2012.

Other product reportS:

ParaquatAcetochlorCarbendazimMancozebAbamectinChlorpyrifosChlorothalonilAcephatePymetrozineGlufosinateAzoxystrobinTriazinesThiamethoxamNicosulfuronTransfluthrinMesotrione,etc.

2012 CHINA PESTICIDES PRODUCTS REPORTS

Glyphosate product reportBy June 2012, there have been 124 registered enterprises of glyphosate manufactures in China, including 61 licensed enterprises in agrochemicals production and only 56 enterprises that met all of the required procedures in this regard. However,

just over 20 enterprises are running business due to strict environmental protection supervision. And the capacity of glyphosate technical in China remains 600,000 tonnes.

2,4-D product reportCurrently, there are only 9 enterprises with a valid registration certificate of 2,4-D technical, including 5 manufacturing license holders, with a total deliverability of over 80,000 tons or so against a total domestic demand of approximately 8,000 tons.

Publisher: CCPIA

Imidacloprid product reportAt present, there are altogether more than 60 registered imidacloprid manufactures in China with an annual capacity of 25,000 tons (based on 100% ai.). China’s imidacloprid output is about 12, 000 tons/year, accounting for two thirds of the world’s

total ouput. The domestic demand for imidacloprid is 3,000-4,000 tons/year and the remaining 8,000 tons are exported. There are some large imidacloprid producers in China, including Jiangsu Ke Sheng Group Co., Ltd., Nanjing Red Sun Co., Ltd., Qingdao Hailier Pharmaceutical Co., Ltd., Shandong Sino-Agri United Biotechnology Co., Ltd. and Jiangsu Changqing Agrochemical Co., Ltd..

Tel:86-10-84885035Email:[email protected]

Industry news02 China’s Pesticide Industry Performance in 2012

05 Profit of Jiangsu major pesticide companies up 31% in 2012

06 Shandong pesticide export boosted in 2012

08 2012 Zhejiang’s profit of pesticide industry showed robust

growth

09 2012 some 23 active ingredient initially approved in China

10 2012 international got approval of 52 active ingredients in

China

11 Some 54 pesticide technical produced in China approved by

Australia

12 Review of China's Fungicide Commodities Performance in

2012

12 Azoxystrobin

14 Carbendazim

15 Chlorothalonil

16 Mancozeb

17 Difenoconazole

18 Tebuconazole

Companies19 2012 Huapont-Nutrichem Agrochemical sales over 3000

million

21 2012 Changqing sales grew 26%

22 2012 Huaxing’s profit boost

23 2012 Huifeng’s insecticide business ups 211%

23 Jiangshan’s pesticide business rose 18%

24 2012 Lanfeng sales up 11%

25 2012 Lier sales grew 36%

26 Noposion to acquire stakes of Changlong Chemicals

26 Red Sun showed a robust growth in 2012

27 Veyong Bio-chemical pesticide sales up 9% in 2012

27 2012 Wynca sales up 32%

28 2012 Yangnong sales up 20%

CCPIA news29 Pass the positive energy to help smooth upward industry

development—— 2013 National Secretary-General Joint

Meeting of Pesticide Industry and Media Forum

Products33 Famoxadone got the approval in China

33 Jiangxi Anlida Chemical approved temporary registration of

Fluorochloridone

CHINA AGROCHEMICALSCONTENTS

Director of Editorial Dept.: Sun Shubao

Editor in Chief: Duan Yousheng

Executive Editors: Zhu WeiJuan, Luo Yan

Sponsor: China Crop Protection Industry Association

Address: Room 920, Anhuili 4th Area, Chaoyang District,Beijing,China Postal Code: 100723 Fax: 86-1084885001

Websites:www.ccpia.org.cn/en www.agrochemex.org/en(exhibition)

GENERAL ENQUIRIES E-mail:[email protected] Tel: 86-1084885145, 86-10-84885035

All rights reserved.

APR 2013

Industry news

2 /CHINA AGROCHEMICALS

China’s pesticide production increased by 19.0% to record high of some 3,549,000 tonnes in 2012 which ended December 31th, representing

continued consecutive double digit growth, according to the data from National Bureau of Statistics of China.

Herbicides, the largest category, were considered as the main growth driver, with production increased by 42.5% to 1,648,000 tonnes, equivalent to 46.4% of total production. The growth of herbicide output is driven by higher demand for commodity herbicides such as glyphosate, 2,4-D and atrazine. Insecticide

production fell by 12.0% to 813,000 tonnes, making up 22.9% of total production, while fungicide production dropped 7.1% to 144,000 tonnes, accounting for only 4.1% of total production.

Among them, Jiangsu province remained China’s leading region in terms of manufacturing volume, with 966,076 tonnes (+13.4%), accounting for almost one third of national production during the period. Month-to-month, Shandong province saw the largest growth in output, up 66.5% to 745,425 tonnes in 2012.

China’s Pesticide Industry Performance in 2012

Table 1. Chinese pesticide production in 2012 (000 tonnes)1

Category December 2012 % change2 Full year 2012 % change3

Herbicides 163 +40.7 1,648 +42.5

Insecticides 79 –29.4 813 -12.0

Fungicides 14 +1.4 144 -7.1

Total 342 +19.0 3,549 +19.01per 100% active ingredient; 2compared with December 2011; 3compared with 2011.Source: National Bureau of Statistics

China’s Pesticide Industry Performance in 2012


Industry news

CHINA AGROCHEMICALS/ 3

According to the data released by the Chinese General Administration of Customs, pesticide import/export in

2012 is shown in table 2.

Table 2 China pesticide import/export in 2012 (000 tonnes, $M)

CategoryVolume Value

2012 %change 2012 %change

Import

Insecticides 8.6 +25.9 130 +19.4

Fungicides 24.1 +26.9 263 +36.4

Herbicides 24.6 +42.5 140 +6.1

Total 68.9 +30.3 592 +21.2

Export

Insecticides 192.2 -2.1 772 +12.4

Fungicides 70.7 -8.1 337 -9.1

Herbicides 598.7 +19.4 1,673 +28.8

Total 897.4 +12.7 2,860 +18.2Source: the Chinese General Administration of Customs

It is shown from the table above that the imported and exported pesticide both increased in 2012. The volume of imported pesticide increased by 30.3% to 68,900 tonnes, which accounted for 1.9% of total domestic output; the value reached $592 million, increased by 21.2%, the imported average price decreased by 7.1% to $8,592.2/ton. Among them, imported insecticide price was highest, dipped by 4.1% to $ 15,070/ton; imported fungicides went up by 26.9%.

Volume of exported pesticide grew by 12.7% to 821,700 tons, the exported pesticide value increased by 18.2% to $2,860 million, and the exported average price rose by 5.0% to $3187.0 per ton. The volume

of exported pesticides accounts for 25.3% of the total output. Among them, exported herbicides volume grew by 19.4% to 598,700 tonnes, accounting for 66.7% of the total export, 36.3% of herbicide production. The exported herbicide value was $1,673 million; the average exported price was $3,240.4/ton, increased by 7.1%. As carbendazim exports declined nearly 50% due to the Brazil exported orange juice residue issues at the beginning of the year, fungicides exports volume and value continued to fall. The volume of exported fungicide decreased by 8.1% to 70,700 tonnes, accounting for 7.9% of the total exported volume, 49.1% of fungicide production; the exported fungicide value reached $337 million, down by 9.1%, the average


Industry news


exported price was $4,761.9 per ton, decreased by 3.0%. The trade surplus grew up by 17.5% to $ 2,268 million.

According to the statistics of China National Bureau of Statistics, total 804 Chinese pesticide enterprises above designated size whose data were collated realized a total industrial output value of Yuan 25.4 billion in December 2012, with an increase of 37.6% on the same period last year. Sales of pesticides grew by 35.2% to Yuan 24.4 billion. Among them, output value

and sales growth of biopesticides both exceeded 45%. In the year of 2012, accumulative total industrial output value of pesticide rose by 24.4% to Yuan 244.0 billion, and sales of pesticides increased by 23.2% to Yuan 236.3 billion. Due to higher domestic demand, fast growing market overseas and higher price, the profit of pesticide industry grew by 40.0% to Yuan 17.5 billion. The industry loss fell by 28.5% to Yuan 650 million, which showed the better performance this year.

