(USD $2,500 plus 2004-2005 Annual Report on China Farm Chemicals Market Review & Outlook)

Research Background

In the first half of 2005, Chinese market of farm chemicals maintained the growing momentum of 2004, and gradually declined after July but was still better than the same period 2004.  Profit margin of farm chemicals industry increased sharply, and the sluggish situation continued to improve.  The Government enhanced its strength in restructuring farm chemicals industry, and substitutes of some high-toxic pesticides started to be promoted all over the country.  Production of farm chemicals kept a positive growing momentum; the key producers saw general improvement.  There was a further growth of export of farm chemicals.  Stock of farm chemicals declined slightly, the oversupply situation continued changing for the better.  Recently the market of farm chemicals was affected by the following factors:

First, there has always been oversupply of farm chemicals, and the composition of products is not rational, the proportion of high-toxic pesticides is too large.  On the other hand, there are too many producers of farm chemicals, and most of them are of low technical level, their products are of low quality and low price, not up to the environmental protection standard and directly leading to vicious market competition. What policy the Government will adopt to restructure composition of farm chemicals industry and its executive strength will cause a fundamental impact on the market trend.

Second, both production and distribution of farm chemicals are affected by natural conditions greatly, especially pesticides and germicides.  In the past few years, occurrence of diseases, pests and weed was always frequent.  So in 2006 crop protection situation will directly influence the demand of farm chemicals.

Third, price of triphen and carbinol has increased in succession and price of yellow phosphorus and liquid chlorine also showed a growing trend with the persistent upsurge of crude oil price since the latter half year of 2005.  On the other hand, because domestic producers kept appealing to Ministry of Commerce for Anti-dumping, import of intermediary products of farm chemicals was heavily blew, and domestic sale price geared up due to less supply.  In 2006 whether growing trend of raw materials of farm chemicals can be controlled will cause a fundamental impact on the farm chemicals price trend.

Fourth, in 2005 grain price saw little increase, far from farmers' expectation, so they are reluctant to sell.  In addition to price hike of agricultural means of production, planting cost increased along with it. Although there was a general exempt of agricultural tax all the country, income increase of farmers was limited and thus invested less to farm chemicals.  The growth level of farmers' income will directly affect input of farm chemicals.

Fifth, export of farm chemicals witnessed persistent increase in 2005 but increase rate was obviously lower than 2004.  More technical barriers to import of farm chemicals and agricultural products in other countries set more blocks to China's export.  Since export is always an important way to ease domestic oversupply, the growth level of export of farm chemicals in 2006 will be extremely important to domestic market.

This report has a detailed discussion on the above mentioned factors, and has a relatively systematic analysis on the market trend, Government policies, production, distribution, import and export in 2005, and based on this, there is a forecast for the industrial structural reform, market trend, production, distribution, import and export in 2006.  This report is a reference for those who care about the Chinese industry of farm chemicals.

Report Outline

Section 1    Policies & Layouts

1.       The Policy of Farm Chemicals Industries
1.1     The Establishment of the "Eleventh Five Years" Plan of China Farm Chemicals has Already Finished
1.2     The Policies About Reducing High-Toxic Farm Chemicals Gradually
1.3     Government Enhance the Threshold of Production Enterprise
1.4     The Anti-Dump Investigation on Many Kinds of Farm Chemicals Material Product Launched by Ministry of Commerce of China
1.5     Attack Severely the Fake Farm Chemicals in All Parts
1.6     The Rotterdam Pact Officially Becomes Effective
1.7     National Development & Reform Commission Authorized that 41 Farm Chemicals Enterprises Can Increase The Assigned Pesticides

2.        The Main Dynamic Situation of Farm Chemicals Markets in 2005
2.1      Investment and Production
2.1.1  The Change of Farm Chemicals Investment
2.1.2  The Dynamic Analysis of Farm Chemicals Assets Reorganization

2.2      Technology Innovations and its Application
2.2.1   The Development of Farm Chemicals in the Future
2.2.2   The Present Status and Development Tendency of International Pesticides
2.2.3   The Technical Innovation and Its Prospect of China Pesticides

2.3      Markets Management and Quality Surveillance

2.4      Circulation System
2.4.1   The Progress of China Farm Chemicals Distribution System Construction
2.4.2   The Development of Agricultural Material Chain-Like Supermarket System

2.5      The Effect of Other Professions on Farm Chemicals Trade
2.5.1   The Effect of Grain Prices on Farm Chemicals Trade
2.5.2   The Effect of Chinese Electric Power Supply on Farm Chemicals Trade
2.5.3   The Rising of Petroleum Prices Has An Effect on Farm Chemicals Trade
2.5.4   The Change of Materials Prices Has An Effect on Farm Chemicals Trade

