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Chinese
Crop protection




Growing Past, Strong Present,
     Ambitious Future.
            Presented by
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
INDUSTRY OVERVIEW




 China and International Agrochemical Trade:
 Fourteen Years of
 Spectacular Export Growth
C
             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 and
China has become one of the largest pesticide makers and        South A merica (Brazil and A rgentina). Exports have also
exporters 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 rapid
products for the first time in 1994, and since then, rapid      growth of herbicide application, exports to the United
export 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 not
485,000 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, and
companies occupies about one fifteenth, or about 6.7%, of       fungicides to 123 countries. Herbicide exports went to
total 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, 1994-2008
port has increased rapidly,                                  Import                                 Export
from USD 460 million in
2000 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              152
to growth of herbicides
                                    1995          34.7                160                    70.8              234
and insecticides, especially
                                    2000          41.1                192                  161.6               463
herbicides, whose export-
                                    2001          34.7                165                  190.4               541
ing value reached 1.23 bil-
                                    2002          27                  136                  222                 592
lion, with exporting vol-
ume 277 thousand tonnes.            2003          28                  130                  274                 730

From 2000 to 2005, the              2004          28                  150                  391               1,190

annual growth rate of ex-           2005          37                  180                  428               1,400
port value is about 33.2%,          2006          43                  213                  398               1,040
however, the export value           2007          41.4                231                  477               1,350
declined in 2006, which             2008          44                  300                  485               2,020
means a new stage has



CHINESE CROP PROTECTION                                                                                                   3
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 other

by SYRICI, plus some                               ceresin and other                                    organochlorine

home-produced mineral-                             organic mercury                                      pesticides

based 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
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                             2008
CHINESE CROP PROTECTION                                                                                          5
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 extremely
Wangwei
                                     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
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
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 will
Qi 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 and
Xu Hui


  8                                                                                                   CHINESE CROP PROTECTION
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
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                                                         01
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                                                                                                           better bloom.     ●



        CHINESE CROP PROTECTION                                                                                                                                         9
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 contributes
Tian 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
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 its
Li 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
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
A LOOK AHEAD




  The Future of China’s Agrochemical Industry:
  Innovation and Stride
T
        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 industry
has 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 to
over 450 members. Total production output of CCPIA              global trade, the Chinese pesticide industry lagged behind
members 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, chloramine
Dr. Sun Shubao                      right protection:           phosphorus, SIOC0171, and flubrocythrinate, among others.
                                                                The number of new compounds accounts for 10% of the most


1    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, the
products have adopted the National Standards and/or In-         Chinese government also put great effort into improving the
dustrial 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 series
national level or the industrial level, and sbout 80% of the    of new facilities for production of those pesticides and inter-



CHINESE CROP PROTECTION                                                                                                       13
A look ahead

mediates have been established using large scale, continuous,   gies and facilities. The liquid f ilm method for treatment
and 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 treatment
around 10%, and the discharge of wastes by over 40%. Out-       of high concentration wastewater, are good examples of
standing examples of those new technologies are:                advanced technologies implemented for waste treatment.
●	production of dichlorvos by one-step hydrolysis               Furthermore, the establishment of pesticide industrial
of 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 safety
technology 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 EHS
hanced the Chinese pesticide industry. Both innovative          system with its member manufacturers.
products and improved technologies are very important to
manufacturers and the industry as a whole. CCPIA encour-
ages manufacturers to pursue technology innovation and
clean production, in order to promote the progress of the
                                                                4    Increasing awareness of intellectual property
                                                                     right (IPR) protection
                                                                  “The patent law of the People’s Republic of China was
Chinese 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 during
environmentally friendly products are the direction of          the period of 1986 and 1993.
new 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 pesticide
application of water-based formulated products.                 industry, particularly in the research institutes and universi-
                                                                ties that are involved in pesticide innovation. In 1985, at the


3     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 of
of China has issued national standards for pollutant dis-       patent application is the manufacturers. In China, the
charge 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 Chinese
meaningful 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 has
production, as well as energy-saving and discharge-reduc-       grown and improved greatly. Despite the global economic
ing measures among its member companies. Some f irms            crisis, Dr. Sun Shubao indicated that the industry is still in
have put environmental protection into their agenda, and        good condition and that current prospects for continued
have increasingly invested in waste treatment technolo-         growth are good.      ●



14                                                                                               CHINESE CROP PROTECTION
agrochemex 2009 preview




  AgrochemEx 2009 Preview
A
            grochemEx (ACE) is                                                        2009. The scale of this event is expanding
                                            http://www.agrochemex.net/
            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
                                                                                                                           India
A total of 12,000 visitors, more than 800 of whom came
from abroad, attended ACE 2008.                                0    10    20    30     40    50    60    70     80   90   100




CHINESE CROP PROTECTION                                                                                                        15
Aagrochex 2009 preview




China Agrochemical Symposium                     Visitors’ occupational             has become a highly recognized brand
                                                    position in 2008
    Each year, the China Agrochemical                                               within the industry, attracting about 800
Symposium has been held in paral-                                                   loyal delegates each year.
                                                 Purchaser
lel with the ACE trade show. The                                                      AgrochemEx has proven a valuable plat-
Symposium covers many aspects of                                                    form for meeting decision-makers from
                                                  Sale          Manager
the 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.com