Table 3. Major economic indicator (billion Yuan)

Major economic indicator (Yuan billion)

Category Number of company Industry output value % change sales %change

December

Chemical pesticide 680 22.0 +35.0 21.2 +33.8

Biological pesticide 124 3.4 +57.4 3.2 +45.6

Total 804 25.4 +37.6 24.4 +35.2

The year of 2012

Chemical pesticide 680 211.3 +22.1 204.5 +21.0

Biological pesticide 124 32.7 +42.1 31.8 +39.8

Total 804 244.0 +24.4 236.3 +23.2

Source: National Bureau of Statistics

Features of the pesticide industry:

1. Production and sales both increased in the year, the output up to a new high of 3.55 million tonnes. Pesticide production fully met the demand for agricultural production.

2. Pesticide product structure further improved. Market driven substitutes of highly toxic insecticides were produced, particularly those insecticides used in rice production. Water-based and solid pesticide

formulations aiming at improving efficacy and safety were increasingly.

3. The economic benefit of the industry climbed 40.0% attributed to the higher demand for agchem.

4. The role of the multinationals’ formulation products has gradually become dominant, while the sale of domestic products has been restricted to some extent.


Industry news


Profit of Jiangsu major pesticide companies up 31% in 2012According to Jiangsu Pesticide Association, total output value of 27 main pesticide enterprises reached Yuan 44.1 billion, of which Yuan 33.4 billion allocated to pesticide business, with an increase of 18.3%. Sales of pesticide grew by 20.3% to Yuan 23.12 billion, while the profit rose by 31.0% to Yuan 2,784 million, which Yuan 2,391 million allocated to pesticide business.

In 2012, the output of pesticide grew up by 8.1% to 391,074 tonnes over the same period of previous year. For categories, the output of herbicides went up by 19.0% to 226,941 tonnes and fungicides rose by 4.1%

to 69,211 tonnes. However, the output of insecticide, PGR and acaricides dipped. Output of insecticide fell by 8.0% to 83,316 tonnes; that of of PGR and acarcides fell by 14.9% and 8.5% to 7,248 tonnes and 1,011 tonnes, respectively.

The export pesticide volume was 197,964 tonnes and the value reached Yuan 8,417 million.

For varieties, volume of glyphosate increased by 16.1% to 133,740 tonnes, while paraquat decreased by 0.6% due to its use restriction. Detailed see table 1.

Chemical name Production (ton) Pesticide target Output change (%)Glyphosate 133,740 Weed +16.1

Paraquat 24,181 Weed -0.6

Butachlor + acetochlor 32,956 Weed +29.0

Trifluralin 5,981 Weed +1.1

Chlorpyrifos 26,396 Insect -14.4

Imidacloprid 9,726 Insect +8.5

diafenthiuron 3,020 Insect +210.0

Cypermethrin 1,600 Insect -20.8

Mancozeb 10,814 Fungi -4.2

Chlorothalonil 15690 Fungi +3.4

Tebuconazole 3,499 Fungi -16.1

Carbendazim 9,767 Fungi -33.5

Thiophanate-methyl 4,241 Fungi -2.3

Thicyclazole 2,488 Fungi +29.6

Dicofol 573 Mite -15.9

Pyridaben 438 Mite +3.3

Ethephon 6,385 Plant control -16.8

paclobutrazol 863 Plant control +2.5

Profit of Jiangsu major pesticide companies up 31% in 2012


Industry news


Shandong pesticide export boosted in 2012

In 2012, Shandong pesticide market showed stable. Output value and sales both grew up. Meanwhile, the industry weathered the economy's soft patch. One side, sales of two enterprises exceeded RMB 2,000 million; another side, some technical producers shutdown, and showed downward spiral. The industry as a whole is facing to the pressure of development, environmental protection, replacement and products adjustment.

The following some features are noticeable in Shandong pesticide industry:

1. According to Shandong Pesticide Industry Association, combined output value of some 51 technical manufacturers grew by 18% to RMB 16.59 billion, sales rose by 14% to 15.44 billion.

The mainly factors for increase:

Agricultural subsidies and government procurement policy;

Higher international demand;

Higher price.

The profit dipped by 9.6% to RMB 830 million due to slack insecticide market and higher tax force.

2. According to a survey of several key enterprises, the industry as a whole maintained upward. Among them, sales and profit of Shandong Sino-agri Union, Binnong Technology, Shandong Tiancheng have nearly doubled; sales and profit of Weifang Rainbow, Qingdao Hailir, and Qingdao Hansen grew by over 20%; while Greenland Chemical, Qiaochang Chemical and Weifang doublestars rose by 10%. Combined profit of 10 companies accounted for 90% of total Shandong industry. However, sales of Shandong Dacheng, Shandong Huayang, Shandong Vicome Lunan, etc. dipped due to reorganization and replacement of asset. Sales of some enterprises with the products such as abamectin or paraquat dipped due to the new restrictive policy.

There are some 31 enterprises, of which output value exceeded RMB 100 million, some 30 enterprises of which sales exceeded RMB 100 million for each. Shandong Binnong technology, Shandong Weifang Raibow, Shandong Qiaochang Chemical and Shandong Huayang Pesticide Group. Two enterprises, Rainbow and Binnong are the only ones, of which sales exceeded RMB 200 million.

3. Total output of some 51 technical producers dipped by 48% to some 242,100

Shandong pesticide export boosted in 2012


Industry news


tonnes. Of which, the output of insecticides, herbicides, fungicides and PGRs reached 38,107 tonnes, 198,494 tonnes, 5,272 tonnes and 231 tonnes, respectively. Domestic sales volume grew up by 39.6% to 99,200 tonnes.

There are some 97 pesticide technical varieties including 37 insecticides, 40 herbicides, 17 fungicides and 3 PGRs.

4. In 2012, the exported pesticide value grew by 51.9% to $ 762.4 million. And exported pesticide amount of combined 31 enterprises rose up by 54.9% to 74,600 tonnes. Among them, exported insecticides, herbicides, fungicides and rodenticides accounted for 9.2%, 88.1%, 2.7% and 0.03% of total export volume to 6,831 tonnes, 65,800 tonnes, 2,010 tonnes and 20 tonnes, respectively. For varieties, paraquat, glyphosate, atrazine, 2,4-D butylate, matolachlor, acetochlor, methomyl, carbofuran, pretilachlor, prometryn, oxyfluorfen, of which value exceed 10 million dollars.

5. Boosted by high prices prevailing throughout 2012, production boomed. Chinese prices of glyphosate were almost 50% above those at the beginning of the year, while the price of atrazine grew up by 30%. Nevertheless, grew by high prices of acetamide-group herbicides, production dipped due to replacement of Shandong Zhongshi. The growth of Shandong pesticide industry was driven by increase in herbicides.

For insecticide varieties, just imidacloprid, acetamiprid, chlorpyrifos showed growth. The role of the multinationals’ formulation products has gradually become dominant, while the sale of domestic products has been restricted to some extent. Take the example of the rice planthopper occurrence this year. The prevailing product applied was Bayer’s Merit, Dupont’s Rynaxypyr, Syngenta’s Virtako, and domestic products, especially abamectin, have totally lost ground to their multinational rivals.


Industry news


2012 Zhejiang’s profit of pesticide industry showed robust growth

According to Zhejiang Pesticide Industry Association, in 2012, total output value of 49 main pesticide enterprises grew by 21 % to Yuan 15,024 million, and the sales of the companies rose by 19% to Yuan 14,393 million. The profit showed a significant 64% jump to Yuan 688 million.

In 2012, the output of pesticides grew by 11% to 212,400 tonnes. Among them, the output of fungicides and herbicides grew up by 11% and 12% to 15,800 tonnes and 178,300 tonnes while the output of insecticides dipped by 7% to 13,900 tonnes. The sales volume grew by 2 % to 116,600 tonnes. Volume of exported pesticides went up by 8% to 86,500 tonnes. Exported value rose by 26% to RMB 6,391 million.

For sales, there are some 26 enterprises, of which sales exceeded RMB 100 million including Wynca, Jinfanda, Zhongshan Group, Shangyu NutriChem, Zhejiang Yongnong, Shenghua Biok, Heben, Zhejiang Xinnong, Rosi Chemical, Jingma Group, etc.

According to Zhejiang Pesticide Industry Association, the following six features are noticeable:

I. The output and sales maintained growth against the context of the decrease in the number of enterprises. After the production permits by MIIT, the number of pesticide companies decreased by 8.7% to 84, of which

included some 51 pesticide technical producers.

