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China and International Agrochemical Trade, 10 Products and its Producers.

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Page 1: Growing Past, Strong Present, Ambitious Future

Chinese Crop proteCtion

GrowinG past, stronG present, ambitious Future.

Presented by

Page 2: Growing Past, Strong Present, Ambitious Future

2 CHINESE CROP PROTECTION

h aving undergone ups and downs over the past

60 years, our agrochemical industry has grown

from nearly scratch to an integrated industry

with research and development raw material

and intermediate production, active ingredient production,

and formulation & processing. The industry has become

an important buttress for increasing crop yields, helping

assure the bumper harvests we have come to expect from

China’s agriculture.

Before 2000, the product-

market structure in China’s

agrochemical industry was

characterized by the phrase

“three-70%.” Insecticides ac-

counted for 70% of the total

output, organophosphorus

insecticide accounted for 70%

of total insecticide output, and

products considered highly

toxic accounted for 70% of to-

tal organophosphorus insecticide output. However, this situ-

ation has become a thing of the past. First, the ratio among

insecticides, fungicides and herbicides was 90%-3%-3% in

1949. This ratio adjusted to 70%-11%-15% by 1995, and now

stands at 44%-13%-42%”.

Second, through gradual elimination of organochlorine

pesticides and highly toxic organophosphorus insecticides,

the product structure has been more and more environ-

mentally friendly. The output of highly toxic products has

declined from 50% to 5% of total production. At the same

time, output of new environmentally friendly products has

increased significantly.

New pesticide development has been a key industrial pro-

gram, supported during the Ninth Five Year Plan, Tenth Five

Year Plan, and Eleventh Five Year Plan. Further stimulated by

the amendment of domestic patent rules in 1993, intended

to offer greater protection to intellectual property, R&D of

pesticides has entered into an even more fruitful period. Since

2003, there have been 30 new compounds developed by

Chinese industry.

Increasing public concern with respect to issues such as

food security, demand for biofuels, environmental protec-

tion, biological diversity, and food safety have presented

us with a challenge of making new progress in agrochemi-

cal production, application, and management. Therefore,

as an institution serving Chinese agrochemical producers,

CCPIA will give full emphasis to the role of standardizing

the standards and practices of our members, promoting

industry consolidation, safeguarding market order, stepping

up collaboration with overseas associations and companies,

all to forge a more and more glorious image for China’s

agrochemical industry on the international stage. ●

DevoteD to a SuStainable Crop proteCtion industry

luo HaizHang

Welcome Editorial from CCPIA Chairman Mr. Luo Haizhang............................ 2

China and International Agrochemical Trade............ 3 Industry Timeline............................................................. 4

Products and Producers Glyphosate: Repositioning After a Sharp Correction............ 6 Paraquat: Pyridine Powerhouse.......................................... 7 Pyrethroids: Establish the Brand, Strengthen the Chains..... 8 Imidacloprid: A Rising Neonicotinoid Star............................ 8 Abamectin: A Rare Flower Among Bio-Pesticides............... 9

Chlorpyrifos: Filling the Breach After the Ban.................... 10 Chlorothalonil: A Long-Lifecycle Product.......................... 10 Mancozeb: Market Mainstay............................................. 11 Acetochlor: Star of the Second Legion............................. 12 Tebuconazole: The Rust Fighter........................................ 12

The Future of China’s Agrochemical Industry........ 13 Innovation and Stride AgrochemEx 2009 Preview......................................... 15

Praise from AgrochemEx 2008................................... 16

table oF Contents

Page 3: Growing Past, Strong Present, Ambitious Future

CHINESE CROP PROTECTION 3

industry oVerView

C hinese agrochemical products can meet not

only the demands of domestic agricultural

production, but also that of export markets

around the globe. During the last 14 years,

China has become one of the largest pesticide makers and

exporters in the world.

Export volume exceeded imports of crop protection

products for the f irst time in 1994, and since then, rapid

export growth has continued. In fact, during the 14-year

period noted above, export volume increased tenfold to

485,000 tonnes in 2008, accounting for about 40% of the

industry’s total output. Export value generated by Chinese

companies occupies about one f ifteenth, or about 6.7%, of

total global agrochemical sales, making China the fourth

largest exporter of agro-

chemicals in the world.

From 2000 to 2008, ex-

port has increased rapidly,

from USD 460 million in

2000 to USD 1.04 billion

in 2008. This mainly due

to growth of herbicides

and insecticides, especially

herbicides, whose export-

ing value reached 1.23 bil-

lion, with exporting vol-

ume 277 thousand tonnes.

From 2000 to 2005, the

annual growth rate of ex-

port value is about 33.2%,

however, the export value

declined in 2006, which

means a new stage has

come since China joining WTO. In 2008, with the price

of glyphosate skyrocketing, exports of the product again

hit record highs.

