ChineseCrop protectionGrowing Past, Strong Present,     Ambitious Future.            Presented by
table of contents         Welcome Editorial           from CCPIA Chairman Mr. Luo Haizhang............................2   ...
INDUSTRY OVERVIEW China and International Agrochemical Trade: Fourteen Years of Spectacular Export GrowthC             hin...
INDUSTRY Timeline                                                                1949-2008                                ...
650,000 tonnes output of                               1,900,000 tonnes output of more than 300               more than 20...
Products and Producers          Glyphosate: Repositioning          After a Sharp Correction     T               he first h...
erable turbulence, assuming there is not a revival or wors-       increase demand for transgenic crops, which will increas...
Products and Producers       Pyrethroids: Establish the       Brand, Extend the Chain  C                 ommercialization ...
Jiangsu Changqing, among others.                                                                    Shandong Sino-Agri Uni...
Products and Producers      Chlorpyrifos: Filling the      Breach After the Ban    T             he 2007 ban of five organ...
among these firms is about 15,000 tonnes, and together they     of raw materials and energy in manufacture of chloro- expo...
Products and Producers        Acetochlor: Star of                                                                         ...
A LOOK AHEAD  The Future of China’s Agrochemical Industry:  Innovation and StrideT        he China Crop Protection Industr...
A look aheadmediates have been established using large scale, continuous,   gies and facilities. The liquid f ilm method f...
agrochemex 2009 preview  AgrochemEx 2009 PreviewA            grochemEx (ACE) is                                           ...
Aagrochex 2009 previewChina Agrochemical Symposium                     Visitors’ occupational             has become a hig...
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Growing Past, Strong Present, Ambitious Future


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Growing Past, Strong Present, Ambitious Future

  1. 1. ChineseCrop protectionGrowing Past, Strong Present, Ambitious Future. Presented by
  2. 2. table of contents Welcome Editorial from CCPIA Chairman Mr. Luo Haizhang............................2 Chlorpyrifos: Filling the Breach After the Ban....................10 Chlorothalonil: A Long-Lifecycle Product..........................10 China and International Agrochemical Trade............ 3 Mancozeb: Market Mainstay.............................................11 Industry Timeline.............................................................4 Acetochlor: Star of the Second Legion.............................12 Tebuconazole: The Rust Fighter........................................12 Products and Producers Glyphosate: Repositioning After a Sharp Correction............ 6 The Future of China’s Agrochemical Industry........13 Paraquat: Pyridine Powerhouse..........................................7 Innovation and Stride Pyrethroids: Establish the Brand, Strengthen the Chains..... 8 AgrochemEx 2009 Preview.........................................15 Imidacloprid: A Rising Neonicotinoid Star............................ 8 Abamectin: A Rare Flower Among Bio-Pesticides...............9 Praise from AgrochemEx 2008................................... 6 1 Devoted to a Sustainable Crop Protection Industry H aving undergone ups and downs over the past pesticides and highly toxic organophosphorus insecticides, 60 years, our agrochemical industry has grown the product structure has been more and more environ- from nearly scratch to an integrated industry mentally friendly. The output of highly toxic products has with research and development raw material declined from 50% to 5% of total production. At the same and intermediate production, active ingredient production, time, output of new environmentally friendly products has and formulation processing. The industry has become increased significantly. an important buttress for increasing crop yields, helping New pesticide development has been a key industrial pro- assure the bumper harvests we have come to expect from gram, supported during the Ninth Five Year Plan, Tenth Five China’s agriculture. Year Plan, and Eleventh Five Year Plan. Further stimulated by Before 2000, the product- the amendment of domestic patent rules in 1993, intended market structure in China’s to offer greater protection to intellectual property, RD of agrochemical industry was pesticides has entered into an even more fruitful period. Since characterized by the phrase 2003, there have been 30 new compounds developed by “three-70%.” Insecticides ac- Chinese industry. counted for 70% of the total Increasing public concern with respect to issues such as output, organophosphorus food security, demand for biofuels, environmental protec- insecticide accounted for 70% tion, biological diversity, and food safety have presented of total insecticide