II. In 2012 two merger restructuring happened in Zhejiang: Chongqing Huapont Nutrichem acquired a 58.26% stake in the Chinese agrochemical company, Hangzhou Qinfeng Agrochemical; Zhejiang Shenglong Group acquired a 100% stake in Zhejiang Linghua Industry Company Limited.

III.Constantly optimization of the product structure. The ratio of efficient, safe, economical and environmental-friendly pesticides attained more than 95%. In 2012, the ratio of insecticides, fungicides and herbicides adjusted to 6.6%, 7.5%, 84%.

IV.Due to ups and downs of glyphosate market, domestic market has slumped for several years. A slack market coupled with excess capacity led to vicious competition, in which companies struggled to survive. In 2012, the industry situation appeared steady rebound, the profit showed jump.

V.Continuous production expansion for years has strengthened the deliverability of the main pesticide varieties.

VI.The production costs have inevitably increased in the agrochemical industry.

Industry news


2012 some 23 active ingredient initially approved in China

According to ICAMA, some 177 active ingredient approved by ICAMA, including some 69 herbicide, 46 insecticides, 51 fungicides, 5 acaricide and nematicide, antivirus and rodencide for each.

Among them, domestic enterprises approved the registration of 23 active ingredient, including some 11 herbicides, 6 fungicides, 5 insecticides and one of rodenticide.

pesticides company validityherbicides

flumioxazin Shangyu Nutrichem Fine Chemical formal

prosulfuron Jiangsu Changqing Agrochemical temporary

pentoxazone Jiangsu Zhongdan Group temporary

imazapic Shangdong Cynda Chemical formal

S-metolachlor Shangyu Nutrichem Fine Chemical formal

orthosulfamuron Yancheng South Chemicals temporary

acifluorfen-sodium Shangyu Nutrichem Fine Chemical formal

florasulamJiangsu Agrochem Laboratory formal

Shandong Sino-Agri United biotechnology formal

carbetamide Hebei Wanquan Pesticide temporary

flupropanate-sodium Zhejiang Lanxi juhua Fluorine Chemicals temporary

amidosulfuron Jiangsu Repont Pesticide Factory formal

fungicides

zoxamide Dalian Chemphy Chemical temporary

polyoxins B Shangxi Lvhai Agrochemicals formal

fludioxonilZhejiang Bosst Cropscience formal

Shangyu Nutrichem Fine Chemical formal

lvdingjunzhi Jiangsu Baoling Chemical temporary

tetramycin Liaoning Wkioc engieering temporary

bupirimate Xi’an MPC Stock temporary

insecticides

chlorfenapyr Shandong Weifang Double-star Pesticide formal

spinosadShanghai Nongle Bio formal

Mudanjiang Baijiaxin Biotechnology formal

methoxyfenozide Shangyu Yinbang Chemical formal

thiamethoxam

Huludao Lingyu Group Pesticide & Chemicals formal

Shijiangzhuang Ruikai Chemical formal

Shandong Sino-Agri United biotechnology formal

Anhui Guangxin Agrochemical formal

Jiangsu Luye Agrochemicals formal

Shandong hailir Chemical formal

indoxacarbNantong Shizhuang Chemicals formal

Shangyu Nutrichem Fine Chemical formal

rodenticide

cholecalciferol Zhejiang Garden Biochemical High-tech temporary

Industry news


2012 international got approval of 52 active ingredients in ChinaAccording to ICAMA statistics, internationals’ 52 products got approval by China in 2012. Among them, Syngenta tops the approval ranking with 18 active ingredients, followed by Bayer(6), FMC(5), DOW(3), DuPont(3) and BASF(2).

Pesticides Active ingredients formulations

Syngenta

herbicides

prodiamine TC

glyphosate-potassium AS

diquat AS

atrazine+mesotrione SC

mesotrione SC

atrazine+S-metolachlor SC

insecticides

pymetrozine WG

profenofos EC

lambda-cyhalothrin CF, EW

pirimicarb TC

lambda-cyhalothrin+chlorantraniliprole CS

thiamethoxam+lambda-cyhalothrin CS

thiamethoxam+fludioxonil+metalaxyl-M FS

fungicides

difenoconazole+fludioxonil FS

azoxystrobin+fludioxonil+metalaxyl-M FS

fludioxonil+cyprodinil WG

cyprodinil TC

chlorothalonil+mandipropamid SC

Bayer Cropscience

fluopyram TC, SC

fluopicolide+propamocarb hydrochloride SC

propamocarb hydrochloride AS

imidacloprid WG,FS

ethiprole TC

iodosulfuron-methyl-sodium+mesosulfuron-methyl OFK

FMC

acetochlor+clomazone EC

metamifop EC,WP

sulfentrazone TC,SC

carbosulfan ZGF

imidacloprid+carbosulfan EC

cyflumetofen SC

DOW

pyroxsulam TC , WG

cloransulam-methyl TC , WG

penoxsulam+cyhalofop-butyl OFK

flumetsulam TC

spinetoram TC ,SC

DuPont

Herbicide chlorimuron-ethyl TC

Industry news


Insecticide cyantraniliprole TC,OFK

fungicide picoxystrobin TC,SC

BASF

ametoctradin TC

dimethomorph+ametoctradin SC

Some 54 pesticide technical produced in China approved by AustraliaIn 2012, some 54 pesticide technical produced in China approved by Australia, of which ranged some 29 herbicides, 11 insecticides, 12 fungicides and 2 PGR. More than one enterprise approved the registration of glyphosate, MCPA, imazethapyr, fipronil, acetamiprid, Lambda-cyhalothrin and azoxystrobin.

herbicides Insecticides fungicides2,4-D fluroxypyr-mepthyl Abamectin propiconazole

MCPA imazethapyr pyriproxyfen Boscalid

MCPA ethyl hexanoate bentazone imidacloprid flutriafol

glyphosate metribuzin trichlorfon epoxiconazole

ammonium glyphosate thidiazuron diafenthiuron myclobutanil

Diquat tralkoxydim acetamiprid captan

oxadiaron trichlopyr chlorpyrifos cyprodinil

clopyralid butoxyethyl trichlopyr fipronil azoxystrobin

prosulfuron terbuthylazine Lambda-cyhalothrin phosethyl-al

trifluralin simazine dimethoate penconazole

hexazinone clethodim cyromazine tebuconazole

sulfosulfuron atrazine dimethomorph

imazapic carfentrazone-ethyl PGRfenoxaprop-p-ethyl liruron trinexapac-ethyl

S-metolachlor forchlorfenuron


Industry news


Review of China's Fungicide Commodities Performance in 2012

In recent years, the pesticide industry in China has enjoyed rapid development as evidenced by a considerable amount of products accounting

for over 70% of international production capacity and generating more than 10 billion in sales.

In 2012, sales of 6 fungicide commodities including azoxystrobin ,carbendazim, chlorothalonil, difenoconazole, mancozeb and tebuconazole showed the dominant position.

AzoxystrobinAzoxystrobin is a systemic fungicide, active against Ascomycetes, Basidiomycetes, Deuteromycetes and Oomycetes. It has preventative, curative and translaminar properties and residual activity lasting for up to eight weeks on cereals. The product demonstrates slow, steady foliar uptake and moves only in the xylem.

The product can be mixed with Ambush, Bravo, Captan, copper hydroxide, Dominex, Dipel, Karate, Larvin, Fortress (D0059), Talstar and Thiodan.

Azoxystrobin effectively controlled damping-off and foliar diseases of vegetables (e.g. lettuce, tomatoes) and ornamentals (e.g. roses, carnations) .

In 2000, this fungicide accounted for almost half of corn fungicide market in French, Germany and England. Of which sales reached $ 451 million in 2000, equivalent to 40 folds of sales of $ 12.5 million in 1996. Amistar (active ingredient is azoxystrobin) is the leading fungicide product in the world, and the main product of Syngenta. This product got the approval of the registration in over 100 countries and over 120 crops including corn, rice, peanut.

Industry news


Domestic marketRecently, with the expansion of the capacity, China is the one of largest producers with the capacity of 1500 tonnes per year. Ended by August 2011, there are over 10 producers in China together in Jiangsu, Shanghai and Guangdong.

