The 13th International Forum on Market Procurement and Services was held with great fanfare, addressing the industry’s new challenges through innovation in technology, tactics, and strategy.
Release Date:
2018-10-18
From October 15 to 17, 2018, the 18th National Pesticide Exchange Conference was held with great fanfare. This year, China’s pesticide industry has continued to face intense policy pressure related to environmental protection; international agrochemical giants have completed mergers and acquisitions, reshaping the industry landscape; new agricultural service models are gaining momentum across China; meanwhile, trade policies in countries such as the United States have cast a shadow over international pesticide trade. Against this backdrop, the 13th International Forum on Market Procurement and Services (Renxin) convened as scheduled. The forum brought together leaders from the Ministry of Agriculture’s Pesticide Inspection Institute, senior executives from multinational corporations, experts in procurement and registration, as well as overseas agricultural and agrochemical service providers, to engage with attendees…
From October 15 to 17, 2018, the 18th National… Pesticide The exchange meeting was held with great solemnity. This year, domestically… Pesticide The industry continues to face intense policy pressure on environmental protection, while international agrochemical giants have completed mergers and acquisitions, reshaping the sector’s landscape. Meanwhile, China’s new agricultural service models are gaining momentum, even as trade policies in the United States and other countries further complicate the situation. Pesticide International trade is under a cloud. Against this backdrop, the 13th International Forum on Market Procurement and Services (Renxin) was held as scheduled. The forum brought together leaders from the Ministry of Agriculture’s Drug Testing Institute, senior executives from multinational corporations, experts in procurement and registration, as well as overseas agricultural and agrochemical service companies, who shared their insights into market dynamics and, through innovation and collaboration at the technological, tactical, and strategic levels, jointly addressed both opportunities and challenges.
Ministry of Agriculture and Rural Affairs Pesticide Li Fugen, Director of the Residual Review Division of the Inspection Institute, delivered a speech at the forum titled “ Pesticide A related report titled “Current Status and Prospects of the Residue Standards System.” This is also Shanghai ACE’s national… Pesticide During the exchange meeting, a session on residue standards was scheduled for the first time, which clearly demonstrates… Pesticide The importance of maximum residue limits for agrochemical companies and the industry.
Pesticide The maximum residue limit is Pesticide and the safety benchmarks for agricultural product market access, and Pesticide Enterprises and producers and operators of agricultural products maintain close relationships. Pesticide Maximum residue limits have become a major obstacle to international trade in agricultural products, and China is a leading exporter of such goods. Pesticide Maximum residue limits are closely related to the three entities mentioned above.
Director Li Fugen provided a detailed overview in his report. Pesticide The current status of the maximum residue limit system, the technical review bodies for national food safety standards, the review procedures, and the assessment methods, among other aspects. He pointed out that, for… Pesticide For businesses, Pesticide The maximum residue limit is Pesticide Technical basis for registration and review. In the past three years, there have been 457 cases. Pesticide The product failed the registration review, and one of the key reasons was that the submitted residue data did not meet the required standards.
At present, China… Pesticide The number of established maximum residue limits is steadily increasing. Due to the high priority the state places on food safety, at this stage, China… Pesticide The number of limit standards established has reached a record high, surpassing the levels seen in developed countries worldwide. In response to the current online hype surrounding the safety of Chinese agricultural products and… Pesticide Regarding public concerns that China’s maximum residue limits are higher than those of developed countries, Director Li clarified that, while China’s regulatory thresholds are set at relatively higher levels compared with the EU and other developed economies, this does not imply a lack of protection for public health. Differences in crop‑production patterns, pesticide use, and environmental conditions across countries, along with considerations such as international trade and risk assessment, must also be taken into account.
Outlook Pesticide Regarding the future development of the maximum residue limit (MRL) system, Director Li stated that by the end of the 13th Five-Year Plan period, China will… Pesticide The number of maximum residue limits and their corresponding analytical method standards has exceeded 10,000, with the limit standards covering all approved uses. Pesticide The varieties and corresponding agricultural products, along with the testing methods, cover all maximum residue limits.
From the perspective of the domestic market, between 2018 and 2020, 1,000 new standards were formulated each year, with efforts accelerated to develop standards for vegetables and specialty agricultural products. Pesticide Residue standards, to be improved Pesticide Standard compatibility of residue detection methods. From an international market perspective, this will meet the regulatory requirements of international trade in agricultural products; currently, draft standards are being developed for residues in imported foods. Pesticide Guidelines for establishing maximum residue limits; research on formulating “uniform limit” rules; studies to initiate the development of such limits in China. Pesticide International standard-setting removes barriers to the independent development and global market entry of domestically created technologies.
Following the merger of Dow and DuPont, the agricultural business will operate as a fully independent entity, continuing to deliver innovative solutions and services to global agriculture under the new corporate identity of Corteva Agriscience. At the conference, Huang Tianqiang, President of Corteva Agriscience Greater China, elaborated on the company’s vision—“Inspiring Abundance Through Science”—and its core values, while highlighting the R&D‑driven products and agricultural services that the restructured company has been rolling out. His remarks underscored the essence and image of a forward‑looking enterprise committed to advancing modern agriculture in China. In addition, President Huang shared his insights into the evolution of contemporary agriculture.
