Crop Protection China News
Vol.3 Issue 18, 2009                         Publication date: 30 September, 2009




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Crop Protection China News                                                                                                ...
Crop Protection China News                                                                                Vol.3 Issue 18, ...
Crop Protection China News                                                                                              Vo...
Crop Protection China News                                                                                               V...
Crop Protection China News                                                                                               V...
Crop Protection China News                                                                                                ...
Crop Protection China News                                                                                           Vol.3...
Crop Protection China News                                                                                                ...
Crop Protection China News                                                                                          Vol.3 ...
Crop Protection China News                                                                                              Vo...
Crop Protection China News                                                                                              Vo...
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Crop Protection China News                                                                                                ...
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Crop Protection China News is a biweekly report with 24 issues per annum published by CCM International Limited. It's your gateway to know what is happening in China Market. Key columns include areas & dynamics,company, crops,pests & diseases, etc. If you are interested in this newsletter or ask for the latest sample, please contact emarket6@cnchemicals.com or 86-20-38767072.

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Crop Protection China News Sample - Published by CCM International Ltd

  1. 1. Crop Protection China News Vol.3 Issue 18, 2009 Publication date: 30 September, 2009 Copyright © CCM International Limited
  2. 2. Crop Protection China News Vol.3 Issue 18 Content ■ Overview ............................................................................................................ 01 Performance of key pesticide companies in H1 2009 (II) .................................................................................. 01 China optimizing pesticide registration structure ..............................................................................................03 ■ Areas & Dynamics .............................................................................................. 04 China to promote insect sex attractant ..............................................................................................................04 ■ Company............................................................................................................ 05 Origin GM corn may get approval by 2011 .........................................................................................................05 Dunhuang Seed to raise USD73.21mn for expansion ......................................................................................... 05 ■ Crops ................................................................................................................. 07 Gansu endeavors to boost potato industry ......................................................................................................... 07 Heilongjiang promotes cold-tolerant wheat variety ...........................................................................................08 Cotton yield expected to decline .........................................................................................................................09 ■ Pests & Diseases................................................................................................. 10 Jiangsu severely hit by cotton verticillium wilt ................................................................................................. 10 Pest and disease situation and forecast in Guangxi............................................................................................. 11 Average market price of main crops in China (15 Sep. 2009) ............................................................................. 11 ■ News in Brief ...................................................................................................... 11 China Crop Protection Summit Paraquat in China (2nd edition): 2010 Ready Trade Reports: 18th Sep 2009. - will be launched in Shanghai China - Imidacloprid Production and Export - Crop Protection China Report during 18th March to 19th March, 2010. in China Jan.2008 -Jul.2009 (update, 2nd edition): Oct 2009 - Bifenthrin Production and Export in - Future of Green Biotechnology Ready Market Reports: China Q1 2009 in China: Oct 2009 - Outlook for China Glyphosate - Methomyl Production and Export in Industry 2009-2014 China 2008-Jun. 2009 CCM newsletters related to - The Survey of Fipronil in China - Abamectine Production and Export Insecticides: - Production and Market of Malathion in China 2008-Jun. 2009 - Crop Protection China News in China - Herbicides China News - Methidathion Production & Market Coming Reports: - Fungicides China News in China - Production and Market of - Glyphosate China Monthly Report CCM International Limited II www.cnchemicals.com
