In this period of profound change and pivotal transition, where should agrochemical companies go? The annual National Agrochemical Conference is here to guide you.

Release Date:

2019-10-16

　As summer gives way to autumn, in this season of harvest, on October 15, China… Pesticide The 19th National… hosted by the Industrial Association Pesticide The networking event arrived as scheduled, bringing together participants from across the country. Pesticide People have gathered together on the beautiful banks of the Huangpu River, embarking together on this event. Pesticide A grand event of the world.
　　This year’s forum, under the theme “Battling Through Storms and Tempests: Seventy Years of Pursuing Dreams in the Industry, Jointly Driving Development and Transforming Momentum for the Future,” comprehensively reviewed China’s achievements over the past seventy years since the founding of the People’s Republic. Pesticide The industry has achieved remarkable progress. This paper analyzes the opportunities and challenges it faces in the new context and environment, explores pathways and approaches for transitioning from high-speed growth to high-quality development, effectively addresses the impact of numerous domestic and international uncertainties, and accelerates China’s… Pesticide The pace of innovation and green development in the industry is of great significance.
　　This meeting was convened by the Department of Crop Production Management of the Ministry of Agriculture and Rural Affairs. Pesticide Mr. Chu Huanghui, Mr. Li Bin, Vice President of the China Petroleum and Chemical Industry Federation, and the Ministry of Agriculture and Rural Affairs Pesticide Ms. Ji Ying, Chief Agronomist of the Testing Institute, China Pesticide Mr. Sun Shubao, President of the Industrial Association, and Mr. Zhou Qikui, General Manager of Jiangsu Yangnong Chemical Co., Ltd., attended the opening ceremony, China Pesticide Ms. Li Zhonghua, Secretary-General of the Industrial Association, presided over the opening ceremony.
　　Looking back over the past 70 years, the achievements have been remarkable.
　　However, we still face severe challenges at present.
　　In the opening ceremony address, China Pesticide Sun Shubao, president of the Industrial Association, stated that 2019 marked the 70th anniversary of the founding of the People’s Republic of China, and that a comprehensive review of China over the past seventy years since its establishment… Pesticide Only by recognizing the industry’s remarkable achievements, analyzing the opportunities and challenges it faces in the new landscape and environment, and exploring pathways and approaches for transitioning from high-speed growth to high-quality development, can we effectively address the impact of numerous domestic and international uncertainties and accelerate China’s… Pesticide The pace of innovation and green development in the industry.
　　Over the past 70 years since the founding of New China, our country… Pesticide The industrial sector has grown from scratch to a robust, large-scale industry, traversing 70 momentous years marked by both challenges and triumphs. It has achieved remarkable, globally recognized accomplishments, establishing a relatively complete agrochemical industry system that encompasses active‑ingredient production, formulation processing, research and innovation, and the supply of raw‑material intermediates. This has made an enormous contribution to ensuring China’s sustainable agricultural development, food security, and increased incomes for farmers. Today, China has emerged as the world’s largest… Pesticide Producing country and Pesticide Exporting country. Currently has more than 50… Pesticide A publicly listed company, it accounts for one-third of the world’s top 20 and boasts more than 70 new varieties with proprietary intellectual property rights, making it a pivotal link in the global crop protection supply chain.
　　However, at present Pesticide The cumulative pressures facing the industry have created a severe situation, impacting… Pesticide The capacity to ensure sustainable industrial development and food supply security. More than six months after the Jiangsu March 21 explosion, numerous chemical enterprises in the surrounding industrial parks that had suspended operations due to the incident still remain unable to resume production. Certain globally critical crop‑protection products have been forced to be removed from the pesticide registration list because the supply of active ingredients and intermediates has been disrupted. This poses significant risks should major pests and diseases—such as the fall armyworm—suddenly erupt and wreak havoc. Under mounting safety and environmental‑protection pressures, project approvals in some industrial parks have become excessively stringent and severely delayed; following the implementation of the new regulations… Pesticide Registration fees have increased significantly, Pesticide The delay in the development and production of new varieties is hindering the acceleration of highly toxic… Pesticide Both alternative control strategies and the management of resistance pose significant challenges.