output, and us with a challenge of making new progress in agrochemi-Luo Haizhang products considered highly cal production, application, and management. Therefore, toxic accounted for 70% of to- as an institution serving Chinese agrochemical producers, tal organophosphorus insecticide output. However, this situ- CCPIA will give full emphasis to the role of standardizing ation has become a thing of the past. First, the ratio among the standards and practices of our members, promoting insecticides, fungicides and herbicides was 90%-3%-3% in industry consolidation, safeguarding market order, stepping 1949. This ratio adjusted to 70%-11%-15% by 1995, and now up collaboration with overseas associations and companies, stands at 44%-13%-42%”. all to forge a more and more glorious image for China’s Second, through gradual elimination of organochlorine agrochemical industry on the international stage. ● 2 CHINESE CROP PROTECTION
  3. 3. INDUSTRY OVERVIEW China and International Agrochemical Trade: Fourteen Years of Spectacular Export GrowthC hinese agrochemical products can meet not come since China joining W TO. In 2008, with the price only the demands of domestic agricultural of glyphosate skyrocketing, exports of the product again production, but also that of export markets hit record highs. around the globe. During the last 14 years, The main export markets for China are Asia andChina has become one of the largest pesticide makers and South A merica (Brazil and A rgentina). Exports have alsoexporters in the world. grown steadily in such traditional markets as Pakistan, Export volume exceeded imports of crop protection Thailand, and Vietnam. In addition, with the rapidproducts for the first time in 1994, and since then, rapid growth of herbicide application, exports to the Unitedexport growth has continued. In fact, during the 14-year States, Japan, Western Europe, and Australia have pros-period noted above, export volume increased tenfold to pered in recent years. The success of the industry has not485,000 tonnes in 2008, accounting for about 40% of the been limited to herbicides: In 2008, Chinese agrochemi-industry’s total output. Export value generated by Chinese cal f irms exported insecticides to 146 countries, andcompanies occupies about one fifteenth, or about 6.7%, of fungicides to 123 countries. Herbicide exports went tototal global agrochemical sales, making China the fourth 128 countries. ●largest exporter of agro-chemicals in the world. From 2000 to 2008, ex- China: Agrochemical Imports and Exports, 1994-2008port has increased rapidly, Import Exportfrom USD 460 million in2000 to USD 1.04 billion Volume Value Volume Value Year (1,000 tonnes) ($ million) (1,000 tonnes) ($ million)in 2008. This mainly due 1994 32 137 60.9 152to growth of herbicides 1995 34.7 160 70.8 234and insecticides, especially 2000 41.1 192 161.6 463herbicides, whose export- 2001 34.7 165 190.4 541ing value reached 1.23 bil- 2002 27 136 222 592lion, with exporting vol-ume 277 thousand tonnes. 2003 28 130 274 730From 2000 to 2005, the 2004 28 150 391 1,190annual growth rate of ex- 2005 37 180 428 1,400port value is about 33.2%, 2006 43 213 398 1,040however, the export value 2007 41.4 231 477 1,350declined in 2006, which 2008 44 300 485 2,020means a new stage hasCHINESE CROP PROTECTION 3
  4. 4. 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: 1949 - 1979, organochlorine pesticides; 1980 - 1999, organophosphorus pesticides; 2000 - present, environmentally friendly products.The sole pesticide is Ban of phenyl Ban of HCH,copper sulfate, produced mercuric acetate, DDT and otherby SYRICI, plus some ceresin and other organochlorinehome-produced mineral- organic mercury pesticidesbased pesticides pesticides National output reaches 200,000 tonnes, distributed among 100 First production of active ingredients. Organochlorine DDT in China pesticides, including HCH and DDT, account for 30% of total. 1949 1951 1973 1979 1983 4 CHINESE CROP PROTECTION
  5. 5. 650,000 tonnes output of 1,900,000 tonnes output of more than 300 more than 200 products. varieties. Insecticides such as imidacloprid, Organophosphorus insecticides lambda-cyhalothrin imidachlorprid, abamectin, (later banned) plus DDVP account and chlorpyrifos, fungicides such carbendazim, for 30% of total volume produced. tebuconazole, and mancozeb, and herbicides such as glyphosate, paraquat, and butachlor contribute the largest portion of output. Ban of nitrofen, chlordane, heptachlor,tetramine, chlorphenamidine, Ban of five highly toxic fluoroacetamide, sodium organophosphorus insecticides fluoroacetate, DBCP (methamidophos, methyl parathion, parathion, phosphamidon, monocrotophos) 1999 2000 2007 2008CHINESE CROP PROTECTION 5