The main export markets for China are Asia and

South America (Brazil and Argentina). Exports have also

grown steadily in such traditional markets as Pakistan,

Thailand, and Vietnam. In addition, with the rapid

growth of herbicide application, exports to the United

States, Japan, Western Europe, and Australia have pros-

pered in recent years. The success of the industry has not

been limited to herbicides: In 2008, Chinese agrochemi-

cal f irms exported insecticides to 146 countries, and

fungicides to 123 countries. Herbicide exports went to

128 countries. ●

China and international aGroChemiCal trade:

Fourteen years oF Spectacular export growtH

Year

Import Export

Volume (1,000 tonnes)

Value($ million)

Volume(1,000 tonnes)

Value ($ million)

1994 32 137 60.9 152

1995 34.7 160 70.8 234

2000 41.1 192 161.6 463

2001 34.7 165 190.4 541

2002 27 136 222 592

2003 28 130 274 730

2004 28 150 391 1,190

2005 37 180 428 1,400

2006 43 213 398 1,040

2007 41.4 231 477 1,350

2008 44 300 485 2,020

cHina: aGroChemiCal imports and exports, 1994-2008

Page 4: Growing Past, Strong Present, Ambitious Future

4 CHINESE CROP PROTECTION

industry timeline

1949-2008

HiStory of tHe cHineSe aGroChemiCal industry

The development of the agrochemical industry in China can be characterized by three stages, corresponding to the dominant products at the time:

The sole pesticide is

copper sulfate, produced

by SYRICI, plus some

home-produced mineral-

based pesticides

First production of

DDT in China

Ban of phenyl

mercuric acetate,

ceresin and other

organic mercury

pesticides

National output reaches 200,000

tonnes, distributed among 100

active ingredients. Organochlorine

pesticides, including HCH and DDT,

account for 30% of total.

Ban of HCH,

DDT and other

organochlorine

pesticides

1949 - 1979, organochlorine pesticides;

1980 - 1999, organophosphorus pesticides;

2000 - present, environmentally friendly products.

1949 1951 1973 1979 1983

Page 5: Growing Past, Strong Present, Ambitious Future

CHINESE CROP PROTECTION 5

Ban of nitrofen, chlordane,

heptachlor,tetramine,

chlorphenamidine,

fluoroacetamide, sodium

fluoroacetate, DBCP

650,000 tonnes output of

more than 200 products.

Organophosphorus insecticides

(later banned) plus DDVP account

for 30% of total volume produced.

Ban of five highly toxic

organophosphorus insecticides

(methamidophos, methyl parathion,

parathion, phosphamidon,

monocrotophos)

1,900,000 tonnes output of more than 300

varieties. Insecticides such as imidacloprid,

lambda-cyhalothrin imidachlorprid, abamectin,

and chlorpyrifos, fungicides such carbendazim,

tebuconazole, and mancozeb, and herbicides

such as glyphosate, paraquat, and butachlor

contribute the largest portion of output.

1999 2000 2007 2008

Page 6: Growing Past, Strong Present, Ambitious Future

6 CHINESE CROP PROTECTION

t he first half of 2008, the

price of glyphosate in-

creased dramatically, arous-

ing strong response not

only in the pesticide market but also

socially. Within half a year, however,

the market demand shrank drastically, with price slumping

in concert. From a comprehensive perspective, the case of

the wild swings in the glyphosate market showed us all a

need for reflection and caution in this industry.

Global glyphosate production mainly centers in two

sources: China and Monsanto

in the U.S.A. At the begin-

ning of 2007, before the start

up of the market trend, the

whole scale of global gly-

phosate was about 0.5 mil-

lion tonnes, which included

around 0.3 million tonnes in

China. The main manufactur-

ers of glyphosate in China

include Zhejiang Wynca, Nan-

tong Jiangshan, Jiangsu Yan-

gnong, Anhui Huaxing, and Jiangsu Good Harvest-weien.

The market demand during this time was about 0.45 mil-

lion tons; in other words, there was a rough equilibrium of

supply and demand.

Starting in mid- 2007, glyphosate prices began to rise,

eventually increasing 300% by June 2008. Facing this rare

windfall profit opportunity, Monsanto and most Chinese

enterprises invested to expand glyphosate production, and

even more medium and small enterprises entered the gly-

phosate segment. These actions resulted in a huge increase

of glyphosate production capacity in a very short time.

According to our data, by the end of 2008 glyphosate

capacity in China rose to 0.7 million tonnes, and the re-

construction and program con-

struction on tap for 2009 would

result in 0.2 million tonnes of

additional capacity. In other

words, manufacturing capacity

for glyphosate doubled, while

increase needed to keep pace with global market require-

ments was only 10-15%. In addition, different project

implementation standards also contributed to the onset of

overcapacity in glyphosate.