Section 2    Analysis of Farm Chemicals Market Situation

1.        The Analysis of Farm Chemicals Market Tendency in 2005
1.1      The Farm Chemicals Market Tends to Change for Better in 2005
1.1.1   The Price of Farm Chemicals Comprehensively Increases
1.1.2   The Increase of Farm Chemicals Trade Profit Greatly
1.1.3   The Situation of Biological Farm Chemicals is Better
1.1.4   Peasants Income Continues to Increase

1.2      The Question of Difficulty Exit in the Farm Chemicals Markets at Present
1.2.1   The Situation of Supply Exceeding Demand Does Not Improve
1.2.2   The Price of Crude Oils and Other Material Keeps on Rising
1.2.3   The Market is Chaotic and the Fake Farm Chemicals Still Exit
1.2.4   The Export Volume Drops Obviously

1.3      The Situation of Supply and Demand of Farm Chemicals Markets In 2005
1.3.1   The Output of Farm Chemicals Keeps on Rising in 2005
1.3.2   The Consumption of Domestic Farm Chemicals Rises Steadily
1.3.3   The Exportation of Farm Chemicals is Very Weaken
1.3.4   The Year-End Stock of Farm Chemicals Reaches 180,000 Tons

1.4       The Adjustment of Farm Chemicals Industry Structure in 2005
1.4.1    The Output Structure of China Farm Chemicals from 1996 to 2005
1.4.2    The Progress of Farm Chemicals Industry Structure Adjustment in 2005

1.5       The Production Situation of Farm Chemicals in 2005
1.5.1    The Output of Domestic Farm Chemicals from 1996 to 2005
1.5.2    The Summary of Domestic Farm Chemicals Production in 2005
1.5.3    The Output of Main Farm Chemicals Production Enterprises In 2005
1.5.4    The Output of Farm Chemicals in Each Province In 2005

1.6       The Distribution and The Price Of Farm Chemicals in 2005
1.6.1    The Analysis of Farm Chemicals Price in 2005
1.6.2    The Price Tendency of Key Farm Chemicals Varieties
1.6.3    The Analysis of Farm Chemicals Distribution in 2005

1.7       The Analysis of Farm Chemicals Material in 2005
1.7.1    The Analysis of Yellow Phosphorus Materials Market
1.7.2    The Analysis of Liquid Chlorine Materials Market
1.7.3    The Analysis of Methyl Alcohol Materials Market
1.7.4    The Analysis of Tri-Benzene Materials Market
1.7.5    The Analysis of Pesticides Intermediates Market

1.8       The Import and Export of Domestic Farm Chemicals in 2005
1.8.1    The Import and Export of Farm Chemicals from 1996 to 2005
1.8.2    The Summary of China Farm Chemicals Import and Export in 2005
1.8.3    The Structure Analysis Of Farm Chemicals Import and Export
1.8.4    The Potential of Farm Chemicals Market In Vietnam is Still Big
1.8.5    The Exportation of Glyph sate is in The Difficulties
1.8.6    The Export Trade Friction of China Farm Chemicals Increases

2.         The Prospect of Farm Chemicals Markets in 2006
2.1       The Prospect of Farm Chemicals Markets Tendency in 2006
2.1.1    The Forecast of Farm Chemicals Market Price in 2006
2.1.2    The Progress of High-Toxic Farm Chemicals Substitutes Promotion

2.2       The Forecast of China Pests and Diseases in 2006
2.3       2006 Agricultural Chemicals Market Supply and Demand Forecasts
2.4       The Agricultural Chemicals Industry Structure Adjustment Forecasts of 2006

2.5       Agricultural Chemicals Production Situation Forecasts of 2006
2.5.1    Agricultural Chemicals Output Forecasts of 2006
2.5.2    Agricultural Chemicals Production Concentration Degree Forecasts of 2006

2.6       The Agricultural Chemicals Sale Situation Forecasts of 2006

2.7       Agricultural Chemicals Raw Material Market Forecasts of 2006
2.7.1    The Yellow Phosphorus Market Trend Forecasts
2.7.2    The Liquid Chlorine Market Trend Forecasts
2.7.3    The Methyl Alcohol Market Trend Forecasts
2.7.4    The Benzene, Toluene And Xylenes Raw Material Market Trend Forecasts
2.7.5    The Agricultural Chemicals Intermediate Market Trend Forecasts

