In 2007, the global pesticide industry experienced remarkable growth, driven by sustained development over previous years. Production and sales reached new heights, with active import and export activities contributing to a significant rise in economic benefits. The industry also made substantial progress in product structure optimization, achieving both quality and rapid development.
One of the key achievements was the record output of pesticides. According to data from the National Bureau of Statistics, total pesticide production in 2007 reached 1.731 million tons, marking a 24.3% increase compared to the previous year. This placed China at the top of the global pesticide production list. Insecticides accounted for 600,000 tons, or 34.6% of total output, rising by 12.3%. Fungicides totaled 137,000 tons, up 17.8%, while herbicides reached 562,000 tons, a 40.1% increase, making up 32.4% of the total. This shift in the species structure reflected a more balanced and optimized composition.
Another notable achievement was the strong performance in international trade. Despite a reduction in the export tax rebate rate from 11% to 5% in July 2007, exports still grew significantly. China exported 477,000 tons of pesticides worth $1.35 billion, an increase of 19.9% in volume and 29.8% in value. The average export price rose to $2,830 per ton, up 8.3%. Meanwhile, imports declined by 4.4% to 41,000 tons. Notably, even with the policy change, export volumes remained stable, and many companies managed to maintain profitability through higher pricing strategies.
The overall price of pesticides increased steadily throughout the year, with most products seeing a 1% to 7% rise. For example, prices of carbendazim, tricyclazole, and glyphosate all went up, while only a few like abamectin saw a slight decline. The production and sales ratio also improved, reaching 97.4% on average, with some months exceeding 100%. This indicated strong demand and efficient distribution.
A major milestone in the industry was the successful phase-out of highly toxic pesticides. Five dangerous substances, including methamidophos, were banned, marking a significant step in structural adjustment. Thanks to the availability of safer alternatives, total pesticide production did not decline. Unlike the 1983 ban on organochlorine pesticides, this transition was smooth and well-managed, reducing the need for imported chemicals. Additionally, the shift toward water-based and solid formulations helped reduce reliance on traditional emulsifiable concentrates, further improving environmental safety.
Looking ahead, despite challenges such as rising energy and raw material costs in 2008, the overall environment for the pesticide industry remained favorable. The government’s focus on rural issues and agricultural development provided a supportive policy framework. The Ministry of Agriculture launched initiatives to boost food production, and efforts were underway to address the regulatory challenges of classifying pesticides as hazardous chemicals.
Domestic demand remained stable, while international markets showed strong interest due to the cost-effectiveness of Chinese pesticides. With domestic production capacity far exceeding local needs, supply concerns were minimal. Export growth was expected to continue, driven by global demand.
In 2008, major changes in pesticide management were introduced, including the elimination of trade names and the use of common names instead. This aimed to simplify regulation and prevent price manipulation, although it posed challenges for brands with high recognition. Companies had to adapt quickly, shifting their marketing focus from brand names to product identities.
Finally, rising production costs, including raw materials, energy, and labor, contributed to higher market prices. However, government policies limited the ability of producers to fully pass on these costs, forcing them to absorb part of the burden through efficiency improvements and technological upgrades. Overall, the industry continued to grow, driven by strong demand and strategic adjustments.
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