Main producers in China

producer capacity/(t/a) shanghai heben-eastsun medicaments 50

Shangyu Nutrichem finechemcial 600

Taizhou Baili Chemical 500

Lier Chemical 10

Zhejiang Bosst Cropscience 200

Jiangsu Flag Chemical Industry 200

Azoxystrobin registration in China

producer registration capacity/(t/a) shanghai heben-eastsun medicaments PD20101526 50

Shangyu Nutrichem finechemcial PD20110052 600

Taizhou Baili Chemical PD20110483 500

Lier Chemical PD20120009 10

Zhejiang Bosst Cropscience PD20120223 200

Syngenta PD20060032 --

Supply and demandDomestic consumption of azoxystrobin in 2010 rose almost 30% close to 150 tonnes compared with 2009. Due to high price of azoxystrobin price compared with other fungicides, its market value reached over $ 10 million in 2010. The azoxystrobin price showed a downward trend in past few years, and will continue to decrease owing more capacity and more mature technology. According to statistics, the domestic production of azoxystrobin mainly for export, 2010 azoxystrobin are mainly exported to Uruguay, South Africa and Italy and other countries. Based on the advantage of the good efficacy and continues to expand in overseas markets, is expected to azoxystrobin in the next few years, China’s exports will continue to increase.

Is expected that the next five years, the production of the domestic azoxystrobin will remain more than 35% of the rate of growth; domestic demand will be about 20% of the increase continued to grow. Azoxystrobin products warming will lead to the development of the upstream industry chain (such as the trimethyl orthoformate products) and increase investment opportunities. To be sure, azoxystrobin will drive the entire fungicide industry development, promote the upgrading of fungicide products in China.

---From 2012 China azoxystrobin product report issued by CCPIA

Industry news


Carbendazim

Carbendazim is a widely used, broad-spectrum benzimidazole fungicide and a metabolite of benomyl. It is also employed as a casting worm control agent in amenity turf situations such as golf greens; tennis courts etc. and in some countries is licensed for that use only.

The fungicide is used to control plant diseases in cereals and fruits, including citrus, bananas, strawberries, pineapples and pomes.

The market of carbendazim is expanding as many newly developed application areas emerged such as mildew proof in industry and so on.

market and key manufacturersGlobal carbendazim demand remains 30,000 tonnes. Brazil, Argentina and India are the main carbendazim consumers. Global sales of carbendazim grew by 5.3% to $ 200 million in 2011.

Main carbendazim producers: Jiangsu Lanfeng, Ningxia Wynca, Anhui Guangxin. Combined capacity of the three companies reaches 43,000 tonnes, accounting for 90% of total national level. National output and export volume reached 39,000 tonnes and 26,000 tonnes, respectively.As LanFeng biochemical expanded capacity to 20,000 tonnes, Yangnong Ningxia Ruitai (10,000 tonnes) and Jintun joined in the industry, China’s carbendazim capacity is about 60,000 tons, with an increase of nearly 40% of the year.

price tendencyCarbendazim price grow up at the start of the year and at the high of Yuan 30,000 /ton in February. However, it began to keep down after March due to the oversupply in domestic market and lower demand of international market. The price remained some Yuan 27,000 / ton in November.

Events•Brazil and India’s import carbendazim declined sharply due to the dry weather

•Australia decided further restrictions for carbendazim

•Brazil Orange growers to Halt carbendazim use

Registered formulationTC, SC, WP, WG, FU

---From 2012 China carbendazim product report issued by CCPIA


Industry news


Chlorothalonil

Chlorothalonil (2,4,5,6-tetrachloroisophthalonitrile) is a polychlorinated aromatic mainly used as a broad spectrum, nonsystemic fungicide, with other uses as a wood protectant, pesticide, acaricide, and to control mold, mildew, bacteria, algae. It mainly used for vegetables, fruits, potatoes, rice, corn and non-agriculture including painting, electrical, leather, paper and so on.

market and main companiesGlobal demand for chlorothalonil remains 20,000 tonnes. The main market is distributed in the four high-end markets of US, Japan, France and Brazil. Combined these four markets accounted for over half of global market. Domestic demand is 2,000 tonnes. In 2011, export volume of chlorothalonil reached 13,500 tonnes, of which, technical accounted for 80%.

Main chlorothalonil producers: Jiangsu Xinhe Chemical Co., Ltd., Jiangyin Suli Chemical Co., Ltd., Jiangsu Weunite Fine Chemical Co., Ltd. Combined capacity of the three companies is 18,000 tonnes, accounting for 84% of total national level. Syngenta is one of largest manufacturer with the capacity of 9,000 tonnes.

Price tendencyChlorothalonil market was very competitive, the price was hovering between Yuan 28,000 -30,000/ ton(in term of active ingredient), it dipped compare with that in 2011.

Events•Syngenta updating chlorothalonil label to meet new NSRL

•Research found that chlorothalonil environmental substance limitation to be re-evaluated.

•Continuous chlorothalonil plant ensures the stable production and quality.

registered formulationTC, WP, FU, SC, WDG, DP, OL

---From 2012 China chlorthalonil product report issued by CCPIA

Industry news


Mancozeb

Mancozeb is used to protect many fruit, vegetable, nut and field crops against a wide spectrum of fungal diseases, including potato blight, leaf spot, scab (on apples and pears), and rust (on roses). It is also used for seed treatment of cotton, potatoes, corn, safflower, sorghum, peanuts, tomatoes, flax, and cereal grains.

Market and key manufacturersSales of mancozeb rose by 8.8% to record high of $ 620 million in 2011. As of the end of 2011, the global mancozeb capacity is about 205,000 tons (off 80% ai.), of which, 150,000 tons are produced by international producers and 51, 000 tons are produced by domestic producers. The global output reached 140,000 tonnes against the sales volume of 135,000 tonnes.

China produced 45,000 tonnes mancozeb against sales volume of 44,000 tonnes , among which 35,000 tonnes for export in 2011. Markets for export include Europe, Africa, Asia and North America.

Key manufactures include the largest producer, UPL, Sabero, Indofil and domestic producers, Linmin Chemical, Hebei Shuangji Chemical, Dow(China), Nantong Baoye and Xi’an MPC Stock.

Company Capacity(ton)

UPL (India) 90,000

Sabero (India) 30,000

Indofil (India) 30,000

Limin Chemical 20,000

HebeiShuangji Chemical 15,000

Dow (China) 8,000

Nantong Baoye Chemical 3,000

Xi’an MPC Stock 5,000

Price tendencyMancozeb price remained some Yuan 22,000 /ton in 2012.

Events

Registered formulationMancozeb is available as dusts, liquids, water dispersible granules, as wettable powders, and as ready-to-use formulations.

---From 2012 China mancozeb product report issued by CCPIA

Industry news


Difenoconazole

Difenoconazole is a triazole fungicide which was developed by Syngenta, it’s widely used for its characters of novelty, efficiency and safety. Its global annal sales reached some $200 million, ranked 3rd on the list of triazole fungicides. Difenoconazole inhibits biosynthesis of the cell wall polyhydric alcohols to prevent growth of fungi, such mode of action makes it a protective, therapeutic and systemic fungicide. Its security is relatively high in triazole fungicides. Difenoconazole is widely used in fruit and vegetable to prevent scab of cucurbits, grape bitter rot, black pox, white rot, leaf spot, powdery mildew, leaf spot, rust, stripe rust, scab, etc. It provides long-lasting preventive and curative activity against ascomycetes, basidiomycetes and deuteromycetes including alternaria, ascochyta, cercospora, cercosporidium, colletotrichum, guignardia, mycosphaerella, phoma, ramularia, rhizoctonia, septoria, uncinula, venturia spp and some seed-borne pathogens. In recent years, the annal sales of difenoconazole were more than $100 million. Back in 2003, the annal sales was $110 million. Two years later, it increased to $135 million. In 2007, the annal turnover reached $195 million, till the year of 2009, this number exceeded $200 million, reached $210 million.

In the fourth quarter of 2010, the price of difenoconazole was yuan 192,000 per ton,since then, the price began rising steadily to yuan 210,000 per ton and floated up and down around this level. Currently, it shows a rapidly growth trend of domestic production, demand and export, which indicates that difenoconazole is coming into a phase of rapid development in China. According to statistics, in the first half of 2012, the production of difenoconazole is 1065.29 tons, sales volume is 657.99 tons and export is 739.41 tons.

In recent years, the production capacity of difenoconazole expanded more quickly than before. Since Syngenta first registered in China, there has been a quick increase in domestic registered manufacturers. Up till now, there have been 13 pesticide enterprises registered for manufacturing difenoconazole technical products. Since most manufacturers which were built up during 2005 to 2007 were in small scale, like

100-150 tons per year, along with the good trend in domestic, many enterprises plan to expand and construct new plants. For instance, Gengyun Company of Jiangsu Province moved to International Chemical Industrial Park in Zhenjiang Economic and Technological Development Zone, the scale of production reached 1000 tons. Currently, the production capacity of difenoconazole is more than 3500 tons per year.