Building capacity without regard to market demand and

overinvestment caused a severe imbalance in the glyphosate

market. In addition, about 50% of the new production ca-

pacity came from medium and small enterprises having no

experience with the product, and more importantly no stable

international customers. The result was intense price competi-

tion in the market. The severe demand and supply imbalance,

coupled with the global economic crisis, resulted in the sharp

market decline of glyphosate to its early 2007 price levels,

only half a year after reaching the peak in mid-2008.

From the beginning of 2009 through the present,, the

glyphosate market continues in recession with extremely

low demand. The price has constantly slipped and is now at

a record low point. Eighty percent of domestic glyphosate

enterprises are in limited production or even shutting

down; only a few of the leading glyphosate producers are

still breaking even or earning a meager profit, enabling

them to live through these diff icult times.

We cannot deny that the global f inancial crisis is one of

the important reasons for the slump in the glyphosate mar-

ket. However we should also admit that severe demand and

supply imbalance -- 0.5 million ton demand contrast to

1 million ton capacity -- is the fundamental reason. Even

there is not f inancial crisis, the present situation is bond to

emerge, just taking more time.

Although the glyphosate market has experienced consid-

glypHoSate: repositioninG aFter a sharp CorreCtion

Wangwei, vice chairman of CCPIA

& president of Zhejiang Wynca

Chemical Group Co., Ltd.

wangwei

produCts and produCers

Page 7: Growing Past, Strong Present, Ambitious Future

CHINESE CROP PROTECTION 7

yang SHouHai

erable turbulence, assuming there is not a revival or wors-

ening of the global economic crisis, we still hold an opti-

mistic view of global glyphosate market prospects, based

on the following conditions:

1Expected rising global grain demand, along with

increases in no-tillage plantings around the world,

will continuously promote the consumption and growth

of glyphosate.

2Due in part to the global economic recession, oil prices

will return to normal, reasonable levels. In addition,

rising awareness of environmental protection and an

improving regulatory regime will impel the development of

clean energy sources, including biological energy. This will

increase demand for transgenic crops, which will increase

the consumption of glyphosate accordingly.

3The development of biological technology will

increase demand for existing and new varieties of

transgenic crops. As awareness increases of the safety of

transgenic products, they will be permitted and planted

in more countries, including the European Union (where

transgenic crops are currently restricted or banned), which

will provide more opportunity for glyphosate application.

“The rainbow always comes after the storm.” I believe

after this diff icult experience, the glyphosate market will

become more rational and stable, and the whole pesticide in-

dustry will enter a more benign stage of development. ●

Yang Shouhai, vice chairman of

CCPIA & president of

Nanjing Redsun Co., Ltd.

paraquat: pyridine powerhouse

p yridine pesticides, with

the advantages of high

efficacy, low toxicity and

long-lasting activity, have

become mainstream products in

the global market since the 1990s.

Among the pyridines, paraquat stands out as a non-selective

contact herbicide that has been widely used in more than

100 crops of 120 countries,

and the second largest

yield herbicide in the world

nowadays.

The development of para-

quat was once restrained by

the supply shortage of pyri-

dines in China. However,

with the successful launch

of a pyridine production

line by Redsun, China has

become the world’s larg-

est producer of paraquat. By March 2009, total production

capacity for paraquat reached 50,000 tonnes, accounting for

80% of total global production capacity.

With no-till farming gaining

popularity in China, paraquat

(currently the second largest

herbicide by domestic sales

volume) will surely grow more

rapidly. Diquat, with its unique

function, is expected to double its application and become

the third largest herbicide in China. Nicosulfuron (a sul-

fonylurea product), haloxyfop, and f luazifop-butyl (both

the latter are members of the aryloxyphenoxy-propionate

group) will also grow quickly during the next three years.

The total value of pyridine herbicide is to exceed that of

organophosphorus herbicides, and with f ive highly toxic

organophosphorus insecticides withdrawing from national

market, it is possible the top f ive insecticides sold in China

in coming years will all be pyridines, including imida-

cloprid, chlorpyrifos, acetamiprid, and chlorf luazuron.

Therefore, both the pyridine herbicides and insecticides

will have the potential to obtain an overwhelming advan-

tage over other similar products in the global market. With

the industrialization of pyridine in China, we are confident

the Chinese enterprise will rank among global agrochemi-

cal giants in the near future. ●

Page 8: Growing Past, Strong Present, Ambitious Future

8 CHINESE CROP PROTECTION

s ince imidacloprid was launched in

1991, it has successfully replaced

carbamate insecticides and become

the third most widely used class of

insecticides, trailing only organophosphate and

pyrethroid insecticides in the global market.