2.8        The Agricultural Chemicals Imports and Exports Forecasts of 2006

Section 3    Analysis of Main Farm Chemicals Product

1.         Insecticides
1.1      The Review of Insecticide Market in 2005
1.1.1   The Output of Insecticides in 2005
1.1.2   The Output of Key Insecticides Production Enterprise in 2005
1.1.3   The Import and Export Volume of Insecticides in 2005
1.1.4   The Analysis of Insecticide Prices in 2005

1.2      The Prospect of Insecticide Market in 2006
1.2.1   The Forecast of Insecticides Demand in 2006
1.2.2   The Forecast of Insecticides Output in 2006
1.2.3   The Forecast of Insecticide Market Tendency in 2006

2.          Fungicides
2.1       The Review of Fungicide Market in 2005
2.1.1    The Output of Fungicides in 2005
2.1.2    The Yield of Main Fungicide Enterprise in 2005
2.1.3    The Import and Export Volume of Fungicides in 2005
2.1.4    The Analysis of Fungicides Price in 2005

2.2       The Prospects of Fungicide Market in 2006
2.2.1    The Prospects of Fungicides Demand in 2006
2.2.2    The Forecast of Fungicides Yield in 2006
2.2.3    The Forecast of Fungicides Marketing in 2006

3.          Herbicides
3.1       The Review of Herbicide Market in 2005
3.1.1    The Yield of Herbicides in 2005
3.1.2    The Herbicide Yield of Main Corporations in 2005
3.1.3    The Import and Export Amount of Herbicide in 2005
3.1.4    Analysis of the Price Trend of Herbicides in 2005

3.2       The Prospects of Herbicide Market in 2006
3.2.1    The Forecasts of Demand of Herbicides in 2006
3.2.2    The Forecasts of Herbicides Output in 2006
3.2.3    The Prospects of Herbicides Market Trend in 2006

Tables

Table1     Forecast for Output of Farm Chemicals, 2001-2010
Table2     Eligible Rate of Selective Examine of Farm Chemicals, 2004-2005
Table3     Profit Margin of Farm Chemicals Industry, 2003-2005
Table4     Profit of Industry of Chem. Farm Chemicals, 2004-2005
Table5     Profit of Industry of Bio Farm Chemicals, 2004-2005
Table6     Wholesale Price of Wheat in China, 2004-2005
Table7     Wholesale Price of Corn in China, 2004-2005
Table8     Wholesale Price of Rice in China, 2004-2005
Table9     Domestic Consumption Volume of Farm Chemicals, 2004-2005
Table10   Proportion of Three Varieties of Farm Chemicals in China, 1996-2005
Table11   Industrial Structure of Farm Chemicals in China, 2004
Table12   Industrial Structure of Industry of Farm Chemicals in China, 2005
Table13   Output of Farm Chemicals in China, 1996-2005
Table14   Output of Farm Chemicals in China, 2004-2005
Table15   Wholesale Price of Major Farm Chemicals in China, 2004-2005
Table16   Sales Value of Industry of Chem. Farm Chemicals in China, 2004-2005
Table17   Sales Value of Industry of Bio Farm Chemicals in China, 2004-2005
Table18   Price of Yellow Phosphorus in China, 2003-2005
Table19   Price of Liquid Chlorine in China, 2003-2005
Table20   Price of Carbinol in China, 2003-2005
Table21   Price of Pure Benzene in China, 2003-2005
Table22   Price of Toluol in China, 2003-2005
Table23   Price of Xylene in China, 2003-2005
Table24   Export of Chloroactic Acid in China, 2004-2005
Table25   Price of Chloroactic Acid in China, 2005
Table26   Trend of Octanol Output in China, 1998-2005
Table27   Import Volume of Farm Chemicals in China, 1996-2005
Table28   Export Volume of Farm Chemicals in China, 1996-2005
Table29   Import Structure of Farm Chemicals in China, 2004
Table30   Export Structure of Farm Chemicals in China, 2005
Table31   Forecast for Profit Margin of Farm Chemicals Industry in China, 2005-2006
Table32   Forecast for Production Structure of Farm Chemicals in China, 2006
Table33   Output of Pesticides in China, 2004-2005
Table34   Import of Pesticides in China, 2004-2005
Table35   Importation Price of Pesticides in China, 2004-2005
Table36   Export of Pesticides in China, 2004-2005
Table37   Exportation Price of Pesticide in China, 2004-2005
Table38   Wholesale Price of Pesticide Shachongshuang in China, 2004-2005
Table39   Wholesale Price of Pesticide Shachongdan in China, 2004-2005
Table40   Retail Price of Dichlorvos in China, 2004-2005
Table41   Retail Price of Methamidophos in China, 2004-2005
Table42   Retail Price of Omethoate in China, 2004-2005
Table43   Output of Germicides in China, 2004-2005
Table44   Import of Germicides in China, 2004-2005
Table45   Importation Price of Germicides in China, 2004-2005
Table46   Export of Germicides in China, 2004-2005
Table47   Exportation Price of Germicides in China, 2004-2005
Table48   Wholesale Price of Fipronil in China, 2004-2005
Table49   Retail Price of Ebp in China, 2004-2005
Table50   Retail Price of Tuzet in China, 2004-2005
Table51   Output of Herbicides in China, 2004-2005
Table52   Import of Herbicides in China, 2004-2005
Table53   Importation Price of Herbicides in China, 2004-2005
Table54   Export of Herbicides in China, 2004-2005
Table55   Exportation Price of Herbicides in China, 2004-2005
Table56   Wholesale Price of Glyphosate in China, 2004-2005
Table57   Retail Price of Acetochlor in China, 2004-2005
Table58   Retail Price of Paraquat in China, 2004-2005