Demand of difenoconazole increased quickly. In the past few years, since the factors of price and promotion, difenoconazole was mainly used on fruit and vegetable, the market was in a mode of equilibrium. According to some regions’ Plant Protection Departments, three main factors may push the demand of difenoconazole. Firstly, in recent years, some main crop cultivars are poor in disease-resistance and some disease are serious. Secondly, the price of fruit and vegetable rises steadily, planting benefit is obviously good. Thirdly, although the price of difenoconazole is on a high level, its use is only one tenth to one fifth of thiocarbamates and dithane, thus the residue is relatively much lower. Plus, so far, no resistance cases have been reported on difenoconazole.

Now difenoconazole is registered on a peak time in China. 10% WDG was registered in China for scab on pears and black spot on cabbages in 1999, certificate No. LS99008. Companies began to develop this product ever since, till now there are more than 220 products under difenoconazole.

Currently registered difenoconazole single-TC formulations, see next form:

Content Grads Name of Formulation

10%,15%,20%,30%,37%WG(water dispersible granule)

10%,12%,30% WP(wettable powder)

10%,20%,25% ME(microemulsion)

5%,10%,20%,25%,40% EW(emulsion in water)

25%EC(emulsifiable concentrate )

25%,30%,40% SC(suspension concentrate )

3%FSC(flowable concentrate for seed coating)

---From 2012 China difenoconazde product report issued by CCPIA

Industry news


Tebuconazole

Tebuconazole is an efficient, broad spectrum and strong systematic triazole fungicide used agriculturally to treat plant pathogenic fungi. It mainly used control of Rhizoctoniasolani, false smutonsoybean, wheat, rice, vegetables and fruits. Besides, it can promote plant growth, and increase yield.

Market and key manufacturersSales of tebuconazole rose by 11.4% to $ 440 million in 2011. That’s down from a peak of $ 550 million in 2005. Bayer is the largest producer and distributor with the capacity of 4,000 tonnes / year. MakhteshimAgan and India also produce the product. China is the largest manufacturing country with the capacity of 14,000 tonnes. In 2011, China’s tebuconazole output was 8,000 tonnes, among which some 80% was for export. The key markets for export are Europe, North America,

South America and Asia Pacific.

The key manufacturers include Shanghai Shengnong, Jiangsu Sevencontinent Green Chemical Co., Ltd., Jiangsu Sword Agrochemical Co., Ltd., Jiangsu Fengdeng Pesitcide Co., Ltd., etc.

Price tendencyThe tebuconazole technical price kept plummeted for several years from Yuan 150,000/ton in 2003 to the lowest of some Yuan 71,000/ton, which led 15% annual rise of application in tebuconazole, which drive the price increase.

Events

Registered formulationSC, FS, WG, EW, ME, EC, WP.

---From 2012 China tebuconazole product report issued by CCPIA


Companies

2012 Huapont-Nutrichem Agrochemical sales over 3000 millionRecently, Huapont-Nutrichem posted a 507.65% jump on previous year to RMB 3,877 million in 2012. The company’s net profit was RMB 332,384,300, increased RMB 27,105,800 than last year (+8.88%).

The company claimed that the large growth of sales due to the merger with Beijing Nutrichem company

in 2012, which brought agrochemical business into Huapont. During 2012, Beijing Nutrichem’s sales reached RMB 3029 million, equivalent to 78.15% of total sales, while net profit attributable to the parent company reached RMB 180 million, accounting for 54% of general profit.

Major Business (RMB, million)

Sales Operating costs Rate of gross profit(%)

Sales change% Costs change% Gross profit

change%Industry

Chemical pharmaceutical 535.24 88.99 83 22.64 76.62 -5.08

Chemical raw material 223.66 193.12 13.65 32.43 32.74 -0.21

Agrochemical 3,023.10 2,555.30 15.47

Hospitality 30.71 28.74 6.42 58.92 171.66 -38.84

Tea sales 10.67 5.94 44.38

Technical service 20.70 4.41 79

Others 0.59 0.38 33.59

Products

Herbicide NC36 324.19 245.68 24.22

Herbicide NC125 157.44 133.71 15.07

Herbicide NC201 116.18 103.48 10.93

Herbicide NC34 107.79 97.87 9.21

Herbicide NC16 109.06 79.53 27.08

Others 3,029.98 2,216.59 26.84

Region sales

Foreign sales 2,508.88 2,345.50 6.51 -10.62

Home sales 1,335.76 531.36 60.22 -24.01


Companies

In 2012, after the merger, Huapont-Nutrichem spent RMB 70,483,000 on R&D pipeline (1.82% of sales during 2012, 2.63% of net asset by the end of 2012).

Beijing Nutrichem is an integrated company which combined agrochemical R&D, production, sales, technical service and trading business. Compared with domestic competitors, it has clear advantages on R&D, market channels, registration, QC and EHS (Environmental, Healthy, Safety) management system. Such superiorities are driving Beijing Nutrichem to develop quickly and strongly.

In recent years, Beijing Nutrichem independently developed more than 70 nuisanceless, environmental and effeciency high-tech agrochemicals. Among them more than 50 filled the blank of domestic market, some 29 were granted patents (1 foreign patent). In addition, Nutrichem participated in formulating 6 Industrial Standards and 2 FAO International Standards which have been carried out.

In 2006, the OECD member states issued GLP laboratory qualification certificate to Beijing Nutrichem, which made it become the first agrochemical GLP laboratory in China mainland. In 2012, Public Health Agency of Belgium carried out the 4th GLP Examination, Beijing Nutrichem successfully passed the examination, and the GLP laboratory became the only Environmental Behavior and Residue Experimental lab granted by OECD in China mainland. At the same time, Beijing Nutrichem GLP lab also gained NAS17025 Certification issued by CNAS,

and could be admitted in regions which signed Mutual Recognition Agreements with CNAS.

Beijing Nutrichem signed some long-term cooperation agreements with internationally renowned agrochemical companies to make sure their products sale smoothly. At present, Beijing Nutrichem owned 5 manufacturing base: Shangyu Nutrichem, Wanquan Lihua, Wanquan Hongyu, Yancheng South and Hangzhou Qingfeng.

Beijing Nutrichem insists their management theory of EHS and QA/ QC. Responsible Care Committee is responsible for parent company and subsidiaries’ health, environment, workers’ safety, quality assurance and control in order to achieve mutual development of workers, companies and environment. At present, Beijing Nutrichem’s EHS and QA/QC system has passed internationally renowned companies’ examination, which makes it enter the distributor system of them smoothly.

OutlookBeijing Nutrichem is focusing on developing agrochemical market by improving their new products and technical service, it is also going on balancing the relationship among development, environmental protection and social responsibility. The company is devoting itself to become the most outstanding international agrochemical company of China by 2015, and an international advanced agrochemical company by 2022.



Companies

2012 Changqing sales grew 26%Changing posted a 26.9% rise in revenue of RMB 1,270 million in 2012. The profit grew by 56.9% to RMB 176 million.

Pesticide products were still the most sold products in the company, sales rose by 26.9% to RMB 1,620 million, equivalent to 99.6% of the total business.

Sales of veterinary products were down by 3.4% to RMB 4.80 million.

For pesticides varieties, growth was led by good sales of insecticides, of which sales rose by 62.2%, while sales of herbicides and fungicides declined by 1.7% and 4.2%, respectively.

Changqing Agrochemicals sales in 2012(million RMB)revenue Change (%) Rate of margin(%) Change (%)

By industry

pesticide 1,259.62 +26.94 24.67 +3.11

veterinary drug 4.80 -3.43 16.54 -2.75

By products

herbicides 461.15 -1.7 20.45 -1.55

insecticides 726.36 +62.18 28.23 +6.13

fungicides 72.11 -4.2 15.93 +0.15

In 2012, Jiangsu Changqing Agrochemical Co. Ltd was devoted to introducing and R&D on efficient, low toxic pesticide varieties through the cooperation with colleges and research institutes. Until now, the company has 11 authorized invention patents and developed 25 new products and technologies. They optimized company’s product portfolio, improved grade of products and enhanced the capability of technical innovation. In 2012, Changqing Agrochemical Company expended RMB 54.76 million on R&D pipeline, increased by 16.88% than that of 2011, accounted for 3.14% of annual audited net assets. Direct export sales increased by 57.96% to RMB 665.3 million.