Imidacloprid is a staple insecticide in China. Manufacturing capacity exceeded 3,500

tonnes in 2004, with producers located in Jiangsu accounting for more than 60% of that

total. Main manufacturers include Jiangsu Kesheng, Redsun, Jiangsu Changlong and

imiDaclopriD: a risinG neoniCotinoid star

Xu Hui, vice chairman

of CCPIA & president of

Shandong Sino-Agri United

Biotechnology Co., Ltd.

produCts and produCers

pyretHroiDS: establish the brand, extend the Chain

qi mingzHu

C ommercialization of

pyrethroid insecticides

started in China

during the early

1980s. Now these products are

used widely in households as well

as in agriculture. Total

present manufacturing

capacity (including both

the agricultural and

residential pest control

markets) is about 3000

tonnes per year, and main

manufacturers include

Jiangsu Yangnong, Jiangsu

Suhua, Jiangsu Pesticide

Research Institute, Redsun,

and Rotam (Tianjing).

Jiangsu Yangnong is a pioneering f irm in this industry,

and is the largest pyrethroid

pesticide producer with the

most comprehensive portfolio

in China now. After 20 years

of effort in technology de-

velopment, Yangnong has an

obvious edge in production technology, mainly shown in

its advanced ozonation, racemization, and configuration

conversion of chrysanthemic acid. Now the optical purity

of its chrysanthemic acid is suff icient that it could be used

in pharmaceuticals. Secondly, Yangnong has a complete

product chain. It is the only pyrethroid producer that starts

from basic chemical materials and intermediates in China.

Even with the rise of genetically engineered pest-

resistant crop varieties, I think there is still a period of

time during which pyrethroids will hold an important

position in the global insecticide market, so we will

grasp this opportunity to develop more environmentally

friendly products. ●

Qi Mingzhu, vice chairman of

CCPIA & president of Jiangsu

Yangnong Chemical Co.Ltd

xu Hui

Page 9: Growing Past, Strong Present, Ambitious Future

CHINESE CROP PROTECTION 9

abamectin: a rare Flower amonG bio-pestiCides

li xiufen

3500

3000

2500

2000

1500

1000

500

0

Ab

amec

tin

Out

put

(ton

)

1996

1997

1998

1999

2000

2001

2003

2002

2004

2005

2006

2007

2008

2009

F20

10F

2011

F

Li Xiufen, vice chairman of CCPIA &

general manager of Hebei Veyong

Bio-chemical Co., Ltd.

s ince the beginning of the 1990s, impacted by labor,

raw materials and environmental protection issues,

only technical abamectin

has been produced in

China. The current six main manufac-

turers are Hebei Veyong, Hisun Phar-

maceutical, Shenhua Biok, Qianjiang

Biochemical, Guilin Jiqi, and Huabei

Pharmaceutical, with total capacity 800-1,000 tonnes per year.

Fermentation efficiency reached 4 g/L, and the fermentation

period was shortened to 250-300 hours. National output was

1,500 tonnes in 2008, and this figure is expected to increase

to 2,000 tonnes in 2009.

Both output and sales of abamectin have increased,

mainly due to rising demand stemming from expansion

of the crops to which it can be applied, especially after

registration was granted for use on rice in 2007. Dosage

requirements have also increased, driven by increasing

insect resistance. In addition, more products derived from

abamectin have entered the market. Derivatives based on

abamectin which have had

been commercialized include

ivermectin, eprinomectin,

and emamectin benzoate.

Future formulation advances

will take the form of solid

and liquid formulations as well as seed coating.

Hebei Veyong showcases environmental stewardship in

the production of abamectin derivatives by adopting low

toxicity emulsif iers and solvents. The problem of photolysis

of abamectin and emamectin benzoate has been solved,

which has improved produc-

tion eff icacy greatly. Veyong’s

product portfolio includes

emamectin benzoate 5% EC

and emamectin benzoate 5%

SP/ WDG/ME. In addition,

abamectin 1.8% EC and em-

amectin benzoate derivatives

hold a combined domestic

market share of 30% or more.

Biotechnology will domi-

nate the 21st Century, and thus bio-pesticide will be the

main crop protection products. We are confident that

abamectin, this rare f lower of bio-pesticides, will grow a

better bloom. ●

Jiangsu Changqing, among others.

Market demand for imidacloprid soared in 2008, stimulat-

ing capacity expansion among a number of manufacturers.

The result is that manufacturing capacity is now around

30 thousand tonnes in China. The actual current output is

12,000-13,000 tonnes, 5,000 tonnes of which was exported

overseas -- mostly to India, Pakistan, the Middle East, South

Africa, South America, and North America.