  6. 6. Products and Producers Glyphosate: Repositioning After a Sharp Correction T he first half of 2008, the construction and program con- price of glyphosate in- Wangwei, vice chairman of CCPIA struction on tap for 2009 would creased dramatically, arous- president of Zhejiang Wynca result in 0.2 million tonnes of ing strong response not Chemical Group Co., Ltd. additional capacity. In other only in the pesticide market but also words, manufacturing capacity socially. Within half a year, however, for glyphosate doubled, while the market demand shrank drastically, with price slumping increase needed to keep pace with global market require- in concert. From a comprehensive perspective, the case of ments was only 10-15%. In addition, different project the wild swings in the glyphosate market showed us all a implementation standards also contributed to the onset of need for reflection and caution in this industry. overcapacity in glyphosate. Global glyphosate production mainly centers in two Building capacity without regard to market demand and sources: China and Monsanto overinvestment caused a severe imbalance in the glyphosate in the U.S.A. At the begin- market. In addition, about 50% of the new production ca- ning of 2007, before the start pacity came from medium and small enterprises having no up of the market trend, the experience with the product, and more importantly no stable whole scale of global gly- international customers. The result was intense price competi- phosate was about 0.5 mil- tion in the market. The severe demand and supply imbalance, lion tonnes, which included coupled with the global economic crisis, resulted in the sharp around 0.3 million tonnes in market decline of glyphosate to its early 2007 price levels, China. The main manufactur- only half a year after reaching the peak in mid-2008. ers of glyphosate in China From the beginning of 2009 through the present,, the include Zhejiang Wynca, Nan- glyphosate market continues in recession with extremelyWangwei tong Jiangshan, Jiangsu Yan- low demand. The price has constantly slipped and is now at gnong, Anhui Huaxing, and Jiangsu Good Harvest-weien. a record low point. Eighty percent of domestic glyphosate The market demand during this time was about 0.45 mil- enterprises are in limited production or even shutting lion tons; in other words, there was a rough equilibrium of down; only a few of the leading glyphosate producers are supply and demand. still breaking even or earning a meager profit, enabling Starting in mid- 2007, glyphosate prices began to rise, them to live through these difficult times. eventually increasing 300% by June 2008. Facing this rare We cannot deny that the global financial crisis is one of windfall profit opportunity, Monsanto and most Chinese the important reasons for the slump in the glyphosate mar- enterprises invested to expand glyphosate production, and ket. However we should also admit that severe demand and even more medium and small enterprises entered the gly- supply imbalance -- 0.5 million ton demand contrast to phosate segment. These actions resulted in a huge increase 1 million ton capacity -- is the fundamental reason. Even of glyphosate production capacity in a very short time. there is not financial crisis, the present situation is bond to According to our data, by the end of 2008 glyphosate emerge, just taking more time. capacity in China rose to 0.7 million tonnes, and the re- Although the glyphosate market has experienced consid- 6 CHINESE CROP PROTECTION
  7. 7. erable turbulence, assuming there is not a revival or wors- increase demand for transgenic crops, which will increase ening of the global economic crisis, we still hold an opti- the consumption of glyphosate accordingly. mistic view of global glyphosate market prospects, based on the following conditions: 3 The development of biological technology will increase demand for existing and new varieties of 1 Expected rising global grain demand, along with increases in no-tillage plantings around the world, will continuously promote the consumption and growth 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 of glyphosate. transgenic crops are currently restricted or banned), which 2 Due in part to the global economic recession, oil prices will return to normal, reasonable levels. In addition, rising awareness of environmental protection and an will provide more opportunity for glyphosate application. “The rainbow always comes after the storm.” I believe after this difficult experience, the glyphosate market will improving regulatory regime will impel the development of become more rational and stable, and the whole pesticide in- clean energy sources, including biological energy. This will dustry will enter a more benign stage of development. ● Paraquat: Pyridine Powerhouse P yridine pesticides, with With no-till farming gaining the advantages of high Yang Shouhai, vice chairman of popularity in China, paraquat efficacy, low toxicity and CCPIA president of (currently the second largest long-lasting activity, have herbicide by domestic sales Nanjing Redsun Co., Ltd. become mainstream products in volume) will surely grow more the global market since the 1990s. rapidly. Diquat, with its unique Among the pyridines, paraquat stands out as a non-selective function, is expected to double its application and become contact herbicide that has been widely used in more than