Corteva Inc. has inherited the businesses of Dow AgroSciences, DuPont Pioneer, and DuPont Crop Protection, and will officially spin off as an independent company on June 1, 2019, becoming one of the world’s largest agriculture‑focused companies, with operations spanning… seed +Plant protection + digital agriculture. In 2017, Corteva’s global sales totaled US$14.3 billion, with a net profit of US$2.6 billion. Among them, seed It maintains a good balance with the plant protection business. Rice, vegetables and fruits, potatoes, and… Corn Once the crops became strategic varieties, the merger brought together the innovative R&D capabilities of several pre‑existing companies, enabling Corteva to deliver end‑to‑end solutions. In 2018, Corteva launched the Lingske® series of herbicides, the Bailianglong® insecticide, and Lumiposa®. seed Treatment agents; from 2019 to 2021, the Inarteq® series of fungicides and Weiluoxing® nematicide will be launched. seed On the business front, Corteva is focusing on new silage markets to ensure… Animal husbandry High quality of feed and milk sources.
In light of global and Chinese agricultural development trends, General Manager Huang stated that Corteva is currently continuing to invest in digital agriculture. He believes that the North American model of digital agriculture cannot be directly replicated in countries with smallholder farmers like China. In the future, a new wave of digital agriculture led by China and other Asian nations—particularly those dominated by smallholders—may emerge.
Corteva defines itself as a leader in agricultural solutions, consistently championing environmental and land stewardship while devoting significant effort to promoting the principles of “safety” and “responsibility” in agricultural production. General Manager Huang emphasized that for the agrochemical industry to achieve long-term, sustainable development, companies must assume both corporate and product responsibilities, ensuring that their products are safe for both the land and agricultural commodities.
Zhou Ji, Procurement and Logistics Manager at DuPont Agrochemicals Shanghai Co., Ltd., has spent more than two decades in procurement and supply chain management at numerous Fortune 500 companies in Europe and North America, amassing extensive hands-on experience. At this forum, Manager Zhou explored the rich dimensions of strategic procurement by examining four key areas: the historical evolution of procurement strategy, the three core components of the procurement value chain, the implementation and execution of procurement strategies, and the prospects and future directions of industry‑specific procurement strategies.
Procurement serves as a coordinator of innovation. When discussing the future evolution of industry procurement strategies, Manager Zhou emphasized deriving value from the supply chain and expanding business operations while continuously enriching the product portfolio. He cited Xiaomi and Huawei as examples: both companies, while maintaining their core flagship products, have consistently integrated supplier‑driven value into their offerings. For instance, Huawei has consolidated its screen‑supply partners and is developing foldable displays, while also collaborating with domestic online translation‑tool providers to embed translation capabilities directly into smartphones, thereby broadening the functional scope of its products.
Manager Zhou stated that WeChat has rendered SMS obsolete, and food delivery services have dealt a blow to instant noodles; agricultural enterprises should therefore consider cross-industry collaboration and “dimension‑reducing” competitive strategies. In providing agricultural services, we must focus on what farmers truly need—not agrochemical products, but rather bountiful harvests. Breakthroughs in business models can enable companies to grow rapidly; for example, plant‑protection drone technology is already gaining momentum across China. Looking ahead, China stands to leapfrog ahead in several cutting‑edge fields, including the internet, the Internet of Things, 5G, supercomputing (for big‑data analytics), and aerospace technologies—each of which represents a source of value that procurement can help unlock.
WestCentral, a leading agricultural inputs distributor based in the northern United States, reports global sales exceeding US$1 billion. In light of current U.S.-China trade tensions, the company’s Vice President, Dean Hendricks, shared his views on… Pesticide Perspectives on the industry’s impact.
He stated that, since China imposed tariffs on U.S. imports… Soybean Since the imposition of a 25% tariff, the United States Soybean Prices have already fallen by 20%. According to current projections from the U.S. Department of Agriculture, U.S. farm income in 2018 is expected to decline by 13% year over year, to $65.7 billion. In 2019, this figure is likely to show only a modest recovery. Beyond policy-related factors, consolidation within the U.S. agrochemical sector also introduces uncertainty into the industry’s trajectory. Between 2016 and 2017, the merger of PotashCorp and Agrium gave rise to Nutrien, the world’s largest crop‑nutrition company; meanwhile, the 2015–2017 integration of Land O’Lakes’ Winfield operations with United Suppliers profoundly reshaped the U.S. agricultural‑input retail landscape, subsequently influencing downstream farmer consolidation as well. From 2015 to 2019, roughly 10% of U.S. farmland—about 93 million acres—changed ownership.
