As an environmental crackdown sweeps the nation, pesticide companies must learn to “dance in shackles.”

　　2018 was a pivotal year for the special campaign to address chemical pollution in the Yangtze River Economic Belt, and Nantong, as one of the cities along the belt, Pesticide Businesses have naturally been significantly affected. Recently, “ Pesticide Market Information: Reporters visited Jiangsu Haoshoucheng Wayne Agrochemical Co., Ltd. and Nantong Jiahe Chemical Co., Ltd., among others. Pesticide Enterprises—listening to their voices up close.
　　An environmental crackdown is underway, Pesticide Enterprises must learn to “dance in shackles.”
　　Tightening safety and environmental regulations is a positive step, but frequent policy changes leave companies feeling eager yet unable to act.
　　As an environmental‑protection crackdown gathers momentum, some of China’s emission standards have even surpassed international benchmarks. During this round of visits, companies unanimously agreed that stringent environmental measures are beneficial, as they help firms operate in a more standardized manner and deliver clear environmental advantages. However, businesses cautioned that higher requirements are not always better; excessively stringent mandates can undermine feasibility and risk imposing undue pressure on the real economy.
　　At present, the primary source of pressure for businesses stems from administrative licensing. With new projects unable to obtain approval and policies subject to frequent and unpredictable changes, companies are forced to operate under restrictive constraints, unable to act freely, making it virtually impossible to pursue greater growth within the local market.
　　Jiahe Chemical stated that the company has already prepared a batch of pilot‑scale products that have successfully passed testing and has completed construction of the production facility, ready to commence full‑scale manufacturing once regulatory approval is granted. However, as the project is currently undergoing regional environmental impact assessment, it remains stuck at the approval stage. Hao Shoucheng also noted that simply keeping pace with policy changes is already overwhelming; even making minor modifications to the plant’s design requires navigating a mountain of paperwork. Under such circumstances, how can companies possibly devote resources to production and to developing better products?
　　Jiangsu Province is a major chemical‑industry hub. Data show that along the Yangtze River, more than 700 chemical enterprises and over 110 chemical terminals are concentrated, with annual transshipment of hazardous chemicals exceeding 200 million tons. Discharge outlets and water intake points are intricately interwoven, creating overlapping risks on land and at sea. In the first quarter of this year, water quality in tributaries flowing into the Yangtze deteriorated compared with the same period last year: the proportion of Class III or better declined by 16.5 percentage points to 53.3%, while the proportion of Class V or worse rose by 10.7 percentage points to 20%, painting a rather grim picture. Given these circumstances, it is entirely understandable that the provincial government has imposed stringent controls on chemical enterprises—after all, environmental resources belong not only to us but also to future generations.
　　However, while the government imposes requirements on businesses, should it not also take their needs into greater consideration? Businesses are like springs: they can withstand moderate pressure, but if the burden becomes too heavy, they will eventually suffer irreparable damage. Pesticide The industry is an important component of the chemical sector, which in turn constitutes a vital link in China’s economic chain, and it… Pesticide When corporate regulations become excessively stringent, the outcome may harm China’s real economy and drive more opportunities overseas. Striking a balance between economic and ecological interests, and ensuring that policy decisions are both scientifically grounded and human‑centric—these are issues that warrant deeper government scrutiny.
　　Tightening raw-material supplies are constraining production, while labor shortages among small and medium-sized enterprises urgently require resolution.
　　At present, the entire industry is grappling with disruptions in the supply of key raw materials and intermediates, making it commonplace for companies to face shortages or production halts. According to Hao Shou Cheng, this year’s active‑ingredient prices have risen by roughly 30% compared with last year; yet the price hikes for certain inputs are nothing short of “exorbitant.” For instance, a particular raw material used in the manufacture of beet‑type herbicides typically costs RMB 50,000–60,000 per ton, but has now surged to RMB 250,000 per ton—clearly throwing market dynamics out of whack. Despite these sharp cost increases, Hao Shou Cheng has chosen not to raise its formulation prices, in order to safeguard its brand reputation. The company remains concerned about the current situation: if raw‑material price surges persist, countries like Vietnam and India will gain greater competitive advantages. Particularly as some multinational corporations now have the capacity to produce active ingredients themselves, China’s opportunities could further diminish.
　　Jiahe Chemical is also grappling with difficulties in procuring raw materials, prompting it to adjust its strategy by either stockpiling inputs or increasing inventory levels. According to the reporter, the company previously needed only 2,000 to 3,000 tons of inventory for its key raw materials and products; now, it has expanded this to around 8,000 tons to ensure readiness for unforeseen circumstances. With certain raw materials required for producing pyflufenozine unavailable on the market, the company can only accumulate small quantities each month, waiting until sufficient reserves have been built up before resuming production.
　　The difficulty businesses face in hiring is a widespread issue today. Speaking on the matter, Jiahe Chemical expressed helplessness, with its head noting that recruiting has become extremely challenging. Compared with working in factories, recent graduates prefer to seek employment in major cities like Beijing, Shanghai, and Guangzhou, opting for white‑collar jobs over blue‑collar ones, as talent continues to gravitate toward first- and second-tier urban centers. Even when they do take factory work, graduates still tend to prioritize large corporations. Meanwhile, small and medium-sized enterprises find themselves in an awkward position: they have gradually relaxed their hiring criteria and offered compensation packages that are no less attractive than those of larger firms, yet the candidates they can attract are often older migrant workers.
　　Going global may open up new opportunities, but how to do so requires careful consideration.
　　The “Jiangsu Province Ecological Civilization Construction Plan (2013–2022),” issued in 2013, provides a clear assessment of the province’s ecological and environmental conditions: “Jiangsu is characterized by high population density, limited per capita environmental capacity, and a high pollution load per unit of land area. Overall, it has yet to move beyond a stage of severe environmental pollution and heightened risk. As industrialization and urbanization accelerate, resource and environmental constraints are becoming increasingly pronounced.” Faced with Jiangsu’s limited environmental carrying capacity, some enterprises have begun to explore opportunities beyond the province. In fact, as early as 2009, Haoshoucheng had already started expanding outward. According to reports, Haoshoucheng has operated in several provinces and municipalities, but has encountered certain obstacles along the way.
　　When discussing plans for going global, companies unanimously emphasize the need for a long-term, strategic approach rather than rushing into overseas expansion. Entering foreign markets requires careful consideration of multiple factors, such as whether local energy and resource prices offer competitive advantages, as well as the issue of workforce training. Upon establishing operations in a new location, it is essential to provide pre‑employment training for local workers—a time‑consuming and labor‑intensive undertaking. Consequently, rather than building factories outright in distant regions, firms often prefer partnering with and aligning themselves with local enterprises. Hao Shou Cheng notes that it would be ideal to find an existing, compatible factory where they could directly “graft” their operations. Meanwhile, Jiahe Chemical suggests collaborating with established local companies on specific projects; after all, cultural differences between regions necessitate local guidance to ensure smooth integration.
　　Jiahe Chemical also put forward its own view: for small and medium-sized enterprises, going global is currently not advisable—unless they have a well-defined customer base and mature products; otherwise, venturing overseas without a clear strategy would offer little real value.
　　Although Pesticide Enterprises today face mounting pressures from environmental regulations, policy changes, and a host of other challenges. Yet it is encouraging to see that companies are responding with a proactive stance, holding themselves to the highest standards. We hope that these forward‑thinking, mission‑driven enterprises will weather this protracted environmental storm and emerge stronger, poised for an even brighter future.

Source: Pesticide Market Information