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The reason why experts dared to assert that the decline in industry efficiency because of the main reason is that in the global economic situation, the efficiency of foreign pesticide companies and domestic pesticide companies has seen a rise in this situation. The main reason for the increase in the profit of overseas pesticide companies was that at the beginning of this century, the six largest pesticide companies in the world carried out large-scale mergers and reorganizations. The distribution of resources and the positioning of strategies in the international market have been formed, and now they have played a good role. Although this year has been affected by the financial crisis, a large number of pesticide companies have achieved growth, especially profits. For example, the profits of BASF and FMC in the first half of the year have all increased significantly (for details, see September 29, C1, October 7th, C3). This is worthy of consideration and thinking of domestic pesticide companies.
In spite of the increase in the export value of China's pesticide industry in recent years, profits have shown a downward trend. The downward trend in profits in previous years was overshadowed by the growth in exports, and this year, when the volume of exports has also dropped significantly, the decline in profits has become particularly noticeable. According to the data as of the end of September this year, in the first nine months of this year, the export volume of pesticides was 780,000 tons, a year-on-year decrease of 3.8%, net income was only US$3.2 billion, a year-on-year decrease of 40%, and the average export price was US$4098/ton. A drop of 38%.
At present, there are some products in the pesticide industry in China that are out of the market. Raw materials are outsourced and sales of finished products are also outside. In this way, if the profits are not properly controlled, the industry may experience large ups and downs. This is exactly what happened last year, and one of the reasons for the apparent decline in profits of the pesticide industry is this. When the price of chemical raw materials rose last year, the relevant state departments had worried that the cost of farmers buying pesticides would rise. The investigated market price was basically stable, and the rising part was actually shared by manufacturers and large distributors. Experts at the meeting thus calculated, Although our export revenue has fallen by 40%, in fact, the prices of foreign farmers' exports are virtually unchanged. Therefore, the decline in the overall efficiency of domestic enterprises is also reasonable.
Relevant experts also proposed that the pesticide industry must learn from the “international lessons†of other industries that are out of the market. For example, in the soybean industry, the international market price of soybeans in 2004 was as high as US$4,300 per ton. Domestic oil extraction companies purchased 3 million tons of soybeans from the international market at this time. By 2005, the price of soybeans dropped sharply. At $3,100 per ton, many companies collapsed due to the decline in efficiency. At this time, international companies rushed to buy beaches. So far, 64 of the country's 90 oil extraction enterprises are foreign-owned. This is a painful reshuffle for the soybean industry. . The analog pesticide industry is now in a critical period. Once it is not well grasped, similar situations may be reproduced.
According to reports, the domestic pesticide industry still has the problem of low-level repetitive production. For example, there are more than 600 manufacturers of avermectin, as well as mancozeb, which has greatly improved production. However, the price drop is very obvious and homogeneity is serious. With the country’s increasing emphasis on environmental safety, the share of high-efficiency, low-toxicity, and low-residue products has risen. Imitation products have been affected under such market pressure. Therefore, experts and leaders at the meeting recommended that companies strengthen safety management in the country. Under the circumstances, enterprises should adjust their strategic positioning and guiding ideology and combine them with the current trend.
News Links China's Pesticide Development "Three Sections Theory"
According to the relevant leading experts at the conference, the pesticide industry in China has experienced three stages of development since 1978. From its initial stage of development, from 1978 to 1997, by the end of 1997, the annual domestic output of pesticides was 390,000 tons and exports were about 90,000 tons. The output can basically guarantee the demand for domestic pesticide use. Growth period: From 1997 to 2004, the annual output of pesticides has increased from about 400,000 tons to 870,000 tons, of which 470,000 tons are used for export. Rapid development period: 2004-2008, Last year, the production capacity of pesticides reached 1.9 million tons and exported over 1 million tons. The pesticide industry in China has achieved leaps and bounds in the past 30 years.
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Pesticide Benefit Declined Because Main Industry Needs Strategic Adjustment
Since the beginning of this year, the overall efficiency of the domestic pesticide industry and domestic companies has declined significantly. The export growth rate has slowed down, while the import growth rate has accelerated. Industry management departments and industry-leading authoritative experts believe that the external factors of the downturn have the impact of the international economic environment, while internal factors are more important, mainly the structural problems of the industry. Experts believe that the pesticide industry must adjust the strategic positioning of future products and companies. This is the information that the reporter learned at the 2009 Pesticide Management Information Exchange and Biopesticide Technology Seminar held in Xiamen on November 2.