  3. 3. Crop Protection China News Vol.3 Issue 18, 2009 Welcome to Crop Protection China News 0918. Headlines of Crop Protection China News 0918 C hinese economy has continued uptrend in recent months, with its GDP growing more than 7% in the first seven months of this year, a performance better than most of the other countries. The strong economic recovery will boost the domestic demand for agrochemicals, thus favourable for many pesticide companies to S ome listed pesticide companies have adopted several countermeasures like domestic market expansion and product structure adjustment to regain profit growth in the second half of this year achieve net profit growth in H1 2009. after significant slowdown in the first half. To cope with the gloomy market demand, most pesticide companies have adopted a C hina’s pesticide registration structure has been greatly optimized thanks to the six registration regulations issued in Dec. 2007. series of measures like cost reduction, strategy adjustments like focusing more on domestic market and formulation business, launch of new production lines and capital-raising by issuing C hina has held an international workshop on insect pheromone for monitoring and controlling key agricultural insect pests to promote green crop new shares and so on to curb the profit loss in H1 2009. protection. B With enhance efforts on GM crops development, eijing-based Origin’s glyphosate tolerant corn China is expected to make great breakthrough in may be approved by Chinese government by the commercialization of GM corn, as Beijing-based end of 2011. Origin, the county’s third-biggest seed producer, D announced that it might gain governmental unhuang Seed plans to issue new shares to raise approval within two years to sell its glyphosate USD73.2 million to finance the expansion of tolerant GM corn variety. four segments concerning seed and food processing. Besides, local provincial governments are now endeavoring to boost grain yield, such as Gansu’s strong support to potato industry and G ansu Province is to hold a potato conference in Dingxi City during 26-27 Sep. 2009, aiming to further boost local potato industry. Heilongjiang’s promotion of new cold-tolerant wheat variety, etc. However, China’s cotton yield is to decrease this year, mainly due to shrinking planting area, unfavourable weather conditions as well as increasing disease occurrence. H eilongjiang is to witness great breakthrough in wheat output with the increasing promotion of new cold-tolerant winter wheat variety. C hina’s cotton output is expected to decline sharply this year due to the reduced planting area and unfavourable weather in early September. Location of key companies covered in this issue J iangsu was severely hit by cotton verticillium wilt in Sep. 2009 with stricken area of 85,000 ha. CCM International Limited I www.cnchemicals.com
  4. 4. Crop Protection China News Vol.3 Issue 18, 2009 ■ Overview Performance of key pesticide companies in H1 2009 (II) - Methods to ride over the crisis In last issue, CCM has monitored the performances of 14 key pesticides FIGURE 1: Sales income structure of companies in H1 2009. In this issue, we will introduce some successful Huaxing Chemical in 2008 and H1 2009, countermeasures adopted by several companies to ride over the gloomy million USD market and financial crisis. I n H1 2009, among the 14 key listed pesticide companies, only 4 companies, namely Noposion, Lier sales, leading to severer oversupply and intensified price wars in the first half of 2009. Chemical, Yangnong Chemical and QJBIOC, achieved net profit growth, Noposion, who only focuses on thanks to their effective cost control domestic market, marvelously raised methods, timely strategy adjustment its market share further and witnessed and launch of new production lines, successive breakthroughs in sales etc. Though some other companies income. In H1 2009, it achieved total suffered net profit drop in the first sales of USD131.23 million and net half year, they have also adopted profit of USD13.79 million, up 26.53% some successful measures to curb the and 38.41% respectively. profit loss. Sales in 2008 Strengthening marketing capability, Compared with those export-oriented merging local producers and companies, the domestic-focused introducing new competitive products pesticide companies generally faced are the main reasons accounting for less pressure in maintaining sales and Noposion’s success (See details in Crop profit margin in H1 2009 benefited Protection China News 0913, P1). from China’s stable and considerable demand of agrichemicals, hence many Export promotion companies have enhanced domestic sales efforts to maintain profits. Lier Chemical, the leading Chinese Besides, with relatively stable sales manufacturer of chloropyridine price, formulation production had herbicides, is one of the few companies more stable profit margin than that have achieved export sales growth Sales in H1 2009 that of technical, thus, increasing amid global export downturn, with formulation output was also widely its total export value amounting to adopted as a countermeasure to USD33.8 million in H1 2009, up Source: Huaxing Chemical’s semi-annual curb the loss in overseas markets. 26.82% year on year, which is the key report of H1 2009 factor contributing to its net profit increase. Domestic market expansion demand from several MNCs. Moreover, fierce price wars further shrink profits Unlike some export-oriented producers Quite a few pesticide producers in the domestic market, so the company who switch their business emphasis to suffered sales downturn in H1 2009, decided to continue to focus on export. the domestic market, Lier Chemical still with export shrinkage in oversea endeavors to expand its oversea market market, thus many of them have Producing to order with steady quality, with steady paid more attention to the domestic Lier Chemical has established stable business relationship with MNCs like Dow AgroScience, which have TABLE 1: Noposion’s pesticide sales situation in H1 2009 continually purchasing products like (Unit: million USD) clopyralid technical for their own formulation production. Changes % Pesticide Sales income ( VS. H1 2008) According to its semi-annual report, Insecticide 66.78 8.10 Lier Chemical successfully expanded its Fungicide 30.23 31.24 business scale with major clients in the Herbicide 30.64 90.13 first half of 2009. Its sales income from top 5 foreign clients recorded USD26.5 Others 2.84 1.88 million in H1 2009, accounting for Total 130.49 40.52 74.08% of the total major income, compared with 57.31% in the same Source: Noposion’s semi-annual report of H1 2009 period a year ago. CCM International Limited 01 www.cnchemicals.com
