Six challenges facing China's pesticide industry

If you want high-quality development, first of all, the enterprise must survive better and obtain better corporate benefits in order to consider how to promote high-quality development. Especially in the present, the enterprise efficiency has declined sharply, the development prospect is uncertain, how to organically combine sustainable and high-quality development has more practical significance. The formation of today's situation in the pesticide industry, we must deeply analyze, extract the cocoon, find the nature of the problem, and find scientific solutions to promote the industry out of the downward cycle, and then achieve high-quality development.

First of all, we must look at the current development of the pesticide industry from a historical perspective. In 2017, the Regulations on pesticide management were promulgated and implemented. The main changes include: the registration threshold has been greatly increased, production management has been decentralized to the provinces, and two administrative licenses have been added to the qualification of pesticide management and testing units. At that time, we were the largest pesticide production base in the world, and it can be said that the manufacturing position was far ahead. Since 2018, great changes have taken place at home and abroad. The strategic transfer of production capacity caused by the domestic security/environmental black Swan incident, the chaotic situation of hasty output, and the supply chain disorder caused by double control of energy consumption. Internationally, the United States has launched a trade war, engaged in geopolitics, advocated decoupling and breaking chains, and countries have built small courtyards and high walls, and China's advantage as the world's factory has continued to weaken. In addition, the global pandemic of COVID-19 has had a significant impact on global economic activity.

It can be said that when the policy was introduced, the status of China's world factory was indestructible, the policy was introduced mainly to me, the entire industry thought that the industry was controllable, the development was worse-free, and the management department also proposed a double reduction target (the number of enterprises and the number of registration certificates), which was intended to optimize the industry structure. However, multiple unexpected factors superimposed, the industry did not develop in the expected direction, resulting in the current industry development dilemma. 

Major challenges currently facing the industry include:

(1) The registration of innovative compounds is difficult, and the industrialization is difficult. Compared with the period of "14th Five-Year Plan" and "12th Five-Year Plan" and "13th Five-Year Plan", there may be great changes in the number of innovative varieties.

(2) The road to upgrading enterprise products is extremely difficult, the track is crowded, and the window period is difficult to find. Prothioconazole profit window period of about 3 years to Chlorantraniliprole few profit window period.

(3) The transition period of production capacity transfer, without considering the overall planning of the whole country, there is a gap in industrial connection, resulting in rampant illegal production, and it is difficult to return. The production capacity of pesticides in large provinces is cleared, which causes problems in production bases and industrial workers' whereabouts in the short term. In addition, local law enforcement interface.

(4) International competitiveness is weakened, and relevant policies need to be clarified (value-added tax problem/export tax rebate of intermediates, decoupling and chain break problem). Chemical industry is one of the largest export categories of India, in 2022, India's agricultural chemical exports of 5.5 billion US dollars, surpassing the United States to become the second, China 11.1 billion US dollars ranked first, the ratio of China to India is 2:1; In 2018/2019, the figure was 3:1; In 2016/2017, the figure was even 5:1. Rapid change, perhaps one day there will be a death cross, that is, the day India overtakes. Domestic and international policies also have many factors that are not conducive to China's pesticide industry to participate in international competition, such as the export tax rebate of intermediates, overseas customers can get cheaper raw materials, and the 25% tariff set by the United States on China.

 (5) In the face of new situations and new situations, there are not many ways to cope. Although there are problems such as counterfeit and shoddy, false and exaggerated publicity, the main contradiction is the huge price difference of the same source of goods, which affects the cost of offline promotion and guidance of pesticide, and the qualified rate of online sales exceeds the level of offline sales. Many links in the middle of the problem, enterprise sales personnel, dealers, retailers have played a role in it.

(6) The logical contradiction of the realization of the double reduction target, the state proposed the reduction target at the use end, but the production end was not controlled, resulting in a huge increase and serious overcapacity.

The development of the industry has encountered a bottleneck, high-quality development requires more thorough emancipation of the mind, more advanced concepts and technical means, and the need to solve the problems that hinder the development of the industry one by one, and the stubborn disease that bad money drives out good money, in order to promote the industry out of the downward cycle and continue to maintain the era of China's pesticides.