the third largest herbicide in China. Nicosulfuron (a sul- 100 crops of 120 countries, fonylurea product), haloxyfop, and f luazifop-butyl (both and the second largest the latter are members of the aryloxyphenoxy-propionate yield herbicide in the world group) will also grow quickly during the next three years. nowadays. The total value of pyridine herbicide is to exceed that of The development of para- organophosphorus herbicides, and with five highly toxic quat was once restrained by organophosphorus insecticides withdrawing from national the supply shortage of pyri- market, it is possible the top five insecticides sold in China dines in China. However, in coming years will all be pyridines, including imida- with the successful launch cloprid, chlorpyrifos, acetamiprid, and chlorf luazuron. of a pyridine production Therefore, both the pyridine herbicides and insecticides line by Redsun, China has will have the potential to obtain an overwhelming advan-Yang Shouhai become the world’s larg- tage over other similar products in the global market. With est producer of paraquat. By March 2009, total production the industrialization of pyridine in China, we are confident capacity for paraquat reached 50,000 tonnes, accounting for the Chinese enterprise will rank among global agrochemi- 80% of total global production capacity. cal giants in the near future. ● CHINESE CROP PROTECTION 7
  8. 8. Products and Producers Pyrethroids: Establish the Brand, Extend the Chain C ommercialization of and is the largest pyrethroid pyrethroid insecticides Qi Mingzhu, vice chairman of pesticide producer with the started in China CCPIA president of Jiangsu most comprehensive portfolio during the early Yangnong Chemical Co.Ltd in China now. After 20 years 1980s. Now these products are of effort in technology de- used widely in households as well velopment, Yangnong has an as in agriculture. Total obvious edge in production technology, mainly shown in present manufacturing its advanced ozonation, racemization, and configuration capacity (including both conversion of chrysanthemic acid. Now the optical purity the agricultural and of its chrysanthemic acid is sufficient that it could be used residential pest control in pharmaceuticals. Secondly, Yangnong has a complete markets) is about 3000 product chain. It is the only pyrethroid producer that starts tonnes per year, and main from basic chemical materials and intermediates in China. manufacturers include Even with the rise of genetically engineered pest- Jiangsu Yangnong, Jiangsu resistant crop varieties, I think there is still a period of Suhua, Jiangsu Pesticide time during which pyrethroids will hold an important Research Institute, Redsun, position in the global insecticide market, so we willQi Mingzhu and Rotam (Tianjing). grasp this opportunity to develop more environmentally Jiangsu Yangnong is a pioneering firm in this industry, friendly products. ● Imidacloprid: A Rising Neonicotinoid Star S Xu Hui, vice chairman ince imidacloprid was launched in 1991, it has successfully replaced of CCPIA president of carbamate insecticides and become Shandong Sino-Agri United the third most widely used class of Biotechnology Co., Ltd. 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 andXu Hui 8 CHINESE CROP PROTECTION
  9. 9. Jiangsu Changqing, among others. Shandong Sino-Agri United Biotechnology Co., Ltd. Market demand for imidacloprid soared in 2008, stimulat- introduced imidacloprid devices during 2007-2008, and ing capacity expansion among a number of manufacturers. pioneered adoption of the concept of environmental pro- The result is that manufacturing capacity is now around tection, which set a good example for domestic imidaclo- 30 thousand tonnes in China. The actual current output is prid producers. With five more-toxic organophosphate 12,000-13,000 tonnes, 5,000 tonnes of which was exported insecticides withdrawn from the market in 2007, we are overseas -- mostly to India, Pakistan, the Middle East, South confident imidacloprid will occupy a larger space in the Africa, South America, and North America. market in the next several years. ● Abamectin: A Rare Flower Among Bio-Pesticides S ince the beginning of the 1990s, impacted by labor, insect resistance. In addition, more products derived from raw materials and environmental protection issues, abamectin have entered the market. Derivatives based on only technical abamectin abamectin which have had has been produced in been commercialized include Li Xiufen, vice chairman of CCPIA China. The current six main manufac- ivermectin, eprinomectin, turers are Hebei Veyong, Hisun Phar- general manager of Hebei Veyong and emamectin benzoate. maceutical, Shenhua Biok, Qianjiang Bio-chemical Co., Ltd. Future formulation advances Biochemical, Guilin Jiqi, and Huabei will take the form of solid Pharmaceutical, with total capacity 800-1,000 tonnes per year. and liquid formulations as well as seed coating. Fermentation efficiency reached 4 g/L, and the fermentation Hebei Veyong showcases environmental stewardship in period