　　China Pesticide Li Zhonghua, Secretary-General of the Industrial Association, also pointed out that, according to data from the National Bureau of Statistics, although China… Pesticide While production continues to maintain a steady growth trend, output, sales revenue, and profits have all increased; however, over the past two years… Pesticide Manufacturing companies are facing a rather difficult time. The new… Pesticide More than two years after the official promulgation of the “Administrative Regulations,” the Ministry of Agriculture and Rural Affairs has fully assumed responsibility for… Pesticide The industry faces significant regulatory challenges, as both the sector and individual companies gradually absorb and adapt to a new set of supporting rules. At the beginning of the year, the Xiangshui explosion left some enterprises once again unable to operate normally or even forced to suspend production; meanwhile, the U.S.-China trade war, adverse weather conditions, and the emergence of the fall armyworm have all had a severe impact on the agrochemical market.
　　China Pesticide The industry still has considerable room for quality improvement,
　　Make concerted efforts to advance Pesticide Supply-side structural reform is the key.
　　At the opening ceremony, Li Bin, Vice President of the China Petroleum and Chemical Industry Federation, stated that there is still considerable room for improving quality in the chemical industry. Pesticide The same holds true. Since the founding of New China, China… Pesticide Industry has gone through three stages: inception, adjustment, and development. China is the world’s largest… Pesticide The producing country not only manufactures over 600 original‑drug varieties and more than 1,000 dosage forms, but also adopts environmentally friendly practices. Pesticide Becoming mainstream. For Pesticide How the industry can undergo transformation and upgrading is a question that everyone is actively exploring. As a country with a large population and a strong agricultural base, the only way forward is to enhance quality and strengthen competitiveness. China… Pesticide Develop industrial strengths, enhance international competitiveness, and become a global power.
　　From a systemic perspective, the structural imbalance in China’s petrochemical industry—characterized by overcapacity at the low end and insufficient supply at the high end—has yet to be fundamentally addressed, leaving substantial room for transformation. Pesticide The industry’s development likewise requires an accelerated shift in its growth model. Furthermore, China… Pesticide Most enterprises in the industrial chain remain confined to the manufacturing sector, relying primarily on resource inputs and capacity expansion to drive growth. Weak product innovation, insufficient technological integration, and outdated business models constitute prominent contradictions and challenges. We must learn to leverage new economic, technological, and informational tools to accelerate… Pesticide The industry’s transformation and upgrading involve exploring innovative development approaches across multiple dimensions, including products, technologies, management, and marketing models.
　　Department of Crop Production, Ministry of Agriculture and Rural Affairs Pesticide Mr. Huang Hui, a researcher at the Administration Office, believes that, with regard to our country… Pesticide Addressing the challenges in industrial development, and in order to better meet the demands of modern agricultural advancement, we are vigorously promoting… Pesticide Supply-side structural reform, promoting Pesticide For the healthy development of industries, efforts must be focused on six key areas: “control, suppression, prohibition, relocation, reduction, and management.” Specifically, the first priority is to control… Pesticide Number of enterprises; second, reduction is required. Pesticide Product quantity; third, highly toxic and high-risk substances must be prohibited. Pesticide ; Fourth, we must promote Pesticide Enterprises are relocating to industrial parks; fifth, chemical usage must be reduced. Pesticide Dosage; six, comprehensively strengthen Pesticide Regulation.
　　Due to increasingly stringent safety and environmental regulations, coupled with the impact of international factors such as the U.S.-China trade war, modern… Pesticide Enterprises pose numerous challenges, and Mr. Huang Hui also put forward corresponding countermeasures at this conference. He believes that it is imperative to comprehensively implement the new… Pesticide The Management Regulations focus on the “entire industry,” span the “full value chain,” strengthen “delegation, regulation, and service,” promote “high-quality development,” ensure “risk prevention,” and aim for “comprehensive safety.” First, we must enhance industry monitoring and regulation to foster sound industry growth; second, we must rigorously control registration and market access, and optimize… Pesticide Product structure; third, strictly control production access and optimize. Pesticide Industrial layout; fourth, strictly control market access and planning. Pesticide Market order; fifth, we must strengthen it. Pesticide Guidance on usage to ensure the safety of agricultural production; sixth, it is necessary to strengthen… Pesticide Market supervision, ensuring Pesticide Product quality; seventh, we must strengthen the support system and enhance… Pesticide Management level.
　　 Pesticide Management policies will become increasingly refined,
　　The days when no effective pesticides were available for specialty minor crops are coming to an end.