Figures

Figure1    Figure of Substitute of High-toxic Pesticides
Figure2    Intermediate of Farm Chemicals in Anti-dumping Investigation, 2005
Figure3    Figure of Prohibited Products in Rotterdam Convention
Figure4    Approved Enterprises and Their Varieties of Farm Chemicals in 2005
Figure5    Planting Area of Major Crops, 2004-2005
Figure6    China Farm Chemicals Balance Sheet, 2003-2005
Figure7    Output of Major Producers of Farm Chemicals in China, 2004-2005
Figure8    Output of Farm Chemicals by Provinces, 2004-2005
Figure9    Concentration Ratio of Farm Chemicals Industry, 2004-2005
Figure10  Production Capacity of Chloroactic Acid in China, 2005
Figure11  Import and Export Volume of Octanol in China, 1998-2005
Figure12  Importation Price of Octanol in China, 1998-2005
Figure13  China Pyrocatechin Balance Sheet, 2002-2005
Figure14  Figure of Import and Export of Farm Chemicals in China, 2004-2005
Figure15  Forecast for Major Diseases and Pests in China, 2006
Figure16  Consumption of Farm Chemicals in China, 2006
Figure17  Consumption of Farm Chemicals by Province, 2005-2006
Figure18  China Farm Chemicals Balance Sheet, 2004-2006
Figure19  Prospect of Output of Farm Chemicals in China, 2002-2006
Figure20  Output of Major Producers of Pesticides in China, 2004-2005
Figure21  Output of Pesticides by Province, 2004-2005
Figure22  Import of Pesticides by Country, 2004-2005
Figure23  Export of Pesticides by Country, 2004-2005
Figure24  Retail Price of Dichlorvos by Province, 2005
Figure25  Retail Price of Methamidophos by Province, 2005
Figure26  Retail Price of Omethoate by Province, 2005
Figure27  Forecast for Demand of Pesticides in China, 2006
Figure28  Output of Major Producers of Germicides by Province, 2004-2005
Figure29  Output of Germicides by Province, 2004-2005
Figure30  Import of Germicides by Country, 2004-2005
Figure31  Export of Germicides by Country, 2004-2005
Figure32  Retail Price of Ebp by Province, 2005
Figure33  Retail Price of Tuzet by Province, 2005
Figure34  Forecast for Demand of Germicides in China, 2006
Figure35  Output of Major Producers of Herbicides in China, 2004-2005
Figure36  Output of Herbicides by Province, 2004-2005
Figure37  Import of Herbicides by Country, 2004-2005
Figure38  Export of Herbicides by Country, 2004-2005
Figure39  Retail Price of Acetochlor by Province, 2005
Figure40  Retail Price of Paraquat by Province, 2005
Figure41  Forecast of Demand of Herbicides in China, 2006
Figure42  Economic Index of Hubei Shalongda Stock Ltd. Company
Figure43  Economic Index of Nantong Jiangshan Farm Chemicals and Chemical Industry Stock Ltd. Company
Figure44  Economic Index of Zhejiang Xinan Chemical Industrial Group
Figure45  Economic Index of Fujian Sannong (Group) Stock Ltd. Company
Figure46  Economic Index of Anhui Huaxing Chemical Stock Ltd. Company
Figure47  Economic Index of Shandong Dacheng Farm Chemicals Stock Ltd. Company
Figure48  Economic Index of Dalian Ruize Farm Chemicals Stock Ltd. Company