language language

    How Can Agrochemical Export Companies Navigate the Global Pandemic?


    Release Date:

    2020-05-11

    The COVID‑19 pandemic has placed immense pressure on global economic and trade growth and has also dealt a blow to China’s foreign trade, with the country’s agrochemical export sector likewise unable to remain unaffected…
     
    From a global perspective, the world economy has hit the “pause button,” and expectations of a recession are growing ever stronger. According to the WTO’s latest projections, global trade exports are expected to decline by 12.9% in 2020; under an extreme scenario, this figure could rise as high as 31.9%.
     
    Looking at China’s foreign trade performance in the first quarter, according to data released by the General Administration of Customs on the morning of April 14, the country’s total import and export value reached 6.57 trillion yuan, down 6.4% year-on-year. Specifically, exports amounted to 3.33 trillion yuan, a decline of 11.4%, while imports totaled 3.24 trillion yuan, down 0.7%. The trade surplus stood at 98.33 billion yuan, narrowing by 80.6%. Turning to China’s pesticide exports for January–February, analysis of data from IHS Markit’s GTA database—compiled by Agrow and Phillips McDougall’s parent company—shows that during the first two months of 2020, China’s total pesticide export value was US$616 million, a decrease of 18.7% compared with the same period last year. Export volume fell by 12.7% to 226,000 metric tons.
     
    For China’s foreign‑trade enterprises in 2020, one word that stands out is “difficulty.” Beyond the common challenges of resuming work and securing transportation, they also grappled with difficulties in winning orders, fulfilling contracts, navigating disrupted international logistics, and coping with mounting trade barriers. “With the domestic phase barely over, the overseas leg has already begun—foreign‑trade professionals are seeing the whole game through.” If that’s the case, then it’s not just a matter of “difficulty”—it’s “too difficult.”
     
    As an agrochemical export company, we are part of this industry and must not focus solely on the difficulties. Instead, we should recognize that every challenge harbors opportunity—challenges and opportunities often coexist right before our eyes. The key lies in the mindset and perspective with which we view them. As we often say: “Our cognition shapes our thinking; our thinking guides our actions; and our actions determine our success or failure.”
     
    So, where lie the opportunities for our agrochemical export enterprises amid the pandemic?
     
    First, amid the contradiction between global population growth and shrinking arable land, the widespread use of pesticides to boost yields per unit area represents a crucial pathway for addressing food security. Consequently, in the foreseeable future—when no fundamental changes are expected in agricultural production—the world’s reliance on pesticides is unlikely to diminish, and rigid demand will continue to strengthen. As a result, the existing global agrochemical market will provide a solid foundation for pesticide exports.
     
    Second, even during the pandemic, to ensure agricultural production, some countries have, under appropriate conditions, prioritized facilitating access to agrochemical products; for example, India, despite nationwide lockdowns and city‑wide curfews, nonetheless designated green lanes to support the production and transportation of agricultural inputs.
     
    Third, India and China are major producers of generic pesticide products worldwide. At present, India faces significant uncertainty regarding the trajectory and control of the pandemic. Should India experience a sustained, large-scale outbreak that remains poorly contained and worsens over an extended period, leading to temporary supply shortages for certain pesticide formulations and subsequent price increases, this could create opportunities for some Chinese pesticide manufacturers.
     
    Fourth, the current outbreaks of certain plant diseases, pests, and weeds—such as the fall armyworm and the desert locust—are also creating potential growth opportunities for pesticide use.
     
    Fifth, the widespread rise in international grain prices will provide a certain stimulus to some countries and regions, thereby increasing the share of agricultural inputs.
     
    Faced with the opportunities before us, as a leading agrochemical exporter, we all share a common sentiment: we’re not content to simply “watch the whole game”; we must “play the entire match” and strive to “outperform everyone else.”
     
    On the ideological front: As we often say, actions lead to outcomes, and thoughts shape those actions. In the face of a globally spreading pandemic, we must adopt an objective and impartial perspective, base our assessments on facts, shed any attitude of negativity or complacency, overcome mental obstacles and the tendency to slip into stagnation, and maintain enthusiasm for our work and a proactive, enterprising mindset.
     
    In terms of market development strategy: conduct in-depth research, maintain proactive follow-up, segment customers systematically, and develop product‑centric solutions. Entering a market is not about casting a wide net or skimming the surface; without meticulous, focused cultivation of your own market, you will never truly grasp its pulse. Both customers and products—core offerings and peripheral extensions—must be integrated in a seamless, mutually reinforcing process.
     
    On the personnel front: Trust stems from expertise. Team members across all departments consistently leverage the “Four Specializations”—specialized knowledge, specialized skills, specialized mindset, and unwavering focus—to ensure that whenever we fight, we prevail, and whenever we act, we succeed.
       
    On the product front: Products are the cornerstone of market competition, and the quality and continuous innovation of our offerings provide the strongest foundation for success. In this unique period marked by the pandemic, maintaining consistent product quality is more critical than ever, while driving product innovation and upgrades is essential to stay ahead of competitors and better serve the market.
       
    Order Management: In the face of the global pandemic, the impact has been far-reaching and multifaceted, with increasingly complex scenarios and rapid, unpredictable changes. To address this, we adhere to the “Three Fast” principle—swiftly sign letters of intent, promptly dispatch signed orders, and expedite payment collection—thereby ensuring a more efficient, closed-loop execution process for all orders.
     
    Management and Culture: With effective management, we can ensure order, achieve efficiency, and enhance performance. By continuously streamlining workflows, breaking down silos between departments, and ensuring seamless coordination across all functions, we foster a positive work environment and a vibrant cultural atmosphere, thereby harnessing the power of unity.
     
    In this era of a global pandemic, let us draw on our core competencies, shoulder our responsibilities with unwavering resolve, and implement decisive, concrete measures to emerge victorious from the crisis.
     
     

    Tags: