Metallurgy / Chemicals / Rubber & Plastics

According to the observation report of Huacheng Import and Export Data, in 2022, China's pesticide industry overall maintained a stable development trend, with hundreds of billions of investments supporting the orderly extension of the pesticide industry chain, and the overall output value and economic benefits of pesticide enterprises continued to improve. In 2023, the overcapacity of the pesticide industry may further intensify. Pesticide enterprises need to fully recognize the current severe situation, face challenges, control industry development opportunities and their own advantages, in order to achieve growth in future market competition. Sun Shubao, President of the China Pesticide Industry Association, stated in a recent interview with reporters.

Last year's development momentum was good

In 2022, against the backdrop of sustained international geopolitical tensions, global economic recession, multiple outbreaks of COVID-19, frequent occurrence of extreme climate events, and continuous tightening of safety and environmental protection policies, the Chinese pesticide industry overall maintained a stable development trend, according to Huacheng Import and Export Data Observation.

At the same time, the country has introduced multiple policies and regulations that are conducive to innovation, green, and high-quality development of the pesticide industry, further creating a good business environment. In this environment, the pesticide market as a whole showed a gentle downward trend in prices last year, with prices relatively stable in the second and third quarters, and a relatively significant downward trend in the first and fourth quarters. The merger and reorganization of the pesticide industry were carried out in an orderly manner. The investment of 100 billion yuan helped the orderly extension of the pesticide industry chain. The output value scale and economic benefits of pesticide enterprises continued to improve as a whole, and the industry's concentration ratio continued to improve. In terms of market supply, pesticide products are stable and abundant, overcoming difficulties such as significant increases in upstream raw material and energy prices, logistics obstacles, and high costs, making important contributions to China's food security. Huacheng Import and Export Data Observation Report.

In addition, the industrialization of genetically modified crops in China has entered a historic year of innovation, and the country has issued a series of policy incentives and adjustments frequently. The subsequent planting and promotion of genetically modified crops will to some extent promote changes in the structure of pesticide products. Chinese pesticide enterprises are continuously deepening their global layout, developing diversified businesses, and enhancing their brand influence; The high-quality development of the pesticide industry has shown a good momentum, and significant progress has been made in industrial structure adjustment, innovation driven, and green and low-carbon development.

Overcapacity or further exacerbation

Sun Shubao said that the current profound changes in the world economic landscape, as well as the metabolism and fierce competition brought about by the new round of technological revolution and industrial transformation, are unprecedented. At the same time, the new and old problems that constrain the development of the industry are still intertwined, and the pesticide industry still faces insufficient innovation capacity and arduous transformation and upgrading tasks. Small enterprises continue to face pressure to eliminate, heavy task of updating and upgrading their product structure, energy consumption "dual control", and safety and environmental protection pressure will continue. Huacheng Import and Export Data Observation Report.

In addition, the climax of economic globalization has entered a standstill stage, with global supply chains showing a contraction trend, and a new round of industrial transfer is entering a new stage. As the largest producer and exporter of pesticides, China is the core link of the global supply chain and will inevitably be affected. The long business cycle of the pesticide industry in this round has led to a continuous increase in new production in the past few years, coupled with expectations that the global economy may fall into recession. This year, the overcapacity in the agricultural and chemical industry may further intensify, which will be another cyclical setback for the industry.

Growing in Future Competition

The great changes bring great challenges and opportunities, and we must plan according to the situation, adapt to the situation, and follow the trend. "Sun Shubao emphasized that we should have a clear understanding of the problems that exist in the industrial chain of China's pesticide enterprises, fully recognize the current severe situation, control the development opportunities of the industry and the advantages of the enterprise itself, in order to achieve growth in future market competition.

On the one hand, the pesticide industry needs to "go global" with high-quality enterprises, products, and services to create Chinese manufacturing brand characteristics; Promote development through innovation, promote the effective transformation of scientific and technological innovation achievements, and enhance international competitiveness; Make full use of the technological innovation brought about by the new round of information technological revolution to promote the intelligent upgrading and Digital transformation of pesticide manufacturing.

On the other hand, as an important agricultural means of production, pesticides play an important role in ensuring food security, and the key to play this role is to enrich and diversify the supply of pesticide products. The pesticide industry needs to accelerate transformation and upgrading, optimize industrial layout, and reasonably arrange new production capacity in its future development; Enhance independent research and development capabilities, strengthen collaborative research and development of pesticides, seeds, fertilizers, agricultural machinery, etc., and effectively promote the reduction of agricultural costs. It is also necessary to strengthen the integrated layout of the industrial chain, gradually change the pattern of many small scattered pesticide enterprises, and improve the industrial concentration ratio; Promote the diversified development of products and encourage pesticide enterprises to expand their industrial chain downstream. We need to strengthen quality management, increase the supervision and random inspection of the pesticide market, and severely crack down on the production and operation of prohibited pesticides, counterfeit and shoddy pesticides, and hidden pesticide additions. And improve service capabilities and levels, increase efforts in agricultural socialized services such as unified prevention and control, green prevention and control, pharmaceutical and equipment operations, and technical training.

Not only that, the pesticide industry also needs to continue to promote pesticide reduction and efficiency enhancement, helping China's agricultural green development. While accelerating the improvement of technological innovation capabilities and forming an efficient industry technological innovation system, it is also necessary to promote the clean, low-carbon, and circular development of pesticide production. At the same time, it is necessary to optimize the supply structure of pesticides, provide precise scientific medication plans, support the promotion and use of green, efficient and environmentally friendly pesticides such as low toxicity, low residue pesticides, and biopesticides in various regions, and carry out various forms of technical training, strengthen the promotion and popularization of knowledge on safe use of pesticides, promote pesticide reduction and efficiency, ensure agricultural ecological environment safety and agricultural product quality safety. Huacheng Import and Export Data Observation Report.