was shortened to 250-300 hours. National output was the production of abamectin derivatives by adopting low 1,500 tonnes in 2008, and this figure is expected to increase toxicity emulsifiers and solvents. The problem of photolysis to 2,000 tonnes in 2009. of abamectin and emamectin benzoate has been solved, Both output and sales of abamectin have increased, which has improved produc- mainly due to rising demand stemming from expansion tion efficacy greatly. Veyong’s of the crops to which it can be applied, especially after product portfolio includes registration was granted for use on rice in 2007. Dosage emamectin benzoate 5% EC requirements have also increased, driven by increasing and emamectin benzoate 5% SP/ WDG/ME. In addition, 3500 abamectin 1.8% EC and em-Abamectin Output (ton) 3000 amectin benzoate derivatives 2500 hold a combined domestic 2000 market share of 30% or more. LI XIUFEN 1500 Biotechnology will domi- 1000 nate the 21st Century, and thus bio-pesticide will be the 500 main crop protection products. We are confident that 0 abamectin, this rare f lower of bio-pesticides, will grow a 20 F 20 F F 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 19 19 19 19 20 20 20 20 20 20 20 20 20 20 better bloom. ● CHINESE CROP PROTECTION 9
  10. 10. Products and Producers Chlorpyrifos: Filling the Breach After the Ban T he 2007 ban of five organophosphorus pesticides starting from basic raw opened a breach in the defenses of farmers against materials. Its complete Zhu Wenxin, standing pests – and an opportunity in the market. With the organophosphorus committee member of recent breakthrough in the synthesis technology re- product portfolio in- garding the chemical intermediate sodium trichloropyridinol, cludes chlorpyrifos, CCPIA president of development of chlorpyrifos has entered a fast track. Now the phoxim, profeno- Jiangsu Baoling Chemical Chinese product has been able to compete with imported fos, and triazophos. Industry Co., Ltd. product from America and India. Key Chinese manu- The company has facturers include Jiangsu made technological Baoling, Redsun, Shandong breakthroughs in the treatment of highly contaminated Tiancheng and Zhejiang wastewater, clearing the way for expanded production of Xinnong. The active ingredi- chlorpyrifos. Now the company’s manufacturing capacity is ent content of their products about 5,000 tonnes. can all reach 97% or more by Chlorpyrifos is a wide-spectrum insecticide, and can be volume. applied to many economic crops. Because research insti- Jiangsu Baoling possesses tutes and companies are striving to ceaselessly optimize the the sole organophosphorus production process of chlorpyrifos, we think it is bound to product chain in China, have a bright future. ●Zhu Wenxin Chlorothalonil: A Long- Lifecycle Product S Tian Xiaohong, standing ales of chlorothalonil have committee member of grown steadily since its intro- duction to the global market CCPIA president of CAC during the 1960s. Compared SHANGHAI(GROUP)CO.,LTD 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 contributesTian Xiaohong 10,000~15,000 tonnes. Domestic manufacturers of chlorothalonil include CAC Shanghai Group, Jiangyin Suli Fine Chemicals, Shandong Dacheng, and Limin Chemical. Total capacity 10 CHINESE CROP PROTECTION
  11. 11. among these firms is about 15,000 tonnes, and together they of raw materials and energy in manufacture of chloro- export more than 10,000 tonnes. The main export markets thalonil is on a par with levels among the most advanced for chlorothalonil are developed countries such as America, international competitors. Japan, and the European Union. Jiangyin Suli Fine Chemi- “We have also made a lot of effort in environmental pro- cals has invested more than Yuan 3 million getting EU re- tection, and successfully solved the treatment of cyanide- registration of chlorothalonil. contained waste water in the production of chlorothalonil. CAC Shanghai Group, with chlorothalonil capacity of We believe that all Chinese enterprises must seek improve- 8,000 tonnes, is always paying attention to the accelerat- ment through undertaking more socially responsible policies ing rate of advance in technology. The content of HCB and actions, and further strengthening QSHE management has been reduced to less than 40ppm, and consumption in the future.” ● Mancozeb: Market Mainstay M ancozeb has been registration and began to sell under develop- Li Ming, standing committee in Africa. The company also ment in China for member of CCPIA President of signed agreement with RCC more than 20 years; Limin Chemical Co., Ltd. Laboratory of Switzerland, and present production is some 45,000 partial products tests were fin- tonnes, with annual exports of ished at the end of 2007. By the 20,000 tonnes. Main manufactures end of 2009, Limin Chemical include Limin Chemical, Hebei Shuangji Chemical, Nan- expects to be able to open up the European market with its tong Baoye Chemical, Shenyang Harvest Agrochemical, Du independent brand. Pont, and others. As a participant in the drafting of mancozeb