  5. 5. Crop Protection China News Vol.3 Issue 18 2009 18, Product structure adjustment gibberellic acid and Jinggangmycin, cost reduction. performed disappointingly due Facing obvious income reduction to market shrinkage, as shown in Yangnong Chemical is a typical from key products, some companies the following table. Thanks to the example of those who suffered have worked hard to enhance the timely adjustment, it finally achieved major sales fall but witnessed net production and promotion of the remarkable net profit of USD2.69 profit growth during H1 2009, other pesticides. million in H1 2009, up 186.69% year mainly thanks to its cost cut in both on year. production and management. Its QJBIOC, the major producer of sales cost, for instance, was USD1.32 gibberellic acid and Jinggangmycin Cost control million, down 5.4% year on year in China, greatly endeavored though it greatly extended the to enhance the bio-insecticide Almost all the companies considered domestic sales scope. With large cost of abamectin in H1 2009. As a cost control as a key measure cut, its net profit witnessed a little rise result, abamectin made significant to cope with profit decline from to USD17.6 million, up 2.47% year on contribution to its net profit, while price drop and market shrinkage. year, though the total sales declined the two key products, namely Some companies have successfully to USD170.9 million, down 13.19 %. maintained stable profit growth with In the next issue, CCM will predict the future performances of these pesticide producers in H2 2009, based on the market trends and their related marketing strategies on profit growth. TABLE 2: QJBIOC’s pesticide business situation in H1 2009 (Unit: million USD) Sales changes % Operating cost changes % Profit rate changes % Item Sales income ( VS. H1 2008) ( VS. H1 2008) ( VS. H1 2008) Insecticides 4.03 20.03 -25.72 16.2 Growth regulators 10.54 -1.03 -9.16 6.48 Fungicides 7.72 -21.46 0.44 5.06 Total sales 22.29 0.34 10.09 9.15 Source: QJBIOC’s semi-annual report of H1 2009 TABLE 3: Yangnong’s pesticide business situation in H1 2009 (Unit: million USD) Changes % Changes % Profit rate Major Operating Major products ( VS. H1 ( VS. H1 changes % Income costs 2008) 2008) ( VS. H1 2008) Household & Sanitary 63.69 -3.80 48.87 -10.07 5.40 pyrethroids Insecticide Agricultural pyrethroids 39.12 -23.21 31.97 -24.90 1.80 Others 1.52 -84.37 1.25 -85.31 5.30 Herbicide 56.32 -7.44 46.34 -7.97 0.48 Total 160.65 -14.41 128.41 -17.54 3.03 Source: Yangnong’s semi-annual report in H1 2009 CCM International Limited 02 www.cnchemicals.com
  6. 6. Crop Protection China News Vol.3 Issue 18 2009 18, China optimizing pesticide registration structure C hina’s pesticide registration structure has been greatly optimized with higher proportion of has accounted for 70% of the total, reaching around 19,000, far high than only 219 in 2005, merely 5.3% of the Besides, the above regulations will standardize the formulation market by promoting appropriate label formal registrations and increasing total in that year. design and common names, as well number of eco-friendly formulations, as facilitate end users’ application. thanks to the six pesticide registration Furthermore, the registration number For instance, the labeled rate of safety regulations carried out since Jan. of eco-friendly formulations also interval of pesticides application has 2008. obviously rises, as applications for witnessed fast growth, reaching over EW (emulsion, O/W), WDG (water 90% at present compared with merely The implementation of the new dispersible granule), AS (aqueous 20% two years ago. pesticide registration rules since 2008 solution) and CS (aqueous capsule has facilitated China’s adjustment suspension) formulations have all Though some problems like use of of pesticide registration structure, witnessed fast growth in recent two pesticide trade names still exist (See expresses Zhang Yanqiu, director years. Crop Protection China News 0913, of Institute for the Control of P3), as China is in the transition Agrochemicals Ministry of Agriculture During Jan. 2008~Aug. 2009, 325 period of common names replacing (ICAMA), on the second ‘High-Level EW, 340 WDG, 1,451 AS and 22 CS trade names, the pesticide formulation Forum on China Pesticide’ held in registrations had been approved, market will be more organized, thus Suzhou City during 13~15 Sep. 2009. which outnumbered the sum of their favourable for industrial integration registrations during 1982~2007. and relocation of resources. These regulations, aiming to shorten The six regulations refer to the 3 the effective period of temporary With the deepening implementation orders of Decision on Amending registrations, ban pesticide trade of the above regulations, the the Measures for Implementing names, regulate formulation A.I. proportion of temporary registration the Pesticide Administration, contents, heighten the entry threshold is forecasted to continue declining in Data Requirements for Pesticide for pesticide production and the future, with the rising temporary Registration, Measures for the standardize the label format, have registration cost under stricter Administration of Pesticide Labels promoted the following changes in the environmental requirements and the and Manuals, and 3 bulletins pesticide registration structure. shortened effective period. Total cost released on 8 December 2007, for temporary registration is to rise to namely The Regulation on Pesticide First, the number of temporary around USD29,300 (RMB200,000) Name Registration Approval, registration has significantly reduced for a single formulation and Standardization for Pesticide and that of the formal registration has USD58,600 (RMB400,000) for a Naming and Pesticide Product’s soared at the same time. Up to now, mixed formulation. Active Ingredient. the number of formal registration TABLE 4: Main content of the six regulations released by Ministry of Agriculture in Dec. 2007 No. Main content  Stop pesticide trade name approval from 8 Jan. 2008. 1  Require pesticide producers to adopt common names or abbreviations as pesticide names and clearly print them on labels from 1 July 2008. 2  Shorten the effective period of pesticide temporary registration to three years from four years. 3  Supply supplementary test reports or comprehensive reports when submitting extended registration applications.  Heighten pesticide registration threshold via stricter requirement on temporary registration in terms of pesticide 4 residue. 5  Standardize pesticide products’ label design and application specification.  Further standardize pesticide products’ A.I. content grads. For instance, the content grads of a single formulation 6 product with the same A.I. and formulation type should be less than 5 grads. Source: Ministry of Agriculture Note: No. 2-No. 6 have been implemented from 8 January 2008. CCM International Limited 03 www.cnchemicals.com
