China has 833,000 pesticide-related enterprises, with 85,000 newly established in 2020.

Release Date:

2021-04-06

The Ministry of Agriculture and Rural Affairs recently stated that, influenced by climatic conditions and the influx of pest sources from abroad, crop diseases and pests are showing a trend of increasing severity this year. In recent days, in consultation with the Ministry of Finance, 1 billion yuan has been allocated as central government funds for disaster relief in agricultural production, and nearly 6,000 tons of pesticides have been designated for national emergency reserves. According to data from Qichacha, China currently has 833,000 pesticide‑related enterprises, with Shandong Province leading the pack at 114,000, followed by Henan and Sichuan in second and third place, respectively. In 2020, 85,000 new pesticide‑related businesses were registered, up 4.6% year on year, while the industry recorded 5,727 newly imposed administrative penalties.

From a regional perspective, data from Qichacha show that Shandong Province currently leads with 114,000 pesticide‑related enterprises—more than double the 53,000 in Henan, which ranks second. Sichuan and Jiangsu, closely following, each have 50,000 such companies. In addition, Anhui, Yunnan, Hebei, Guangxi, and several other provinces also rank among the top ten.

Looking at industry trends over the past decade, data from Qichacha show that the annual number of newly registered pesticide-related enterprises peaked at 157,000 in 2018, before falling to just over 80,000 in each of the following two years. In 2020, 85,000 new enterprises were added, a year-on-year increase of 4.6%.

In 2020, 5,727 new administrative penalties were imposed, and 80% of enterprises had registered capital below RMB 1 million.

According to business‑risk data from the agrochemical industry, Qichacha reports that in 2020 the sector recorded a total of 5,727 new administrative penalties, up 42.3% year over year. In addition, 35 environmental‑protection penalties and 125 serious‑violation penalties were imposed in 2020.

Based on registered capital, data from Qichacha show that 80% of companies have a registered capital of less than RMB 1 million, 11% fall in the RMB 1–5 million range, and only 4% exceed RMB 10 million.

Senior analysts believe that the prevention and control of pest outbreaks, both domestically and internationally, are expected to boost the overall performance of China’s pesticide industry. Rising agricultural commodity prices will also, to some extent, push up the price levels of agrochemical inputs, thereby enhancing the profitability of pesticide manufacturers. Locust infestations primarily drive demand for organophosphate and pyrethroid insecticides, while the fall armyworm mainly fuels demand for antibiotic, amide, pyrethroid, and organophosphate insecticides.

Source: The Beijing News

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