waste- Limin Chemical is a water discharge standard in China pesticide industry, pioneer in the production Limin Chemical and CCPI A subscribe to the principles of mancozeb in China, of the International Council of Chemical Associations’ and its mancozeb cere- Responsible Care initiative, helping ensure that the f irm als fungicides covers 45% and the industry can develop in a sustainable manner. of the domestic market. Limin Chemical cooperates with Southeast Univer- Meanwhile, its interna- sity in Nanjing in the development of technology for tional trade network cov- the comprehensive treatment of mancozeb production ers 40 more countries, wastewater. The company also takes the lead among itsLi Ming especially key export counterparts in the country in achieving zero discharge markets in Southeast Asia, of “three wastes”, and has also succeeds implementing Europe, the Middle East, and Central and South America. patent protection. The company’s sales volume during the last 10 years ranks High-end mancozeb is the developing trend in the fu- as the all-time highest among Chinese agrochemical firms ture. The competitor who has the highest quality products in the international pesticide market. will come to dominate the market. China’s mancozeb Limin Chemical strongly emphasizes establishing a industry should innovate ceaselessly, and also should have national pesticide brand, and started to carry out a GLP a broader field of vision, so that it can put itself in an invin- strategy from 2005. Mancozeb from Limin Chemical won cible position in future competition. ● CHINESE CROP PROTECTION 11
  12. 12. Products and Producers Acetochlor: Star of Lu Mingruo, vice chairman of CCPIA president the Second Legion of Jiangsu Changlong A Chemical Industry Co., Ltd. cetochlor is a leading product among the aceta- between 1998 and nilide herbicides, and a market leader in the global 2006, domestic production of acetochlor has increased to herbicides market. Acetochlor, paraquat, pendime- about 30,000 tonnes. There are now more than twenty thalin, etc., all belong to what is called the “second enterprises that manufacture technical acetochlor, includ- legion” of herbicides (behind the ing Liaoning Dalian R iser Pesticide, Jiangsu Changlong perennial market leader glyphosate), Chemical, Nantong Jiangshan Pesticide, Jiangsu Lulilai, with sales of each product in the and others. Their combined annual production capacity is range of USD 300 million - 400 about 100,000 tonnes, but actual annual output is about million per year. 50,000 tonnes. First used in China in 1989, ac- Since 2007, due to large areas of land previously used for etochlor has grown in popularity to paddy-field rice production being turned to dryland agricul- become the leading product of the ture, the amount of acetochlor applied has sharply increased. domestic herbicide market. In fact, Meanwhile, the level of capital equipment investment and acetochlor in China came to meet the scale of acetochlor-producing enterprises is growing.Lu mingruo not only the needs of the domestic Therefore, with a much more centralized and rational- market, but also became the major export herbicide. From ized industry structure, acetochlor will enter a systemic 1994 to 1998, the production of acetochlor grew 8.5 times, scale management orbit. At the same time, though, the from 1,187 tonnes in 1994 to 10,032 tonnes in 1998. competition among Chinese agrochemical enterprises for More recently, due to favorable in the herbicide markets share of the domestic market will become fiercer. ● Tebuconazole: The Rust Fighter T ebuconazole, one of the triazole fungicides, a top-selling azole was 4,000 to 4,500 Bi Qiang, Standing agrochemical products. Sales volume has topped USD tonnes in 2008; the trend is committee member of 200 million every year since 1998, peaking at USD 360 toward increasing produc- million in 2003. Due to the expiry of patent in China tion. About 89% of total CCPIA, president of in 2004 and the recent rust disease outbreak in Latin America, production is exported, most Shanghai Shengnong market demand for tebuconazole has increased considerably. of it in the form of technical Pesticide Co., Ltd. Domestic production capacity for tebuconazole is around active ingredient. 7,000 tonnes per year. The main Shanghai Shengnong Pesticide has a good reputation for producers are Shanghai Shen- product stewardship: the most advanced production technol- gnong Pesticide, Jiangsu Sword ogy in the domestic market, well-built waste treatment plants, Pesticide, Hangzhou Udragon good facilities and security management model, a sound Chemical, Sinochem (Ningbo) quality management system, and ongoing mechanisms for Chemicals, Zhejiang Welda research and innovation. One fruit of that innovation is a new Chemicals, and Jiangsu Chang- method for tebuconazole synthesis. Using this patent-applied- long Chemicals, among others. for process, Shengnong is able to achieve purity of 96% or Actual production of tebucon- greater in its technical tebuconazole. ● BI QIANG 12 CHINESE CROP PROTECTION