  7. 7. Crop Protection China News Vol.3 Issue 18, 2009 ■ Areas & Dynamics China to promote insect sex attractant C hina held the ‘International workshop on insect pheromone for monitoring and controlling key Agricultural insect pests’ during 9-11 Sep. 2009 in Guilin City, aiming to promote eco-friendly crop protection. Experts from National Agro-technical Extension and PICTURE 2: Orange tree applying insect sex attractant Service Center (NATESC), Ministry of Agriculture of China, International Rice Research Institute and Department of Agriculture of Guangxi attended the workshop. The attendees also visited two demonstration bases in Guilin on 10th Sep. In a vegetable demonstration base, insect sex attractant was used to trap spodoptera litura and diamond back moth over Chinese cabbage and broccoli. It was also applied in an orange demonstration base to trap bactrocera dorsalis (Hendel) and citrus leaf- miner. Insect sex attractant provides a new method for pest control by disrupting the reproductive cycle of harmful insects and luring them into traps. Hence, it does not damage other animals or poses health risks to human beings as the conventional pesticides do. Source: Ministry of Agriculture Besides, it can reduce pesticide application times by 3 to 4 times a year and cut down pesticide dosage by 30% used in 32 provinces by the end of 2008, with accumulative and application cost by USD65.9 per ha. Moreover, it application area of over 800,000 ha. for pest control over will reduce pesticide residue, thus greatly increasing the rice, corn, cotton, fruit tree, vegetables, etc. crops’ marketability. ‘Guangxi first applied insect sex attractant to control pests Attracted by the high efficiency and non-toxicity of insect in 2004 and widely promoted it in 2007. So far, 1.5 million sex attractant, China has been actively promoting this insect pheromone traps have been applied in 71,200 ha. product nationwide. In 2007, China’s Vice Premier of areas of fruit trees and vegetables. Reduction of pesticide State Council and Vice Minister of Ministry of Agriculture use is estimated to be about 394 tonnes,’ says Zhang issued an important written comment, requiring agro- Mingpei, Head of Department of Agriculture of Guangxi. technical extension centers all over the country to actively promote application of this product. ‘Crop area suitable for applying insect sex attractant is estimated to exceed 3.3 million ha. in China. Therefore, According to statistics, insect sex attractant had been this technology has bright market prospect,’ says Mr. Xia, director of the NATESC. PICTURE 1: Experts observing the effect of insect sex attractant To speed up the promotion of insect sex attractant, experts suggested the following measures. On the one hand, the government can establish special funds and issue subsidies to promote the new product. On the other hand, agro-technical extension departments can enhance the promotion through guidance and training for end users. Source: Ministry of Agriculture CCM International Limited 04 www.cnchemicals.com
  8. 8. Crop Protection China News Vol.3 Issue 18, 2009 ■ Company Origin GM corn may get approval by 2011 O rigin Agritech Ltd. (Origin), the third biggest seed company in China, announced on 17th September that its glyphosate tolerant corn variety might be approved by Chinese government no later than 2011. The company is going through the third phase of the five- and rapeseed varieties based on this glyphosate tolerant step approval procedures for promoting its new modified gene in China and other countries, according to the glyphosate tolerant corn variety, and will send the sample company. crops to Chinese Ministry of Agriculture in the fourth stage in the near future. ‘Corn is expected to be the first commercialized GM crop in China with relatively mature technology. Experts have Origin predicts that its glyphosate tolerant GM corn may finished the assessment of GM corn, and now it is up to be approved at the end of 2010 or in 2011, after which the government,’ says Mr. Lin Ming, head of Institute of this variety will be commercialized in small area first. The Microbiology of the CAS. company plans to commercialize it in 205,000 ha. areas at first and then expand to 1.2 ~2.2 million ha. the next year. China’s corn planting area is estimated to be 30.3 Besides, it is expected to compete with Roundup Ready million ha. this year, up 1.8% over last year, driven by from Monsanto in the global seed market. the government’s subsidy policy and high price of corn, reaching USD269/t on 29 Aug. 2009, up 23.2% year on Origin Biotechnology, a wholly-owned subsidiary of year. Origin, has reached a mutual agreement with the Institute Origin Agritech Limited, a leading agricultural of Microbiology of the Chinese Academy of Sciences (CAS) biotechnology company and a competitive crop and Sichuan Biotech Engineering Limited, which entitles it seed producer in China, specializes in research and to utilize a licensed gene with high glyphosate tolerance. development, production, sale and distribution of crop seeds such as corn, rice, cotton and canola. This glyphosate tolerant gene, which is highly effective in both laboratory and field tests, can cut down weed Origin’s revenues for the year ended 30 September, 2008 control cost and can be applied to various plants like were USD75.63 million (RMB513.49 million), an increase corn, soybean, rice, cotton and rapeseed, etc. It has been of 4.93% from USD65.31 million (RMB489.38 million) in patented in both China and US, with respective patent life the fiscal year ended September 30, 2007. of 8.5 years and 7 years in the two countries. During the patent life, Origin enjoys the exclusive rights to sell and develop the modified