Shandong Sino-Agri United Biotechnology Co., Ltd.

introduced imidacloprid devices during 2007-2008, and

pioneered adoption of the concept of environmental pro-

tection, which set a good example for domestic imidaclo-

prid producers. With f ive more-toxic organophosphate

insecticides withdrawn from the market in 2007, we are

confident imidacloprid will occupy a larger space in the

market in the next several years. ●

Page 10: Growing Past, Strong Present, Ambitious Future

10 CHINESE CROP PROTECTION

produCts and produCers

s ales of chlorothalonil have

grown steadily since its intro-

duction to the global market

during the 1960s. Compared

to competing products, chlorothalonil

has the advantage of low incidence of

pest resistance, high rainfastness (it resists being washed away from leaves as a result of

rainfall after application), and long-lasting efficacy (about 7-10 days).

Total global capacity is 25,000 ~ 30,000 tonnes, of which Syngenta contributes

10,000~15,000 tonnes. Domestic manufacturers of chlorothalonil include CAC Shanghai

Group, Jiangyin Suli Fine Chemicals, Shandong Dacheng, and Limin Chemical. Total capacity tian xiaoHong

cHlorotHalonil: a lonG-liFeCyCle produCt

Tian Xiaohong, standing

committee member of

CCPIA & president of CAC

SHANGHAI(GROUP)CO.,LTD

cHlorpyrifoS: FillinG the breaCh aFter the ban

t he 2007 ban of five organophosphorus pesticides

opened a breach in the defenses of farmers against

pests – and an opportunity in the market. With the

recent breakthrough in the synthesis technology re-

garding the chemical intermediate sodium trichloropyridinol,

development of chlorpyrifos has entered a fast track. Now the

Chinese product has been able to compete with imported

product from America and India. Key Chinese manu-

facturers include Jiangsu

Baoling, Redsun, Shandong

Tiancheng and Zhejiang

Xinnong. The active ingredi-

ent content of their products

can all reach 97% or more by

volume.

Jiangsu Baoling possesses

the sole organophosphorus

product chain in China,

starting from basic raw

materials. Its complete

organophosphorus

product portfolio in-

cludes chlorpyrifos,

phoxim, profeno-

fos, and triazophos.

The company has

made technological

breakthroughs in the treatment of highly contaminated

wastewater, clearing the way for expanded production of

chlorpyrifos. Now the company’s manufacturing capacity is

about 5,000 tonnes.

Chlorpyrifos is a wide-spectrum insecticide, and can be

applied to many economic crops. Because research insti-

tutes and companies are striving to ceaselessly optimize the

production process of chlorpyrifos, we think it is bound to

have a bright future. ●

Zhu Wenxin, standing

committee member of

CCPIA & president of

Jiangsu Baoling Chemical

Industry Co., Ltd.

zHu wenxin

Page 11: Growing Past, Strong Present, Ambitious Future

CHINESE CROP PROTECTION 11

mancozeb: market mainstay

m ancozeb has been

under develop-

ment in China for

more than 20 years;

present production is some 45,000

tonnes, with annual exports of

20,000 tonnes. Main manufactures

include Limin Chemical, Hebei Shuangji Chemical, Nan-

tong Baoye Chemical, Shenyang Harvest Agrochemical, Du

Pont, and others.

Limin Chemical is a

pioneer in the production

of mancozeb in China,

and its mancozeb cere-

als fungicides covers 45%

of the domestic market.

Meanwhile, its interna-

tional trade network cov-

ers 40 more countries,

especially key export

markets in Southeast Asia,

Europe, the Middle East, and Central and South America.

The company’s sales volume during the last 10 years ranks

as the all-time highest among Chinese agrochemical f irms

in the international pesticide market.

Limin Chemical strongly emphasizes establishing a

national pesticide brand, and started to carry out a GLP

strategy from 2005. Mancozeb from Limin Chemical won

registration and began to sell

in Africa. The company also

signed agreement with RCC

Laboratory of Switzerland, and

partial products tests were fin-

ished at the end of 2007. By the

end of 2009, Limin Chemical

expects to be able to open up the European market with its

independent brand.

As a participant in the drafting of mancozeb waste-

water discharge standard in China pesticide industry,

Limin Chemical and CCPIA subscribe to the principles

of the International Council of Chemical Associations’

Responsible Care initiative, helping ensure that the f irm

and the industry can develop in a sustainable manner.

Limin Chemical cooperates with Southeast Univer-

sity in Nanjing in the development of technology for

the comprehensive treatment of mancozeb production

wastewater. The company also takes the lead among its

counterparts in the country in achieving zero discharge

of “three wastes”, and has also succeeds implementing

patent protection.