  13. 13. A LOOK AHEAD The Future of China’s Agrochemical Industry: Innovation and StrideT he China Crop Protection Industry Association national and/or industrial standards have been adapted (CCPIA) has played a vital role in the development from accepted international standards.” of China’s agrochemical industry. On the other hand, the rapid and steady progress of the industryhas also promoted the growth of the CCPIA. Since the estab-lishment of the CCPIA in 1982, the association has attracted 2 Great progress in technology improvement and innovation made “Before China adopted reform and a policy of opening toover 450 members. Total production output of CCPIA global trade, the Chinese pesticide industry lagged behindmembers accounts for 90% of total industry output. Recently, the technological base of the Western countries. After de- Dr. Sun Shubao, the termining to embark on reform and opening to the outside Secretary-General of the world, China began to establish its own national innovation CCPIA, reviewed the centers. Two research facilities for pesticide research and 60-year history of the development have been set up in north and south of China, industry and summarized respectively. Since then, a characteristically Chinese R developments in technol- D system for pesticide innovation has been formed and has ogy, product quality achieved excellent results. Some 30 new molecules, includ- improvement, environ- ing 14 fungicides, seven insecticides, and 9 herbicides and mental management, plant growth regulators, have been developed by Chinese and intellectual property scientists. Examples include flumorph, ZJ0273, chloramineDr. Sun Shubao right protection: phosphorus, SIOC0171, and flubrocythrinate, among others. The number of new compounds accounts for 10% of the most1 International standards adopted and product quality steadily improved “With advances in technology and adjustments in in- 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-dustry structure, Chinese pesticide product quality has nese agricultural production for control of important pests.improved very much. At present, more than 200 pesticide “In addition to the development of new products, theproducts have adopted the National Standards and/or In- Chinese government also put great effort into improving thedustrial Standards. About 50 elements of basic techniques production technology associated with some key generic pes-and analytical methods have also been standardized at the ticide chemicals and related intermediates. Therefore, a seriesnational level or the industrial level, and sbout 80% of the of new facilities for production of those pesticides and inter-CHINESE CROP PROTECTION 13
  14. 14. A look aheadmediates have been established using large scale, continuous, gies and facilities. The liquid f ilm method for treatmentand clean production technologies. By employing the new of cyanogen-containing or phenol-containing wastewater,technologies, average cost of production has been reduced by and the catalytic wet oxidation method for treatmentaround 10%, and the discharge of wastes by over 40%. Out- of high concentration wastewater, are good examples ofstanding examples of those new technologies are: advanced technologies implemented for waste treatment.● production of dichlorvos by one-step hydrolysis Furthermore, the establishment of pesticide industrialof trichlorfon, parks in some key regions has begun to play a vital role in● imidacloprid production using dicyclopentadiene as centralized and eff icient treatment of wastes.starting material, “The Environment, Health, and Safety (EHS) system● deltamethrin production technology adopted by has been increasingly recognized and adopted by the pes-Jiangsu Yangnong, ticide industry. The government already has relevant laws,● glyphosate production technology of Zhejiang Wynca, regulations, and implementation measures for environ-● 3,3-dimethyl-4-pentenoic acid methyl ester production mental protection, worker safety, and occupational safetytechnology used by Jiangsu Changlong and health. Some large scale enterprises have already● deltamethrin production technology of Dalian Chemphy. adopted EHS practices in their routine production activi- “Technology innovation has greatly supported and en- ties. CCPIA is also working hard to implement the EHShanced the Chinese pesticide industry. Both innovative system with its member manufacturers.products and improved technologies are very important tomanufacturers and the industry as a whole. CCPIA encour-ages manufacturers to pursue technology innovation andclean production, in order to promote the progress of the 4 Increasing awareness of intellectual property right (IPR) protection “The patent law of the People’s Republic of China wasChinese pesticide industry.” amended in 1993 to grant protection for seven and a half Dr. Sun further pointed out highly effective, safe, and years to chemicals which obtained patent protection duringenvironmentally friendly products are the direction of the period of 1986 and product