corn, soybean, rice, cotton Dunhuang Seed to raise USD73.21mn for expansion Dunhuang Seed Company (Dunhuang Seed, 600354), the but its net profit dropped to minus USD4.4 million due to biggest seed company in Northwest China, announced sluggish cotton business caused by gloomy downstream to raise USD73.21 million through issuing new shares industries like textile industry. for new assets purchase and expansion of four segments concerning seed processing and vegetable processing on 15 Despite the current difficulties, Dunhuang Seed believes September 2009. that it’s a good chance to carry out production capacity expansion and increase market shares, based on current Dunhuang Seed will issue around 50 million shares at performance and bright market prospect of its major price of at least USD1.60/share (RMB10.95) to no more businesses. than ten specific investors. Among the potential investors, Jinta Supply and Marketing Cooperative, the fourth largest With the raised capital of USD73.21 million, both of shareholder of Dunhuang Seed, has subscribed 5 million Dunhuang Seed’s total assets and net assets are to be shares up to 15th September. significantly expanded. Furthermore, upon completion of construction, the company’s leading position in seed In the next three years, the raised fund will be mainly production and vegetable processing will be further invested in purchasing assets of Xinjiang Manas Oil & improved in the near future. Fat Company and expanding capacity of four business segments, including processing of corn seed, cottonseed ‘The four new seed drying processing production lines will oil, dehydrated vegetable and tomato paste. accurately keep corn seeds’ water content to below 13%, which will further raise the seeds’ livability and maintain In H1 2009, the revenue of Dunhuang Seed hit USD93.6 their good quality under cold temperature in northern million, up 35.3% year on year, thanks to continuously regions, reveals a director of Dunhuang Seeds. Therefore, increasing sales of processed seed and vegetable products, after these production lines are completed, both of the CCM International Limited 05 www.cnchemicals.com
  9. 9. Crop Protection China News Vol.3 Issue 18, 2009 company’s seed processing capacity and quality will be In H1 2009, the company’s gains from seed business were significantly improved. largely offset by the loss from sluggish cotton business, as gross profit margin of cotton declined 5.7% to minus However, the company will delay the investment in cotton 1.9% due to the falling cotton price caused by insufficient seed processing project, due to the current gloomy cotton demand. market and unfavorable related policies. Based on the forecast of gradually recovering cotton ‘Current policies are more favourable to cotton growers as market, Dunhuang Seeds’ cotton business is predicted to well as downstream processing companies, thus the profit resume growth in the second half year, which is to raise margin for seed cotton processing has decreased over last the company’s total net profit this year. year’, according to an insider. TABLE 5: Details of Dunhuang Seed’s future projects, million USD Targeted Total Construction Project name raised Project Investment period (year) money Corn seed drying 1 10.16 5.86 Expand processing capacity to 25,000t/a 2 production line Purchase of Xinjiang Manas 2 7.47 7.47 N/A N/A Oil & Fat Company’s assets Technology upgrade Expand processing capacity to 250,000t/a; 3 for 1,000t/a cottonseed 7.32 7.32 cotton oil capacity to 40,000t/a and cotton 1 processing lines meal to 110,000t/a. Expand tomato processing capacity to 4 Tomato deep processing 19.55 19.03 3,500 tonnes per day and tomato paste 2 output to 20,000t/a Achieve dehydrated onion powder capacity Dehydrated vegetable deep 5 28.96 19.03 of 6,800t/a; Dehydrated onion granule 3 processing capacity of 6,800t/a. 6 Circulation capital 13.18 14.49 N/A N/A Total 86.64 73.21 Source: Dunhuang Seed TABLE 6: Dunhuang Seed’s business situation in H1 2009, million USD Changes Changes Major Operating Changes of operating profit rate % VS Business % % income costs 2008 VS 2008 VS 2008 Seed 37.15 24.30 19.09 9.18 7.12 Cotton seed 37.19 53.49 37.91 65.83 -7.59 processing Vegetable processing 18.74 44.91 15.60 36.44 5.17 Others 0.15 -44.15 0.16 -42.22 -3.57 Total 93.23 35.28 72.76 36.10 -0.47 Source: Dunhuang Seed’s semi-annual report of H1 2009 CCM International Limited 06 www.cnchemicals.com
  10. 10. Crop Protection China News Vol.3 Issue 18, 2009 ■ Crops Gansu endeavors to boost potato industry G ansu Province is to boost local potato production and strengthen its competitiveness in potato processing industry through subsidies and supporting policies. Gansu Province is to boost local potato planting province in China, potato production and strengthen its have regarded potato production Besides, Gansu’s breeding capacity competitiveness in potato processing as its main agriculture industry, of virus free variety has reached 90 industry through subsidies and especially after the release of million plants per year, and capacity supporting policies. ‘Regional distribution plan of superior of breeder seed reaches 97.5 million agricultural products in China (2008- per year. Its processing ability To promote the production and 2015)’ on 3rd September, 2008, has also been significantly raised, sales of local potato products, Gansu which planned to raise the whole reaching annual processing capacity government is to hold a potato country’s potato capacity and output of 2,000,000 tonnes fresh potato, conference in Dingxi City during 26- to ensure food security (See Crop 600,000 tonnes starch, 50,000 tonnes 27 Sep. 2009, which is the third time Protection China News 0819, P1). whole powder and 20,000 tonnes pure to hold such a conference in Dingxi. potato starch. Gansu is the only province that Plenty of funds have been attracted takes potato industry as a leading Up to now, Gansu has developed three in the previous two conferences for industry in China at present, reveals key potato planting regions to satisfy local potato industry development. Mr. Shang, mainly attributed to various demands like fresh food, food In 2008 alone, the signed contract resource shortage and favorable processing and deep processing, which amount