　　Ministry of Agriculture and Rural Affairs Pesticide Ms. Ji Ying, Chief Agronomist of the Testing Institute, also pointed out at this conference that, Pesticide Management will become increasingly stringent! Pesticide Management policies will become increasingly refined, industry standards will rise steadily, oversight and law enforcement will grow more standardized, and penalties for violations will become ever more stringent. At the same time, Pesticide The threshold for product registration will continue to rise. At present, China has implemented a re‑evaluation system, under which products that have been registered for many years are reassessed in accordance with the new standards, and highly toxic or high‑risk products are being phased out. Pesticide ; Continuously refine and revise maximum residue limits; establish and improve a comprehensive risk assessment system.
　　In addition, Chief Agronomist Ji specifically noted that advancing the registration of pesticides for specialty minor crops has become one of the Ministry of Agriculture’s key priorities for the next phase. In recent years, China has approved pesticide products for specialty minor crops covering… Pesticide There are 75 varieties and 1,690 products, covering 43 crops and 58 types of diseases, pests, and weeds. The issue of “no available pesticides” for specialty minor crops such as ginseng, bayberry, notoginseng, goji berries, hazelnuts, strawberries, peonies, sesame, and Chinese yam has been somewhat alleviated. In addition, a separate document titled “Specialty Minor Crops” has been formulated. Pesticide “Requirements for Registration Documentation,” shortening the duration of registration trials and leveraging the roles of local agricultural authorities, industry associations, and… Pesticide To boost enterprise enthusiasm, joint trials can be organized, green channels can be established, and centralized review and submission processes can be implemented.
　　After the new regulations come into effect, China… Pesticide How is the industry changing?
　　Where is the focus of registration at present?
　　About Pesticide Registration management has always been Pesticide A key focus for businesses. At this conference, the Ministry of Agriculture and Rural Affairs was invited. Pesticide Director Zhao Yonghui of the Pharmaceutical Administration Division of the Inspection Institute provided an interpretation of the latest… Pesticide Current status and trends in registration management.
　　Director Zhao stated that, as of the end of 2018, China had registered Pesticide Product 41514 involves 2,129 enterprises (including 119 overseas enterprises) and 681 active ingredients. In 2018, China… Pesticide Production (converted to 100% basis) totaled 1.455 million tons, nationwide chemical… Pesticide There are 771 manufacturing enterprises above designated size, with total assets of RMB 276.4 billion. In 2018, nationwide agricultural use… Pesticide The total usage amounted to 831,000 tons, equivalent to 269,000 tons of 100% active ingredient; among these, glyphosate and its salts, acetochlor, and dichlorvos ranked as the top three in terms of volume used. In 2018, nationwide… Pesticide There are 1,117 import and export enterprises. Pesticide The volume of imports and exports (of goods) reached 1.4476 million tons, with a total value of US$8.571 billion; export markets spanned 171 countries, and exports… Pesticide 1.4054 million tons, valued at US$8.073 billion; glyphosate, paraquat, and imidacloprid ranked first, second, and third in export value, respectively.
　　In addition, Director Zhao also mentioned the new… Pesticide Following the official implementation of the Regulations, the previous trend of increasing the number of registered products was reversed, with a total of registrations recorded throughout 2018. Pesticide The number of products stood at 4,515, but fell to just 116 from January to July 2019, reflecting a very pronounced downward trend. In addition, pressures related to workplace safety and environmental protection, along with changes to the production licensing regime, have further driven corporate mergers, restructuring, and a realignment of industrial value chains. Meanwhile, the market shares of the three major categories—herbicides, insecticides, and fungicides—have remained stable yet shifted, with a growing proportion of green‑oriented products.
　　At this meeting, Director Zhao also brought the latest… Pesticide Innovative measures for registration management—please take note. Pesticide Enterprises must give priority to key matters, primarily including procedures for handling electronic label formats and changes in registrant information, administrative licensing reforms, the “green channel,” and… Pesticide Registration and review standards. If your company is currently registering… Pesticide Products—those highlighted above are definitely worth paying attention to.
　　Technology must be the primary productive force.
　　Two academicians analyze the latest cutting-edge technologies.
　　At this conference, Academician Qian Xuhong of the Chinese Academy of Engineering and President of East China Normal University was specially invited to deliver a report. During his address, Academician Qian pointed out that China’s chemical raw materials and products sector generated 8.77 trillion yuan in operating revenue, with fine chemical products accounting for approximately 3.5 trillion yuan—yet the share of fine chemicals remains at just 45%, a significant gap compared with that of developed Western countries. China urgently needs to shift from a focus on mere production processes to embracing process engineering and product engineering; unless this challenge is overcome, the future development of China’s fine chemical industry will face substantial obstacles.