Praise from AgrochemEx
2008 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 latest
ity, and the order of exhibition is good. We learned the              government policies, as well as development and export
latest government policies, along with the gaps separating            conditions in the agrochemical industry. We felt very
our 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 many
demonstrate our products. Many customers come to learn                overseas trading companies. It will help our products
about 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., Ltd



16                                                                                                    CHINESE CROP PROTECTION

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Growing Past, Strong Present, Ambitious Future

  • 1. Chinese Crop protection Growing Past, Strong Present, Ambitious Future. Presented by
  • 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. INDUSTRY OVERVIEW China and International Agrochemical Trade: Fourteen Years of Spectacular Export Growth C 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 and China has become one of the largest pesticide makers and South A merica (Brazil and A rgentina). Exports have also exporters 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 rapid products for the first time in 1994, and since then, rapid growth of herbicide application, exports to the United export 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 not 485,000 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, and companies occupies about one fifteenth, or about 6.7%, of fungicides to 123 countries. Herbicide exports went to total 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, 1994-2008 port has increased rapidly, Import Export from USD 460 million in 2000 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 60.9 152 to growth of herbicides 1995 34.7 160 70.8 234 and insecticides, especially 2000 41.1 192 161.6 463 herbicides, whose export- 2001 34.7 165 190.4 541 ing value reached 1.23 bil- 2002 27 136 222 592 lion, with exporting vol- ume 277 thousand tonnes. 2003 28 130 274 730 From 2000 to 2005, the 2004 28 150 391 1,190 annual growth rate of ex- 2005 37 180 428 1,400 port value is about 33.2%, 2006 43 213 398 1,040 however, the export value 2007 41.4 231 477 1,350 declined in 2006, which 2008 44 300 485 2,020 means a new stage has CHINESE CROP PROTECTION 3
  • 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 other by SYRICI, plus some ceresin and other organochlorine home-produced mineral- organic mercury pesticides based 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. 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 2008 CHINESE CROP PROTECTION 5
  • 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 extremely Wangwei 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. 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. 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 will Qi 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 and Xu Hui 8 CHINESE CROP PROTECTION
  • 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. 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 contributes Tian 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. 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 its Li 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. 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. A LOOK AHEAD The Future of China’s Agrochemical Industry: Innovation and Stride T 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 industry has 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 to over 450 members. Total production output of CCPIA global trade, the Chinese pesticide industry lagged behind members 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, chloramine Dr. Sun Shubao right protection: phosphorus, SIOC0171, and flubrocythrinate, among others. The number of new compounds accounts for 10% of the most 1 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, the products have adopted the National Standards and/or In- Chinese government also put great effort into improving the dustrial 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 series national 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. A look ahead mediates have been established using large scale, continuous, gies and facilities. The liquid f ilm method for treatment and 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 treatment around 10%, and the discharge of wastes by over 40%. Out- of high concentration wastewater, are good examples of standing examples of those new technologies are: advanced technologies implemented for waste treatment. ● production of dichlorvos by one-step hydrolysis Furthermore, the establishment of pesticide industrial of 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 safety technology 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 EHS hanced the Chinese pesticide industry. Both innovative system with its member manufacturers. products and improved technologies are very important to manufacturers and the industry as a whole. CCPIA encour- ages manufacturers to pursue technology innovation and clean production, in order to promote the progress of the 4 Increasing awareness of intellectual property right (IPR) protection “The patent law of the People’s Republic of China was Chinese 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 during environmentally friendly products are the direction of the period of 1986 and 1993. new 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 pesticide application of water-based formulated products. industry, particularly in the research institutes and universi- ties that are involved in pesticide innovation. In 1985, at the 3 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 of of China has issued national standards for pollutant dis- patent application is the manufacturers. In China, the charge 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 Chinese meaningful 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 has production, as well as energy-saving and discharge-reduc- grown and improved greatly. Despite the global economic ing measures among its member companies. Some f irms crisis, Dr. Sun Shubao indicated that the industry is still in have put environmental protection into their agenda, and good condition and that current prospects for continued have increasingly invested in waste treatment technolo- growth are good. ● 14 CHINESE CROP PROTECTION
  • 15. agrochemex 2009 preview AgrochemEx 2009 Preview A grochemEx (ACE) is 2009. The scale of this event is expanding http://www.agrochemex.net/ 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 India A total of 12,000 visitors, more than 800 of whom came from abroad, attended ACE 2008. 0 10 20 30 40 50 60 70 80 90 100 CHINESE CROP PROTECTION 15
  • 16. Aagrochex 2009 preview China Agrochemical Symposium Visitors’ occupational has become a highly recognized brand position in 2008 Each year, the China Agrochemical within the industry, attracting about 800 Symposium has been held in paral- loyal delegates each year. Purchaser lel with the ACE trade show. The AgrochemEx has proven a valuable plat- Symposium covers many aspects of form for meeting decision-makers from Sale Manager the 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.com Praise from AgrochemEx 2008 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 latest ity, and the order of exhibition is good. We learned the government policies, as well as development and export latest government policies, along with the gaps separating conditions in the agrochemical industry. We felt very our 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 many demonstrate our products. Many customers come to learn overseas trading companies. It will help our products about 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., Ltd 16 CHINESE CROP PROTECTION