In 2012, Changqing Agrochemical Company expanded fund-raising activities. Programme of fund-raising on fenoxanil with capacity of 500 tons was constructed and put into operation in March 2012. At the same time, the company actively responded to the policy of green production and energy saving. A project of waste treatment with capacity of 5000 tons was put into trial operation. In April 2013, they also plan to put a project of extensive effluent treatment into trial operation which will improve the company’s level of “three wastes” treatment and reach the goal of cleaner production.


Companies

2012 Huaxing’s profit boostRecently, Huaxing posted a 3.8% rise in the year of 2012 to RMB 943 million. The profit boosted by 218% compared with the same period in 2011 to RMB 106 million.

Company’s agrochemical business, as the largest sector, achieved revenue of RMB 875 million, equivalent to 92.8% of total revenue. The sales of insecticides, herbicides and fungicides reached RMB 380 million, 463 million and 30 million, respectively.

Company’s domestic sales and export value reached RMB 563.5 million and RMB 368.4 million, respectively. Since 1998, Huaxing Chemical obtained the right of import and export. The company’s products are exported to over 20 countries and regions in America, Southeast Asia and Africa after years of market development and maintenance. Meanwhile, company achieved domestic growth driven by mature sales channels and brand advantages.

2012 Huaxing’s operating results (million RMB)

revenue Change (%) Rate of margin (%) Change (%)By industry

pesticides 875,.1 4.01 14.62 8.76

fertilizers 51.9 -0.9 4.64 -1.77

seeds 5.1 -14.35 20.81 18.14

By products

Insecticides 380.7 10.58 17.97 6.5

Herbicides 463.8 -2.33 11.01 10.33

Fungicides 30.6 37.56 27.62 -1.98

Fertilizers 51.9 -0.9 4.64 -1.77

seeds 5.1 -14.35 20.81 18.14

By region

overseas 368.4 -8.83 14.43 11.78

domestic 563.7 13.73 13.88 5.39

Huaxing mainly deals in insecticides such as imidacloprid, monosultap and bisultap, which control of rice pests; herbicides such as glyphosate, fenoxaprop-p-ethyl, which are the company’s key products. In addition, company merged Kaijiang Agrochemical for developing the fungicides.

OutlookAnhui Huaxing Chemical Industry Co. Ltd will continue optimizing the product portfolio. As well as keeping the leading position of monosultap, glyphosate and imidacloprid, they intend to develop new products in seed market, research some high-activity and high-value novel insecticides and herbicides, and explore

novel fungicides and plant growth regulators which applied on cash crop such as fruit and vegetable.

They intend to develop novel, environmental, convenient and economical pesticide formulations. And in the coming 3 years, they plan to improve the rate of these new products’ sales to 70% of total sales, and increase the capacity of formulation processing to more than 100,000 tonnes per year.

In the past few years, Huaxing expanded its industry chain, enhanced its integral strength and risk-resistance capacity. In the future, the company will keep on such strategies on two aspects. To industrial upper reaches, the company will accelerate the process of constructing


Companies

ion film caustic soda (capacity of 300,000 tonnes/year) and phosphorus trichloride (capacity of 100,000 tonnes/year) projects. While to the downstream industrial chain, Huaxing will take advantage of its dominant position in industry, with the aid of distribution center programme construction, keep on selling agricultural materials such as fertilizers and seeds in order to get profit maximization.

In the future, Huaxing plan to enhance brand building. The company will improve the service system; raise the service level through holding training programs and long term technical guidance to distributors and terminal farmers. In this way, the company will mold its own brand and build up corporate fame, thus improve the company’s product adoption.

2012 Huifeng’s insecticide business ups 211%Jiangsu Huifeng posted a 59% rise in revenue to RMB 1,667 million; among them, the main business grew up by 58.35% to RMB 1,644 million.

In 2012, Huifeng’s sales of insecticides, fungicides and herbicides are equivalent to over 80% of total revenue. Of which, sales of fungicides rose by 58% to RMB 760 million, accounting for 46.2% of total sales; sales of herbicides is flat to RMB 340 million, equivalent to 20.9% to total sales; while sales of insecticides rose by 211% to RMB 220 million.

Company’s some 60% of revenue to RMB 1,020 million is from international market and 40% of sales is from domestic market.

Company completed the projects of epoxiconazole with capacity of 1000 tonnes and prochloraz with capacity of 3000 tonnes. In addition, company speeded up GLP laboratory development.

Jiangshan’s pesticide business rose 18%Recently, Jiangshan posted a 15% rise in revenue in 2012 to RMB 3,008 million. Among them, driven by higher sales of glyphosate, pesticide revenue grew 18% to RMB 1,759 million, equivalent to 58.5% of total business, while chemical business grew 27.2% to RMB 652 million. Sales of glyphosate rose 24.8% to

RMB 1,542 million, accounting for 87.7% of pesticide business. Profit of company climbed by 559.3% to RMB 33.32 million in the period.

By regions, both domestic and overseas sales increased.

revenue Change (%) rate of margin (%) Change (%)By industry

pesticide 1,758.8 17.90 9.84 6.34

chemical 651.9 27.21 6.37 -4.90

chlor-alkali 347.5 7.28 34.24 2.39

Commodity sales 52.6 -24.03 3.74 -0.11

pyroelectricity 182.2 -0.28 16.54 2.87

By products

glyphosate 1,542.8 24.76 10.44 8.58

Caustic soda 289.5 16.70 46.99 3.60

stream 182.2 -0.28 16.54 2.87

By region

domestic 1,559.8 10.22 -- --

overseas 1,448.1 22.11 -- --

OutlookThe company expects to see sales of RMB 3,300 million in 2013, with an increase of 9.7%.


Companies

2012 Lanfeng sales up 11%Recently, Lanfeng posted a 11% rise in revenue to RMB 1,269 million in 2012. Fungicides are the largest category with the sales of RMB 466 million, equivalent to 36.7% of total sales, followed by insecticides and herbicides with the sales of RMB 290 million and RMB 221 million, accounting for 22.8% and 17.4% of total

sales, respectively.

For export, company’s exported value reached RMB 864 million, equivalent to 68.1% of company’s revenue, while domestic sales of RMB 404 million accounted for 31.9%.

Changqing’s operating results (million RMB)

revenue Change (%) Rate of margin (%) Change (%)By productsfungicides 466.0 -24.43 17.42 -1.6herbicides 221.4 70.52 35.09 11.13insecticides 290.3 220.76 8.09 -7.94intermediates 146.9 -22.4 36.54 8.56Elaborated products 96.2 2.58 20.96 -3.6Sulfuric acid 21.5 -14.96others 9.1 3.33 14.68 7.12By regionsabroad 864.3domestic 404.2

The profit of company declined by 29.04% to RMB 59.2 million due to lower sales of main products, higher environmental protection cost, etc.

OutlookLanfeng Biochemical is the large pesticide producers with phosgene device. Company’s products such as hexazinone, acephate, diuron, carbofuran and

carbendazim are the popular commodities in the world. With the higher demand, company’s more mature manufacturing technique and advancement of project in Ningxia, Lanfeng expects to see more opportunity to development.

In addition, company will expand scale and adjust layout by merge in 2013. For entering the end market, company plan to merge trading companies in Europe, America, Brazil and India.


Companies

2012 Lier sales grew 36%Recently, Lier posted a 36.55% rise in revenue to RMB 1,278 million. Company’s profit grew 25.85% to RMB 87.62 million. By products, sales of pesticides technical

accounted for 75.35% of total sales to RMB 915 million, while sales of formulation and others accounted for 24.65% of total sales.

Revenue Change (%) Rate of margin (%) Change (%)By industry

pesticide 1,215.0 30.07 23.77 1.91

By product

technical 915.5 36.17 25.03 1.98

Formulation and other 299.5 14.42 19.95 1.52

By region

international 758.1 52.67 26.43 1.32

domestic 456.9 4.43 19.36 1.2

Followed by Dow, Lier Chemical has the technology of catalytic chlorination of pyridine, is the largest producer of production for chloro-pyridine pesticide and its formulation in China.

In 2012, Lier Chemical upgraded the equipment of its main products production channel including glurosinate-ammonium and epoxiconazole for improvement of quality and reduction in cost. In addition, company transformed chlopyrifos plant into clopyralid and pycloram intermediate plant, and shutdown the propiconazole equipment.