for 25 projects, including natural conditions in this province. account for around 70% of its total both domestic and overseas Every year, Gansu government potato planting area, according to capital, reached USD199.1 million. invests around USD12.4 million Han Linguang, vice director of Gansu Organizers are quite confident that as special funds to support local Agriculture and Animal Husbandry more achievements will be made this potato industry, covering new Department. time, expresses Shang Xunwu, vice variety breeding, virus free seedlings director of Gansu Agriculture and capacity expansion, matched facility To further develop local potato Animal Husbandry Department. construction and potato planting industry, Gansu aims to raise the subsidies, etc. capacity of the above three key potato Gansu has been endeavoring superior regions in the near future. to further develop local potato Stimulated by the above measures, Therefore, Dingxi City, named as industry by boosting output, raising Gansu’s potato planting area has ‘Potato capital in China’, is drawing product quality and developing jumped to 65,300 ha. this year after attention from both foreign and deep processing industry, which are successive growth in the past years. domestic investors at present. predicted to simulate market demand Based on current growth situation, for potato seed and consumption of the yield in 2009 is forecasted to ‘With advantages in favourable climate related pesticides. reach around 11.5 million tonnes, and abundant rainfall during tuber with increase of 8,000 ha. year on growth period in July to September, as In recent years, Gansu, the 5th largest year. well as rich soil with large potassium content, Dingxi’s potato has high quality with large size, good taste, FIGURE 2: Gansu’s potato planting area and yield in 2006-2009est good storability and high starch, etc. Thus Dingxi has great potential to further develop the potato industry’, says Cheng Boheng, deputy mayor of Dingxi. Dingxi aims to build the biggest breeder seed base in the future, with total virus free breeding capacity of 65 million plants per year (50.5 million at present), breeder seeds capacity of 100 million (81 million currently) and original potato breeding base area of 666 ha. (480 ha. at present). Besides, it plans to construct the biggest potato starch processing base in China, with annual output of over 150,000 tonnes (100,000 tonnes at present). Source: CCM International With Gansu’s increasingly close CCM International Limited 07 www.cnchemicals.com
  11. 11. Crop Protection China News Vol.3 Issue 18, 2009 FIGURE 3: Geographic distribution of superior potato attention to local potato industry development, it is predicted that the regions in Gansu related potato seed industry will see further advancement. Furthermore, with the hike in potato planting area in Gansu, related severe diseases and pests will gradually pose threats to potato yield growth and quality improvement, which requires effective crop protection measures, especially adoption of chemical pesticides, reveals a director of Jiangsu Baoling Chemical Co., Ltd., a producer of metalaxyl · mancozeb for potato late blight control. TABLE 7: Recommended pesticides for key potato diseases/pests Disease/ pest Recommended pesticide Azoxystrobin, metalaxyl · mancozeb, fluopicolide · Potato late blight propamocarb hydrochloride Triaconeyl alcohol, moroxydine hydrochloride Virus disease copper acetate Azoxystrobin, cupric hydroxide, oxadixyl · Potato early blight mancozeb Rhizoctoni solani Carbendazim, thiophanate-methyl, tolclofos-methyl Potato ring rot Thiophanate methyl, fenaminosulf Pirimicarb, matrine, imidacloprid, deltamethrin, Aphid acetamiprid Source: CCM International Ground pests (white Phoxim, trichlorfon, deltamethrin, acephate grub, wire worm) Source: Gansu Crop Protection Station. Heilongjiang promotes cold-tolerant wheat variety H eilongjiang Province is to witness great breakthrough in wheat output with the increasing promotion of ‘Dongnong Dongmai No.1’, the first local winter wheat variety with high cold tolerance. On 14 Sep. 2009, the launching ceremony of winter wheat sowing in Heilongjiang was held in Bayan County, Harbin Current yield of ‘Dongnong Dongmai No.1’ is around City, to promote planting of ‘Dongnong Dongmai No.1’ in 5.12 tonnes per ha., 30% higher than that of the common the province this year. spring wheat variety. As current planting area of spring wheat is around 330,000 ha. in Heilongjiang, its annual Heilongjiang aims to expand planting area for this wheat wheat yield is likely to increase 300,000 tonnes per year if variety to 400 ha. this autumn from 15 ha. in 2008, and all the spring wheat area were changed to grow this winter increase the number of trial planting bases this year. If variety. the new wheat variety achieves bumper harvest next year, Heilongjiang will further enlarge the planting area to Therefore, Heilongjiang’s wheat yield is to be greatly 10,000 ha. in 2010 and 330,000 ha. later. raised, thus accelerating its achievement of the grain output target of 50 million tonnes up to 2012. According to Tong Mingyao, professor of Northeast Agricultural University who developed ‘Dongnong Furthermore, large-scale promotion of winter wheat will Dongmai No.1’, this winter wheat variety, approved by raise land utilization rate and improve Heilongjiang’s related departments in 2006, is the only one able to soybean yield. resist extremely cold climate in Heilongjiang and safely go through the winter, with its highly improved cold On the one hand, winter wheat is likely to raise local tolerance’. tillage utilization rate by 50% as it can be interplanted with soybean. After soybean is reaped in autumn, winter The promotion of this new wheat variety can largely wheat continues to grow till its harvest in next July, after increase Heilongjiang’s wheat output and boost soybean which succession crops can be planted in the same year, planting as well. thus realizing three cropping in two years compared with current cropping way of only one harvest each year, ‘Expanding the planting area of improved winter wheat explains Mr. Tong. varieties could not only increase grain output and peasants’ income, but also possibly solve current problems On the other hand, interpolating of winter wheat and of continuous cropping of soybean in Heilongjiang’, reveals soybean can increase soybean yield. Previously, corn was Wang Xiaoyu, vice director of Heilongjiang Soybean the only crop suitable for rotation in soybean fields, which Association. had partly restricted the yield growth of soybean as its yield CCM International Limited 08 www.cnchemicals.com
