In 2019, the agrochemical industry entered a critical phase of transformation.

　　The just-concluded year 2018 was, for… Pesticide For the industry and individual enterprises, the outlook is a mixed bag: large-scale firms that operate legally and meet environmental standards are enjoying robust profitability and abundant opportunities, positioning themselves to capture an ever-larger share of market leadership. Meanwhile, companies producing outdated products or engaging in low‑level, redundant capacity expansion—those whose emissions exceed regulatory limits—are finding it increasingly difficult to survive and face the risk of being phased out. Pesticide The industry is undergoing rapid reshuffling and transformation—under this critical test, which path should it take?
　　China Pesticide Li Zhonghua, Executive Vice President and Secretary-General of the Industrial Association, stated that, as the country’s supply-side structural reform and increasingly stringent safety and environmental protection policies continue to advance, Pesticide The industry has also revealed numerous problems, primarily stemming from its past period of extensive, unregulated growth and weak innovation capabilities, which have led, since 2018, to many… Pesticide Enterprises face tremendous pressure and challenges in their survival and development. Pesticide The industry is at a critical juncture, transitioning from rapid growth to high-quality development. Meanwhile, the restructuring and mergers and acquisitions among the global agrochemical giants have all been completed, which has also… Pesticide The market is exhibiting a new development pattern. The combined impact of factors such as policies, the business environment, and supply-and-demand dynamics has fostered China’s… Pesticide Industry has entered a new phase of accelerated transformation and upgrading.
　　《 Pesticide Gu Xudong, editor-in-chief of Market Information, stated that supply-side reforms and increasingly stringent environmental policies have placed many small and medium-sized enterprises in a critical situation regarding their survival and development. Meanwhile, mergers and acquisitions among multinational agrochemical giants are driving a wave of consolidation in the agricultural chemicals sector. In addition, the implementation of the new Regulations and the gradual advancement of precision agriculture—represented by aerial spraying—are also contributing to… Pesticide The overall transformation and upgrading of the plant protection industry.
　　Gu Xudong said that in the future, China… Pesticide The industry is entering an era of green development, innovative development, high-quality development, and development driven by services. The era of extensive growth at the expense of environmental protection has come to an end. Enterprises must shift from previously prioritizing speed and volume to pursuing higher quality, greater value, and intelligent manufacturing. Pesticide Enterprises should forge a community of shared destiny with agricultural input distributors and farmers, addressing challenges through high-quality services. Pesticide Pain points and challenging issues encountered during the sales process.
　　Faced with the challenges of stringent regulation, zero growth, and high costs, how should enterprises respond? Li Zhonghua believes that rigorous government oversight has become the new normal, and companies must strive to adapt to this evolving landscape. On the registration front, firms should make effective use of existing registration resources and optimize their utilization, minimizing ad hoc filings and identifying the most suitable product‑registration strategies and timing. In production, companies must stay within established boundaries and avoid crossing red lines. API manufacturers can forge close partnerships with formulation‑processing firms, while the latter should excel in developing and producing premium dosage forms; smaller formulation companies may focus on regional service provision. Additionally, they can collaborate with leading enterprises, establishing branch offices under their umbrella to offer agricultural services. Furthermore, companies are encouraged to pay closer attention to… Pesticide Other non-agricultural uses.
　　“The agricultural‑input market faces three major challenges: difficulty in selling products, difficulty in collecting payments, and difficulty in turning a profit.” According to Liu Zukuo, General Manager of Southern Lue Marketing Management Consulting, to ensure strong sales, effective promotion is essential. The key to successful promotion lies in adhering to the “Four Diligences”: frequent demonstrations, regular field visits, proactive recommendations, and consistent follow‑ups; the “Three No’s”: no overpromising, no arbitrary pricing, and no credit sales; and the “Two Possessions”: having one’s own experimental fields and a dedicated fan base. In addition, companies should focus on differentiated products, establish solid demonstration projects, simplify complex tasks, repeat simple tasks, and persist in doing what works—only then can they earn customers’ recognition and trust.
　　Currently, agricultural input distributors face challenges such as high product prices, elevated farming risks, low investment willingness, and a wide array of farmer choices. In response, industry experts recommend three key measures: first, strengthen channel infrastructure and extend marketing networks to lower-tier markets; second, enhance service capabilities, shifting from “selling to the customer” to “delivering to the field”; and third, develop integrated pesticide‑equipment solutions, deploy aerial spraying services, and invest in large‑scale ground‑based plant protection machinery, leveraging low‑cost application fees to drive adoption. Pesticide A win-win for sales and pharmaceutical‑device operations; fourth, focus on niche crop markets and deliver end-to-end crop solutions; fifth, launch… Pesticide Waste‑packaging recycling initiatives and efforts to enhance customer loyalty are key. Agricultural input distributors have already transitioned from “stationary merchants” to “mobile traders,” then to “service providers,” and now to comprehensive service platforms. Only by keeping pace with the times and continuously addressing challenges can they secure a solid foothold in future market competition.

Author: China Pesticide Network Editor: xwbj1