Company continues to strengthen the international marketing, to expand the international registration. Lier’s international sales rose 26.4% to RMB 758

million, equivalent to 62.4% of total sales. At the same time, Lier vigorously develops the domestic market, especially for sales channel to northwest, south China, to accelerate formulation registration. Domestic sales grew by 19.3% to RMB 447 million, accounting for 37.6% of total revenue.

OutlookThe next few years, the company will continue to closely focus on the company’s strategy to create a international competitive chemical company; meanwhile, company develop pesticide and formulation portfolio, and develop the end market.


Companies

Noposion to acquire stakes of Changlong Chemicals

Recently, Shenzhen Noposion announced its intention to acquire stakes of Jiangsu Changlong Agchem company, which is at present under a process of early-stage discussion on percentage of shares and total investment.

Changlong Chemicals is an assigned national phosgene production base with a capacity of 100,000-ton pesticide technical and various environmental-friendly formulations. The company’s products range insecticide, herbicide and fungicide series covering some 40 pesticide technical varieties and 60 formulation products with registration and production permit.

“We are looking for a return from investment in Changlong Chemicals and will move into pesticide technical market via Changlong Chemicals, enhancing the company’s competitive edge in the pesticide industry, which is of a great strategic significance to us”, according to Noposion.

As China’s largest pesticide formulation producer, Noposion takes a leadership in respect of formulation varieties and marketing channels. Participation in the acquisition of the stakes of Changlong Chemicals will facilitate a control over upstream business, increase product varieties as well as enlarge marketing coverage. Noposion, which is currently a formulation producer, expects to become a pesticide technical and formulation integrated pesticide producer if it succeeds in the acquisition.

Red Sun showed a robust growth in 2012

Chinese agchem company Red Sun recently issued the financial report announcing its 2012 business income of Yuan 7.17 billion being 23.94% up YOY including profit margin of Yuan 306 million being 1133.44% up YOY; net profit attributable to mother company reached Yuan 290 million being 322.63% up YOY.

Pesticide income grew significantly, achieving sales income of Yuan 2.72 billion. The proportion of pesticide income in business income rose to 37.98% from the 22.13% in 2011 being 112.63% up YOY; fertilizer income was Yuan 4.2 billion being 4.09% down YOY; agricultural materials income was Yuan 53 million; the miscellaneous sales income was Yuan 25 million being 138.28% up YOY.

The R & D expenditure of Red Sun in 2012 was Yuan 104 million, which accounts for 3.28% of the audited net assets and 1.45% of the annual income in 2012. The export turnover reached Yuan 407 million being 164% up YOY.

In 2012, the company’s upstream and downstream products are well incorporated by three prime environmental series - pyrethroids, pyridine and hydrocyanic acid based pesticides, forming combined advantages of “intermediates–technical material, formulation – marketing channel”.

revenue change% Rate of margin % change%

pesticide 2,725 +112.6 20.5 +6.1fertilizer 4,276 -4.1 3.8 -0.1Real estate 54 - 42.6 -other 26 +138.3 10.4 -12.2export 408 +164.2 8.43 +4.0



Companies

Veyong Bio-chemical pesticide sales up 9% in 2012

According to the financial report of Chinese company Hebei Veyong Bio-chemical, pesticides sales grew by 9.1% to RMB 614.6 million in 2012 ended December 31st and the profit increased by 16.3%. Sales of technical pesticides rose by 12.4% to RMB 227.0 million while pesticide formulations up by 7.2% to RMB 387.7 million.

Veyong Biochemical’s pesticide sales result in 2012Category sales (RMB million) % change-technicals 227.0 +12.4-formulations 387.7 +7.2total sales 614.6 +9.1

Veyong Bio-chemical is engaged in pesticide, veterinary drug, energy and chemicals businesses. In the period, the company set up the project of glufosinate, azoxystrobin technicals, so as to improve the products structure. Total sales of the company’s all sectors in 2012 rose by 1.5% to RMB 1,800 million and the profit boosted with an increase of 58% to RMB 42.2 million. For region, export of the company grew up by 16.2% to RMB 311.7 million while domestic business dipped by 2.64%.

2012 Wynca sales up 32%

Recently, Wynca posted a 26% rise in revenue of RMB 6,111 million on previous year. The net profit attributable to stockholders of listed company rose 656.8% to RMB 131 million.

Revenue Change%

Rate of margin%

Change%

By productpesticide 2,832 32.17 12.00 +9.53organosilicone 2,664 15.08 16.76 -0.83

The company said, the sales growth is driven by higher price of glyphosate. However, another main product, organosilicone entered into downward spiral on profit with lower price. Sales of pesticide climbed 32.15% to RMB 2,832 million, equivalent to 47.75% to total sales, while sales of organosilicone rose by 15.12% to RMB 2,665 million, accounting for 44.93% of total sales.

By region, domestic and overseas sales of the company increased by 22.57% and 32.96%, respectively.

OutlookThe company expects the market environment to remain positive in 2013.Wynca anticipated high single-digit growth for sales, topping RMB 6,600 million. The company said, as a main product, glyphosate in recent years has been affected by fluctuations. In addition, changes in raw material prices, exchange rate changes, safety and environmental protection and possible anti-dumping risk to some extent affect the performance of the company.



Companies

2012 Yangnong sales up 20%Jiangsu Yangnong posted a 20.40% rise in revenue to RMB 2,219 million recently. Among them, insecticides, the company’s largest category, was equivalent to 52.4% of total sales. Followed by herbicides and others, which accounted for 41.6% and 6% of that, respectively. The profit of company grew by 26.3% to RMB 194 million.

Yangnong operation result in 2012(million RMB)

revenue Change (%) Rate of margin (%) Change (%)By products

insecticides 1,147.6 -4.00 21.79 0.14

herbicides 909.0 67.53 14.07 8.25

other 130.3 69.37 15.39 -1.75

total 2,186.9 20.49 18.20 1.48

By regions

abroad 1,666.8 48.32

domestc 520.0 -24.76

total 2,186.9 20.49

Company said, for domestic market, sales of the hygienic permethrin was down due to the lower demand and illegal competition; due to the pesticide market captured by international products, reduction in insecticide applications due to lower incidence of pest this year and illegal production, agricultural permethrin market slumped. In 2012, the company’s domestic sales was down 24.76% to RMB 520 million.

For international market, sales of pesticides showed a jump by 48.32% to RMB 1,667 million due to the growth of glyphosate, which is driven by higher price of GM crop and increase in the GM cultivation area. Yangnong Chemical is the largest domestic bionic pesticide producer with the most the pyrethroid production and revenue in China.



CCPIA news

On March 12th, 2013 National Secretary-General Joint Meeting of Pesticide Industry and the Media Forum was held by China Crop Protection

Industry Association(CCPIA). Secretaries General of crop protection industry associations from Jiangsu, Zhejiang, Shandong, Chongqing, Shaanxi, Anhui, Henan, Guangdong and other provinces as well as journalists from the editorial departments of Pesticide, World Pesticides, AgriGoods Herald etc. attended the meeting. Dr. Li Zhonghua, Secretary-General of CCPIA, hosted the meeting. Chairman of CCPIA, Dr. Sun Shubao reported the year work summary of 2012 and work plans of 2013 of CCPIA, and then gave the advice on the development of China pesticide industry and its relevant media. Then, officials introduced the last year’s economic operation.

Chairman of CCPIA, Dr. Sun Shubao notes the CCPIA’s Main Tasks in 2013 as follows:

1.To close ties to government, completes the foundation work for management department.

To well publicize and implement the newly revised Pesticide Management Regulations. There are some changes of this new version, e.g. the requirements for a business license for the distribution of crop protection

chemicals are included, as to change the current operation chaos. the Legislative Affairs Office of the State Council attaches great importance to the amendment of the Regulations ,

which is still in the process in the hope of being more conductive to the development of the crop protection industry. CCPIA (China Crop Protection Industry Association) also participated in lots of preliminary work in this respect, including the preparation of related training materials.

2.To strengthen communication with member , to understand the industry situation and enhance service awareness. Association is playing a more and more important role in the global agrochemical industry.

