The list of the 2014 Top 100 Chinese Pesticide Companies (by sales) was released a few days ago on 2014 Chinese Pesticide Industry Economic Analysis &2014 Top Sales List of Chinese Pesticide Industry Launching Conference. According to the Top 100 list, it can tell that the Chinese pesticide enterprises achieved excellent performance in the past one year.
While celebrating the achievement, we should also search for the answer -- what has driven the industry forward and has brought profit growth to the whole industry?
From the Top 100 list we can see that most of the enterprises with an annual growth of over 30% have one product in common - glyphosate. 2013 was a good year for glyphosate. Thanks to the environmental protection scrutiny of glyphosate, the glyphosate market grew rapidly last year. As the largest pesticide with an output of over one third of the total domestic pesticide output, glyphosate, with an increasingly higher price, has undoubtedly made great contributions to the expansion of the industry scale.
Currently the three companies with the highest glyphosate output in China are Zhejiang Wynca Group Co., Ltd., Zhejiang Jinfanda Biochemical Co., Ltd., Fuhua Tongda Agro-chemical Technology Co., Ltd., which rank the first, second and fourth respectively in the Top 100 list. The annual sales of Jinfanda and Fuhua Tongda even increased by over 60%. Among the top five enterprises of the list, four have a capacity of over 30,000-ton glyphosate. Besides, thanks to the increase in glyphosate and acephate demand, the sales of Jiahua Group in Zhejiang increased drastically by 72.8%, and its ranking climbed to the 56th from the 78th last year, 22 places up, making it one of the fastest-growth enterprises among the Top 100. What’s worthy mentioning is that Xuchang Dongfang Chemical Co., Ltd. achieved a sales of RMB400 million in 2013 with glyphosate and ranked 78th of the Top 100 list.
The environmental protection scrutiny of glyphosate is an important factor for the growth in the industry and also a powerful tool to inhibit blind growth. Objectively, the increase in environmental pressure has raised production and processing costs and inhibited production capability to some extent and thus caused tight supply and market growth, which is a healthy development trend. It’s also a sharp contrast with the high price at the peak of glyphosate in 2008. The list of the first round environmental scrutiny will be announced soon, while the general survey of environmental protection of glyphosate enterprises is currently in process. It plays an active role in the future development of the industry to continue to promote safe and environment-friendly production. For China pesticide industry, the 2014 Top 100 list is not an end but the beginning.