China is the United States. Pesticide The main importing countries account for more than two-thirds of the total import share, and many companies in this market are highly dependent on China. Pesticide Imports include Albaugh, FMC, Nufarm, Syngenta (now part of ChemChina), and others. Environmental regulation has created a more sustainable environment in China, but it has also put pressure on the supply chain. Under the current Trump administration, the 10% tariff on $200 billion worth of Chinese products will rise to 25% at year’s end. Although glyphosate, 2,4‑D, dicamba, and other products have already been removed from the list, nevertheless… Pesticide Companies must continue to take into account the various factors associated with the impact of these tariffs, particularly for active‑ingredient products that appear on the list and are subject to both tariffed raw materials and finished formulations. They need to consider the United States’ current inventory levels, the possibility that importers may shift sourcing to countries outside China, the pricing strategies of U.S. formulation manufacturers, and China… Pesticide Various factors, such as whether companies are willing to lower prices.
Mr. Krishnamurthy Ganesan of India’s AGROLOOK and Mahamaya Lifescience discussed the strengths and weaknesses of Indian agricultural production, the development of India’s agrochemical market and manufacturing sector, as well as India… Pesticide The registration process and other relevant details were used to provide attendees with a comprehensive overview of the Indian market, while also highlighting the cooperation opportunities facing the agrochemical industries in China and India.
India is the world’s largest producer of spices, pulses, milk, tea, cashews, and jute, and boasts the second-largest agricultural land area globally, at 157 million hectares. This extensive arable land contributes to a high degree of diversity in soil types and climatic conditions across the country. In 2017, India’s agriculture and related sectors generated total revenues of US$252.83 billion, with agricultural exports totaling US$33.8 billion. Despite these natural advantages, Indian agriculture continues to grapple with challenges such as low crop yields, heavy reliance on the monsoon, meager farm incomes, and a shrinking agricultural workforce. India ranks fourth worldwide… Pesticide Country of origin, Pesticide Overall utilization rates are low, rice, Cotton and Soybean It is the drug with the highest usage intensity. Currently, India… Pesticide The market’s total value is US$4.6 billion, with the domestic market accounting for US$2.4 billion and the export market for US$2.2 billion.
India’s agrochemical manufacturing sector experienced a golden period of rapid growth in the 1980s and 1990s, giving rise to numerous active‑ingredient producers such as Gharda, PI Industries, Heranba, and Meghmani. From the late 1990s into the 21st century, thanks to abundant raw materials like yellow phosphorus, China began producing active ingredients at lower costs, while India started sourcing these products from China. This arrangement helped resolve global supply‑and‑demand imbalances in the procurement of active ingredients, but it also imposed certain constraints on India. Pesticide The pricing of formulated products. Currently, India imports 60% of its active ingredients from China for both domestic production and export. Although India boasts numerous state-of-the-art formulation facilities, infrastructure development for producing a wide range of active ingredients has been slow, resulting in lower cost efficiency. Krishnamurthy argues that agrochemical companies in China and India should forge strategic partnerships, while regulatory authorities in both countries should streamline registration procedures—particularly for the development of new compounds. Furthermore, China and India should collaborate to break the monopoly held by European and American firms over the research and development of innovative chemical molecules.
During the conference, Peter Jone, Technical Director at Victoria Chemicals in Australia, discussed adjuvant substances and their key functions, while also examining which adjuvants are best suited to specific applications. He outlined two distinct foliar penetration mechanisms—lipid‑mediated penetration and water‑mediated penetration—and, by illustrating the various pathways involved, underscored the critical importance of selecting appropriate adjuvants to match each penetration mode.
In addition to enhancing the penetration of active ingredients, adjuvants also play other critical roles in spray applications. Although their impact on drift is relatively minor, it can still be quantified. Using glyphosate as an example, Peter presented data illustrating how different adjuvant formulations and nozzle types affect droplet behavior and drift. With… Pesticide Compared with active ingredients, adjuvants are relatively safer; however, they can still have a certain impact on the environment. Consequently, the overall trend in adjuvant development is toward greater environmental friendliness, enhanced hydrophilicity, and improved safety for aquatic organisms.
Ms. Liu Wei, Manager of the Foreign Registration Department at Jiangsu Longdeng Chemical Co., Ltd., provided a detailed explanation of the European Union. Pesticide The historical evolution and updates of regulations. Regarding the current status and emerging trends in EU regulatory reviews of chemically active substances, in addition to the well‑known cases of glyphosate and neonicotinoids, Pesticide Unexpectedly, she specifically pointed out that chlorothalonil is currently under a deferred authorization in the European Union, with the validity period expiring on October 31, 2019. The primary concerns in the current review of this substance relate to its classification as a Category 1B carcinogen, the toxicity of its metabolites in groundwater, and its impact on… Wheat The use of cereals, tomatoes, and potatoes is deemed unsafe, requiring applicants to fill substantial data gaps. If applicants fail to successfully challenge the classification as a Category 1B carcinogen, the renewal of chlorothalonil may be prohibited in the European Union.
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