The Chinese export competition for pesticide companies is quietly staged. The 12th China International Agricultural Chemicals and Plant Protection Exhibition (CAC), which had just concluded in Shanghai, once again became an arena for competition among foreign and domestic manufacturers. Industry interviewees said that during the “12th Five-Year Plan†period, the integration of China’s pesticide industry was in full swing. CAC is the world's largest international trade platform for agrochemicals. At this year's show, the phenomenon of some pesticide companies competing for overseas markets with irrational prices has become more and more noticeable. According to the reporter's observation, it is due to the low price quoted by some domestic manufacturers that the buyers can deal with prices close to the cost line. CAC is merely the epitome of current pharmaceutical companies' exports. With the rise of China into a large country for pesticide production and export, the export price war has become an unavoidable topic in China's pesticide industry. The resulting shrinkage in export profits has caused the industry to suffer. As a major pesticide species that relied heavily on exports, imidacloprid exports continued to decline in volume and price in 2010. In 2009, the price of imidacloprid was as high as 200,000 yuan (100 yuan, ton, the same below), and the current price is about 115,000 yuan, which has basically dropped to the manufacturing cost of imidacloprid. Even so, at the CAC, there are still companies priced at no more than 115,000. There are many examples of sharp declines in export prices. Although China’s total export of pesticides has not decreased since the financial crisis, export prices have been declining year by year. Among them, export companies have pushed prices down and even dismantled their respective units. This is an important reason. According to statistics, the average export price of pesticide products in China in 2008 was 6,451 yuan, which was 4,006 yuan in 2009, compared with only 39,86 yuan last year. The reason behind the “robbery†is that it is difficult for domestic manufacturers and traders to form a synergy. Du Guisheng, chairman of Beijing Sanpu Baicao Green Plant Preparation Co., Ltd., said that in the past few years, there have been established cooperative organizations such as the Glyphosate Alliance and Abamectin Alliance in China, but they have had little effect in curbing irrational competition. . The disappointment of Du Guisheng seems to have become a common emotion in the industry. In this exhibition, in order to ensure the reasonable profit of the export of imidacloprid and maintain the normal market order, some manufacturers took the lead to report the export price of 125,000 yuan, trying to curb the situation of disorderly competition. However, the industry has taken a wait-and-see attitude. For those who are familiar with the status of China's pesticide exports, there is still no effective way to deal with price wars. Sun Shubao, secretary-general of the China Pesticide Industry Association, also believes that changing the situation of vicious competition in exports depends solely on industry self-regulation is not enough. The key is to improve the current pesticide management system. Under the slogan of “grabbing singlesâ€, what is hidden is the fact that China's pesticide management entities are too numerous and scattered. The root cause is that we lack a set of perfect access thresholds. Sun Shubao said that under the current management system, the Ministry of Industry and Information Technology is responsible for handling production licenses, and the Ministry of Agriculture is responsible for issuing registration certificates. The departments involved are too involved and the convergence coordination is not enough, resulting in excessive certification and the expansion of the number of manufacturers. It is understood that there are now more than 2,000 pesticide companies in China. The annual output of pesticides has exceeded 2 million tons, and the concentration of varieties is relatively high. It is expected that new capacity will be launched in the future. The domestic demand is about 300,000 tons, and the surplus can only be found in the international market.
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