High-end mancozeb is the developing trend in the fu-

ture. The competitor who has the highest quality products

will come to dominate the market. China’s mancozeb

industry should innovate ceaselessly, and also should have

a broader f ield of vision, so that it can put itself in an invin-

cible position in future competition. ●

Li Ming, standing committee

member of CCPIA & President of

Limin Chemical Co., Ltd.

li ming

among these firms is about 15,000 tonnes, and together they

export more than 10,000 tonnes. The main export markets

for chlorothalonil are developed countries such as America,

Japan, and the European Union. Jiangyin Suli Fine Chemi-

cals has invested more than Yuan 3 million getting EU re-

registration of chlorothalonil.

CAC Shanghai Group, with chlorothalonil capacity of

8,000 tonnes, is always paying attention to the accelerat-

ing rate of advance in technology. The content of HCB

has been reduced to less than 40ppm, and consumption

of raw materials and energy in manufacture of chloro-

thalonil is on a par with levels among the most advanced

international competitors.

“We have also made a lot of effort in environmental pro-

tection, and successfully solved the treatment of cyanide-

contained waste water in the production of chlorothalonil.

We believe that all Chinese enterprises must seek improve-

ment through undertaking more socially responsible policies

and actions, and further strengthening QSHE management

in the future.” ●

Page 12: Growing Past, Strong Present, Ambitious Future

12 CHINESE CROP PROTECTION

produCts and produCers

t ebuconazole, one of the triazole fungicides, a top-selling

agrochemical products. Sales volume has topped USD

200 million every year since 1998, peaking at USD 360

million in 2003. Due to the expiry of patent in China

in 2004 and the recent rust disease outbreak in Latin America,

market demand for tebuconazole has increased considerably.

Domestic production capacity for tebuconazole is around

7,000 tonnes per year. The main

producers are Shanghai Shen-

gnong Pesticide, Jiangsu Sword

Pesticide, Hangzhou Udragon

Chemical, Sinochem (Ningbo)

Chemicals, Zhejiang Welda

Chemicals, and Jiangsu Chang-

long Chemicals, among others.

Actual production of tebucon-

azole was 4,000 to 4,500

tonnes in 2008; the trend is

toward increasing produc-

tion. About 89% of total

production is exported, most

of it in the form of technical

active ingredient.

Shanghai Shengnong Pesticide has a good reputation for

product stewardship: the most advanced production technol-

ogy in the domestic market, well-built waste treatment plants,

good facilities and security management model, a sound

quality management system, and ongoing mechanisms for

research and innovation. One fruit of that innovation is a new

method for tebuconazole synthesis. Using this patent-applied-

for process, Shengnong is able to achieve purity of 96% or

greater in its technical tebuconazole. ●

tebuconazole: the rust FiGhterBi Qiang, Standing

committee member of

CCPIA, & president of

Shanghai Shengnong

Pesticide Co., Ltd.

a cetochlor is a leading product among the aceta-

nilide herbicides, and a market leader in the global

herbicides market. Acetochlor, paraquat, pendime-

thalin, etc., all belong to what is called the “second

legion” of herbicides (behind the

perennial market leader glyphosate),

with sales of each product in the

range of USD 300 million - 400

million per year.

First used in China in 1989, ac-

etochlor has grown in popularity to

become the leading product of the

domestic herbicide market. In fact,

acetochlor in China came to meet

not only the needs of the domestic

market, but also became the major export herbicide. From

1994 to 1998, the production of acetochlor grew 8.5 times,

from 1,187 tonnes in 1994 to 10,032 tonnes in 1998.

More recently, due to favorable in the herbicide markets

between 1998 and

2006, domestic production of acetochlor has increased to

about 30,000 tonnes. There are now more than twenty

enterprises that manufacture technical acetochlor, includ-

ing Liaoning Dalian Riser Pesticide, Jiangsu Changlong

Chemical, Nantong Jiangshan Pesticide, Jiangsu Lulilai,

and others. Their combined annual production capacity is

about 100,000 tonnes, but actual annual output is about

50,000 tonnes.

Since 2007, due to large areas of land previously used for

paddy-field rice production being turned to dryland agricul-

ture, the amount of acetochlor applied has sharply increased.

Meanwhile, the level of capital equipment investment and

the scale of acetochlor-producing enterprises is growing.