  12. 12. Crop Protection China News Vol.3 Issue 18, 2009 will reduce to certain extent after continuous cropping. FIGURE 4: Crop planting structure in Heilongjiang by area in ‘But this problem will be easily solved when winter wheat 2007 (Unit: ‘000 ha.) is promoted for rotation cropping with soybean’, says Xue Yingjie, vice director of Agricultural Development Office of Heilongjiang. Currently, soybean shares the largest planting area in Heilongjiang, with over 3.8 million ha. each year, accounting for more than 40% of the total, ranking the first in China. However, China’s soybean output is far from meeting the rising domestic demand from industries of edible oil, food and feed, etc. Generally, continuous cropping will reduce the yield of soybean in the same field, due to restricting factors like accumulative soil-borne diseases, decreasing essential nutrition content in soil, weakening nitrogen fixation of root system, etc. Source: China’s Ministry of Agriculture Notes: Soybean shares the largest proportion of beans. Cotton yield expected to decline C hina’s cotton output is expected to decline sharply this year due to the decrease in cotton planting area and unfavourable weather in major cotton production has decreased by about 13% compared with that of 2008, worse than the original estimate of about 10%. provinces in early September. Xinjiang, the largest cotton production region in China that accounts for about 29% of the total cotton area, Cotton output is estimated at about 6.4 million tonnes this witnessed a large decrease in cotton planting area, down year, down at least 10% over last year, according to surveys 25% in northern Xinjiang and 10% in southern Xinjiang. of relevant governmental agencies and research institutes. Insiders even predict the national output to drop by 15% Other major cotton production regions also witnessed to 20%. sharp decline in cotton area, such as Shandong (down 12.0%), Hebei (7%), Henan (12.0%) and Hubei (12.3%), Decreased cotton planting area is the main reason etc. attributed to the decline in cotton output. According to the latest statistics, China’s cotton planting area this year Shrinking profit margin is the main reason causing the sharp fall of cotton planting area. Price of seed cotton has declined to about USD0.73/kg in recent several years, FIGURE 5: Main cotton production regions in China while cost of pesticides and fertilizers almost doubled. ‘Total input of growing cotton is about USD2,635/ha. currently, including USD219 for seeds, USD307 for fertilizer, USD373 for pesticides, USD878 for labor and USD878 for land rent. Given the cotton price of USD0.73/ kg and unit seed cotton yield of about 3,600kg/ha., the output value of cotton planting will be about USD2,628/ ha., even lower than the total cost. Thus growing cotton is not a good bargain,’ says Mr. Song Chunlian, deputy director of Huanghai Agriculture Research Institute. Cotton output is also affected by the unfavourable weather in early September, with continuous rainfall in Shandong, Henan, Hebei and Jiangsu, and severe drought in Hubei Province, which has caused heavy loss in cotton output. Dezhou City, the major cotton production region in Shandong Province, suffered continuous rainfall in early September, the most critical period for cotton production. Local unit yield of cotton is estimated to decline by 20% to Source: CCM International 30%, and the maturity period is delayed to late September. Besides, output in Jizhou City (located in Hebei) and CCM International Limited 09 www.cnchemicals.com
  13. 13. Crop Protection China News Vol.3 Issue 18, 2009 Nantong City (Jiangsu) is estimated to decline by 30% to 2008/2009, China’s cotton demand was less than 10 50% respectively. million tonnes due to sluggish overseas demand for textile products. Different from other cotton plating provinces, Hubei suffered heavy drought this month. ‘About 70% of the The gap between cotton output and demand might push cotton plants drooped in the heat of the sun. It is estimated up the domestic cotton price. Although the seed cotton that cotton yield in Tianshui City (major cotton region quality was affected by continuous rainfall, its price in late in Hubei) will drop by 30% over last year,’ according to September was between USD0.82/kg to USD0.88/kg, a Bureau of Agriculture of Tianshui Municipality. little higher than that of last year. To stabilize cotton price, Chinese government may raise cotton import quotas this In contrast to the output decline, cotton demand is year to make up the supply gap. expected to increase this year, which is predicted to exceed 10 million tonnes in 2009/2010 with the rising operating rates of large and medium-sized textile enterprises. In ■ Pests & Diseases Jiangsu severely hit by cotton verticillium wilt J iangsu, the seventh biggest cotton planting province in China, has suffered severe attack from cotton verticillium wilt in Sep. 2009. Since Sep. 2009, cotton verticillium wilt, also called as stricken area is forecasted to reach 10,000 ha. this year, ‘cancer of cotton’, has been severely occurring in main a 30% increase compared with that of the previous year, cotton planting counties in Jiangsu, with total stricken area though the planting area has decreased 9% to 273,800 ha., of 85,000 ha, accounting for over 70% of the province’s according to Jiangsu Crop Protection Station. coastal area and 25% of its total cotton planting area. The outbreak of verticillium wilt has drawn close attention Dafeng City, for instance, has witnessed 26,700 ha. from related departments. In fact, other regions in Yangtze stricken area this September, almost 73% of its total River basin like Hubei and Anhui have also begun to see 36,700 ha. cotton area this year, including 2,000 ha. being the same trouble for cotton production. totally destroyed. Besides, 90% of Rudong county’s cotton area has been infected with this