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Government's pesticide procurement gets hot in 2012


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China largely popularizes government pesticide procurement and the value is estimated to reach USD321.2 million in wheat, rice, vegetable, tobbaco and cotton, etc. in 2012.

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Government's pesticide procurement gets hot in 2012

  1. 1. Governments pesticide procurement gets hot in 2012Summary: China largely popularizes government pesticide procurement and the value isestimated to reach USD321.2 million in wheat, rice, vegetable, tobbaco and cotton, etc. in 2012.Tags: Mesa Tech, spinosad, indoxacarb and fosthiazate, acephate, government pesticideprocurement, plastic masterbatch, helminthic,green control on pests, metaflumizoneRecently, government pesticide procurement has become a hot topic on many agriculturalconferences. It is estimated that the procurement value has reached USD321.2 million(RMB2.00billion) in the application of wheat, rice, vegetable, tobbaco, cotton and other crops. Ithas also become a good marketing method for dominant pesticide producers, according toCCM’s December issue of Insecticides China News.Lin Yanru, a researcher from Shandong Plant Protection Station, revealed that governmentprocurement is the general development trend of Chinas agriculture industry. The coverage ofgovernment procurement ranges from rice, wheat, cotton, vegetable to fruits and some othercash crops, and its investment will be raised year by year.Since 2011, government pesticide procurement was in full swing. "Its coverage area and croprange have been gradually expanded. In 2001, Chinese government began to procure pesticides;the Ministry of Finance allocated about USD16.06 million (RMB100 million) every year forpurchasing pesticides to control rice plant hoppers, rice stem borer, wheat rust, locusts and otherpests and diseases", said researcher Lin Yanru.According to Li Yanru, in recent three years, the investment for government pesticideprocurement has quickly increased. Many provinces growing wheat, rice have spent overUSD16.06 million (RMB100 million) on pesticide procurement since 2009. Hebei Province is themost prominent one and it invested USD32.12 million (RMB200 million) every year during 2009-2011. Another big rice-growing province—Jiangxi also invested over USD16.06 million (RMB100million) every year during 2010-2011.In 2012, the investment for government pesticide procurement has reached a new peak.According to the Ministry of Agriculture of China (MOA), the investment merely on wheat hasreached about USD253.2 million (RMB1.6 billion) which has been allocated to 11 winter wheat-
  2. 2. planting provinces and areas for the control and prevention of pests and diseases of 21.33 millionha. wheat in China.Generally speaking, government procurement has the following advantages.First, pesticides with low toxicity, high effectiveness and environmental friendliness will be givenprior consideration. Therefore, product mix will gradually become more reasonable.Secondly, large purchasing amount attracts many suppliers, and favourable procurement cost willadjust pesticide price and make it more reasonable.Thirdly, centralized bid improves the efficiency of marketing and creates mutual benefit forparticipants.With Chinese governments increasing attention on government pesticide procurement year byyear, domestic pesticide enterprises start to realize the importance of anticipating and obtainingbid invitations. Once winning the bid, pesticide enterprises can largely reduce costs and raiseprofits.Jiangsu Anpon Electrochemical Co., Ltd. (Jiangsu Anpon) is one of the bidding pesticideenterprise, which has successfully bid in Hebei, Jiangxi, Shandong and Anhui in recent years. Forexample, in Oct. 2011, Jiangsu Anpons pymetrozine (brand name: Feidian) successfully bid forthe demonstration project of government procurement for high yield rice in Anhui Province. InJune 2011, Hebei Province purchased a batch of pymetrozine formulations from Jiangsu Anponto control wheat aphid; Jiangxi Province also purchased 300 tonnes of pymetrozine formulationsfrom it to control rice plant hoppers in Sept. 2010. Another bid pesticide enterprise—Jiangsu KwinGroup Co., Ltd. also bid in Yunnan, Shandong, Henan and other provinces in recent years.In fact, for the bid of government procurement, many pesticide enterprises still cant get involved,even for some large pesticide enterprises. Manager Shenyangfeng from Shaanxi Sunger RoadBio-Science Co., Ltd. expressed that many enterprises had difficulties managing governmentprocurement. Taking county-level procurement bid for example, the bid application usually needsto be sealed from village government to country government and it involves sealing cost everyprocedure. Only enterprises that have comprehensive social networks and bravery to compete forthe price can act like a duck to water.The procedures of bid invitation are cumbersome and lots of pesticide enterprises lack theexperiences of preparing for bid materials. Many pesticide enterprises had to give up the bid
  3. 3. when they found that it was impossible to fetch the necessary materials in a short time as theytreked a long way to other provinces for the bid invitation.In addition to the cumbersome procedures, high threshold set by local governments was also abig obstacle to pesticide enterprises who want to obtain the bid invitation, especially thosemedium and small sized ones.Lastly, some overseas pesticide enterprises also see government procurement as a bigopportunity and want to participate. Though government favors domestic pesticides, it is believedthat some foreign pesticide enterprises will benefit from government procurement thanks toexcellent effect of imported pesticides and their increasing cooperation with the government. Forexample, spinetoram and spinosad from Dow AgroSciences have been selected in Jiangsugovernment procurement in 2012.Source: Insecticides China News 1212 content of Insecticides China News 1212:Domestic insecticide industry recovers but still faces challengesYancheng Confident builds 2,000t/a bifenthrin intermediate production lineOverall relocation of Jiangsu Kwin continuesJPRI promotes fufenozide in China againMesa Tech registers three insecticide technicalsGuangxi: over 4,500 tonnes insecticides reduced by green control in 2001- 2011Governments pesticide procurement gets hot in 2012Development of metaflumizone takes on well in ChinaDevelopment of outstanding acephate formulation is very urgentFNU develops helminthic agricultural filmNew technical registrations in Nov. 2012Sumitomo Chemical: the first formal registrant of clothianidinMonthly ex-factory prices of key raw materials in China, Dec. 2012Monthly ex-factory prices of main insecticides in China, Dec. 2012
  4. 4. Monthly Shanghai Port prices and FOB Shanghai price of main insecticides in China, Dec. 2012Average market price of main crops in China, 30 Nov., 2012Insecticides China News, a monthly publication issued by CCM on 10th of every month,provides the latest and influential analysis on insecticide industry for you, including companydynamics, supply and demand, price analysis, policy, raw material and intermediate.Please visit for more information or