Therefore, with a much more centralized and rational-

ized industry structure, acetochlor will enter a systemic

scale management orbit. At the same time, though, the

competition among Chinese agrochemical enterprises for

share of the domestic market will become f iercer. ●

acetocHlor: star oF the seCond leGion

Lu Mingruo, vice chairman

of CCPIA & president

of Jiangsu Changlong

Chemical Industry Co., Ltd.

lu mingruo

bi qiang

Page 13: Growing Past, Strong Present, Ambitious Future

CHINESE CROP PROTECTION 13

t he China Crop Protection Industry Association

(CCPIA) has played a vital role in the development

of China’s agrochemical industry. On the other

hand, the rapid and steady progress of the industry

has also promoted the growth of the CCPIA. Since the estab-

lishment of the CCPIA in 1982, the association has attracted

over 450 members. Total production output of CCPIA

members accounts for 90% of total industry output. Recently,

Dr. Sun Shubao, the

Secretary-General of the

CCPIA, reviewed the

60-year history of the

industry and summarized

developments in technol-

ogy, product quality

improvement, environ-

mental management,

and intellectual property

right protection:

1International standards adopted and product

quality steadily improved

“With advances in technology and adjustments in in-

dustry structure, Chinese pesticide product quality has

improved very much. At present, more than 200 pesticide

products have adopted the National Standards and/or In-

dustrial Standards. About 50 elements of basic techniques

and analytical methods have also been standardized at the

national level or the industrial level, and sbout 80% of the

national and/or industrial standards have been adapted

from accepted international standards.”

2 Great progress in technology improvement and

innovation made

“Before China adopted reform and a policy of opening to

global trade, the Chinese pesticide industry lagged behind

the technological base of the Western countries. After de-

termining to embark on reform and opening to the outside

world, China began to establish its own national innovation

centers. Two research facilities for pesticide research and

development have been set up in north and south of China,

respectively. Since then, a characteristically Chinese R &

D system for pesticide innovation has been formed and has

achieved excellent results. Some 30 new molecules, includ-

ing 14 fungicides, seven insecticides, and 9 herbicides and

plant growth regulators, have been developed by Chinese

scientists. Examples include f lumorph, ZJ0273, chloramine

phosphorus, SIOC0171, and f lubrocythrinate, among others.

The number of new compounds accounts for 10% of the most

commonly used products. These new products are not only

highly effective, safe to human life and wildlife, and environ-

mentally friendly, but are also suitable to the demands of Chi-

nese agricultural production for control of important pests.

“In addition to the development of new products, the

Chinese government also put great effort into improving the

production technology associated with some key generic pes-

ticide chemicals and related intermediates. Therefore, a series

of new facilities for production of those pesticides and inter-

the Future oF China’s aGroChemiCal industry:

innovation and StriDe

a look ahead

Dr. Sun SHubao

Page 14: Growing Past, Strong Present, Ambitious Future

14 CHINESE CROP PROTECTION

a look ahead

mediates have been established using large scale, continuous,

and clean production technologies. By employing the new

technologies, average cost of production has been reduced by

around 10%, and the discharge of wastes by over 40%. Out-

standing examples of those new technologies are:

● production of dichlorvos by one-step hydrolysis

of trichlorfon,

● imidacloprid production using dicyclopentadiene as

starting material,

● deltamethrin production technology adopted by

Jiangsu Yangnong,

● glyphosate production technology of Zhejiang Wynca,

● 3,3-dimethyl-4-pentenoic acid methyl ester production

technology used by Jiangsu Changlong

● deltamethrin production technology of Dalian Chemphy.

“Technology innovation has greatly supported and en-

hanced the Chinese pesticide industry. Both innovative

products and improved technologies are very important to

manufacturers and the industry as a whole. CCPIA encour-

ages manufacturers to pursue technology innovation and

clean production, in order to promote the progress of the

Chinese pesticide industry.”

Dr. Sun further pointed out highly effective, safe, and

environmentally friendly products are the direction of

new product development, and that the industry must

intensify its efforts in the development, extension, and

application of water-based formulated products.

3 Enhancement of environmental protection and

HSE awareness

“Whether or not to employ environmental protection

measures is the ‘yea or nay’ factor that affects the decision

for a new factory’s entry into the industry. The Ministry

of Environmental Protection of the People’s Republic

of China has issued national standards for pollutant dis-

charge of 10 chemical classes of pesticides. CCPIA has

been deeply involved in this process, and has contributed

meaningful suggestions for the standards.

“CCPIA has also actively extended green production

techniques, integral recycling, and reuse of materials in

production, as well as energy-saving and discharge-reduc-

ing measures among its member companies. Some f irms

have put environmental protection into their agenda, and

have increasingly invested in waste treatment technolo-

gies and facilities. The liquid f ilm method for treatment

of cyanogen-containing or phenol-containing wastewater,

and the catalytic wet oxidation method for treatment

of high concentration wastewater, are good examples of

advanced technologies implemented for waste treatment.

Furthermore, the establishment of pesticide industrial

parks in some key regions has begun to play a vital role in

centralized and eff icient treatment of wastes.