development, and that the industry must “Awareness of intellectual property rights (IPR) protec-intensify its efforts in the development, extension, and tion has been lifted to a high level throughout the pesticideapplication of water-based formulated products. industry, particularly in the research institutes and universi- ties that are involved in pesticide innovation. In 1985, at the3 Enhancement of environmental protection and HSE awareness “Whether or not to employ environmental protection 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,measures is the ‘yea or nay’ factor that affects the decision about eight times as many as in 1985. The Compound An-for a new factory’s entry into the industry. The Ministry nual Growth Rate (CAGR) is about 11.4%.of Environmental Protection of the People’s Republic “In most cases in foreign countries, the main force ofof China has issued national standards for pollutant dis- patent application is the manufacturers. In China, thecharge of 10 chemical classes of pesticides. CCPIA has patent applicants have historically been the institutes,been deeply involved in this process, and has contributed universities and individuals, but more and more Chinesemeaningful suggestions for the standards. enterprises are now applying for patent application for “CCPIA has also actively extended green production novel compounds.”techniques, integral recycling, and reuse of materials in In the past 60 years, the Chinese pesticide industry hasproduction, as well as energy-saving and discharge-reduc- grown and improved greatly. Despite the global economicing measures among its member companies. Some f irms crisis, Dr. Sun Shubao indicated that the industry is still inhave put environmental protection into their agenda, and good condition and that current prospects for continuedhave increasingly invested in waste treatment technolo- growth are good. ●14 CHINESE CROP PROTECTION
  15. 15. agrochemex 2009 preview AgrochemEx 2009 PreviewA grochemEx (ACE) is 2009. The scale of this event is expanding an annual agrochemical year-on-year, and has been granted the symposium and exhibition organized by the China status of a “technical meeting” by industry insiders. This offers Crop Protection Industry Association (CCPIA). a centralized procurement platform for pesticide formulators,ACE was born in Nanjing in 2005, and moved to Shanghai in foreign traders and overseas suppliers. Continued on page 16 Malaysia Top ten foreign Exhibition Scale from 2006 to 2009 1000 Iran countries in descending 900 Australia order of the attendees Stall Number 800 Exhibitor Number Pakistan in 2008 700 Korea 600 500 Brazil 400 Thailand 300 Germany 200 100 Indonesia 0 Turkey 2006 2007 2008 2009 IndiaA total of 12,000 visitors, more than 800 of whom camefrom abroad, attended ACE 2008. 0 10 20 30 40 50 60 70 80 90 100CHINESE CROP PROTECTION 15
  16. 16. Aagrochex 2009 previewChina Agrochemical Symposium Visitors’ occupational has become a highly recognized brand position in 2008 Each year, the China Agrochemical within the industry, attracting about 800Symposium has been held in paral- loyal delegates each year. Purchaserlel with the ACE trade show. The AgrochemEx has proven a valuable plat-Symposium covers many aspects of form for meeting decision-makers from Sale Managerthe agrochemical industry, including employee leading Chinese manufacturers, exchang-industry policies and the research and ing information and f inding more busi-development of new chemicals and ness opportunities. ●new formulations. A fter eight years, Technical For more information contact: Leah Li email:the China Agrochemical Symposium employee ccpia_lijuan@126.comPraise from AgrochemEx2008 Exhibitors“I have attended many kinds of agrochemical exhibitions, “The AgrochemEx 2008 has provided a platform for ex-but the exhibitors of AgrochemEx 2008 were high qual- change among agrochemical firms. We learned the latestity, and the order of exhibition is good. We learned the government policies, as well as development and exportlatest government policies, along with the gaps separating conditions in the agrochemical industry. We felt veryour company from others through the exhibition.” good, and will come again.” The Red Sun Group Zhengzhou Friend Chemical Industry Co., Ltd. “Thanks, CCPIA, for sponsoring this exhibition. We ob-“AgrochemEx 2008 provided a rare opportunity for us to tained much valuable information and got to know manydemonstrate our products. Many customers come to learn overseas trading companies. It will help our productsabout our products, and we received many orders.” moving toward internationalization.” Jiangsu Changlong Chemicals Co., Ltd Zhejiang Wynca Chemical Group Co., Ltd.“We learned much through communication with other enter- “We have participated in many similar agrochemical ex-prises. Thanks, CCPIA, for sponsoring this exhibition.” hibitions, but AgrochemEx 2008 is second to none. We Jiangsu Kesheng Group Co., Ltd. believe AgrochemEx 2009 will be even better!” Jiangsu Tianrong Co., Ltd16 CHINESE CROP PROTECTION