　　At this conference, Academician Qian highlighted that microchannel reactors represent a major global trend. He emphasized their advantages: safety—thanks to rapid mass and heat transfer and a low risk of explosion, coupled with small liquid holdup volumes that minimize potential damage; cleanliness—owing to precise, efficient mixing and reduced generation of the three wastes; and efficiency—eliminating scale‑up effects, obviating the need for stepwise scaling, thereby saving time and costs, while offering greater flexibility in adjusting output to meet market demand. However, the current microreactor market is dominated by foreign companies such as Corning and Bayer, and no domestically produced microchannel chips have yet matched or surpassed these technologies. Moreover, the most critical bottleneck lies in the precision manufacturing of microchannels. Academician Qian repeatedly urged that R&D on microchannel reactors must be given high priority, stressing that we cannot afford to miss this opportunity.
　　Academician Zheng Yuguo, an academician of the Chinese Academy of Engineering and Dean of the School of Bioengineering at Zhejiang University of Technology, delivered a report.
　　“Part” Pesticide Moreover, the manufacturing process of intermediates faces challenges such as high energy consumption, high material consumption, substantial water use, and significant pollution. According to statistics, the chemical production of one ton of agricultural chemicals typically generates 5 to 50 tons of by-products. Consequently, environmental safety and sustainability have become Pesticide “This is one of the key challenges facing the processing and manufacturing of intermediates, urgently requiring technological innovation and the adoption of green process alternatives to address it!” Academician Zheng Yuguo, an academician of the Chinese Academy of Engineering and Dean of the School of Bioengineering at Zhejiang University of Technology, pointed out incisively that in China… Pesticide and the serious challenges faced by intermediate‑product manufacturers.
　　At this conference, Academician Zheng took the opportunity to introduce bio‑organic synthesis technology to the attendees, asserting that it is… Pesticide An important direction for the green manufacturing of chemicals. So what is bio‑organic synthesis? Academician Zheng explains that it takes biological science and technology—such as biocatalysis, synthetic biology, and metabolic engineering—as its core, integrates principles and methods from organic synthesis and chemical engineering, establishes a new technological framework for bio‑organic synthesis, and enables applications in pharmaceuticals, Pesticide Efficient and green chemical production.
　　China’s supply chain development faces significant challenges and has a long way to go.
　　 Pesticide Enterprises must continue to forge ahead.
　　At this conference, Wang Rong, Chairman of Beijing Yingtai Jiahe Biotechnology Co., Ltd., presented a report titled “China’s Supply Chain Challenges and Global Market Changes.” He believes that China… Pesticide Enterprises face three supply chain challenges:
　　First, environmental regulations are tightening and industry registration thresholds are rising, and the historic benefits of industrial relocation have already faded.
　　Second, since 2017, influenced by environmental inspections and production restrictions imposed on enterprises, China has… Pesticide Production is on a downward trend;
　　Third, multinational corporations are reallocating procurement and seeking alternative suppliers to enhance supply security.
　　There are also several points regarding market changes:
　　First, short-term product shortages still persist.
　　Second, industry concentration has increased, the number of production plants has declined, and product scale has expanded.
　　Third, there is a trend of production capacity shifting to Northeast China, the western region, and India.
　　Fourth, new overcapacity is emerging, as seen in products such as mesotrione and sulcotrione.
　　In this regard, General Manager Wang believes that the development trend of China’s supply chain is:
　　First, companies will significantly increase their investments in safety and environmental protection, and the proportion of products manufactured in compliance with regulations will rise substantially.
　　Second, continuous and automated production will become the prevailing trend in future manufacturing; the pace of technological reform will accelerate significantly, and leveraging China’s strong pool of chemical‑engineering talent will enable rapid advancements in technology; overall innovation capacity will see a substantial enhancement.
　　Third, following several years of upgrading and transformation, China’s overall supply advantages in agrochemical products will be further strengthened, making these advantages even more pronounced.
　　Fourth, drawing on the historical evolution of China’s development—where environmental protection and safety have consistently advanced in tandem—it is clear that cultivating new suppliers in other countries entails significantly higher trial-and-error costs and a greater likelihood of liability claims. Consequently, strategically opting for Chinese firms offers greater assurance.
　　“The road is long and arduous, but perseverance will lead us to our destination.” In the face of the current “major shake-up” in the chemical industry, General Manager Wang remains confident in China. Pesticide With resilience, every enterprise will endure and go even further!