Pesticide supply-side production capacity drops and the pesticide industry becomes more standardized

Many people do not understand the current slump of the pesticide industry, thinking that the pesticide market is too bleak.
In fact, this is caused by the harsh environment of China’s pesticide market for a long time.
The entire industry is in a bleak period.
After this period of time, pesticides will develop healthier and faster
.
As the industry's main business income growth rate has been declining year by year, the industry's total profit growth has almost stagnated
.
Since 2014, the number of domestic pesticide manufacturing companies has decreased significantly, and the growth rate of fixed asset investment in the pesticide manufacturing industry has also decreased year by year
.
Statistics from the China Agricultural Industry Association show that in 2014, the number of enterprises above designated size in the pesticide industry in the country was 843, and in 2015 it was 829, of which the number of enterprises above designated size in chemical technical medicines decreased by 25
.
The latest statistics show that in 2016, the number of enterprises above designated size in the pesticide industry in the country was about 804
.
According to statistics from CITIC Securities, in 2014, the growth rate of fixed asset investment in China's pesticide industry was about 13%, compared with 3% in 2015, a drop of 10 percentage points from 2014
.
Dongxing Securities pointed out in the research report that in the 2016 Central Environmental Supervision Action, industrial parks in many provinces and cities were required to rectify and upgrade, especially in areas with low environmental protection thresholds.
Some companies that did not meet environmental protection standards have been permanently shut down.
Pesticide technical medicines, especially intermediate production bases and production enterprises, have a great impact; the administrative measures of “one size fits all” of environmental protection shutdowns have brought greater challenges to pesticide production.
At present, the supply of many technical materials and intermediates is extremely tight.
Promote the price of some products to reach historical highs; the increase in environmental protection thresholds and the increase in market entry conditions will help enterprises above the designated size and complete environmental protection facilities in the industry to highlight their competitive advantages, and promote the spontaneous clearance of backward and small production capacity in the industry
.
Public information shows that on May 26, 2016, the China Pesticide Industry Association officially released the "Thirteenth Five-Year Development Plan for the Pesticide Industry" (hereinafter referred to as the "Plan")
.
According to the plan, by 2020, the number of pesticide technical companies in China will be reduced by 30%.
Among them, there are more than 5 pesticide manufacturers with annual sales of more than 5 billion yuan, and more than 30 companies with annual sales of more than 2 billion yuan.
Efforts to cultivate 2-3 large-scale enterprise groups with annual sales of more than 10 billion yuan and international competitiveness; the cumulative sales of the top 20 domestic pesticide companies reach more than 70% of the national total sales; build 3-5 production A specialized park for the production of pesticides with concentrated enterprises, and strive to enter more than 80% of the total number of pesticide technical enterprises in the chemical concentration zone by 2020
.