3. To deeply carry out Social Responsible Care. Social Responsible Care is a very important means that cannot be ignored for promoting the industry’s

Pass the positive energy to help smooth upward industry development——2013 National Secretary-General Joint Meeting of Pesticide Industry and Media Forum

Pass the positive energy to help smooth upward industry development——2013 National Secretary-General Joint Meeting of Pesticide Industry and Media Forum


CCPIA news

healthy development. Take “Paraquat” as example, its production is much likely to be prohibited domestically unless some measures are taken. Lots of other products like paraquat have to face elimination if we do not put much intention in carrying out Social Responsibility Care. While the Chinese “paraquat” producers has noticed the importance of Social Responsibility Care, and implemented some measures with voluntary funds, such as training doctors for Paraquat poisoning, trainings for salesmen and users, the establishment of two 24-hour emergency hotlines, free distribution of 40 000 copies of activated carbon, 12 000 fi rst-aid manuals and pesticides protective clothing, etc. In addition, there are still 10 more working plans for Social Responsibility Care to push ahead in full swing in 2013.

Only by attaching great importance to rescue operation for pesticide poisoning to minimize the mortality rate, could pesticides reputation continues to be restored. Only the safety of agricultural products is obtained, could the pesticide’s reputation to be recovered. It is not simply a publicity efforts can solve the problem, but needs to implement thoroughly to win the public’s reputation. Yangkou Chemical Industry Park, located in Nantong of Jiangsu Province, organized a series of training courses for Social Responsibility Care for all the companies in the park in 2012, which has achieved great infl uence.

Recently, BASF, Sinon Chemical (China) Co., Ltd of Taiwan Province are about to settle down in Yangkou Chemical Industry Park. This indicates that the park could attract more excellent enterprises to move in thus improve its economic development, by conscientiously carrying out Social Responsible Care.

4. To further enhance the implementation of the Collaborative Group of the Bulk Products, as to improve the ability of industry self-regulation. The Collaborative Group for the bulk crop protection products such as paraquat, glyphosate, carbendazim and abamectin, should attach great importance to coordination implementation as to enhance the ability of self-regulation of crop protection manufacturing companies. The current market disruption is

attributable to the defi ciency in integrity and self-discipline of the Chinese practitioner to a certain extent. Chinese producers and distributors should learn from their counterparts in Japan, Europe and the United States, which is a basic requirement for enterpreneurs.

5. To pay attention to industry quality management and encourage enterprises to technological innovation.

6. To organize special meeting, timely provides services to the industry.

7. To conduct many external exchanges to expand overseas markets

In a word, it is still a long and arduous undertaking for the development of China’s crop protection industry; CCPIA hopes to have everyone to be supportive.

Yunnan Province

Our association consists of not only manufacturers, distributors, sales companies, but also colleges and government departments. Based on the organization, we established a professional group to provide better service to enterprises.

Shanghai City

In 2012, Sales, production, export and profi t of pesticides all realized dramatically growth on previous year. Shanghai pesticide enterprises are facing a crisis of survival, because many of



CCPIA news

them are facing relocation problems. More than 500 chemical companies, including pesticide companies in Shanghai are not in the Chemical Industry Park. According to the policy, the ai manufacturers must move to the chemical industry park, or move out of Shanghai. Formulators can still stay at their original locations. However, the cost of the Shanghai Chemical Industry Park area is very high. So the enterprises are experiencing the tough period.

Anhui Province

Last year, agrochemicals made a better situation in Anhui. Of the 42 agrochemical enterprises that reported their results, 33 made a profi t, while the remaining nine were not profi table due to the different pesticide market.

Jiangsu Province

Since 2006, Jiangsu government implemented three rounds of regulation on pesticide enterprises. The fi rst two rounds of regulation from 2006 to 2009, is committed to move companies into the park. The third round of regulation is committed

to the improvement of SHE (safe, healthy and environmental protection). Right now 90% technical producers start running.

Chongqing city

Inspired by the Jiangsu pesticide association, Chongqing carried out exchanges with Jinagsu, Zhejiang and Shanghai

counterparts; in addition, we carried out anti-counterfeiting activities and realized a good effi cacy. This year, we to crack down the illegal enterprises in Chongqing and Sichuan.

Zhejiang Province

The biggest issue in Zhejiang is no more space for development. The number of pesticide enterprises will drop even further as increased pressure to confi rm to strict environment regulations is exerted on smaller companies. Many companies migrate to Anhui, Jiangxi Province in recent years.

Shandong Province

We organized special training, invited 150 experts to participate in the forum and discussed hot issues. As an professional association, we build the platform to serve the enterprises and help the industry development.

Henan Province

Our association was founded in 1992. Now we are affi liated with Henan Federation of Industrial Economics. However agrochemical industry in Henan does not rank front row in our country. In Henan, there are only a few companies producing active



CCPIA news


ingredients, while companies producing formulations are relatively more, but seldom are in scale. Currently we notice that Henan Yingtai Agrochemical Co. Ltd is developing very well. It focuses on one product’s export, and sales of 2012 reached RMB 800 million. There are also 7 or 8 other companies which developed relatively well in the province. Their annal sales were some RMB 100 million to RMB 200 million.

Guangxi Zhuang Autonomous Region

① Problem of identifi cation of material source. Since the assessment methods on identifi cations are rigorous,

companies always have to spend too much on the process of identifi cation. ②Problem of extending approvals. The new round of extending-approval started from later part of 2012. Production licenses should be reviewed every 5 years,

while our association’s licenses should be reviewed every 2 years. Extending approvals also joined into these reviews, making the amount of work complicated and to some extent useless. Enterprises are appealing for reducing their work load on this aspect.

Shaanxi Province

Shaanxi Pesticide Industry Association, established in 2010, is the youngest pesticide association. There are currently more than 70 of the member units, including 45 enterprises. In 2012, we organized some representatives from 15 enterprises to

visit companies in Jiangsu, Shanghai. Shaanxi pesticide industry’s philosophy, equipment and environmental awareness have been promoted dramatically.

Guangdong Province

The province’s pesticide industry realized total annual output value of RMB 3,200 million, up 12.9% on the previous year. Value sales of agrochemicals were up 240,000 tonnes, while sales were up 5.1% to RMB 2,000 million. The profi t jumped 110.5% to RMB 735 million. And exports showed an

86.3% jump to RMB 81 million.

Department of information & statistics

To strengthen the statistical work, publish the real data of the pesticide industry, is also one way to positive publicity industry.



Products

Famoxadone got the approval in ChinaRecently, Rudong Zhongyi Chemical Co., Ltd. which to become domestic enterprises first approved famoxadone to the registration of with content of 98%, registration number PD20130705. Previously, DuPont has the registration of the product.

Famoxadone is a new and efficient, broad-spectrum bactericidal pesticides, suitable for crops such as wheat, barley, pea, sugar beet, rape, grape, potato, pawl, peppers, tomatoes, etc.. Mainly used to control the Ascomycetes, Basidiomycetes, Oomycete subclass of important diseases such as powdery mildew, rust, the Ying blight, net blotch, downy mildew, late blight. With the mix Flusilazole the fight against the blight of wheat Ying, net blotch, powdery mildew, rust better. Lipophilic nature, spraying the crop leaves, easy adhesion, rain erosion effects.

Jiangxi Anlida Chemical approved temporary registration offluorochloridone

Recently, Jiangxi Anlida Chemical Co., Ltd. got temporary registration of fluorochloridone technical for period of one year. The product is exclusive for export. Currently, except for Anlida Chemcial, Suzhou Jiahui Chemical Co., Ltd. also has the registration of this product.

Fluorochloridone belong to pyrrolidone herbicides, and a preemergence application of selective herbicides. Mainly used for sunflower, potatoes, carrots, celery, dill, parsley, chickpeas, winter wheat, winter rye, corn and sugar cane and other crops, can prevent many broadleaf weeds and grass weeds. Can be quickly communicated to the after the F 1,10 metribuzin crop roots, stems and leaves of sensitive crops organization in its infancy weeds will quickly kill germinating weeds will be self-bleaching and death.

In February 2011, F 1,10 metribuzin was included in the EU pesticide registration Directive (91/414/EEC) Appendix 1.

www.agrochemex.net

CHINA CROP PROTECTION INDUSTRY ASSOCIATION(CCPIA)Address:Room 919,Building 16,Anhuili 4th Area,Chaoyang District,Beijing,China

Zip Code:100723Tel:86-10-84885035/84885145

Fax:86-84885001Email:[email protected]

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Published by CCPIA CHINA AGROCHEMICALS · value accounts for 90% of the national total pesticide production. Besides,CCPIA issued the China Crop ... Azoxystrobin Triazines ... growing