“The Environment, Health, and Safety (EHS) system

has been increasingly recognized and adopted by the pes-

ticide industry. The government already has relevant laws,

regulations, and implementation measures for environ-

mental protection, worker safety, and occupational safety

and health. Some large scale enterprises have already

adopted EHS practices in their routine production activi-

ties. CCPIA is also working hard to implement the EHS

system with its member manufacturers.

4Increasing awareness of intellectual property

right (IPR) protection

“The patent law of the People’s Republic of China was

amended in 1993 to grant protection for seven and a half

years to chemicals which obtained patent protection during

the period of 1986 and 1993.

“Awareness of intellectual property rights (IPR) protec-

tion has been lifted to a high level throughout the pesticide

industry, particularly in the research institutes and universi-

ties that are involved in pesticide innovation. In 1985, at the

initiation of the first patent law of the People’s Republic of

China, the number of pesticide patent applications was only

162. By 2005 the number of applications increased to 1,406,

about eight times as many as in 1985. The Compound An-

nual Growth Rate (CAGR) is about 11.4%.

“In most cases in foreign countries, the main force of

patent application is the manufacturers. In China, the

patent applicants have historically been the institutes,

universities and individuals, but more and more Chinese

enterprises are now applying for patent application for

novel compounds.”

In the past 60 years, the Chinese pesticide industry has

grown and improved greatly. Despite the global economic

crisis, Dr. Sun Shubao indicated that the industry is still in

good condition and that current prospects for continued

growth are good. ●

Page 15: Growing Past, Strong Present, Ambitious Future

CHINESE CROP PROTECTION 15

aGroChemex 2009 preView

a grochemEx (ACE) is

an annual agrochemical

symposium and exhibition organized by the China

Crop Protection Industry Association (CCPIA).

ACE was born in Nanjing in 2005, and moved to Shanghai in

2009. The scale of this event is expanding

year-on-year, and has been granted the

status of a “technical meeting” by industry insiders. This offers

a centralized procurement platform for pesticide formulators,

foreign traders and overseas suppliers.

aGroChemex 2009 preViewhttp://www.agrochemex.net/

2006 2007 2008 2009

1000

900

800

700

600

500

400

300

200

100

0

Exhibition Scale from 2006 to 2009

Stall Number

Exhibitor Number

A total of 12,000 visitors, more than 800 of whom came from abroad, attended ACE 2008.

Malaysia

Iran

Australia

Pakistan

Korea

Brazil

Thailand

Germany

Indonesia

Turkey

India

0 10 20 30 40 50 60 70 80 90 100

Top ten foreign countries in descending

order of the attendees in 2008

Continued on page 16

Page 16: Growing Past, Strong Present, Ambitious Future

16 CHINESE CROP PROTECTION

aaGroChex 2009 preView

China Agrochemical Symposium

Each year, the China Agrochemical

Symposium has been held in paral-

lel with the ACE trade show. The

Symposium covers many aspects of

the agrochemical industry, including

industry policies and the research and

development of new chemicals and

new formulations. After eight years,

the China Agrochemical Symposium

has become a highly recognized brand

within the industry, attracting about 800

loyal delegates each year.

AgrochemEx has proven a valuable plat-

form for meeting decision-makers from

leading Chinese manufacturers, exchang-

ing information and f inding more busi-

ness opportunities. ●

For more information contact: Leah Li email: [email protected]

Manager

Purchaser

Saleemployee

Technicalemployee

Visitors’ occupational position in 2008

“I have attended many kinds of agrochemical exhibitions,

but the exhibitors of AgrochemEx 2008 were high qual-

ity, and the order of exhibition is good. We learned the

latest government policies, along with the gaps separating

our company from others through the exhibition.”

Zhengzhou Friend Chemical Industry Co., Ltd.

“AgrochemEx 2008 provided a rare opportunity for us to

demonstrate our products. Many customers come to learn

about our products, and we received many orders.”

Jiangsu Changlong Chemicals Co., Ltd

“We learned much through communication with other enter-

prises. Thanks, CCPIA, for sponsoring this exhibition.”

Jiangsu Kesheng Group Co., Ltd.

“The AgrochemEx 2008 has provided a platform for ex-

change among agrochemical f irms. We learned the latest

government policies, as well as development and export

conditions in the agrochemical industry. We felt very

good, and will come again.” The Red Sun Group

“Thanks, CCPIA, for sponsoring this exhibition. We ob-

tained much valuable information and got to know many

overseas trading companies. It will help our products

moving toward internationalization.”

Zhejiang Wynca Chemical Group Co., Ltd.

“We have participated in many similar agrochemical ex-

hibitions, but AgrochemEx 2008 is second to none. We

believe AgrochemEx 2009 will be even better!”

Jiangsu Tianrong Co., Ltd

praiSe from agrocHemex 2008 exhibitors