disease, with stricken area Corresponding measures to control the disease’s further of around 10,800 ha., which is predicted to reduce 40%- extension are to be adopted more widely in the near 50% of this county’s cotton yield this year. future, including promotion of disease resistant crops, crop rotation, seed treatment, application of chemical Favourable weather condition is the key reason for the pesticides, etc. severe disease outbreak. During late July to mid August, typhoon Morakot and freezing air brought by continuous The demand for effective seed treatment pesticides like rainfall were quite favourable to the disease occurrence carbendazim is to increase in Yangtze River regions with and large-scale spread. Besides, the large amount of about 3 million ha. cotton area currently, accounting for stagnant water in cotton fields also greatly affected cotton 50% of the China’s total. root growth, and directly weakened the plants’ disease resistance. FIGURE 6: Occurrence situation of cotton verticillium wilt in Moreover, the accumulative soil-borne diseases Jiangsu in Sep. 2009 after continuous cropping also aggravated the disease severity this year. To raise unit cotton yield, Jiangsu has greatly promoted the high-yield varieties purchased from other provinces in recent years, however, it has caused the wide spread of cotton diseases with the transportation of infected seeds due to ineffective quarantine and lack of seed treatment. Up to now, there has been no area free of cotton verticillium wilt in Jiangsu’s cotton fields, some experts expressed. Besides, the inefficient breeding for cotton verticillium wilt resistant variety and lack of crop rotation in Yangtze River regions are among the other factors leading to the severe occurrence this time in Jiangsu. Based on current occurrence situation, Jiangsu’s total Source: CCM International CCM International Limited 10 www.cnchemicals.com
  14. 14. Crop Protection China News Vol.3 Issue 18, 2009 Pest and disease situation and forecast in Guangxi Crop Main pests/disease Affected area (‘000 ha.) Occurrence time forecast Yellow rice borer 233.3 Sep.-Nov. Chilo simplex 40.0 Sep.-Nov. Rice hopper 666.7 Sep.-Nov. Rice Rice leaf roller 433.3 Sep.-Nov. Rice sheath blight 533.3 Sep.-Nov. Rice blast 300.0 Sep.-Nov. Rice bacterial leaf streak 100.0 Sep.-Nov. Source: CCM International Average market price of main crops in China (15 Sep. 2009) 29-Sep 15-Sep Sep., 2008 USD/t RMB/t USD/t RMB/t USD/t RMB/t Wheat 277 1,894 275 1,881 247 1,689 Corn 269 1,837 268 1,833 249 1,700 Soybean(oil) 528 3,608 536 3,663 656 4,483 Soybean(food) 820 5,600 820 5,600 800 5,467 Peanut 999 6,825 974 6,650 1,142 7,800 Indica rice 430 2,934 444 3,035 427 2,917 Japonica Rice 450 3,071 465 3,173 443 3,028 Rapeseed 540 3,685 543 3,710 581 3,967 Broomcorn 284 1,940 283 1,930 300 2,047 Source: CCM International ■ News in Brief O n 13th Sep. 2009, Dongying Dasheng Chemical Technology month and 19.9% over last year, and pesticides prices maintained the same about 10% year on year. Co., Ltd. launched a R&D center focusing on highly efficient pesticide intermediate to enhance its R&D level as that of July and increased 0.1% year on year, according to the statistics released on 14th Sep. by P henazino-1-carboxylic acid, developed by Shanghai Jiao Tong University in 2005 who capacity in this filed. The company’s People’s Bank of China. acquired a patent in 2008, gained 1,000t/a 4-methoxymethyl- the approval of market entry from 2,3,5,6-tetrafluorobenzyl pyrethrin production line has succeed in small scale and pilot-scale production in S oybean output of Heilongjiang, the major soybean production base in China, is expected to decline by related experts in mid September. Mr. Shao Zhenrui from National Agro- tech Extension and Service Center the new R&D center, and is expected about 3 million tonnes over last year, suggested enhancing the industrial to generate annual pre-tax profit of mainly attributed to the unfavourable production of this new product as USD11.71 million upon completion. weather conditions such as flood, soon as possible. Shanghai Nongle drought and frost in several regions, Biological Product Co., Ltd., which I n Aug. 2009, China’s fertilizer price declined by 3.7% over the previous and the decrease in soybean planting area which is estimated to decline by cooperated with Shanghai Jiao Tong University on biological pesticides CCM International Limited 11 www.cnchemicals.com
  15. 15. Crop Protection China News Vol.3 Issue 18, 2009 R&D, announced to mass produce the product in 2010. T he output value of China’s chemical pesticides industry reached USD114.8 million n August C hina will enhance the mechanization of potato production in the coming years, Z hejiang Province, the main pesticide production base in China, produced 268,906 tonnes this year, up 1.1% year on year, and the accumulative output value in the first 8 month this year was USD1.3 aiming to raise the comprehensive mechanization rate of potato production to 40% in 2020. At pesticides in the first eight months billion, up 0.6% from the same period present, the share of tractor this year and sold 249,034 tonnes last year. ploughing reaches 36.7%, and that of in the same period, among which the mechanical sowing and harvesting 117,789 tonnes were exported. T he National Agro-tech Extension and Service Center released that is about 10%. C hongqing Wanzhi Jufeng Zoology Fertilizer Co., Ltd.’s first-stage ecological compound fertilizer base it was seeking to cooperate with pesticide producers to establish professional pesticide application A ccording to statistics from Statistics Bureau of Jiangsu Province, the pesticide consumption with 350,000t/a capacity was put into teams to promote the safe usage and in Jiangsu has witnessed continuous operation on 24th September. Upon proper application technology of decrease since 2006. The province’s the completion of the whole base, it pesticides. These services teams will pesticide consumption in 2008 was will achieve 1 million tonnes designed be named under related pesticide 3% less than that of 2007, and the capacity. producers. consumption this year is estimated to drop by 5% over 2007. CCM International Limited 12 www.cnchemicals.com
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